Dixons Beat Sales Estimate, M&S Profit Tumbles

Sarla Buch
24 May, 2017
New York City

Dixons Carphone reported strong sales but lowered profit forecast. Glencore made an informal approach to Bunge. Ineos agreed to buy DONG Energy for

[R]4:00 PM Frankfurt – Dixons Carphone reported strong sales but lowered profit forecast. Glencore made an informal approach to Bunge. Ineos agreed to buy DONG Energy for £770 million. Kingfisher said comparable sales fell. M&S profit tumbled 71% on higher costs of new stores.[/R]

In London trading, FTSE 100 index advanced 28.78 or 0.4% to 7,514.07 and in Frankfurt the DAX index slid 15.72 to 12,642.96.

In Paris, CAC 40 index fell 5.63 to 5,342.53.

Dixons Carphone Plc jumped 5% to 343 pence after the U.K.-based electrical and telecommunications retailer said group revenues in the year ending in April soared 9%, comparable sales increased 4% from a year ago and gross margins broadly stable across the year.

Dixons lifted pretax forecast in the year between £485 million and £490 million from earlier estimated range of £475 million to £495 million.

Glencore Plc rose 0.3% to 292.85 pence after the Switzerland-based metals and minerals producer said that its agriculture unit had made an informal approach for “a possible consensual business combination” to the U.S.-based soybeans and corn trader Bunge Limited.

Ineos Group AG, the U.K.-based privately held petrochemicals company agreed to acquire oil and gas assets across the Denmark, Norwegian and the U.K. sectors from Denmark-based DONG Energy’s Oil & Gas for about £770 million or $1.05 billion plus contingent payment of $150 million.

The acquisition is estimated to add approx 100,000 barrels of oil to its total production per day.

""We are pleased to acquire this competitive, well-run business, with its highly successful and experienced team, strong portfolio, long-life assets and very good mix of existing production and developments across the North Sea."" said chairman Jim Ratcliffe.

Kingfisher Plc declined 6.7% to 335.30 pence after the U.K.-based home improvement products retailer said revenues in the first-quarter ending in April jumped 5% from a year ago to £2.9 billion, comparable sales fell 0.6% and sales dropped 5.5% in France but sales in the U.K. and Ireland advanced 3.5%.

Screwfix performed strongest growth after comparable sales in the first quarter soared 12.6% while sales in B&Q segment increased only 0.5%.

In the U.K. and Ireland sales in B&Q business slumped 4.6% while sales in Screwfix segment surged 20.3%.

Kingfisher said sales in France Castorama and Brico Depot plunged 5.5%.

Marks and Spencer Group Plc gained 1.1% to 391.70 pence after the U.K.-based specialty retailer reported revenues in the year ending in March rose 0.7% from a year ago to £10.6 billion.

Net profit in the year tumbled 71.4% from a year ago to £115.7 million from £404.4 million and diluted earnings per share declined to 7.2 pence from 24.8 pence.

Clothing and home sales revenue fell 3.4% but revenues in food segment jumped 4.2%.

ZPG Plc, formerly Zoopla Property Group Plc advanced 3.1% to 369.30 pence after the U.K.-based property advertising services provider said revenues in the first-half ending in March soared 22% from a year ago to £117.9 million.

Net profit in the period declined 25% from a year ago to £16.9 million from £22.6 million and diluted earnings per share rose to 7 pence from 6.8 pence.

Zoopla recorded record traffic in the period for more than 314 million visits to its websites and apps with over 68% of those via mobile drove record revenues while higher costs from series of acquisitions led to pre-tax profits decline of 20%.