Gross profit – Stormbirds http://stormbirds.net/ Sun, 25 Sep 2022 06:27:28 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://stormbirds.net/wp-content/uploads/2021/07/icon-2021-07-05T151758.466-150x150.png Gross profit – Stormbirds http://stormbirds.net/ 32 32 FG, States and LGCs share N673.137b for August – WorldStage https://stormbirds.net/fg-states-and-lgcs-share-n673-137b-for-august-worldstage/ Sat, 24 Sep 2022 22:13:48 +0000 https://stormbirds.net/fg-states-and-lgcs-share-n673-137b-for-august-worldstage/ WorldStage Newsonline—Nigeria’s Federation Accounts Allocation Committee (FAAC) has shared N673.137 billion with the three tiers of government as the federation’s allocation for the month of August. A statement released by Mr. Phil Abiamuwe-Mowete, the Director (Information/Press) said that the Federal Government received N259.641 billion, the States received N222.949 billion and the Local Government Councils received […]]]>

WorldStage Newsonline—Nigeria’s Federation Accounts Allocation Committee (FAAC) has shared N673.137 billion with the three tiers of government as the federation’s allocation for the month of August.

A statement released by Mr. Phil Abiamuwe-Mowete, the Director (Information/Press) said that the Federal Government received N259.641 billion, the States received N222.949 billion and the Local Government Councils received N164.247 billion. naira.

The N673.137 billion included gross statutory revenue, value added tax (VAT) and an increase in non-oil surplus revenue.

The statement issued at the end of the meeting stated that the VAT gross disposable income for the month of August was N215.266 billion.

The amount was an increase distributed the previous month.

“The breakdown is as follows: Federal government got 32.290 billion naira, states got 107.633 billion naira, local government councils got 75.343 billion naira.

The statement said the gross statutory income of N437.871 billion distributed is lower than the sum received in the previous month.

It was from this that the Federal Government received the sum of 216.815 billion Naira, the States obtained 109.972 billion Naira, the LGCs obtained 84.783 billion Naira and the Petroleum Diversion (13% of mining revenue) received obtained 26.301 billion naira.

“Furthermore, the N20 billion increase in non-oil surplus revenue now converted into distributable revenue has been shared among the three levels of government as follows; the Federal Government received N10.536 billion, the States received N5.344 billion, the LGCs received N4.120 billion.

The statement further indicates that VAT, import and excise duties recorded significant increases, while corporate income tax (CIT), petroleum profits tax (PPT), oil and gas royalties have dropped significantly.

It was further revealed that the total distributable income for the current month of August came from statutory income of N437.871 billion and VAT of N215.266 billion.

Revenue was also driven by the N20 billion increase in non-oil surplus revenue, which brought the total distributable for the month to N673.137 billion.

However, the Excess Crude Account (ECA) balance as of September 23 stands at $470,599.54 million.

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Costco Stock Slips on Fourth Quarter Earnings; Hot Dog, Membership Fee https://stormbirds.net/costco-stock-slips-on-fourth-quarter-earnings-hot-dog-membership-fee/ Fri, 23 Sep 2022 09:58:01 +0000 https://stormbirds.net/costco-stock-slips-on-fourth-quarter-earnings-hot-dog-membership-fee/ Wholesale Costco (COST) Shares fell on Friday after the bulk retailer posted better-than-expected fourth-quarter earnings but noted pressure on profit margins amid rising cost inflation and changing consumer habits. Costco said diluted earnings for the three months ending Aug. 28, its fourth fiscal quarter, rose 11.7% from a year ago to $4.20 per share, beating […]]]>

Wholesale Costco (COST) Shares fell on Friday after the bulk retailer posted better-than-expected fourth-quarter earnings but noted pressure on profit margins amid rising cost inflation and changing consumer habits.

Costco said diluted earnings for the three months ending Aug. 28, its fourth fiscal quarter, rose 11.7% from a year ago to $4.20 per share, beating Street forecasts. of about 4 cents per share.

Total revenue rose 15% to $72.091 billion, just ahead of analyst forecasts of a total of $72.07 billion, with membership revenue up 7.5% to $1.327 billion . Same-store sales rose 13.7% globally and 15.8% in the United States, Costco said, with e-commerce sales rising 7.1%.

