Investing in Europe #52
Company news and results
The jewellery company Pandora reported preliminary results for the full year 2021:
Revenue in the fourth quarter as well as for the full year 2021 is the highest ever for Pandora. Importantly, total sell-out also reached a historical high in Q4 2021
Sika grew +17.1% in 2021 in local currencies. The specialty chemicals company confirmed the target of 6%–8% annual growth up to 2023.
As of 2021, the company is aiming for a higher EBIT margin of 15%–18%. Projects in the areas of operations, logistics, procurement, and product formulation should result in an annual improvement in operating costs equivalent to 0.5% of sales.
Brunello Cucinelli reported an increase in sales of +32.4% in 2021, at constant exchange rates. The Americas was the fastest growing region.
They expect fine, gracious and balanced growth in 2022 and 2023 😀:
Our expectations for the next two years are fully confirmed, with fine, gracious, balanced growth around 10% for both 2022 and 2023.
We consider these growth expectations very concrete, given the performance of the collections, the selected boutique network development project, and the like-for-like results we expect.
JD Sports increased sales by more than 10% in the twenty-two week period to 1 January 2022. The sports fashion retailer expects profit before tax to be ahead of market expectations:
The sustained positive nature of consumer demand through the second half to date means that we are now confident that the Group headline profit before tax for the full year to 29 January 2022 will be ahead of current market expectations, which average £810 million. It is now anticipated that the outturn for the full year will be at least £875 million.
The executive chairman sold 10mn shares a few days after the update.
Just Eat Takeaway.com issued a trading update:
Management reiterates the following financial targets:
GTV to grow by mid-teens percentage points year-on-year in 2022
2021 has been the peak year of losses, with 2022 adjusted EBITDA margin improving to the range of minus 0.6% to minus 0.8% of GTV
In excess of €30 billion of GTV to be added over the next five years
Long term group adjusted EBITDA margin in excess of 5% of GTV
Chr. Hansen reported organic growth of +9% in Q1 2021/22. EBIT margin was 24.4%, down from 25.2%.
The outlook for 2021/22 remains unchanged from the original guidance provided on October 14, 2021:
Organic growth is expected in the range of 5-8%
EBIT margin before special items is expected to be 27-28%
Free cash flow before special items is expected to be around EUR 140-170 million
In 2021, the manufacturer and supplier of sanitary products Geberit, “achieved the strongest sales growth since going public in 1999”.
Net sales in Swiss francs rose by 15.9% to CHF 3460 million compared with the previous year. In currency-adjusted terms, growth of 14.7% was posted. Also compared with the pre-COVID-19 year of 2019, exceptionally strong growth in local currencies of 16.4% was recorded. In terms of results, Management expects an operating cashflow margin of around 31% for the business year 2021.
Experian, the global information services company, issued a trading update. In Q3:
Total revenue growth was 14% at actual exchange rates and 15% at constant exchange rates. Organic revenue growth was 11%. “We now expect organic revenue growth for the full year to be in the range of 12-13%, with total revenue growth now expected in the range of 16-17%, at constant exchange rates. We continue to expect strong EBIT margin accretion, also at constant exchange rates.
SAP pre-announced Q4 results and expects its cloud growth to continue to accelerate.
For 2022, SAP expects its cloud growth to continue to accelerate. The pace and scale of SAP’s cloud momentum places the Company well on track towards its mid-term ambition.
Deals and IPO
GSK rejects 50-billion-pound Unilever offer for consumer assets (link)
DAZN nears deal to buy BT Sport for an estimated $800 mln - sources (link)
WeTransfer owner seeks Amsterdam IPO, plans $182 mln share issue (link)
Other news
EDF is latest utility in energy crisis hurt locker (link)
Delivery Hero looks to sell advertising and financial solutions in bid to finally turn profit (link)
How a subsidiary of Thyssenkrupp can change the fortunes of the ailing German steel major (link)
Private equity firms Bain and CVC join forces for potential Boots bid (link)
Checkout.com crowned UK’s most valuable fintech with $1bn raise (link)