Company news and results
It has been a very busy week of earningβ¦
Symrise, the flavours and fragrances company, reported organic sales growth of 8.3 % in the third quarter, driven by Flavor & Nutrition (pet food πΆπ±).
Full Year 2021 sales guidance was raised:
Based on the positive business development in the first nine months, Symrise is once again raising the sales target and now expects organic growth of around 9 % for the full year 2021. This corresponds to an increase of around two percentage points compared to the raised forecast of 7 % in August 2021. Symrise thereby highlights its aspiration to once again significantly outperform growth in the relevant market for fragrances and flavors during the current financial year. In the present business environment, current estimates assume market growth of 3 to 4 %.
Furthermore, Symrise is adhering to its profitability target for the financial year 2021 and is aiming for an EBITDA margin of more than 21 %.
Reckitt reported a net revenue growth of +3.3% in the third quarter. Hygiene growth is normalising from the pandemic boost, while Health and Nutrition improved from the first half. Full Year 2021 sales guidance increased to +1-3% (from +1-2%).
On cost inflation:
COGS inflation continues to be challenging, particularly in areas such as surfactants, paper, tinplate and ocean freight, and is currently running at around 10%. However, our 2021 Group adjusted operating profit margin guidance, excluding IFCN China for the entirety of the year, remains unchanged at 22.7- 23.2%.
Campari reported an organic increase in sales of +12.8% in the third quarter, thanks to a βbounce back in the on-premise as well as the sustained home consumptionβ. Compared to 2019, sales are up +27.3% in Q3 and +24% in the first 9 months. EBIT margin recovered to 22.8% in the first 9 months of 2021 compared to 19.4% last year.
If you visit Venice, enjoy their newly opened and directly managed Terrazza Aperol:
Swedish Match sales increased by +10% in the third quarter. Operating profit was up only 1% as:
During the quarter, Swedish Match continued to ramp up marketing investments geared toward driving awareness, engagement and loyalty with both consumers and the trade in support of long-term growth and brand building.
ZYN shipments volumes were up 43% YoY in the US and are close to 160mn cans, 12 months rolling. Market share increased slightly from last quarter, to 63.8%.
Heineken reported a -5.1% decline in beer volume for the third quarter, as APAC suffered from a resurgence of the pandemic. Volumes were up +4% for the first nine months of 2021.
The Full Year outlook remained unchanged:
Yet the macro environment remains volatile and we are responding accordingly. We are taking an assertive approach to pricing and cost across all of our markets to meet this challenge. Therefore, our expectations stay unchanged, with full year results remaining below 2019
Carlsberg organic revenue grew by 7.0% in the third quarter, with total organic volume growth of 3.4%. Sales were up +8.6% in the first 9 months of the year.
They raised the Full Year 2021 operating profit growth guidance to +10-12% (from 8-11%):
The COVID-19 pandemic continues to impact many of our markets, and market volatility and uncertainty remain high. However, in light of better-than-expected results across our regions for Q3 and the start to Q4, we upgrade our earnings guidance and other relevant assumptions for 2021.
AB InBev reported a +3.4% increase in volumes and +3% EBITDA in the third quarter.
In other news, Altria is not selling:
Altria determined that selling its investment in ABI at this time would not maximize long-term shareholder value; therefore, Altria currently plans to maintain its ABI investment. Altria continues to have confidence in ABIβs (i) long-term strategies; (ii) premium global brands; (iii) experienced management team; and (iv) capability to successfully navigate near-term challenges.
Puma reported a 20% increase in sales in the third quarter and raised full year guidance:
Considering the strong financial performance in the first nine months of the year, PUMA further specifies its outlook and now expects the currency-adjusted sales to increase at least 25% (previous outlook: at least 20% currency-adjusted sales growth) in the financial year 2021. The operating result (EBIT) is now expected to be in a range between β¬ 450 million and β¬ 500 million (previous outlook: between β¬ 400 and β¬ 500 million).
Assa Abloy, the global leader in door opening solutions, increased organic sales by 7% in the third quarter. Adjusted operating margin was 15.0%.
Airbus increased their full year guidance:Β
β¦the Company has updated its 2021 guidance and now targets to achieve in 2021 around:
600 commercial aircraft deliveries;
EBIT Adjusted of β¬ 4.5 billion;
Free Cash Flow before M&A and Customer Financing of β¬ 2.5 billion
Universal Music Group revenues increased 17.4% in constant currency, in their first results post spin-off from Vivendi. Recorded Music subscription and streaming revenue grew 15.2%. Adjusted EBITDA margin reached 21.4%.
Kone, the lift/elevator and escalator company,Β lowered the top end of their margin guidance:
In 2021, KONE's sales growth is estimated to be in the range of 4% to 6% at comparable exchange rates as compared to 2020. The adjusted EBIT margin is expected to be in the range of 12.4% to 12.8% (note: from 12.4% to 13.0%).
EssilorLuxottica comparable revenue increased +9.3% versus 2019, at constant exchange rates. They increased the full year guidance:
In light of the sound performance of the third quarter, EssilorLuxottica upgrades its full year 2021 guidance, which now points to mid-to-high single digit growth in revenue versus 2019 at constant exchange rates (from βmid single digitβ) and an up-to-100 basis points progress in adjusted operating profit as a percentage of revenue compared to 2019 at constant exchange rates (from just βhigher than 2019β)
Novo Nordisk, the Danish pharmaceutical company, increased sales by 15% and operating profit by 19% in the third quarter. Full year outlook was raised:
Deals and IPO
DraftKings drops $22 bln pursuit of Ladbrokes owner Entain (link)
Volvo Cars leaps 22% on debut in boost for IPOs and electric cars (link)
Buyout Firm EQT Weighs Bid for Swiss Software Specialist Temenos ($link)
EXOR Restarts Talks With Insurer CovΓ©a Over Scrapped $9B Sale of PartnerRe (link)