(Alliance News) - Stock prices in London are seen opening slightly higher on Wednesday, adding to strong gains on Tuesday, as tensions on the Russia-Ukraine border appear to have eased.
Russia's ambassador to the European Union ruled out an attack on Wednesday.
IG futures indicate the FTSE 100 index is to open 17.0 points higher, or 0.2%, at 7,625.92. The blue-chip index closed up 77.33 points, or 1.0%, at 7,608.92 on Tuesday.
In early UK corporate news, drugmaker Indivior posted a swing to annual profit, nutrition company Kerry and soft drink bottler Coca-Cola Europacific Partners also reported improved earnings. On AIM, Franchise Brands has agreed to acquire Filta Group.
Equities in Asia were higher on Wednesday. The Nikkei 225 in Tokyo closed up 2.2%, while the S&P/ASX 200 in Sydney added 1.1%. The Shanghai Composite closed up 0.6%, and the Hang Seng in Hong Kong was 1.3% higher in late trade.
In New York on Tuesday, the Dow Jones Industrial Average added 1.2%, the S&P 500 advanced 1.6%, and the Nasdaq Composite surged 2.5%.
Indivior posted earnings growth for 2021, and also unveiled plans to pursue a US listing.
Revenue in 2021 increased 22% to USD791 million from USD647 million. Indivior posted a pretax profit of USD190 million, swinging from a USD173 million loss in 2020.
Looking to 2022, Indivior expects its Sublocade opioid treatment to be its strongest revenue driver, and the company may be on the lookout for acquisitions.
"With over USD1 billion in cash on our balance sheet, we have the financial strength and flexibility to pursue a balanced capital allocation strategy. Our primary focus remains on reinvesting in the business, but we also have the potential for additive inorganic growth opportunities and consideration of other value enhancement options," Chief Executive Mark Crossley said.
He added: "Together with the board, we have been assessing the optimal listing structure for Indivior's shares. Our preliminary view is that an additional US listing is likely to be beneficial to the group's profile and visibility, as approximately 80% of the group's net revenue is generated in the US. We are aware that this is an important topic, and the board and management intend to consult extensively with shareholders before concluding on any future path."
Indivior, which is based in the southern US state of Virginia, expects revenue between USD840 million and USD900 million for 2022.
Soft drink bottler Coca-Cola Europacific Partners said revenue increased 30% to EUR13.76 billion in 2021, from EUR10.61 billion in 2020, due to its acquisition of Coca-Cola Amatil in Australia. Pretax profit was up by almost double to EUR1.38 billion from EUR695 million.
"2021 was an extraordinary year for CCEP. We are a stronger more diverse business, built on great people, great service and great beverages - done sustainably. Solid top-line recovery, value share gains, operating margin expansion and remarkable free cash flow generation demonstrate our strong performance in a challenging environment. Our results also reflect the successful acquisition and integration of Coca-Cola Amatil, a fantastic business to have acquired at the right time, as we look forward to an even brighter future together," CEO Damian Gammell commented.
The Uxbridge, England-based soft drinks bottler bought Sydney-based Coca-Cola Amatil from its independent shareholders and US brand owner Coca-Cola Co. The deal valued Amatil at AUD9.77 billion, about GBP5.17 billion at current exchange prices, and completed back in May 2021.
Following the acquisition, CCEP renamed itself Coca-Cola Europacific Partners from Coca-Cola European Partners. It previously had operated in the UK, France, Germany, Spain and Portugal, the Benelux region, and Sweden and Norway, while Amatil brought in Australia, New Zealand, Indonesia, Papua New Guinea and Fiji.
CCEP said pro-forma comparable currency-neutral revenue growth was 7.5% in 2021. By the same measure, it expects 6% to 8% growth in 2022.
CCEP lifted its annual payout by 65% to EUR1.40 per share. For 2022, it will pay two interim dividends, rather than one final one.
Nutrition products firm Kerry also posted improved earnings for 2021.
