JBH -5.08%: traded lower following 1H23 results that were largely pre-guided to, with commentary around January trading the main focus. To that end they said while the group is pleased with January trading result, with sales continuing to be well above pre-Covid January 2020, we have seen sales growth start to moderate from the elevated levels seen in 1H. This is what the market has latched on to and is another data point signalling a slowdown in consumption. Metrics for 1H23 were strong, earnings +15% YoY and an interim dividend of $1.970 vs. $1.630 this time last year, however, the stock market is forward-looking and the outlook is for weaker growth, lower margins and a tougher environment ahead – we don’t see any reason to own this right now.
MM is neutral/bearish JBH ~ $45
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