City round-up: AstraZeneca; Unilever; Anexo; C4X Discovery
Pharmaceutical giant, AstraZeneca, reported a 19% increase in first quarter 2024 results this morning.
AstraZeneca, has a strong North West presence, with key sites in Macclesfield and in Speke, South Liverpool, employing a total of around 4,700 staff. Speke currently employs 400 staff, which will rise to 500 following planned £450m investment in a new vaccine site.
It said total turnover hit $12.679bn, driven by an 18% increase in Product Sales and continued growth in Alliance Revenue from partnered medicines
There was double digit growth in total revenue from Oncology at 26%, CVRM at 23%, R&I at 17%, and Rare Disease at 16%.
The core product sales gross margin was 82%, while core earnings per share (EPS) increased 13% to $2.06.
The total dividend for fiscal year 2024 will increase by $0.20 per share to $3.10 per share.
Total revenue and core EPS guidance at constant exchange rates for 2024 is reiterated. Total revenue is expected to increase by a low double digit to low teens percentage and core EPS is also expected to increase by a low double digit to low teens percentage.
Chief executive, Pascal Soriot, said: “Our strong pipeline momentum continued and already this year we announced positive trial results for Imfinzi and Tagrisso that were unprecedented in lung cancer, the data from both of these studies will be presented during the ASCO plenary in June. We are also looking forward to seeing the results of several other important trials throughout the year.
“At our Annual General Meeting we were pleased to announce a seven per cent increase in the annual dividend, and at our Investor Day on 21 May 2024 we will outline the evolution of our company, underscoring our confidence in sustaining industry leading growth.”
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Hein Schumacher
Marmite to mayonnaise maker, Unilever, said its transformation strategy under new CEO Hein Schumacher is delivering, with underlying sales growth of 4.4% in the first quarter of 2024, with volume growth increasing to 2.2%.
The consumer products giant, which which operates a key home and personal care manufacturing site and research and development facility at Port Sunlight, Wirral, said all five of its business groups reported underlying sales growth, led by Beauty & Wellbeing.
Turnover increased 1.4% to €15bn with a two per cent impact from currency and 0.9% from net disposals.
Its Power Brands, 30 products including Dove, Magnum, Hellmann’s, and Nutrafol, and which represent 75% of turnover, led growth with 6.1% USG (underlying sales growth), driven by a 3.8% increase in volume.
Last month the group announced the separation of its Ice Cream business and the launch of a major productivity programme to accelerate the Growth Action Plan.
It said its 2024 outlook remains unchanged with underlying sales growth of three to five per cent and a modest improvement in underlying operating margin.
Hein Schumacher said: “Unilever delivered improved volume growth in the first quarter. This was driven by our Power Brands which saw underlying sales growth of 6.1%, with strong performances from Dove, Knorr, Rexona and Sunsilk.
“We are implementing the Growth Action Plan at speed, focused on three clear priorities: Delivering higher quality growth, creating a simpler and more productive business, and embedding a strong performance focus. This is underpinned by our commitment to do fewer things, better and with greater impact.”
He added: “In March, we announced the separation of Ice Cream and the launch of a comprehensive productivity programme. These actions will drive focus, faster growth and reduce costs. Dedicated project teams are progressing the work at pace.
“Unilever’s transformation is at an early stage, but we have increasing confidence in our ability to deliver sustained volume growth and positive mix as we accelerate gross margin expansion.”
The group said its 2024 guidance remains unchanged. It expects USG for 2024 to be within its multi-year range of three to five per cent, with an increasing contribution from volume growth.
It said it is confident of delivering a modest improvement in underlying operating margin for the full year, reflecting higher gross margin and increased investment behind its brands.
Russ Mould, investment director at Manchester investment platform, AJ Bell, said: “There are signs of life in Unilever’s recovery under Hein Schumacher with the business benefiting from strong trading in its beauty brand and across its 30 leading ‘power brands’ where its resources are set to be focused.
“Despite coming in ahead of forecasts in the first quarter, Unilever is leaving its full year guidance unchanged for now. A dose of conservatism is probably no bad thing as it leaves scope for Unilever to under-promise and over-deliver.
“A return to growth for the ice cream division could have an important bearing on the valuation Unilever achieves when it sells or spins off this part of the business.”
He added: “Criticisms Unilever had gone woke and gone broke were probably overdone but having taken over in July last year, there are signs Schumacher is bringing the necessary focus to get the consumer goods giant firing on all cylinders again.
“While Unilever faces the prospect of customers switching to unbranded alternatives in the West, it has a compelling collection of brands and in emerging markets consumers do not have the same level of flexibility.
“Pressing ahead with a planned share buyback programme could provide support to the shares as Schumacher continues to implement his turnaround plan.”
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Alan Sellers
Anexo, the specialist integrated credit hire and legal services provider, with offices in Liverpool, Bolton and Leeds, has confirmed the appointment of Mark Bringloe as its chief financial officer.
It follows his appointment as Interim CFO in August 2023 when he was also reappointed to the board, having previously been CFO from the time of Anexo’s admission to AIM in 2018 to July 2022.
Executive chair of Anexo Group, Alan Sellers, said: “Since Mark’s return to the board he has continued to demonstrate his extensive knowledge of the group’s operations, its business and its shareholder relationships and we are delighted to confirm Mark as CFO.”
The group also announced today that it will release its full year audited results for the year ended December 31, 2023 on May 1, 2024.
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C4XD
C4X Discovery leaves the Alternative Investment Market (AIM) today in order to seek further funding from venture capital investors.
Shareholders can still trade shares through Asset Match an electronic off-market dealing facility for the ordinary shares.
The Manchester-based business floated on AIM in 2014, at 100p a share, hitting a high of 117.5p in July 2016, but at the close of market yesterday the shares were priced at 13p, giving the business a market capitalisation of £33m.
The drug discovery company said they have successfully raised £63m since the float, and have secured three deals that have generated them US$55m. They include partnerships with Astra Zeneca, which could be worth US$400m eventually; and a potentially €414 million deal with Sanofi that has already yielded a first milestone payment of €3 million in July 2022.
