Wizz Air expected to report a loss for the year but hopes for recovery

Budget carrier is looking for a return to profit in the current financial year

The European budget airline Wizz Air (WIZZ) is expected to report an overall net loss for the year ending 31 March 2023 on 8 June, hit by a range of issues such as the Russia-Ukraine conflict as well as rising maintenance and fuel costs.

However Jozsef Varadi, CEO at Wizz Air said things were likely to improve for the European budget airline by 2024 ‘subject to no adverse pandemic or geopolitical events’.

For the three months ending 31 December 2022, Wizz Air reported a profit of €33.5 million compared to a loss of €267.5 million, benefiting from the strong euro which helped reduce fuel and maintenance costs.

Total cash at the end of 2022 fell by 2.4% to €1.37 billion compared to €1.4 billion at the end of 2021. It might not all be bad news for the European carrier with hopes of strong demand to continue for the rest of the year as consumers prioritising an escape from the day-to-day grind of a difficult economic backdrop.

Wizz Air recently announced a 32.3% increase in passenger numbers to 4,927,076 in April 2023, compared to the same period a year ago, at a load factor of 90.9%.

The company has also announced new flight routes from Sofia, Bulgaria and Naples, Italy to Riyadh Saudi Arabia, along with connections
from Rome, Italy to Cairo, Egypt and adding more destinations from Brasov, Romania to the UK and Germany.

Could further upgrades be stirring at Campbell Soup?

The US foods and snacks group is demonstrating resilience, though there are limits to the price increases consumers can stomach

Investors will be hoping another guidance upgrade from Campbell Soup (CPB:NYSE) can halt its year-to-date share price slide when the American processed foods-to-snacks company serves up its third quarter earnings on 7 June. There will also be appetite for an update on how the company’s multi-year cost-savings programme is helping to offset inflationary pressures.

Organic sales rose 13% in the second quarter with a boost from price increases, although this did result in volume decline, suggesting there are limits to the New Jersey headquartered firm’s pricing power as cash-strapped shoppers search for value in the midst of a cost-of-living crisis.

Nevertheless, Campbell Soup raised its full year sales guidance as well as the midpoint of its adjusted earnings before interest and tax and adjusted earnings per share guidance range, reflecting its continued strong performance and confidence in its brands.

While it is most closely associated with its flagship canned soup products, Campbell Soup also makes and supplies pasta sauces, juices and beverages as well as cookies and crackers and has hitherto benefited from the pricing power conferred by its strong brand portfolio.

Besides the iconic Campbell’s, this includes the likes of Pepperidge Farm cookies and Prego pasta sauces, as well as Goldfish crackers, Snyder’s of Hanover pretzels and Cape Cod and Kettle Brand potato chips.

UK UPDATES OVER THE NEXT 7 DAYS

FULL-YEAR RESULTS

June 5: Itaconix, Sirius Real Estate

June 6: Speedy Hire, Warehouse REIT, N Brown

June 7: Discoverie Group, VP

June 8: Wizz Air, Schroder Real Estate Investment Trust, FirstGroup, Mitie Group

HALF-YEAR RESULTS

June 5: Hercules Site Services

June 6: Gooch & Housego, Oxford Metrics, Paragon Banking

June 7: Residential Secure Income, Ramsdens

June 8: RWS Holdings, IDOX

TRADING ANNOUNCEMENTS

June 6: Hunting

June 8: M&G

US UPDATES OVER THE NEXT 7 DAYS

QUARTERLY RESULTS

June 2: Samsara, Hashicorp, Asana, Pagerduty, Phreesia

June 5: Healthequity, Duckholm Portfolio, Telkom

June 6: Ferguson, JM Smucker, Caseys, Ciena Corp, Guidewire

June 7: Brown Foreman, Campbell Soup, Five Below, Smartsheet, Thor Industries, Verint, United Natural Foods, Caleres

June 8: Toro, Science Applications, Signet Jewellers, FuellCell Energy, Couchbase, Mission Produce

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