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Nasdaq bear market: 5 sensational growth stocks you’ll regret not buying on the downside https://stormbirds.net/nasdaq-bear-market-5-sensational-growth-stocks-youll-regret-not-buying-on-the-downside/ Sat, 17 Sep 2022 09:06:00 +0000 https://stormbirds.net/nasdaq-bear-market-5-sensational-growth-stocks-youll-regret-not-buying-on-the-downside/ This year has served as a stark reminder that the stock market doesn’t move in a straight line — even though 2021 made you believe it did. The first half of 2022 saw the benchmark S&P500 produce its worst yield in more than half a century. But things were even worse for growth-oriented companies Nasdaq […]]]>

This year has served as a stark reminder that the stock market doesn’t move in a straight line — even though 2021 made you believe it did. The first half of 2022 saw the benchmark S&P500 produce its worst yield in more than half a century.

But things were even worse for growth-oriented companies Nasdaq Compound (^IXIC -0.90%)which has lost up to 34% of its value since its peak and pushed decisively into a bear market.

Image source: Getty Images.

At first glance, there’s no denying that bear markets can be worrisome. The speed of the lower moves during these times of heightened volatility certainly has the potential to make investors doubt their resolve to stay. However, bear markets are also a real opportunity for wealth creation. Indeed, every double-digit percentage drop in major indices, including the Nasdaq Composite, was eventually recouped (and more) by a bull market rally.

Now seems like the perfect time for patient investors to consider buying the innovative growth stocks that have been hit hard by the 2022 bear market. Below are five sensational growth stocks you’ll regret not having. bought during the Nasdaq bear market decline.

Assets received

Extraordinary early growth stock investors will kick themselves if they miss the Nasdaq bear market decline is a cloud-based lending platform Assets received (UPST -5.74%). Although rapidly rising interest rates and a weakening U.S. economy are bound to slow down the number of short-term Upstart loan application processes, the company brings clear competitive advantages to the table that should translate by great long-term victories.

For example, Upstart’s loan verification platform is powered by artificial intelligence (AI). Relying on predictive technology has enabled Upstart to process and approve nearly three-quarters of all online loan applications. This saves the company’s approximately six dozen lending partners time and money.

What’s been particularly interesting about Upstart is that its AI-powered lending platform has led to more applicants getting approved. On average, loans approved by Upstart have a lower credit score than the traditional loan verification process. But in terms of loan delinquency, Upstart approvals have delinquency rates similar to people introduced to the normal loan verification process. In other words, Upstart can expand the loan pool for banks and credit unions without increasing their credit risk profile.

It is also a company that is just beginning to spread its wings into considerably larger addressable markets. Until recently, Upstart focused primarily on personal loans. But with the company now verifying and processing auto loans and small business loans, its addressable market, based on loan originations, has grown tenfold.

Intuitive surgery

A second phenomenal growth stock you’ll regret not picking up as the Nasdaq plunges into a bear market is the developer of robotic-assisted surgical systems Intuitive surgery (ISRG -1.59%). Despite very short-term concerns about postponing elective surgical procedures to a later date, Intuitive Surgical’s dominant market share and operating model make it an obvious buy on weakness.

By the end of the June quarter, Intuitive Surgical had installed 7,135 of its da Vinci Surgical Systems worldwide. While that might not seem like a big number, it’s way more than its competitors by far.

To add to that point, each da Vinci machine costs between $0.5 million and $2.5 million. Coupled with the intangible cost of training surgeons to use the da Vinci Surgical System, this means that hospitals and surgical centers are highly unlikely to switch to a competitor once the purchase is made.

Intuitive Surgical also benefits from its razor and blade operating model, which should help the company’s operating margins increase over time. During the 2000s, the company generated most of its revenue from the sale of its expensive but mediocre margin, da Vinci (the “razor”) systems. However, the bulk of revenue now comes from the sale of high-margin instruments with each procedure, as well as the maintenance of these systems (the “blades”). As da Vinci’s installed base grows, so does Intuitive Surgical’s higher margin sales channels.

A person using a tablet to browse pinned boards on Pinterest.

Image source: Pinterest.

pinterest

The third sensational growth stock just begging to be bought during the Nasdaq bear market decline is the social media stock pinterest (PINS -2.77%). Although ad spending may prove difficult until the US economy recovers, Pinterest looks poised to excel in the long run.

Ideally, Wall Street and investors would like to see Pinterest’s monthly active user (MAU) count increase every quarter. However, the COVID-19 pandemic has disrupted the company’s MAUs over the past two years. But what’s really important to note is that the average revenue per user (ARPU) continued to increase by a double-digit percentage.

Even with MAUs down 21 million to 433 million in the quarter ended June, global ARPU increased 17%, with particularly strong growth in international markets. This demonstrates that advertisers are willing to pay extra to reach Pinterest users, even with a high level of economic uncertainty.

Pinterest is also relatively safe from app developers modifying their data-tracking software. While most advertising companies rely on data tracking solutions to help merchants target their users, Pinterest’s entire operating model relies on its MAUs voluntarily sharing things, places and services. that interest them. This makes it easy for advertisers to target users and could eventually help Pinterest become a serious e-commerce player.

Green Thumb Industries

The fourth incredible growth stock you’ll regret not buying as the Nasdaq Composite plummets is marijuana stock Green Thumb Industries (GTBIF -0.18%). Although Capitol Hill has not passed the cannabis reform measures, the legalization of marijuana at the state level provides more than enough opportunities for multi-state operators (MSOs) like Green Thumb to flourish. .

By early September, Green Thumb had 77 operating dispensaries and a presence in 15 legalized states. While a number of these states are high-dollar markets (e.g., California and Florida), what’s notable about Green Thumb’s expansion has been its focus on limited license markets, such as Illinois, Ohio and Virginia. Limited licensing states deliberately limit the number of dispensary licenses that can be issued in total, as well as to a single company. Operating in these states allows MSOs to grow their brands without fear of being overrun by pot stock with deeper pockets.

Additionally, Green Thumb’s earnings mix is ​​arguably more favorable than any other marijuana stock. Well over half of the company’s sales come from jar merchandise, such as drinks, vapes, edibles, dabs, pre-rolls, and health/beauty products. These products command higher prices and significantly juicier margins than dried cannabis flower.

While most MSOs are always on the hunt for recurring profitability, Green Thumb Industries has achieved eight consecutive quarters of profits under generally accepted accounting principles (GAAP).

PayPal Credits

The fifth and final sensational growth stock you’ll regret not buying during the Nasdaq bear market decline is the fintech juggernaut PayPal Credits (PYPL -2.49%). Although historically high inflation is affecting the lowest income decile, digital payment growth is still in its infancy.

If you need proof that the global digital payments market can sustain double-digit growth, look no further than PayPal. Even with the Nasdaq and S&P 500 entering a bear market during the second quarter and US gross domestic product declining in the first two quarters of 2022, PayPal reported a 13% increase in total rate payment volume. exchange rate and saw its free cash flow jump 22% compared to the prior year period. Imagine how well PayPal will perform when the US economy is back in full swing.

What’s been most impressive about PayPal is the increased engagement among its active accounts. Since the end of 2020, the average number of transactions made over the past 12-month period by active accounts has increased from just under 41 to almost 49, as of June 30, 2022. Because it is is primarily a commission-based business, more transactions equals higher gross profit for PayPal.

And don’t discount PayPal’s innovativeness or acquisition potential either. Last year, it acquired Paidy, a Japan-based buy-it-now and pay-later software platform. Long periods of global economic expansion should allow Paidy and its new parent company, PayPal, to thrive.

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Q3 2021/22 interim report https://stormbirds.net/q3-2021-22-interim-report/ Thu, 15 Sep 2022 09:55:46 +0000 https://stormbirds.net/q3-2021-22-interim-report/ Roblon maintains its profit forecast for the year 2021/22 Interim report for the third quarter 2021/22 (the period from November 1, 2021 to July 31, 2022) Highlights of the Roblon Group Interim Report: As expected, the Group continued to experience the aftermath of COVID-19 in the first three quarters of 2021/22, primarily in the form […]]]>

Roblon maintains its profit forecast for the year 2021/22

Interim report for the third quarter 2021/22 (the period from November 1, 2021 to July 31, 2022)

Highlights of the Roblon Group Interim Report:

As expected, the Group continued to experience the aftermath of COVID-19 in the first three quarters of 2021/22, primarily in the form of raw material supply shortages, logistical challenges and general market impacts. . This rise in inflation and the impacts of the war in Ukraine temporarily hurt revenues and profitability and led to an increase in inventories of essential raw materials.

