Author: Fiona Craig

Pernod Ricard SA (EU:RI) has revised its full-year sales expectations downward after reporting minimal growth in the third quarter, with organic net sales rising just 0.1% as declines in the United States and China offset gains in other regions.

The French spirits group now expects organic net sales to fall between 3% and 4% for FY26, pointing to ongoing disruption linked to the Middle East conflict.

Despite the weak backdrop, the result came in slightly ahead of expectations, beating analyst forecasts of a 0.5% decline by 50 basis points, according to RBC Capital Markets, which maintained its “sector perform” rating and €100 price target.

“We can’t see this advancing the investment case, either positively or negatively,” RBC analysts said, noting that the modest outperformance was largely driven by stronger-than-expected results in Asia.

Reported net sales for the third quarter totalled €1.95 billion, down 14.6% year on year, impacted by a €175 million foreign exchange headwind and a €159 million reduction linked to disposals, including its Wines and Imperial Blue businesses.

In the United States, organic sales declined 12% in the quarter and 14% over the year to date, while the broader bottled spirits market fell 4%, with stronger performance in bars and restaurants compared with retail channels.

China also remained weak, with sales down 7% in the quarter and 24% year to date, reflecting lower demand for Martell cognac and Scotch whisky. However, RBC noted that the quarter benefited from the timing of Chinese New Year.

Excluding the U.S. and China, organic net sales rose 5% in the third quarter. India delivered the strongest growth, up 11% in Q3 and 6% year to date, supported by premiumisation trends and demand for imported spirits. Canada recorded double-digit growth driven by ready-to-drink products and Jameson, while Brazil returned to growth after disruption caused by a methanol crisis.

Europe posted modest growth of 1%, led by brands such as Bumbu and Perrier-Jouët. Global Travel Retail increased 11% in the quarter, helped by the resumption of Cognac sales in Chinese duty-free channels, although the company now expects the segment to decline slightly for the full year due to travel disruption in the Middle East.

By category, ready-to-drink products led performance with organic growth of 26% in Q3 and 16% year to date. Strategic International Brands grew 2% in the quarter but remain down 5% year to date, while Specialty Brands declined 9% in Q3 and 8% over the same period.

For the nine months to March, reported net sales fell 14.8% to €7.20 billion, with foreign exchange movements reducing revenue by €515 million, mainly due to weakness in the U.S. dollar, Indian rupee, and Turkish lira.

RBC added that the company’s full-year margin outlook remains unchanged but lacks clarity, with no update on previously referenced discussions with Brown-Forman.

Pernod Ricard said it now expects strategic investments to come in below €700 million for FY26 and confirmed an interim dividend of €2.35 per share, payable on July 24.

Kering (EU:KER) has outlined plans to significantly improve profitability, with chief executive Luca de Meo committing to more than double the group’s operating profit margin as part of a broader turnaround effort aimed at restoring both financial performance and brand strength.

Despite the announcement, shares slipped nearly 2% in early trading in Paris.

The group is targeting a substantial uplift from last year’s 11% recurring operating margin, bringing it closer to industry peers. Kering said it expects to complete a structural reset by the end of this year, with a return to sustainable growth anticipated by the end of 2028.

De Meo, who took the helm in September after a career in the automotive sector, presented the strategy during a capital markets day, addressing ongoing challenges linked to softer demand for luxury goods.

Gucci, the group’s flagship brand, has been particularly affected and is undergoing a repositioning under new management and creative leadership.

“The House is reshaping its product architecture across categories – from a strengthened leather goods offer to more coherent ready to wear, shoes and jewelry – supported by higher quality standards,” the company said.

Earlier in the week, Kering reported an 8% decline in Gucci sales for the first quarter, partly reflecting the impact of the Iran conflict on Middle Eastern demand and international tourism. Retail sales in the region fell 11% overall, despite stronger trading earlier in the quarter before tensions escalated at the end of February.

On capital allocation, Kering confirmed it plans to maintain a dividend payout ratio of around 50% of recurring net income, while aiming to lift return on capital employed above 20% over the medium term.

The group also signalled a cautious stance on acquisitions, saying it will adopt a highly selective approach, prioritising product quality and supply chain resilience.

Chiara Battistini of JPMorgan noted that the update offered limited near-term detail, stating it was “light on near-term quantified guidance, with no explicit revenue or margin targets for FY26 or FY27.”

