Recent Business Performance Updates Of Two Stocks: J Sainsbury PLC and Flutter Entertainment PLC

J Sainsbury PLC

United Kingdom-based J Sainsbury PLC (SBRY) is a British chain of supermarkets. The group involves grocery-related retailing and retail banking with interests in property as well. The group’s brands comprise Sainsbury’s groceries, Sainsbury’s Home, Argos, Sainsbury’s Bank, Tu, and Habitat. The company’s operations are differentiated into four operating segments: Retail – Food, General Merchandise and Clothing, Financial Services & Property Investment.

SBRY- Financial Highlights (for the 28 weeks to 21 September 2019, £million)

(Source: LSE)

In Grocery market share, the company showed positive momentum. For the first half of 2020, the underlying group sales, including VAT, decreased by 0.2% to £16,856 million as compared with the corresponding period of the last year, while like-for-like sales (including VAT, excluding fuel), reduced by 1%. In H1 FY20, the underlying profit before tax decreased by 15% to £238 million against the £279 million in H1 FY19, driven by the combined effect of the phasing of cost savings, tough weather comparatives, and higher marketing costs. The underlying basic earnings per share declined by 16% to 7.9 pence as compared with the same period of the last year. Retail free cash flow surged by £81 million to £698 million versus the same period in the previous year. The net debt for the first half of 2020 was £6,778 million, a decrease of £568 million from the previous year (H1 FY2019: £7,145 million). Interim dividend per share increased by 6 per cent to 3.3 pence in H1 FY20.

SBRY-Share price performance

(Source: Thomson Reuters)

While writing (as on 08th November 2019, at 01:27 PM GMT), J Sainsbury PLC shares were trading at GBX 202.40 per share; plunged by 1.55 per cent as compared to the previous day closing price level. The total market capitalisation of the company was around £4.56 billion.

In the past one year, the company’s shares have touched a high of GBX 327.25 (as on November 9th, 2018) and a low of GBX 177.05 (August 15th, 2019). The company’s shares were trading 38.15 per cent below the 52-week high price point and 14.31 per cent above the 52-week low price point, at the current price point, as quoted in the price chart.

The stock’s volume before the market close stood at 2,164,588 at the time of writing. Stock’s average daily traded volume for 5 days was 5,407,390.80; 30 days- 5,885,604.73 and 90 days – 6,899,265.06. The company’s stock beta (5Y monthly) was 1.00, which makes it as volatile as the benchmark index. The shares of the company were trading below the 30-days and 60-days SMA at the time of writing.

SBRY shares have delivered a negative return of 2.47 per cent in the past one month. The stock plunged by approximately 22.42 per cent on YTD (Year-to-Date) time interval and was up by 8.07 per cent in the last three months.

 

Flutter Entertainment PLC

Flutter Entertainment Plc (FLTR) domiciled in the United Kingdom is an international, multi-channel gaming operator and sports betting company, with a market in Ireland, Australia, the United Kingdom, the United States, and globally. The company primarily operates five sports betting and gaming brands under four divisions: Online, Australia, Retail and US. The company was earlier named Paddy Power Betfair Plc.

FLTR-Q3 FY2019 Trading Update (as on 7th November 2019)

The company has released a trading update for the three months ended 30 September 2019. The company reported over 10 per cent growth in revenue of sports and gaming segments. The Sports segment revenue for Q3 2019 stood at £417 million, up by 11 per cent as compared to £375 million in Q3 2018. Gaming revenue for the reported period increased by 18 per cent to £116 million as compared to £107 million in the same period last year. Geography-wise, Australia’s revenues grew by 19 per cent, while the US revenues grew by 67 per cent. On 27th February 2020, the company will announce the 2019 Preliminary Results (TBC).

FLTR- Financial Highlights (for the six months ended 30 June 2019, £million)

(Source: LSE)

For the first half of the financial year 2019, the company’s revenue surged by 18 per cent to £1,020 million from £867 million in the H1 FY2018. The increase in the revenue was driven by a surge in online sales and strong geographical performance from Australia and the US businesses for the period. The company’s gross profit for H1 FY2019 stood at £719 million versus £657 million in the H1 FY2018.

The underlying EBITDA declined by 10 per cent from £217 million in the H1 FY2018 to £196 million (pre IFRS 16) in H1 FY2019.The company’s underlying operating profit declined by 17 per cent to £145 million (pre IFRS 16) in H1 FY2019 from £174 million in the H1 FY2018. The PBT (Profit before tax) declined by 24 per cent from £106 million in the H1 FY2018 to £81 million in H1 FY2019.

The company’s underlying earnings per share declined by 15 per cent to 148 pence in H1 FY2019 from 173.60 pence in the H1 FY2018. The dividend per share remained flat at 67 pence for the H1 FY2019.

The company has performed decently in the third quarter of 2019 and the statement was released of the combination with the Stars Group.

FLTR-Share price performance

(Source: Thomson Reuters)

While writing (as on 08th November 2019, at 01:32 PM GMT), Flutter Entertainment PLC shares were trading at GBX 8,110 per share; plunged by 0.80 per cent as compared to the previous day closing price level. The total market capitalisation of the company was around £6.42 billion.

In the past one year, the company’s shares have touched a high of GBX 9,276.00 (as on October 2nd, 2019) and a low of GBX 5,390.00 (as on March 8th, 2019). The company’s shares were trading 12.57 per cent below the 52-week high price point and 50.46 per cent above the 52-week low price point at the current price point, as quoted in the price chart.

The stock’s volume before the market close stood at 69,466 at the time of writing. Stock’s average daily traded volume for 5 days was 402,648.60; 30 days- 595,143.37 and 90 days – 314,810.48. The company’s stock beta (5Y monthly) was 0.09, which makes it less volatile as against the benchmark index. The shares of the company were trading above the 30-days and 60-days SMA, at the time of writing.

FLTR shares have delivered a positive return of 0.17 per cent in the past one month. The stock surged by approximately 27.75 per cent on a YTD (Year-to-Date) time interval and was up by 23.88 per cent in the last three months.