BUSINESS LIVE: IAG profits hit £3bn; Haleon ups sales forecast; LSEG eyes IPO resurgence

Chase Bank has made another change to its 1 per cent cashback current account offering, creating a bigger hoop to jump.

The cashback deal has been immensely popular since the US giant launched in Britain in 2021, seeing millions open the account to get it.

Just before close, the FTSE 100 was 0.28% up at 7,646.21.

Meanwhile, the FTSE 250 was 0.54% higher at 19,116.66.

Inflation increased by the largest amount in almost a year, according to the Fed’s preferred measure – confirming expectations interest rates will not be cut until around June.

The so-called core personal consumption expenditures (PCE) index – which excludes volatile food and energy prices – increased 0.4 percent between December and January.

Sainsbury’s has announced plans to cut around 1,500 jobs as part of efforts to reduce costs by £1billion over the next three years.

The business said that it would cut roles in its contact centre in Widnes, in Cheshire, at its in-store bakeries and a few at local fulfilment centres.

WeightWatchers took a pounding in early trading Thursday after it was revealed that media icon Oprah Winfrey will leave its board this year, months after she admitted to taking weight loss medications.

The shares fell 23.5 percent to $2.92 in premarket hours on Thursday and have more than halved in value so far this year. Short interest for the stock stood at 17.5 percent of the outstanding shares. as of Feb. 28.

Car makers from Mercedes-Benz to Ford are delaying or scrapping further electric vehicles (EVs) as demand slows in Britain and abroad, MailOnline can reveal today.

Manufacturers are grappling with weaker demand for EVs than expected with buyers put off by fears over insufficient charging infrastructure and expensive price tags.

(PA) – The maker of Budweiser and Stella Artois has seen yearly sales grow as it hiked prices, but Bud Light continued to slump in the prolonged fallout of a marketing campaign which sparked a backlash in the US last year.

AB InBev said its sales grew by nearly 8% last year to $59.4billion (£47billion), compared with 2022.

The increase was driven by higher prices, with volumes declining over the same period, meaning people paid more money for fewer items.

The brewer also said that it had benefited from growth of its more premium brands in some international markets such as Mexico and Brazil.

But sales growth was constrained throughout the year due to a poorer performance in the US, AB InBev said.

It follows a backlash among right-wing Americans against the Bud Light brand since spring last year, after transgender influencer Dylan Mulvaney promoted the beer on social media.

It led to a boycott of the brand which resulted in falling sales in the region.

AB InBev said a decline in the volume of sales of Bud Light drove a 17% drop in total revenues in the US over 2023.

A tax-cutting Spring Budget was trailed just a couple of weeks ago, as the Chancellor prepared for a General Election.

But now the rumour mill suggests Jeremy Hunt lacks the ‘fiscal headroom’ and instead of a bonfire of the taxes we will get a damp squib.

A bidding war is heating up for the ownership of Wincanton after US-based GXO Logistics revealed a £762million bid for the British logistics firm on Thursday.

Howden Joinery Group shares soared on Thursday morning after the kitchen materials supplier noted ‘encouraging’ revenue growth so far this year.

The London-based company’s shares were 8.9 per cent higher at 841.2p by midday, making them the second-biggest FTSE 250 riser behind power generation business Drax Group.

The Body Shop is to shut another 75 UK stores within the next six weeks, with the loss of 489 jobs.

The high street skincare and cosmetics chain tumbled into administration earlier this month.

Administrators from FRP Advisory said the latest closures will take place over the next four to six weeks as part of a heavy restructuring aimed at preserving the brand.

More than four in five UK households are paying more for insurance because of a ‘hidden in plain sight’ tax – but the majority don’t even know what it is, according to data.

Insurance Premium Tax sees people paying an average of £67 per year extra for their motor insurance, research from the Association of British Insurers shows.

Ocado could take legal action against grocery partner Marks & Spencer amid an ongoing spat over performance-linked payments related to the pair’s joint venture.

Row: Tim Steiner, the boss of Ocado, hopes to secure a settlement amid a spat with M&S

Tim Steiner, the boss of Ocado, said on Thursday he was confident M&S owed the firm ‘a substantial amount of money’ and he hopes to secure a settlement over the dispute.

