Investing in Europe #58
Company news and results
Smith & Nephew, the global medical technology company, reported an increase in revenue of +10.3% in 2021. Outlook:
Through our Strategy for Growth we are targeting consistent 4% to 6% underlying revenue growth by 2024, structurally ahead of historical levels, and a trading profit margin of at least 21% by 2024 with further improvements thereafter
For 2022 we are targeting underlying revenue growth in the range 4.0% to 5.0% (around 2.6% to 3.6% reported)
The testing company Eurofins increased revenue by +21.7% in 2021, boosted by Covid-19 clinical reagents and testing revenues. The core business grew by +11.9% compared to 2019.
COVID-19 related activities remained robust in 2021 at about €1,425m, with the Eurofins network continuing to support government and health authorities with innovative tests and solutions to help fight the pandemic
Over 40 million COVID-19 PCR tests now completed in Eurofins laboratories
Outlook (including M&A):
Danone’s recurring operating margin was down 30bps in 2021. Input cost inflation was around 8%. Like-for-like sales increased by 3.4%.
Puma increased revenue by 30% compared to pre-pandemic level in 2019. The EBIT margin improved to 8.2% (8.0% in 2019). Outlook:
Despite the uncertainties lasting into 2022, we expect a strong currency-adjusted sales growth of at least ten percent in the financial year 2022. We anticipate our operating result (EBIT) to be in a range of € 600 million and € 700 million (2021: € 557 million) and net earnings to improve correspondingly.
AB InBev increased total revenue by +15.6 % in 2021. The EBITDA margin was 35.4%.
Deals and IPO
Volkswagen to start review of Porsche AG IPO (link)
LVMH flirts with Ralph Lauren merger (link)
War, market jitters threaten Europe's IPO launch season (link)