Business this week: Strong results likely from Dalata as hotel market improves
Also, growth in the agri-food sector; results due from Glenveagh Properties and Cairn
Chairman of Dalata John Hennessy and Pat McCann, chief executive of Dalata. The company is expected to report strong results. Photograph: Maxwell photography.ie
Results: Glenveagh Properties, Manchester United.
Indicators: Irish manufacturing PMI (Aug); euro zone manufacturing PMI (Aug); UK manufacturing PMI (Aug); German manufacturing PMI (Aug).
Meetings: Photonics Ireland Conference 2018 (Páirc Uí Chaoimh, Cork).
Indicators: Irish industrial production (Jul), unemployment (Aug); euro zone PPI (Jul); UK construction PMI (Aug); US manufacturing PMI (Aug), construction spending (Jul), economic optimism (Sep), vehicle sales (Aug).
Other: ESRI publishes study on the cost of childcare and whether it has an impact on the employment of mothers.
Dalata expected to report strong results
The hotels group Dalata reports first-half results on Tuesday following a May agm statement in which it confirmed a solid start to the first four months of the year.
A further strong performance is expected for the remainder of the year given the strengthening market in Dublin.
In a note ahead of results, Davy forecasted revenue of €173 million for H1, up 7 per cent year on year.
“Market RevPAR (revenue per available room) growth in Dublin and regional Ireland for H1 has come in at +8.9 per cent and +10.6 per cent respectively. This compares strongly to our Dalata H1 RevPAR forecasts of 5.5 per cent in Dublin and 4.7 per cent in regional Ireland,” it said.
“The strength in regional Ireland RevPAR, driven by both domestic and international visitors, should help Dalata deliver further margin improvements.”
In May, the group announced plans to add 580 beds to its UK portfolio having signed deals for two new hotels – a four-star Clayton Hotel in Bristol and a Maldron-branded hotel in Birmingham.
That will bring to 1,700 the number of rooms in Dalata’s UK development pipeline; it already owns or leases almost 2,000 rooms.
A trading update issued ahead of Dalata’s agm in May confirmed that revenue per available room in the company’s Dublin properties had been ahead of expectations.
Indicators: Irish services PMI (Aug), tourism and travel (Q2); euro zone composite and services PMI (Aug), retail sales (Jul); UK car sales (Aug), services PMI (Aug); German composite and services PMI (Aug); US exports and imports (Jul).
Meetings: Food and Drink Business Europe conference (Citywest Conference Centre, Dublin).
Brexit on agenda at food and drink business conference
It is difficult to find any conference these days that does not in some way concern itself with the potential collateral damage of Brexit, soft or hard.
But the UK’s never-ending negotiation process to exit the EU will have a profound effect on the agri-food sector; it is an anticipated impact that has been well flagged and one that gets special attention at this year’s Food and Drink Business Europe conference on Wednesday.
Organisers have added a “stream” to help food manufacturers, service operators and retailers better understand the key issues facing the sector. These of course include currency fluctuations, regulations, trade agreements, legislation and supply chain management issues.
However, despite the lurking threat of Brexit, the agri-food sector in Ireland grew faster than any other industry during the first three months of the year, according to a survey cited by conference organisers.
In addition, it said, 18 per cent of agri-food firms reported an increase in staff numbers with a further 27 per cent planning to take on more employees in the coming year.
This year’s conference theme is “Collaborating For An Innovative Food Island” and the range of exhibitors will include those in the areas of ingredients, process engineering, packaging, logistics, food safety, sustainability and waste management.
Indicators: euro zone retail PMI (Aug); German factory orders (Jul), construction PMI (Aug); US composite and services PMI (Aug), factory orders (Jul).
Indicators: Irish construction output (Q2); euro zone GDP (Q2); UK house price index (Aug), consumer inflation expectations (Q3); German balance of trade (Jul), imports and exports (Jul), industrial production (Jul); US non-farm payrolls and unemployment (Aug).