(Alliance News) - Stock prices in Europe inched higher during a muted start on Thursday, with London's large-cap FTSE 100 getting a boost from drugmaker AstraZeneca, whose revenue beat forecasts, and soft drinks bottler Coca-Cola HBC, which defied expectations by increasing its payout.
The more domestic-focused FTSE 250 edged lower early Thursday, weighed down by the pub sector after a private equity firm opted not to make an offer for Marston's.
London's blue-chip stock index was up 8.28 points, or 0.1%, at 6,532.64.
However, the mid-cap FTSE 250 index was down 11.56 points, or 0.1%, at 20,984.88, and the AIM All-Share index was up 1.91 points, or 0.2%, at 1,213.42.
The Cboe UK 100 index was up 0.1% at 648.81 points. The Cboe 250 was down 0.3% at 18,462.99, and the Cboe Small Companies was down 0.1% at 12,677.71.
The CAC 40 in Paris and Frankfurt's DAX 30 were down 0.1%.
The pound was quoted at USD1.3821, down from USD1.3845 at the London equities close on Wednesday.
The euro stood at USD1.2124, down from USD1.2135 at the European equities close. Against the yen, the dollar fetched JPY104.67, flat from JPY104.66.
Coca-Cola HBC was the best performing large-cap stock, up 4.5%.
It posted a 13% fall in net sales revenue in 2020 to EUR6.13 billion from EUR7.03 billion. According to the market consensus cited by Vuma, total reported revenue was expected to fall by 12% in 2020 to EUR6.15 billion.
However, it raised its payout by 3.2% to EUR0.64, with consensus forecasts having tipped a 16% cut to EUR0.52. Annual pretax profit was 10% lower at EUR593.9 million from EUR661.2 million.
Unit cases fell 5.7% annually, demonstrating how badly volumes were hit by Covid-19 lockdowns. However, a slightly greater fall of 6.0% was expected.
Fellow Coke bottler Coca-Cola European Partners was down 0.5% at EUR42.35. CCEP reported a 9.5% fall in volumes in 2020, or 10% on a comparable basis. Revenue dropped 12% to EUR10.61 billion from EUR12.02 billion and pretax profit plunged 52% to EUR1.45 billion.
The company noted that its takeover of Australian peer Coca-Cola Amatil remains subject to shareholder approval, court approval, and a green light from the New Zealand Overseas Investment Office.
Drugmaker AstraZeneca's 2020 revenue rose 9.2% to USD26.62 billion from USD24.38 billion, with pretax profit more than doubling to USD3.92 billion from USD1.55 billion. Revenue was up 10% at constant currency.
Astra shares were up 1.7%.
For the final quarter, revenue jumped 11% to USD7.41 billion, beating company-compiled consensus estimates of USD7.20 billion.
Its annual payout was unchanged at USD2.80.
For 2021, total revenue is "expected to increase by a low-teens percentage", though guidance does not account for any sales of its Covid-19 jab, nor does it include the contribution from soon-to-be acquired Alexion Pharmaceuticals. That deal is expected to close in the third quarter of the year.
The World Health Organisation said Wednesday that AstraZeneca's vaccine could be used on people aged over 65 and also in places where new variants of the virus are circulating, following recent questions over the efficacy of the firm's jab.
Astra on Thursday noted Phase I/II analysis which has found the vaccine to have "limited efficacy against mild-moderate disease caused by the B.1.351 South African variant".
"It was not possible to ascertain efficacy against severe disease and hospitalisation caused by this variant, given that subjects in the trial were predominantly young, healthy adults," the company noted.
Oil major Royal Dutch Shell outlined a plan to go net zero for carbon emissions by 2050, while also aiming to reduce debt and maintain a "progressive dividend policy". Both its A shares and B shares were 1.1% lower.
Thursday's plans showed it aims to keep a lid on capital expenditure, retaining it around USD19 billion to USD22 billion in the near-term.
It aims to reduce net debt to USD65 billion and "maintain the progressive dividend policy", planning payout growth of around 4% per year.
"Shell also confirmed its expectation that total carbon emissions for the company peaked in 2018, and oil production peaked in 2019," the company said.
"Shell will continue with short-term targets that will drive down carbon emissions as we make progress towards our 2050 target, linked to the remuneration of more than 16,500 staff."
Shell aims to reduce net carbon emissions by 45% by 2035 and to eliminate net emissions completely by 2050.
Brent oil was quoted at USD61.01 a barrel early on Thursday, down from USD61.40 at the London equities close on Wednesday.
Among London mid-caps, Royal Mail's was the best performer, up 7.9%. It hailed its "busiest ever quarter", amid a surge in e-commerce related deliveries over the festive period.
Third quarter revenue jumped 20%, including a 43% rise in parcel revenue. The company said 496 million parcels were handled.
"On our busiest day we delivered 11.7 million parcels, 32% more than our busiest day during the first national lockdown in 2020," the company said.
"We now believe that Royal Mail revenue growth for the full year 2020-21 will be significantly beyond the top end of the scenario presented in November of GBP380 million to GBP580 million."
Polypipe was next best mid-cap performer, up 6.2% at 546.0 pence per share.
The company said it raised GBP96.3 million from a placing of 18.7 million shares at 515p each.
The plastic piping systems manufacturer on Wednesday said it has entered into an agreement to acquire ADEY for a cash consideration of GBP210 million on a debt-free and cash-free basis. ADEY is a UK-based provider of magnetic filters, chemicals and related products, which protect against magnetite and other performance issues in water-based heating systems.
Shares in pub firms JD Wetherspoon and Mitchells & Butlers fell 1.8% and 2.3% early on Thursday.
Peer Marston's was down 9.8% at 89.60p after a private equity firm opted not to make a takeover bid for the pub firm.
Platinum Equity Advisors had previously made a 105 pence per share takeover approach, which valued Marston's at GBP693.4 million. Marston's had rejected that approach.
Marston's said on Thursday: "The board continues to believe that Marston's is well-placed to benefit from the opportunities in a post-Covid-19 trading environment, following the completion of the SA Brain transaction and harnessing factors such as a reduction in on-trade industry supply, and increased home-working that will benefit pubs in suburban locations."
The economic events calendar on Thursday has US jobless claims at 1330 GMT. New claims are expected to be 757,000, a fall from 779,000 last week.
Gold was quoted at USD1,843.59 an ounce, up from USD1,837.45 at the London equities close on Wednesday.
By Eric Cunha; ericcunha@alliancenews.com;
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