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ISEQ rally continues on new confidence

Monday, March 11 17:38:07

The ISEQ rebounded today, helped by Aryzta's results and optimism on the global economy.

The index gained 22.22 points to 3,847.62.

Irish-Swiss bakery business, Aryztz, today reported a decline in first-half profit, reflecting higher costs, but a rise in revenues while it remains upbeat about prospects for 2013. Revenues for the six months to the end of January, rose 8.2 percent from last year. Looking ahead, the company expects to return to double-digit underlying earnings per share growth in fiscal 2014. In the six-month period, profit attributable to equity shareholders declined to 62.05 million euros from 71.86 million euros in the previous year. On a per share basis, earnings were 60.9 euro cents, lower than 75.6 euro cents per share reported last year.

"In tough conditions for bakery in its developed markets, ARYZTA has performed well. It has adapted to the circumstance through internal re-organisation and repositioning of the business via acquisition. It believes its actions will restore double-digit underlying EPS growth in FY 2014. We believe its strategy and the actions it has taken to deliver on this will realise its objective," said Davy. Shares in the group climbed 25c to E43.10.

Glanbia's stocks rose 14c to E8.59 ahead of its full year results this week. "With 80pc of group EBITA deriving from global cheese and nutritionals, the key growth driver, all focus will be on this. Proxy data suggest that nutritionals (sports supplements and pre-mixes) should be growing strongly. Nutrition, health/wellness, medical foods is a very expansive category, one which can afford big opportunity for Glanbia to extend its nutrition scope. It is now free to allocate its capital in this direction," said Davy.