Company news and results
Temenos, the financial services software company, reported an increase in annual recurring revenue of +12% in 2021. Operating cash flow grew 16%. The company also hosted a CMD.
FY-22 guidance (non-IFRS) announced with ARR growth of 18-20%, Total Software Licensing growth of 16-18%, Total Revenue growth of at least 10%, and EBIT growth of 9-11%
Straumann, the dental implants company, increased revenue by +41.7% in 2021 (-6% in 2020). EBIT margin increased to 27.4%.
Outlook 2022: Organic revenue growth expected in the low double-digit percentage range and profitability is expected around 26% including major growth investments
In December 2021, Straumann Group presented its new strategic compass to achieve its longterm ambition of CHF 5 billion in revenue by 2030.
Heineken's beer volume grew 4.6% organically in 2021, net revenue was up +12.2%. APAC was the only negative region, due to the pandemic.
Outlook:
Expect stable to modest sequential improvement in operating profit margin (beia) in 2022.
Air Liquide, the supplier of industrial gases, reported an increase in sales of +8.2% in 2021. The operating margin increased by 70 basis points.
Faced with a sharp and sustained rise in energy prices, the Group has demonstrated both the strength of its business model – which allows it to automatically pass on these variations to its Large Industries customers – and its ability to rapidly adapt its pricing for Industrial Merchant customers
Swedish Match reported “double-digit growth in both revenues and earnings in local currencies across all product segments”. In the US, they sold almost 174 million cans of ZYN nicotine pouches last year, compared to 114mn in 2020.
Airbus delivered 611 commercial aircraft in 2021 and EBIT adjusted of €4.9 billion.
the Company targets to achieve in 2022 around: 720 commercial aircraft deliveries; EBIT Adjusted of € 5.5 billion; Free Cash Flow before M&A and Customer Financing of € 3.5 billion
Nestle reported an organic increase in revenue of +7.5% in 2021. Coffee was the largest contributor to organic growth. E-commerce reached 14.3% of sales. Margin decreased “reflecting time delays between cost inflation and pricing actions”.
Outlook:
2022 outlook: we expect organic sales growth around 5% and underlying trading operating profit margin between 17.0% and 17.5%. Underlying earnings per share in constant currency and capital efficiency are expected to increase.
Mid-term outlook: sustained mid single-digit organic sales growth. Continued moderate underlying trading operating profit margin improvements. Continued prudent capital allocation and capital efficiency improvements.
Kering’s revenue was up +35% in 2021 and +13% compared to 2019. Gucci’s revenue amounted to €9.7 billion.
Hermes reported an increase in revenue of +42% in 2021 and +33% on a two-year stack. Asia excluding Japan was up +65% over two years. Operating margin reached 39% of sales, a historical high.
Kingspan, the insulation and building envelope solutions company, increased revenue to €6.5 billion in 2021 and improved margin by +50bps. Acquisitions contributed 12% to sales growth. The CEO commented:
Despite a slower fourth quarter, with a large order backlog we are cautiously optimistic about the outlook for this year, whilst mindful of the high bar in comparison with last year’s performance. High energy costs and supply threats around the world are a catalyst for a focus on conservation measures, which is likely to accelerate the demand for lower energy solutions which we believe will be supportive of demand for our products.
Deals and IPO
Spain's BBVA buys additional 21.7% stake in Neon Payments for $300 million (link)
Vaar Energi shares fall after $7.9 bln Eni spin-off (link)
Air France-KLM to seek up to 4 bln euros to repay state aid, shares sink (link)
France to Pump $2.4 Billion Into EDF as Profit Set to Slump (link)
Other news
Thousands of market-ready fish die at Norway Royal Salmon’s Icelandic subsidiary (link)
Inflation, Positioning & China: A Dive into Luxury Brands’ Price Increases (link)
Allianz Hedge Fund Implosion Results in $4.2 Billion Charge (link)
Ericsson Shares Sink After Company Says It May Have Made Payments to ISIS (link) 😐
It has been a windy week in the UK but people had fun: