Investing in Europe #61
Company news and results
Volkswagen reported its full-year 2021 results. Sales increased by 12% to EUR 250.2 billion driven by mix and pricing, with volumes down 6%. Sales were still below 2019. Operating profit was EUR 20 billion, above 2019 level.
2022 outlook, pre-announced last week:
Outlook for 2022: deliveries expected to increase between 5 and 10 percent, operating return on sales to reach between 7.0 and 8.5 percent. However, this guidance is subject to the further development of the war in Ukraine and in particular the impact on the Group’s supply chains and the global economy as a whole
Ferguson, the plumbing and heating products distributor, reported revenue growth of +31.8% in the three months ended January 31. Operating margin expanded +190bps.
Ferguson's shares started trading on the NYSE earlier this month, in addition to the London listing. Following the disposal of Wolseley UK, 100% of their revenues are generated in North America.
The additional US listing is an important milestone and as previously announced, after a period of transition the Board intends to hold a shareholder vote on a proposal to change the primary listing to the US.
Zara’s owner Inditex grew sales by +37% in 2021 as stores reopened. Full-year gross margin of 57.1% was the highest in 6 years but deteriorated in Q4.
Current trading:
Store and online sales in constant currency from 1 February to 13 March were 33% above 2021 and 21% above the historic pre-Covid highs of 2019. In this period, sales in the Russian Federation and Ukraine represented approximately 5 percentage points of sales growth
Deals and IPO
Billionaire Jean Salata’s Baring Private Equity Asia Bought By European Buyout Giant EQT For $7.5 Billion - Forbes (link)
UBS raises stake in China brokerage joint venture to 67% - Reuters (link)
Kering boosts eyewear division with Maui Jim label - Reuters (link)
Eni agrees to sell 49% of power unit Enipower to Sixth Street - Reuters (link)
CVC plans Amsterdam listing in blow to London market - FT ($link)
CVC Capital Partners, Europe’s biggest private equity group, is planning to shun London and take its multi-billion-euro initial public offering to Amsterdam’s Euronext exchange.
Other news
Western companies wrestle with Russia 'half-exits' - Reuters (link)
Real-life ‘Succession’: LVMH’s billionaire owner Bernard Arnault to extend his tenure as CEO with his 5 kids in the running to take over - Fortune (link)
Germany's RWE warns of major business risks if Ukraine war escalates - Reuters (link)
Twitter: