Company news and results
Ocado issued a trading statement for its retail business. In the 13 weeks to 28th November, retail revenue declined -3.9% compared to last year, as the value of the average basket is normalising towards pre-COVID levels. Compared to 2019, retail revenue was up +31.6%. Ocado expects to grow revenue mid-teens in 2022.
Zara’s owner Inditex grew revenue by 21% at constant currency in the third quarter of 2021. Compared to 2019, revenue is up 10%. For the full year 2021, they expect a gross margin of around 57.5%, plus or minus 50 basis points. Online sales are expected to be more than 25% of total sales in 2021.
In other clothing news, H&M issued a trading update: in the period 1 September - 30 November, sales in local currencies increased by 11% and were back at the same level as in the fourth quarter of 2019.
Moving online, Boohoo warned its results for the financial year ending February 2022 will be “lower than previously guided”:
This is as a consequence of significantly higher returns rates impacting net sales growth and costs, with continued disruption to our international delivery proposition impacting international demand, and significant ongoing pandemic-related cost inflation.
…the Group now expects net sales growth to be 12% to 14%, compared to previous guidance of 20% to 25% growth.
Adjusted EBITDA margin for the year is expected to be 6% to 7%, compared to previous guidance of 9% to 9.5%…
Bunzl, the supplier of disposable paper and plastic packaging supplies, issued a pre-close statement:
Group revenue in 2021 is expected to increase year-on-year by approximately 2% at actual exchange rates and by approximately 7% at constant exchange rates, with the impact of acquisitions being similar to underlying revenue growth, and a small negative impact from fewer trading days. At constant exchange rates, underlying revenue growth is expected to reflect a strong recovery in the base business, supported by inflation, partially offset by the anticipated decline in Covid-19 related orders with deflation on certain Covid-19 related products. Group adjusted operating margin is expected to be only slightly ahead of historical levels.
Straumann hosted a Capital Markets Day. The dental implants and equipment company is targeting CHF 5 billion revenue by 2030:
Ambition to achieve CHF 5 billion revenue by 2030 considering an average organic growth rate of at least 10%, core EBIT margin expected to range between 25-30% in the next years depending on investment, and on continuous increase of gross dividend
Diasorin, the in vitro diagnostics company, hosted a Capital Markets Day. Total revenue is expected to decline 2% in 2022 (+24% ex Covid related revenue). 2022 - 2025 total revenue is expected to grow at a CAGR of 7%.
Deals and IPO
Rentokil Initial to Acquire Terminix for $6.7 Billion (link)
Novartis launches $15B share buyback after huge windfall from Roche stake sale (link)
PureGym Secures £300m KKR Investment (link)
French billionaire amasses 18% stake in UK telecoms giant BT, fueling takeover fears (link)
Italy's Zegna to start trading on NYSE from Dec. 20 after SPAC merger (link)
Spain's REE sells 49% of telecom infrastructure unit to KKR for $1.1 bln (link)