Europe Movers: ABF, Ericsson, Logitech Martsons, Sanofi, Swatch

Inga Muller
23 Jan, 2024
Frankfurt

Benchmark indexes across Europe traded around the flatline ahead of the rate decision announcement by the European Central Bank on Thursday.

The DAX index decreased 0.07% to 16,670.45, the CAC-40 index fell 0.2% to 7,401.76, and the FTSE 100 index inched down 0.2% to 7,475.41.

The yield on 10-year German bonds edged up to 2.30%; French bonds inched lower to 2.80%; the UK gilts edged higher to 3.93%; and Italian bonds inched higher to 3.87%.

Sanofi SA declined 1.7% to €92.63 after the French pharmaceutical company agreed to acquire the U.S. biotech company Inhibrx Inc. for as much as $2.2 billion.

Inhibrx shareholders will receive $30 in cash for each share held, a contingent value right of $5.0, and 0.25 shares of a new publicly traded company that will retain Inhibrx’s non-INBRX-101 assets, the immuno-oncology drug pipeline.

Sanofi will retain an 8% stake in the new Inhibrx.

Marston's PLC declined 0.2% to 33.25 pence, despite the pub house operator reporting a solid holiday sales increase.

Associated British Foods increased 1.4% to 2,300.0 pence after the company announced its trading update for 16 weeks ending on January 6.

The company said its discount apparel store chain, Primark, benefited from cash-strapped consumers looking for discounts, but added that underlying sales growth slowed in the last quarter.

L. M. Ericsson declined a fraction to kr61.26 in Stockholm trading after the telecom equipment maker said challenging market conditions are likely to persist in 2024.

The Swatch Group declined 2.5% to CHF 207.30 after the Swiss watch maker reported weaker-than-expected record sales predicted by its chief executive.

2023 net sales at the current exchange rate increased 5.2% to CHF 7.88 billion, and net income increased by 8.1% to CHF 890 million from CHF 823 million a year ago.

The company plans to increase its annual dividend by CHF 1.30 to CHF 6.50 per share at its next annual general meeting on May 8.

Logitech International dropped 6.5% to CHF 77.56 after the computer accessories maker estimated an annual sales decline between 6% and 7%.

Revenue in the fiscal third quarter ending in December declined 1% to $1.26 billion, net income rose to $247.7 million from $140.5 million, and diluted earnings per share rose to $1.57 from 87 cents a year ago.

The company revised its sales outlook for the fiscal year 2024 to range between $4.2 billion and $4.25 billion, a decline between 6% and 7% compared to the previous estimate of between $4.0 and $4.15 billion, a decline between 9% and 12%.

Premier Foods declined 0.1% to 140.04 pence after the company reported its fiscal third quarter results. 

Total sales increased 14.4% to £352.7 million from £308.2 million, driven by a grocery sale increase of 11.9% to £252.7 million and a sweet treats sales rise of 21.3% to £100.0 million. 

The company reiterated its previously raised profit expectations for the fiscal fourth quarter.