Thursday, 10 September 2015

Some key charts from day three of the Barclays consumer conference

Three interesting presentations caught my eye from the Barclays consumer conference (aka 'back-to-school'): PepsiCo, Mondelez and P&G.

Mondelez has continued performing well...

...and activist pressure should be further dissipated by talk of more cost cuts freeing up extra monies for growth investments: 

I have warmed up to Mondelez in the last six months and my latest view would be that anything near US$40 is a buying point.  The above is basically very supportive to this.  

 As for PepsiCo, once again I am really impressed by the performance of the US snacks business (Frito Lay North America or FLNA) which generated 36% of profits whilst accounting for only 22% of revenues.

 Their UK snack initiatives impressed me...

...and the stock is within touching distance of that interesting US$90 level.  Worth keeping an eye on in my view.  As with Mondelez another relative performer in the consumer space. 

The latter assertion cannot be said about P&G which has lagged over the last year: 

Anyway a useful presentation from the company who attempted to answer one key question...

...with a few observations:

 A good product range...but still much to prove. It is yield-y and cheap-ish though.  Ironically at today's price it is probably the one you buy whilst awaiting opportunities on the other two as I noted in late July (at a higher price - link here).

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