As described in company announcement no. 1/2022, the Group acquired the Czech company Vamafil spol. sro on January 3, 2022 as part of Roblon’s growth strategy within its core business, the fiber optic cable industry. A preliminary allocation of the purchase price has been made, as detailed in note 5 of the interim report.

The relocation and installation of selected parts of the production facilities from Denmark to the Czech Republic is proceeding as planned. The first stage of relocation took place in early June 2022, the second stage of relocation took place in August 2022, and the third and final stage of relocation is expected to be completed by the end of 2022.

  • In Q1-Q3 2021/22, order intake reached DKKm 313.1 (DKKm 223.4) and the order book as of July 31, 2022 was DKKm 123.7 (DKKm 83.0).
  • The receipts amounted to 262.0 million DKK (169.4 million DKK). This covered an increase of DKK 61.3 million in the FOC product group and an increase of DKK 31.3 million in the composite product group, of which DKK 19.6 million related to Vamafil.
  • Gross margin of 49.1% (45.8%) for the first half was positively impacted by a favorable product mix and improved profitability in the FOC product group.
  • Operating profit before depreciation, amortization and special items (EBITDA) was DKK 10.9 million (a loss of DKK 18.7 million).
  • EBIT before special items was a loss of DKK 9.2 million (a loss of DKK 33.5 million).
  • Special items related to the acquisition of Vamafil in the Czech Republic amounted to a net charge of DKK 4.9 million (DKK 0 million).
  • Roblon’s equity as of July 31, 2022 amounted to DKK 214.3 million (DKK 214.1 million).
  • Cash flow from operations for Q1-Q3 2021/22 was a net outflow of DKK 21.2 million (an outflow of DKK 31.3 million), negatively impacted by an increase of approximately DKK 20 million DKK from working capital. The increase is mainly related to the higher level of activity, the increase in raw material prices and the increase in inventories of critical raw materials.

Guidelines for the whole of the year 2021/22

The forecast is still subject to uncertainty due to the negative aftermath of COVID-19 in all of the Group’s markets, which recently translated into a negative impact on the FOC product group in the United States.

Roblon ceased all sales to Russia and Belarus following the war in Ukraine. Historically, the Group has not had significant commercial activities in Russia, Belarus or Ukraine.

Supply shortages of certain raw materials and components are expected to remain a challenge.

At the end of the third quarter of 2021/22, management maintains the following guidance for the year 2021/22:

  • Turnover between DKK 360 and 390 million (2020/21: DKK 249.9 million).
  • Operating profit before depreciation, amortization and special items (EBITDA) of between DKK 17 and 27 million (2020/21: a loss of DKK 12.6 million).
  • Operating profit/loss before exceptional items (EBIT) between a loss of DKK 10 million and a profit of DKK 0 million (2020/21: a loss of DKK 32.9 million).
  • Special items related to restructuring costs amounting to a charge of approximately DKK 8 million (2020/21: DKK 0 million).

Head office building put up for sale

At the beginning of 2020, the Group decided to put its property in Frederikshavn up for sale. There are currently no potential buyers for the buildings, but the sale process continues. After the sale, the group’s Danish operations will all be located at Roblon’s facility in Gærum, which currently houses production and various administrative functions. In addition to generating positive synergies in day-to-day operations, this initiative should also have a positive impact on Roblon’s earnings and equity going forward.

Forward-looking statements

Please note that short-term forecasts are subject to a high degree of uncertainty as all markets are impacted by COVID-19. The war in Ukraine raises additional uncertainty regarding the supply and transport of components and raw materials etc.

The above forward-looking statements, particularly revenue and earnings projections, are inherently uncertain and subject to risks. Many factors are beyond Roblon’s control and, therefore, actual results may differ materially from the projections expressed in this interim report. These factors include, but are not limited to, changes in market conditions and competition, changes in demand and buying behavior, fluctuations in exchange rates and interest rates, and economic, political and general trade.