“The three-phase sequencing, with the structural reset not completing until year-end 2026, sustainable growth only materialising by year-end 2028, and leadership “reclaimed” by 2030, suggests that the turnaround will take considerably longer, back end loaded, and require significantly more heavy lifting, than the bulls would hope for,” she added.

Mitie Group PLC (LSE:MTO) reported fourth-quarter revenue of £1,525 million, coming in 2% ahead of analyst expectations of £1,492 million, according to its latest trading update.

The facilities management group delivered 13% revenue growth in the quarter, bringing full-year FY26 revenue to £5,650 million, broadly in line with consensus forecasts of £5,653 million. This included 6% organic growth and 11% total reported growth, with acquisitions contributing around 5%.

During the year, Mitie secured £6 billion in new contract wins and renewals, compared with £7.5 billion in FY25. Key agreements included integrated facilities management services for Aviva and Imperial College, security contracts with Asda, and work with Transport for London.

The company’s bid pipeline expanded significantly, rising 29% year on year to £31 billion from £30 billion at the end of December.

Free cash flow reached £150 million for FY26, up 5% compared with the previous year and comfortably exceeding the company’s target of more than £120 million.

Mitie also reported solid progress on integrating Marlowe, achieving initial cost synergies of around £5 million during the year. In addition, the group completed four acquisitions worth approximately £15 million, including deals that strengthen its fire and security capabilities, particularly for data centre projects in the Nordic region.

Management reaffirmed its expectation of delivering at least £260 million in EBITA for FY26, broadly in line with analyst estimates of £262 million.

JD Sports Fashion (LSE:JD.) has disposed of its entire 9.1% holding in Applied Nutrition (LSE:APNA), raising approximately £49 million, equivalent to about $66.49 million, according to a bookrunner on Thursday.

The retailer had been the second-largest shareholder in Applied Nutrition prior to the sale, making the transaction a full exit from its position in the supplement company.

Following the announcement, shares in Applied Nutrition dropped by as much as 3.53% to 218.5 pence, while JD Sports Fashion’s stock moved higher, gaining 2.3%.

Morgan Sindall Group (LSE:MGNS) saw its shares climb more than 9% on Thursday after the company upgraded its full-year 2026 profit expectations, citing stronger-than-anticipated trading across key divisions.

“Group PBT is expected to be significantly ahead of previous expectations,” the company said in its trading update.

The UK-based construction, fit-out, and partnerships specialist pointed to improved visibility for the remainder of the year, supported by robust performance in its Fit Out and Construction segments.

Within Fit Out, the group highlighted increased confidence in converting its pipeline of tender opportunities, with profits now expected to surpass earlier forecasts and exceed the upper end of its medium-term target range.

In Construction, the operating margin is now projected to reach the top end of its 3.5% medium-term target, underpinned by strong project delivery and disciplined risk management. The division’s order book remains healthy, with a large share at preferred bidder stage, providing good visibility toward revenues of around £1.4 billion.

In Partnerships Housing, private home sales improved in the first quarter compared with the end of 2025, although market conditions remain subdued overall. Profits in this segment are expected to grow modestly year on year, with average capital employed forecast between £490 million and £550 million.

Mixed Use Partnerships is expected to perform in line with prior guidance, having commenced four new schemes during the first quarter, with further developments planned throughout the year. Average capital employed in this division is projected to range between £135 million and £150 million.

The Infrastructure division is on track to deliver an operating margin within its 3.75% to 4.25% target range, with revenues expected to remain stable.

For the period from January 1 to April 14, the group reported average daily net cash of £445 million, reflecting continued investment in its Partnerships activities. Full-year average daily net cash is now expected to exceed £400 million, broadly in line with previous guidance.

Entain PLC (LSE:ENT) reported a solid start to 2026, with first-quarter net gaming revenue increasing 3% on a constant currency basis, in line with expectations, as the global betting and gaming group reaffirmed its full-year outlook.

The company recorded strong activity levels, with total volumes up 8% year on year, supported by a 10% increase in online volumes. This was partly offset by a 1.5 percentage point decline in sports margins. Online net gaming revenue grew 5%, driven by a 9% rise in gaming, while sports revenue slipped 1% as a result of a 1.3 percentage point margin impact.

