Europe Movers: Barry Callebaut, Essentra, Kingfisher

Inga Muller
17 Sep, 2024
Frankfurt

European markets advanced ahead of rate decisions from major central banks later in the week. 

German investor sentiment dropped to an 11-month low amid faltering economic recovery and growing problems in the automobile sector.   

The DAX index increased by 0.9% to 18,794.30; the CAC-40 index rose by 0.9% to 7,514.68; and the FTSE 100 index increased by 7% to 8,339.07. 

The yield on 10-year German bonds edged lower to 2.10%, French bonds inched lower to 2.82%, the UK gilts edged down to 3.74%, and Italian bonds decreased to 3.44%.

Kingfisher plc increased 7.7% to 310.90 pence after the UK-based home improvement retailer raised the lower end of its fiscal 2025 profit estimate. 

Sales in the first half declined 1.8% to £6.7 billion from £6.9 billion, pre-tax income increased 2.3% to £324 million from £317 million, and earnings per share advanced 3.9% to 12.8 pence from 12.4 pence a year ago. 

The company blamed the sales weakness to a decline in sales of large tickets and unusual weather conditions. 

The retailer also lifted its annual profit-before-tax range to between £510 million and £550 million from the previous estimate between £490 million and £550 million. 

Barry Callebaut increased 6.9% to CHF 1,557.0 after Barclays upgraded the stock to "overweight" from "underweight," citing a decline in cocoa prices and the company's focus on improving its operating costs. 

The company has closed underperforming plants in Italy, Malaysia, and Germany and expressed confidence that it is on track to achieve its $250 million cost-cutting target by the end of fiscal year 2027. 

Essentra PLC plunged 18.2% to 136.80 pence after the UK-based manufacturing company lowered its annual outlook in the current fiscal year, citing market challenges. 

The company revised its annual profit estimate to between £40 million and £42 million, citing adverse market conditions and a negative foreign exchange impact of £2 million. 

The company reversed its previous outlook of an improvement in volume in the expectations of a rebound in demand in Europe, including Turkey. 

However, sales have lagged the company's expectations in the second half in the U.S. and APAC region.