Frederikshavn, September 15, 2022 Roblon A/S

Jorgen Kjaer Jacobsen Lars Ostergaard
Chairman of the Board Managing Director and CEO

Inquiries regarding this announcement should be directed to:
Managing Director and CEO Lars Østergaard, tel. +45 9620 3300

  • Company Announcement No. 14 – 2022

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Heritage Automotive Cuts Expenses to Five-Fold Profit Growth in 2021 https://stormbirds.net/heritage-automotive-cuts-expenses-to-five-fold-profit-growth-in-2021/ Tue, 13 Sep 2022 10:01:32 +0000 https://stormbirds.net/heritage-automotive-cuts-expenses-to-five-fold-profit-growth-in-2021/ Heritage Automotive highlighted the role played by “significantly improved margins” and reduced administrative expenses by recording a five-fold increase in pre-tax profits in 2021. Based in Wiltshire Automotive Distribution Group AM100 succeeded in increasing its turnover by 3.9% from £169.5 million to £176.1 million in the period ending 31 December 2021, despite the sale of […]]]>

Heritage Automotive highlighted the role played by “significantly improved margins” and reduced administrative expenses by recording a five-fold increase in pre-tax profits in 2021.

Based in Wiltshire Automotive Distribution Group AM100 succeeded in increasing its turnover by 3.9% from £169.5 million to £176.1 million in the period ending 31 December 2021, despite the sale of its concession Cheltenham Jaguar Land Rover (JLR) at Marshall Motor Group.

A reduction of £823,000 in administrative costs resulting from the transaction and its integration of the Blade Motor Group Skoda dealership into its existing Volkswagen dealership in Weston Super Mare, helped to bring pre-tax profits from £534,000 to 2020 at £3.33m.

Heritage also reported gross profit margin up 9.4% (2020) to 11.1.

The changes offset a reduction in government support for COVID-19, which fell to £510,000 from £1.98m in 2020.

Its earnings statement said: “Directors are encouraged by the current progress and commitment demonstrated by the Legacy team.

“The company continues to trade profitably, is well funded and will continue to capitalize on new business opportunities as they arise.”

Originally founded in 1996, Heritage was purchased by former Colborne Garages owners Richard Neulander and John Walsh in 2016.

The company has risen to the top half of AM100 franchise dealer groups since acquiring Blade Group in 2019.

A partner of the Volkswagen group, it also owns JLR and Honda franchises and retails several brands of motorcycles.

This year, the group also became a franchisee of the Ineos Grenadier 4×4.

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Planet Labs Stock: Q1 Recap and Q2 Reflections (NYSE: PL) https://stormbirds.net/planet-labs-stock-q1-recap-and-q2-reflections-nyse-pl/ Sun, 11 Sep 2022 14:07:00 +0000 https://stormbirds.net/planet-labs-stock-q1-recap-and-q2-reflections-nyse-pl/ Thibault Renard Introduction I wrote a more detailed analysis on Planet (NYSE: PL) in February, two months after it was published via PSPC. I laid out my investment thesis, which relies heavily on expanding use cases as the company transforms raw imagery data into more consumable insights and predictive analytics. The new use cases should […]]]>

Thibault Renard

Introduction

I wrote a more detailed analysis on Planet (NYSE: PL) in February, two months after it was published via PSPC. I laid out my investment thesis, which relies heavily on expanding use cases as the company transforms raw imagery data into more consumable insights and predictive analytics. The new use cases should attract new customers and encourage existing customers to spend more. With incremental margins of over 95%, revenue growth will naturally drive profitability.

Although Planet is still in the early stages of execution, its fiscal first quarter results (end of April) were in line with initial analysis. In this article, I’ll give a quick recap of the FQ1 results and outline a few things I’ll be watching for when the company reports on Monday (September 12).

Summary of the 1st quarter

Although an FQ1 revenue summary may be a somewhat outdated analysis at this point, it is necessary to preface what I will be looking for in FQ2. Overall, I saw FQ1 earnings favorably despite missing earnings expectations quite substantially.

Revenue during the quarter totaled $40.1 million, +26% Y/Y and +8% Q/Q. Approximately 40% of the increase was due to increased spending by existing customers, with the remainder driven by customer growth. Planet added 56 clients over the period, bringing the total to 826, +23% Y/Y and +7% Q/Q.

Gross margin rose 370 Q/Q basis points to 41.1%, demonstrating the company’s ability to scale profitably with additional customers.

Much of the revenue discussion centered on the National Recognition Office’s EOCL award. Planet, on the other hand, refrained from discussing any upside opportunities, instead focusing on the guaranteed portion. The contract is for $146 million over five years, of which $89 million will be recognized in the first two years.

With increased revenue visibility from EOCL, management tightened its full-year guidance, increasing the midpoint by $2 million to $182 million. So a little adjustment, better to go up than down!

