It has been tough for consumer businesses with people cautious about their spending on items that are not essential. Companies with a strong portfolio of brands and a balance sheet that can cope with short-term downturns will rebound in the medium-term.
This company should maintain its dividend this year, providing a yield of 5.3%, although the dividend is only just covered by earnings. A bounce back in profit in 2024 would enable an increased dividend to be covered more than twice by forecast earnings. Reducing the inventories that have been built up should enable a reduction in net debt....
