Upfield - comment
Upfield released their Q3 trading statement, prior to their call later today (2pm UK time). Strong set of numbers with Gross Profit increasing to 36.3% in the quarter from 32.5% in Q2. This is higher than our internal model, further emphasising their ability to pass on raw material increases. Revenue is up 24%, which is made up of prices (up 37%) and lower volume/mix (down 13%). We will hear more on the call, but expectation is for double-digit top-line growth (inflation) and growth in normalised EBITDA and accelerating the deleveraging below 8.0x by end of FY22.