Net dollar retention rate was 105% compared to 95% the previous year. Planet calculates this metric based on the value of customer contracts at the start of the fiscal year, so I expect this number to improve significantly over the course of the year (as before), especially with the recent EOCL price.

On the call, Will Marshall specifically highlighted the growing momentum of the agriculture sector (~23% of FY2021 revenue). I consider this a fairly significant development in the wake of the VanderSat acquisition, as it provides some confirmation of the growth of the advanced analytics market. If Planet can develop similar software – based on its unique data – to meet the needs of other industries, such as insurance, supply chain monitoring and finance, the opportunity set is greatly enhanced.

Ultimately, spending skyrocketed as Planet invested in software sales and headcount. While it’s hard to gauge the return on these investments in advance, I’m comfortable with increased spending (for now) as long as revenue growth continues to accelerate. The company has plenty of cash reserves to fund its short-term growth.

Importantly, the company has indicated that it is on track to meet its hiring needs for the year, a prerequisite for growing its customer base.

At a high level, the results for the quarter were good – not great – with a lot of potential priced in in the near term thanks to the EOCL price and the dynamics in agriculture.

Focus Q2

I will mainly focus on four variables in the FQ2 report:

  • Increase in income;
  • Gross margin;
  • New customers; and
  • Net dollar retention rate.

A continued acceleration of revenue growth is essential to the investment thesis. If not, where are the company’s investments going? With the addition of EOCL contract revenue, I don’t see this as a major concern in the quarter, but it is perhaps the most important consideration.

On the margin side, a sequential increase in gross margin seems natural if the company can meet its revenue goals. However, the company has expected non-GAAP gross margins to be in the same range as FQ1, so a sequential increase could be perceived positively by the market.

If my thesis proves to be correct over the long term, new customers will lead to a sustained acceleration in revenue. I would like to see proof that new salespeople are starting to gain momentum, reflected by a high number of new customers during the quarter.

I interpret the net dollar retention rate as a measure of how much a business adds value to existing customers in new ways. As Planet continues to explore the potential embedded in its vast (and expanding) library of data, it is critical that the company can find ways to add value. As such, I would like to see a sequential increase in net dollar retention rate. I do not see this as a significant burden given the impact of awarding the EOCL on the value of the USG contract.

Finally, I would appreciate confirmation that the company continues to be able to meet its hiring needs.

Conclusion

Planet is still in the early stages of execution and plans to significantly accelerate its growth in the short to medium term. Planet’s third report as a public company (second with consensus estimates) has the potential to be a big factor in the market’s appetite for the stock.

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Nestlé’s rising costs break Q2 turnover https://stormbirds.net/nestles-rising-costs-break-q2-turnover/ Mon, 05 Sep 2022 07:57:00 +0000 https://stormbirds.net/nestles-rising-costs-break-q2-turnover/ Nestle Nigeria Plc lost the impressive momentum on the profit trail that enabled a net jump of 45% in profits to N18 billion in the first quarter. Two major cost increases halted momentum in the second quarter, reducing the quarter’s after-tax profit to N9.8 billion. The agribusiness company’s initially bright full-year outlook has therefore shifted […]]]>

Nestle Nigeria Plc lost the impressive momentum on the profit trail that enabled a net jump of 45% in profits to N18 billion in the first quarter. Two major cost increases halted momentum in the second quarter, reducing the quarter’s after-tax profit to N9.8 billion.

The agribusiness company’s initially bright full-year outlook has therefore shifted from the first profit surge in three years to moderate growth in 2022. 2020.

Nestlé’s interim financial report for the six months ended June 2022 shows sales remain on target, with the strongest top line growth in several years expected this year. However, rising costs manifested themselves in the second quarter and limited the conversion of sales gains into profit.

The company generated revenue of N112 billion in the second quarter, up slightly from N110 billion in the first quarter. The growth rate accelerated from 26% quarter-on-quarter in the first quarter to over 33% in the second quarter.

Two major cost increases claimed a large portion of the sales gain, namely cost of sales and financial expense. Cost of sales rose 43.4% in the second quarter to more than 75 billion naira, ahead of the 33% increase in sales. This means that out of the N28 billion increase in revenue during the quarter, the cost of sales claimed up to N23 billion.

