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Pharmaceutical and retail giants to report financials amidst mixed market conditions

EditorRachael Rajan
Published 10/27/2023, 03:09 PM
© Reuters.
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Pharmaceutical companies Novo Nordisk (NYSE:NVO) A/S, GSK Plc, Haleon Plc, and BASF SE (OTC:BASFY) are scheduled to announce their financial results next week amidst a range of market conditions. Novo Nordisk's diabetes and weight-loss drugs Ozempic and Wegovy have experienced a surge in demand, propelling it to become Europe's most valuable listed company. However, production constraints could potentially impede sales growth.

GSK has seen its stock price increase due to the prospects for its respiratory virus vaccine Arexvy, which may have generated $300 million in revenue. Despite this, the company's stock has declined following Haleon's demerger in July 2022. GSK is also faced with ongoing litigation risks pertaining to Zantac lawsuits. The launch of Arexvy is expected to boost sales, despite a likely year-on-year drop in group revenue.

Haleon Plc is anticipated to deliver organic growth within its guided medium-term range of 4% to 6% in Q3. This forecast comes after GSK sold a $1.1 billion stake in the company, reducing its holding to 7.4%.

Clothing retailers Next Plc and Hugo Boss AG are set to report their financials against a backdrop of declining consumer sentiment. Hugo Boss's sales growth is projected to halve from the last quarter. However, the company hopes that its refined casualwear will attract luxury customers looking to trade down.

Next Plc's forecast will be closely examined against shaky consumer sentiment. Despite this, the company's robust online presence positions it well for potential market-share gains.

Chemical companies Solvay (EBR:SOLB) SA and BASF are dealing with weak demand across divisions. BASF is likely to report contracted margins in Q3 due to a sluggish economy and has implemented cost-cutting measures to alleviate margin pressure. Solvay is expected to announce depressed volumes and falling prices. Despite these challenges, Solvay is progressing with plans to split into two publicly listed companies.

BP (NYSE:BP) Plc will likely report strong sequential growth in Q3 adjusted earnings due to stable upstream production volumes and new project ramp-ups. The company may also announce another $1.5 billion buyback for the final quarter. Simultaneously, BP is in the process of finding a new chief executive following Bernard Looney's unexpected departure.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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