(Reuters) - European consumer companies Reckitt Benckiser (RB.L) and Tate & Lyle (TATE.L) could take an earnings hit of as much as 2.5% from the sterling’s surge on British Prime Minister Boris Johnson’s resounding election victory on Friday.
The sterling soared more than 2% on Friday, hitting a 19-month high of 1.35 versus the dollar GBP=D3, with the win expected to translate to Britain making an orderly exit from the European Union.
Based on sterling’s gain, brokerage Jefferies analyses the impact on earnings of European consumer companies in the food, beverage and home and personal care industry which get more than 5% of revenue from the United Kingdom or report in pounds.
Graphic - Ramifications from sterling's move on European consumer stocks: here
For an interactive graphic, click here here
Reporting by Siddharth Cavale in Bangalore; Editing by Anil D'Silva