Company news and results
A few retailers reported this week:
Primark’s owner Associated British Foods issued a trading update. Primark’s sales were mixed:
Like-for-like sales in the third quarter were 3% ahead of the comparable period two years ago reflecting the very strong trading in the UK and those European regions where stores had reopened
For the fourth quarter as a whole, like-for-like sales are expected to be 17% lower than the same period two years ago.
FY guidance was increased:
we expect adjusted earnings per share for the full year to be ahead of previous guidance and marginally ahead of last year excluding the cost of repayment of job retention scheme monies.
Zara’s owner Inditex reported its first-half 2021 numbers. Q2 sales were +7% above 2019 levels and +9% in the period 1st of August to 9th of September. Almost all stores are open 🏬 :
H&M net sales increased by 14% YoY in fiscal Q3 (Jun-Aug). Year over Year. You will not find the comparison vs 2019 as sales are still below pre-pandemic levels.
The British sports retailer JD Sports issued a strong trading update. Full-year guidance increased from above £550mn profit before tax to at least £750mn:
At this time, we are generally encouraged by our performance in the first few weeks of the second half although retail footfall remains comparatively weak in many countries. Assuming a prudent but realistic set of assumptions for the peak trading period ahead which take into account the absence of stimulus in the United States for the second half of the year, in addition to current industry-wide supply chain challenges, we presently anticipate delivering a headline profit before tax for the full year of at least £750 million.
Pandora, the world's largest jewellery brand by volume (100mn pieces expected to be sold this year), had a Capital Markets Day. They are targeting 5-7% organic growth CAGR in 2021-2023 and EBIT% in the 25-27% range in 2023, from 23-24% this year.
Ocado issued a trading statement for its UK retail division. Revenue fell 10.6% in Q3 (Jun-Aug), impacted by the disruption caused by a fire in one of its CFCs (-19% YoY in the period after the fire) and a deceleration from last year very strong sales, boosted by the pandemic (-1.8% YoY before the fire).
Fever-Tree, the premium mixer company, reported its FY21 interim results. Sales were strong: +34% like-for-like compared to last year, at constant currency:
On the other hand, margins are suffering (GM -270bps YoY) as previously guided, mostly due to higher logistics costs. FY21 guidance was reiterated 🍸 :
Ashtead, the industrial equipment rental company, reported a +21% increase in sales YoY for the quarter ended 31st July (Q1), or +12% vs 2019/20. Operating profit increased +53%.
The Group delivered a strong quarter with rental revenue up 22% over the prior year, but more importantly up 12% when compared with the first quarter of 2019/20, both at constant currency. This reflects continued market outperformance across the business.
Ashtead raised its guidance:
Maersk, the largest container shipping company worldwide, increased its guidance once again. Logistic disruptions are continuing and the sector profitability ballooned.
Deals and IPO
Advent and Singapore wealth fund brew up joint £4bn bid for Unilever tea arm (link) ☕
Swedish Match announces planned separation of its cigar business (link)
23 years after the cigarettes business was sold, Swedish Match will be completely smoke-free 🚭. This is the most interesting part of the press release:
The new cigar company will have the ability to explore a wider scope of growth opportunities within its autonomous and focused strategic agenda and to establish efficient and tailored operational and legal structures, geared for long-term value creation. Subject to market conditions, we expect that the new stand-alone cigar business, with its strong cash flow profile, could be capitalized at a higher level of leverage than has been the case for Swedish Match historically, which would create the opportunity for Swedish Match to use financing proceeds upon separation to further enhance shareholder returns.
Vivendi paves way for Lagardere takeover, adding to media empire (link)
KKR drops bid to acquire Germany's Zooplus (link)