HSBC (HSBA), Babcock International (BAB), Reckitt Benckiser (RKT), BHP (BHP), Rio Tinto (RIO), Genus (GNS) and hVIVO (HVO)
Banking giant HSBC (HSBA) announced that chief financial officer Georges Elhedery will become chief executive in September, replacing Noel Quinn who in a shock statement in April said he was stepping down after five years. Elhedery, who joined HSBC in 2005 and the board last year, was the favourite for the top job.
Quinn focused investment on Asia and cut business back in Europe and North America during his tenure as boss. Elhedery will be faced with a challenging operating environment in HSBC’s biggest market, Hong Kong, and risks to business from US-China disputes. The company’s interim results are set for release on 31 July. CA
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Frigate loss fails to halt Babcock’s momentum
Defence specialist Babcock International (BAB) said underlying operating profit for the year to March increased by a third to nearly £238mn, even after accounting for a further £90mn loss on its Type 31 frigate contract.
Revenue for the year was steady at £4.4bn, which the company said represented an 11 per cent organic increase if prior-year numbers from disposals are stripped out. Underlying free cash flow also more than doubled to £160mn. This allowed Babcock to make further inroads into its net debt pile, which was cut by around £130mn to £435mn. MF
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BHP hits iron ore export record
The Big Australian, BHP (BHP), exported 288mn tonnes of iron ore in the 12 months to 30 June, meeting guidance and breaking its previous record. More importantly for earnings, copper production was up 9 per cent, to 1.87mn tonnes, alongside huge price rises compared to the previous financial year. Iron ore has traded weakly on the back of lower Chinese demand, falling a fifth this year to $110 a tonne. BHP has guided for higher copper output again in 2025, between 1.8mn and 2mn tonnes, thanks to higher grades at Escondida.
BHP will report its full-year results on 27 August. AH
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Genus hit by lower ABS volumes in China and Brazil
China’s pig market continues to be problematic for Genus (GNS), the animal protein genetics company, even though its PIC or porcine division performed in line with expectations over the fourth quarter ended 30 June.
The company experienced lower second half volumes in its ABS unit, which comprises dairy and beef cattle operations, most notably in China and Brazil. Genus is guiding for full-year adjusted pre-tax profits in the range of £58mm-£61mn. Financial performance has been helped by actions taken following the R&D strategic review completed in February 2024.
But Genus now expects that ABS volumes and the group's overall adjusted operating profit will be lower than previously estimated for the year ending June 2025. Matters won’t be helped by an estimated c.£5mn headwind linked to unfavourable currency translations. The Group expects to publish its preliminary results for fiscal year 2024 on 5 September 2024. MR.
