Varied results during crisis

Coronavirus and companies: fortunes vary

Opinion
RM Williams is just one of Louis Vuitton's many brands.

RM Williams is just one of Louis Vuitton's many brands.

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As the world's leading companies reveal results, it's clear some have taken a hit thanks to the pandemic.

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It has been interesting to note how businesses from different sectors have been impacted by the economic crisis.

This has become evident over the past week with some of the world's leading companies sharing their financial results.

LVMH Moet Hennessy - Louis Vuitton is one of the largest companies listed on the French stock exchange.

It offers a range of premium products including alcohol (Moet and Chandon), fashion and leather products (Louis Vuitton), perfumes and cosmetics.

The company reported revenues were down about 27 per cent year on year due to the impacts of COVID-19.

LVMH derives a significant portion of sales through demand for its premium products from China and may have benefitted from its economic recovery.

Its share price is now down about 7.4pc week on week.

Amgen Inc, the world's largest independent biotechnology company, which develops, manufactures and delivers therapeutics for arthritis and bone disease, kidney disease and cancer, reported second quarter results this week with revenue and product sales growing by 6pc.

This may have been due to the success of a newly-acquired drug. Amgen's share price is down about 2.4pc week on week.

Visa blames COVID-19 for the downturn in travel.

Visa blames COVID-19 for the downturn in travel.

Mondelez International manufactures, markets and sells food and beverages globally.

The company demerged from Kraft Foods and is focused on products including chocolate, gum, candy and biscuits, with brands including Cadbury.

During the week, Mondelez reported that net revenue was up 0.7pc year on year, not a bad result.

Its share price is up about 1.6pc week on week.

Visa Inc, which uses electronic payments to facilitate transactions, also offers card products.

Visa reported international transaction revenue and travel related expenditure had declined most likely due to COVID-19.

Its share price was down 1.7pc week on week.

There were high expectations for Paypal Holdings Inc's report as the company's share price has rallied almost 125pc since markets bottomed in March.

Paypal is a leading technology company that facilitates digital and mobile payments for consumers and merchants globally.

The company reported revenue growth had increased significantly.

It's share price is up approximately 10.7pc week on week.

  • This article does not take into account the investment objectives, financial situation or particular needs of any particular person. Before acting on any advice contained in this article, you should assess whether it is appropriate in light of your own financial circumstances or contact your financial adviser. Christopher Hindmarsh is an adviser at JBWere.

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