Company news and results
Henkel “updated” their full-year 2021 outlook. The revenue guidance was maintained at +6-8%. EBIT margin is expected at around 13.5%, the lower end of the previous guidance range.
“Based on our strong sales performance in the first nine months of the year, we confirm our guidance for organic growth. However, due to the additional negative impacts occurring from further increased raw material and transport costs, we are updating our guidance for adjusted EBIT margin and adjusted earnings per share. We now expect these metrics to come in at the lower end of our previous guidance ranges.” At Group level, the company continues to anticipate organic sales growth of +6.0 to +8.0 percent and now expects an adjusted return on sales (EBIT margin) of around 13.5 percent. For adjusted earnings per preferred share (EPS) at constant exchange rates, Henkel now expects an increase in the high single-digit percentage range.
This is why margins will be weaker than expected:
Primark's owner AB Foods reported numbers roughly in line with last year and announced a special dividend.
…Absent the reimposition of significant restrictions, we expect Primark trading to continue to improve and for sales to increase by at least the estimated £2bn of sales lost due to store closures last financial year. Primark will continue to expand its selling space next year, with the most stores being added in two of our key markets, Italy and Spain. The expected significant increase in sales should lead to a sharp improvement in Primark's adjusted operating margin, recovering to above 10%.
Allegro, the leading e-commerce platform in Poland, is on track to meet 2021 expectations but signalled softer margins in 2022, due to investments:
Adidas increased revenues by 3% in the third quarter, at constant currency. Greater China was down 15%. Gross margin was impacted by the ongoing logistics issues and is now guided at 50.5% - 51% for the full-year, compared to around 52% before 👟
Burberry’s revenues were back to pre Covid levels in the first half of their fiscal year. The medium-term guidance was confirmed: high single-digit top line growth and meaningful margin accretion (at constant currency, with base year full-year 2020) 🧥
Delivery Hero grew revenue by 90% in the third quarter, at constant currency. They raised the full-year revenue guidance, to the upper end of the €6.4bn to €6.7bn range they gave previously. The margin guidance was unchanged 🚲
Richemont reported a 24% increase in sales in the first half of their fiscal year compared to pre Covid levels, with Jewellery Maisons up 41% 💎
Importantly, the partnership established with Farfetch last year will be enhanced:
Richemont is in advanced discussions with Farfetch with a view to enhancing the partnership it established last year. The scope of the current discussions includes:
(i) Farfetch investing directly in YOOX NET-A-PORTER as a minority shareholder, with other investors to be invited to participate alongside;
(ii) YOOX NET-A-PORTER leveraging Farfetch Platform Solutions to support its ongoing transition to a hybrid 1P/3P business model;
(iii) Richemont Maisons leveraging Farfetch technology to accelerate their Luxury New Retail developments; and
(iv) Richemont Maisons joining the Farfetch marketplace.
Deals and IPO
DoorDash will acquire European delivery company Wolt as it builds a global platform (link)
Euronext Open to More Acquisitions Under New Strategic Plan, CEO Says ($link)
Sika to buy former BASF chemicals company from Lone Star for $6 bln (link)
Altice founder Drahi seeks bigger stake in Britain's BT - sources (link)
Intertrust in talks over possible $1.9 billion takeover by CVC (link)
Unilever puts off planned Q-Tips sale on insufficient interest from bidders (link)
Other news
GE Was Once a Model for Siemens but Now Follows Its Rival’s Path ($link)
Richemont shareholder sides with activist investor on poor valuation (link)
Volkswagen plans second Wolfsburg factory to build Trinity EV (link)
It's now illegal for bosses to text workers after hours in Portugal, as the country attempts to attract digital nomads with new labor laws (link) 🤓