British business is backing the Mail’s campaign for Jeremy Hunt to end the post code lottery in diagnosing a devastating bone disease affecting millions of women.

Haleon revenue growth slowed last year as foreign exchange headwinds and weaker demand for a popular dietary supplement dented momentum.

The consumer healthcare giant, whose brands include painkillers Advil and Panadol, revealed turnover rose by 4.1 per cent to £11.3billion in 2023, compared to 13.8 per cent the previous year.

The boss of the London Stock Exchange Group (LSEG) has said he is upbeat about a potential revival in stock market listings in the capital.

LSEG told investors on Thursday the financial services group would buy back £1billion in shares from part owners Blackstone and Thomson Reuters this year after 2023 performance came in towards the top end of expectations.

Bitcoin topped $60,000 for the first time in more than two years as the world’s largest cryptocurrency closed in on a new high.

The digital coin, which peaked at close to $69,000 in 2021, reached $63,933 amid predictions it could hit $150,000 next year.

Chris Beckett, head of equity research at Quilter Cheviot:

‘Haleon, the leading consumer healthcare company, reported a strong finish to 2023, with organic revenue growth of 7% in the fourth quarter. The company demonstrated its ability to gain volume and pricing in a competitive market, outperforming its peer Reckitt, which posted a fall yesterday.

‘Haleon’s growth was driven by a broad-based success across its core categories of respiratory, oral health and digestive, which benefited from increased consumer demand and innovation. The pain category was a bit disappointing, as it faced some headwinds from generic competition and regulatory changes.

‘The company also improved its operating margin by 50 basis points, reflecting its focus on efficiency and productivity. Haleon continued to deleverage its balance sheet enabling a return of cash to shareholders through the announcement today of a £500m share buyback program.

‘Haleon provided a guidance of 4-6% organic revenue growth for 2024, which was in line with expectations. The company expects a slower start to the year, due to the weak US cold and flu season, which was already anticipated by the market. The company trades at a reasonable valuation of 18 times earnings, in an attractive and resilient category of consumer healthcare.

‘Haleon’s stock performance has been hampered by the overhang of Glaxo and Pfizer, which still own a combined 36% stake in the company. It would be nice to see them further reduce their holdings and increase the free float of Haleon, which would unlock more value for the shareholders.’

Mark Crouch analyst at eToro:

‘British Airways owner IAG posted a big set of results this morning, reporting record profits which surpass those made pre-pandemic, whilst also reporting a boom in demand with passenger numbers on an upwards trajectory.

‘Shareholders will be keen to see these strong numbers reflected in a rising share price. IAG is trading 70% lower than pre pandemic levels, a damning indicator of just how much confidence was lost in the company following the covid crisis, and one that continues to be viewed with scepticism by investors.

‘A reintroduction of the dividend would go some way to inticing new investors, while also signalling management’s confidence that the turmoil of the pandemic is well and truly behind them.’

The owner of British Airways has notched up record annual earnings after cashing in on the bounce back in global travel demand last year.

International Airlines Group (IAG) reported underlying operating profits of £3billion for 2023, nearly three times the £1.1billion in 2022 and higher than its pre-pandemic peak.

The group said its bottom line was bolstered by higher ticket prices and more cash coming in from ancillary revenue.

Ancillary revenue, or sales of extras like pre-booked seats or food, for the three months to 31 December reached around £549million, up from £470million by the same point a year earlier.

A major bank is warning over little known ‘CEO fraud’ impersonation scams which has seen victims lose almost £11,000 on average in the past year.

This is a less common impersonation scam which Lloyds Bank has seen an uptick in and results in the highest average loss amount of this scam type.

Ocado has forecast faster growth this year after an improved performance at its automated warehouse technology unit helped it deliver better-than-expected annual core earnings.

The group made a pre-tax loss of £403million for the year to 3 December, versus analyst forecasts of a £410million and a loss of £500.8million in 2021/22. Revenue rose 9.9 per cent to £2.83billion.

CEO Tim Steiner said he was confident of ‘faster growth, stronger cash flows, and higher returns, in the current financial year and beyond’.

For the 2023/24 year, Ocado forecast revenue growth of 15 to 20 per cent for the Technology Solutions division, with an EBITDA margin of over 10 per cent.

