29th Jul 2025 07:50
(Alliance News) - AstraZeneca raised its dividend as drug growth pushed earnings higher, Barclays launched a new buyback programme after profit jumped while Greggs saw profit fall despite higher sales.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called up 0.3% at 9,106.64
GBP: lower at USD1.3335 (USD1.3403 at previous London equities close)
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BROKER RATINGS
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JPMorgan reinitiates Informa with 'overweight' - price target 1,020 pence
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Deutsche Bank Research starts Sainsbury with 'hold' - price target 310 pence
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Deutsche Bank Research starts Tesco with 'buy' - price target 470 pence
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Shore Capital cuts Paragon Banking to 'hold' (buy) - price target 975 pence
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COMPANIES - FTSE 100
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AstraZeneca said its "strong momentum in revenue growth" has continued through the first half of the year as it posted increased earnings. Total revenue increased 9.5% to USD28.05 billion in the first of 2025 from USD25.62 billion a year ago. Pretax profit jumped 26% to USD6.53 billion from USD5.20 billion, while diluted earnings per share surged 31% to USD3.44 from USD2.63. The pharmaceutical company raised its interim dividend by 3.0% to USD1.03 from USD1.00 a year ago. Revenue for Imfinzi was up 20%, while Enhertu climbed 35% and Tagrisso grew 9% from the prior year. Chief Executive Officer Pascal Soriot said: "As we enter our next phase of growth, we have pledged USD50 billion to continue to grow in the US, which includes the largest manufacturing investment in AstraZeneca's history, set for Virginia. This landmark investment reflects not only America's importance but also our confidence in our innovative medicines to transform global health and power AstraZeneca's ambition to deliver USD80 billion revenue by 2030." The firm reiterated its guidance for total revenue to increase by a high-single-digit percentage in 2025 and for core EPS to grow by a low-double-digit percentage.
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Barclays raised its dividend and announced a further GBP1 billion share buyback programme as it reported increased half year earnings. The bank raised its interim dividend to 3.00 pence per share from 2.90p a year ago. Total income for the six months to the end of June climbed 12% to GBP14.90 billion from GBP13.38 billion, while pretax profit jumped 23% to GBP5.20 billion from GBP4.22 billion. For Barclays UK, net interest income rose 17% to GBP3.68 billion from GBP3.15 billion. For all of Barclays, earnings per share improved 33% to 24.7p from 18.6p as the bank reported a return on tangible equity of 13.2%. Barclays said it expects a return on tangible equity around 11% for 2025, as it confirmed it is on track for a progressive increase in total capital returns compared to the private year. It also expects a group net interest income excluding Investment Banking and Head Office of more than GBP12.5 billion. "We remain on track to achieve the objectives of our three-year plan, delivering structurally higher and more stable returns for our investors," said Chief Executive CS Venkatakrishnan. "At the mid-point of the plan, with six quarters of consistent execution, we have achieved over half of the GBP30 billion planned UK risk weighted assets growth, half of the target income growth and realised two-thirds of the GBP2 billion planned gross cost efficiency savings."
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COMPANIES - FTSE 250
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Greggs said profit fell while sales increased in the first half of the year, as it noted challenging market footfall, weather disruption and the phasing of cost headwinds. Total sales rose 7.0% to GBP1.03 billion from GBP960.6 million a year ago. Pretax profit fell 14% to GBP63.5 million from GBP74.1 million, while diluted earnings per share sank 16% to 45.3 pence from 53.8p. The sausage roll retailer maintained an interim dividend per share of 19.0p. Greggs said its expectations for the full year are in line with guidance from its last trading update, including that operating profit "could be modestly below the level achieved in 2024". The baker said company-managed shop like-for-like sales were up 2.6% in the first half while franchised shop like-for-like sales grew 4.8%. "After a challenging start to 2025 we remain clear on the strategic opportunities that lie ahead. Through our disciplined estate expansion and focus on innovation, Greggs is evolving its offer further and making the brand more convenient for a wider range of customers," said Chief Executive Roisin Currie. "The outlook for cost inflation is unchanged and we are making great progress in building the supply chain infrastructure that will support the next phase of growth."
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OTHER COMPANIES
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Canal+ said it is on track to achieve organic revenue growth in 2025, though it reported reduced pretax profit for the first half of the year. Revenue fell 3.3% to EUR3.09 billion in the first of the year from EUR3.19 billion, but was up 0.9% on an organic basis. Pretax profit sank 26% to EUR120 million from EUR162 million a year ago. The subscription television and video streaming company maintained its earnings and revenue outlook for the year. It expects earnings before, interest, tax and amortisation of EUR515 million. "Our focus on profitability and cash has started delivering structural improvements, put us in a strong position at the half year, and enabled us to confirm our upgraded guidance for both Ebita and [cash flow from operations] for 2025," said Chief Executive Officer Maxime Saada. In a separate release, Canal+ said it has raised over EUR285 million in financing from issuing its first Schuldschein loan, a private placement loan issued under German law.
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By Michael Hennessey, Alliance News reporter
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Related Shares:
AstrazenecaBarclaysGreggsCanal+InformaSainsbury'sTescoParagon Group