Revenue climbed 5.7% to EUR7.35 billion from EUR6.95 billion. Pretax profit rose 28% to EUR816.3 million from EUR635.3 million.
It lifted its final payout by 10% to 66.7 cents per share. Its total dividend for 2021 was also 10% higher at 95.2 cents.
"While recognising that the current market environment and inflationary pressures continue to present challenges across our industry, Kerry is stronger positioned and more resilient than ever as we enter a new strategic cycle. Our earnings guidance range for 2022 reflects the group's strong growth prospects and the net effect of recent portfolio developments," CEO Edmond Scanlon said.
Kerry expects adjusted earnings per share to rise between 5% and 9% in 2022. Adjusted EPS increased 12% at constant currency in 2021 to 380.8 cents.
Elsewhere in London, Gateshead, England-based car dealership Vertu Motors said it has been awarded a Toyota franchise in Scotland from April 1.
"The new Toyota operations will offer the full range of new and used Toyota vehicles including the new Yaris Cross, Aygo X, the iconic Land Cruiser and the further extensive range of Toyota hybrid and electric vehicles. Motability customers will also be welcomed. Recruitment has now commenced for the new operations," the company said.
In M&A activity, Franchise Brands has agreed to acquire fellow AIM listing Filta Group for GBP49.2 million in an all-share deal. The enlarged company will be worth GBP191.2 million, Franchise Brands said.
Franchise Brands is based in Manchester and owns brands such as ChipsAway, Willow Pumps and Metro Rod.
Filta is based in Rugby, England and provides cooking oil filtration and fryer management services.
"The Filta board believes that there are a number of opportunities to grow and diversify its business and that, whilst Filta has a powerful and successful franchise formula in North America, it has found it more challenging to grow its franchise network in the UK, a major market. The offer provides an opportunity for Filta to become part of a more diversified group, with greater scale, highly complementary services, and a strong balance sheet, offering Filta enhanced growth potential," a joint statement read.
Russia's ambassador to the European Union, Vladimir Chizhov, has rejected US warnings of a possible Russian attack on Ukraine on Wednesday.
"As far as Russia is concerned, I can assure you that there will be no attack this Wednesday. There will be no escalation in the coming week either, or in the week after that, or in the coming month," Chischow said in remarks published in Wednesday's edition of the German daily Die Welt.
"Wars in Europe rarely start on a Wednesday," he added.
The US government has said that it considers a Russian incursion into Ukraine possible before the close of the Winter Olympics in China on Sunday.
Analysts at Berenberg commented: "Despite tentative signals that Russia may pull back some of its troops, the risk that it may invade Ukraine remains a major and imminent threat. A Russian invasion would be a human tragedy. It could turn into the worst war in Europe since 1945 and the most serious global security risk since the Cuban missile crisis of October 1962. If Russia were to attack, it would likely be a major short-term shock to markets as well as to business and consumer confidence. A further surge in energy prices would worsen the already high inflation across the advanced world."
The dollar was weaker early Wednesday.
The pound was quoted at USD1.3555 early Wednesday, up from USD1.3535 at the London equities close on Tuesday. The euro stood at USD1.1367, firm on USD1.1365. Against the yen, the dollar was trading at JPY115.67, down from JPY115.70.
In economic data, the UK's annual inflation figure raced to just shy of a 30-year high in January, figures from the Office for National Statistics showed Wednesday.
The UK's yearly inflation rate accelerated to 5.5% in January from 5.4% in December. The figure topped market estimates cited by FXStreet, which had forecast inflation to remain steady in January.
January's figure was the hottest since the current series began in 1997. It is the chunkiest inflation figure since a historic series registered 7.1% in March 1992.
Brent oil was quoted at USD93.64 a barrel early Wednesday, up from USD92.50 a barrel at the equities close on Tuesday. Gold stood at USD1,855.47 an ounce, up from USD1,848.09.
By Eric Cunha; ericcunha@alliancenews.com
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