Two-thirds of UK bosses fear being sued if they miss environmental, social and governance (ESG) targets as the woke investment fad grips the business world, a survey has found.

ESG – sometimes referred to as responsible investing – has become rife as firms are urged to hit ambitious climate change goals and keep up with social issues such as mental wellbeing and gender transitioning.

Direct Line has rejected an offer worth more than £3billion from a Belgian rival as it became the latest London-listed company to be targeted by foreign predators.

The insurance giant, which owns brands including Churchill, Green Flag and Privilege, said that it has snubbed a 233p per share offer from Ageas.

A husband was left ‘devastated’ after his wife’s life insurer knocked £23,000 off its payout when she died – and all because of an honest mistake that meant she underpaid her policy by £253, or just £1.98 a month.

Major life insurer AIG only paid out the £23,000 after This is Money intervened, so the problem serves as a cautionary tale for policyholders to check their details carefully.

John Moore, senior investment manager at RBC Brewin Dolphin:

‘IAG hasn’t really taken off since the Covid-19 pandemic, with the shares broadly where they were during the summer of 2020.

‘But, easyJet’s return to the FTSE 100 confirms that conditions are generally smoother for airlines and today’s results from IAG may just be the catalyst its share price needs.

‘Profits have surged and the group looks like it will generate significant amounts of free cashflow this year, underpinned by strong bookings for the first half of 2024.

‘There are, however, still clouds on the horizon, with aircraft availability and softer demand for routes to and from Asia likely to be ongoing challenges.

‘After a turbulent few years, IAG looks in better shape than it has done for some time and shareholders will be hoping that starts to be reflected in the share price.’

Chief executive of London Stock Exchange Group David Schwimmer has said there is an ‘encouraging’ IPO pipeline for the exchange, bringing hope for the capital’s listed market after a baron few years.

His comments came as LSEG reported total income, excluding recoveries, of £8billion for 2023, up 7.8 per cent on the prior year, and at the higher end of a 6 to 8 per cent forecast and slightly above analysts consensus.

Earnings per share totalled 323.9p, up 1.9 per cent on the prior year and slightly below analysts consensus of 328.2p.

LSEG is proposing a dividend of 79.3p per share added to the interim dividend of 35.7p, resulting in a total dividend of 115p per share, up 7.5 per cent.

Sensodyne toothpaste-maker Haleon has forecast higher revenue in 2024, thanks to firm demand for its household products ranging from painkillers to multivitamins.

Despite price increases, Haleon’s roster of products has largely kept cheaper private-label competition at bay, with the company gearing up for the upcoming flu season.

Haleon said its organic revenue would rise between 4 and 6 per cent this year, as the consumer healthcare company reported its first full-year results since it was spun off from GSK in 2022.

Analysts on average expect organic revenue to grow by 4.5 per cent, according to a company-compiled consensus.

Haleon, however, said its organic revenue growth in the first quarter would be just below the lower end of its full-year forecast range, citing a strong last year when a strong cold and flu season, a rebound in China, and painkiller Advil’s performance in Canada had lifted its results

Jeremy Hunt is expected to confirm plans for a NatWest share sale in next week’s Budget – as a leading broker said a big price discount would be key to its success.

The Chancellor said in November he was considering a public retail offer as the Treasury aims to sell more of its 33 per cent stake.

British Airways owner International Airlines Group posted record operating profits of €3.5billion (£3billion) for 2023, almost three-times the €1.3billion made in 2022, thanks to the bounce back in travel demand.

The result is higher than its pre-pandemic peak and in line with market expectations.

The group – which also owns airlines Iberia, Vueling and Aer Lingus – said demand continues to be robust, particularly from leisure travellers, with the group’s airlines 92 per cent booked for the first quarter of the year and 62 per cent booked so far for the first half.

Luis Gallego, IAG chief executive, said: ‘In 2023, IAG more than doubled its operating margin and profits compared to 2022, generated excellent free cash flow and strengthened its balance sheet position, recovering capacity to close to pre-Covid 19 levels in most of its core markets.

‘Our airlines operate in the largest and most attractive markets globally and we will continue to invest in our brands to transform the business, improve the customer experience and support the delivery of sustainable growth and world-class margins.’