Performance in the UK and Ireland stood out, with net gaming revenue climbing 13% and exceeding expectations. Australia also returned to growth, delivering a 12% increase in net gaming revenue.

Shares moved 6.2% higher following the update, reflecting investor confidence as the company held its full-year guidance unchanged.

“We entered 2026 with strong momentum which has continued in Q1, with strong volume growth across our diversified portfolio,” said Stella David, CEO of Entain. “This further demonstrates our ongoing strategic execution and strengthening operations, and also highlights the growth embedded in our globally scaled business.”

Entain reiterated its forecast for fiscal 2026 online net gaming revenue growth of 5% to 7% on a constant currency basis, with the midpoint of 6% broadly matching analyst consensus. The company also said it remains comfortable with market expectations for group underlying EBITDA of £1,131 million for the year, excluding BetMGM-related fees, based on estimates from 11 analysts as of April 10.

BetMGM, the group’s US joint venture, reported first-quarter net revenue of $696 million, up 6%, with adjusted EBITDA of $25 million. However, it revised its full-year 2026 revenue outlook to between $2.9 billion and $3.1 billion, with adjusted EBITDA now expected toward the lower end of its previously guided $300 million to $350 million range.

Entain also reaffirmed its longer-term target of generating at least £500 million in annual adjusted cash flow by 2028.

TheraCryf plc (LSE:TCF), a UK biotechnology company focused on treatments for addiction and neuropsychiatric conditions, is progressing a pipeline led by a novel orexin-1 receptor antagonist targeting binge eating, alcohol dependence, and substance use disorders. The group is also developing a dopamine transporter modulator for fatigue linked to brain disorders, alongside a legacy oncology programme, all within a capital-light model that prioritises partnerships following early clinical validation.

The company has now filed a new process patent covering key elements of the manufacturing method for its lead candidate, Ox-1. If granted, the patent could provide up to 20 years of additional protection, extending exclusivity beyond the existing composition of matter patent. This development strengthens the intellectual property position around Ox-1, increasing barriers to generic competition and enhancing the programme’s long-term commercial potential as it approaches clinical readiness later in 2026.

More about TheraCryf plc

TheraCryf plc is a UK-based biotechnology company developing therapies for addiction and other central nervous system disorders with significant unmet need. Its lead programme focuses on a best-in-class orexin-1 receptor antagonist designed to treat conditions such as binge eating and substance use disorders. The company also advances a dopamine transporter modulator for fatigue associated with conditions including multiple sclerosis, chemotherapy, and narcolepsy, as well as a legacy glioblastoma project. Operating under a virtual development model, TheraCryf aims to progress assets to early clinical or proof-of-concept stages before partnering with larger pharmaceutical companies.

Audioboom (LSE:BOOM) reported a record first quarter for 2026, with revenue increasing 30% year on year to $22.5 million. Gross profit rose 41% to $4.8 million, pushing gross margin up to 21.3%. Adjusted EBITDA more than doubled to $1.4 million, as relatively stable operating costs allowed the company to translate higher volumes and improved creator agreements into a 6.2% EBITDA margin and a stronger cash position.

The company’s Showcase advertising marketplace was a key driver, with revenue climbing 63% alongside a 79% increase in average monthly downloads and video views, which reached 170 million. This growth followed the Adelicious acquisition and a number of new content partnerships. Although revenue per thousand impressions declined due to a higher proportion of lower-yield video and UK inventory, management views this as a longer-term monetisation opportunity. Recent video-focused partnerships with major platforms such as Spotify and Apple, along with renewed agreements with leading podcast creators, are expected to support future revenue growth.

The company’s outlook is supported by positive momentum and recent corporate developments, although challenges remain around cash flow generation and a relatively high price-to-earnings ratio. Strategic progress and strong trading performance point to further growth potential, with the current upward share price trend reinforcing a constructive outlook.

More about Audioboom

Audioboom Group plc is a global podcasting platform whose content is downloaded and viewed around 170 million times each month by approximately 50 million unique users. The company operates an advertising and monetisation platform that supports a premium network of podcasts, including major titles such as official Formula 1 shows and popular true crime and comedy series. With operations spanning North America, Europe, Asia, and Australia, Audioboom distributes content عبر major platforms including Apple Podcasts, YouTube, Spotify, and Amazon Music, and is ranked among the largest podcast publishers in the United States.