This deviated from the subdued behavior of the cost of sales in the first quarter at 67 billion naira and a much slower growth of 27.6%. The gross profit margin fell from 37.6% in the same quarter last year to less than 33% in the second quarter of 2022.

The second cost item for the company that topped its revs in the second quarter was the cost of finance, which jumped 134.6% quarter-on-quarter to N4.6 billion. The increase took the company’s position from a net finance income of N1.4 billion in the first quarter to a net finance charge of N3.9 billion in the second.

Meanwhile, the company’s strong financial revenue of 3.8 billion naira in the first quarter fell to 705 million naira in the second quarter.

Cost increases reduced the profit margin from 16.3% in the first quarter and from 11% in the same period last year to 8.7% in the second quarter.

Nestlé’s half-year result is therefore a dilution of a solid first quarter by a weak second quarter. The strength of the first quarter was only maintained thanks to revenue, which rose from 26% in the first quarter to almost 30% year-on-year to close at N222.4 billion at the end of June 2022.

This remains the company’s highest revenue improvement record in at least six years. It accelerates 22.6% revenue growth to N352 billion in 2021.

Cost of sales rose 35.5% to more than N142 billion in the half, which moderated gross profit margin to 36%. Gross profit improved by 20.7% to N80 billion over the period.

A moderate 20.7% increase in marketing and distribution expenses and a 14% decline in administrative expenses helped support operating profit, which rose 27% to more than N46 billion in the half. .

The company maintains a good front on financial revenue, which stood at 4.5 billion naira in the half-year, compared to 445 million naira in the same period of 2021. It is already more than double the less than 2 billion financial revenues that the company recorded in 2021. full year.

However, finance costs more than doubled to 105% to around N7 billion from a 65% increase in the first quarter. The accumulation resulted in a net financial cost of N2.4 billion for the six months of trading. The figure nevertheless represents a 17% drop from the net finance cost of around N3 billion in the same period last year.

Nestlé closed half-year trading with an after-tax profit of N27.7 billion, a 27.7% year-on-year improvement. This still keeps the company on track for the first reasonable profit improvement in three years.

The profit margin is however down from 16.3% in the first quarter to 12.5% ​​in the half.

The increase in financial charges reflects the increasing liabilities on the company’s balance sheet. From 77 billion naira at the end of 2021, interest-bearing debts increased to around 84 billion naira at the end of the first quarter and increased further to reach the region of 93 billion naira in the half-year.

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Ollie’s boosts sales with low prices and cuts profits https://stormbirds.net/ollies-boosts-sales-with-low-prices-and-cuts-profits/ Thu, 01 Sep 2022 16:49:46 +0000 https://stormbirds.net/ollies-boosts-sales-with-low-prices-and-cuts-profits/ Harrisburg, Pennsylvania – Ollie’s Bargain Outlet generated a healthy increase in revenue, even though comp sales were lukewarm. Second-quarter off-price sales increased 8.8% to $452.5 million. Same-store sales increased 1.2%, in line with expectations. Price investments put pressure on margins and total net income fell 58.9% to $14.1 million, or $0.22 per diluted share. “We […]]]>

Harrisburg, Pennsylvania – Ollie’s Bargain Outlet generated a healthy increase in revenue, even though comp sales were lukewarm.

Second-quarter off-price sales increased 8.8% to $452.5 million. Same-store sales increased 1.2%, in line with expectations.

Price investments put pressure on margins and total net income fell 58.9% to $14.1 million, or $0.22 per diluted share.

“We expect to see the impact on gross margin reverse in the third quarter,” said John Swygert, president, chief executive officer and chief financial officer.

“Given the many economic challenges and market disruptions today, we believe extreme value will become increasingly important in the second half of the year,” he added, citing the large number of ongoing closing agreements for the third. trimester.

The 452-store company expects full-year sales growth of 5.1% to 6.1%, totaling $1.843 billion to $1.861 billion. It is looking to new stores for most of this increase, with an expected decline of 2.5% to 1.5%.

Ollie’s plans to open 41 to 43 new stores, minus two moves and one closure.

See also:

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]]> James Hardie Q1 Earnings: Growth Story Remains Intact (NYSE: JHX) https://stormbirds.net/james-hardie-q1-earnings-growth-story-remains-intact-nyse-jhx/ Sun, 28 Aug 2022 04:16:00 +0000 https://stormbirds.net/james-hardie-q1-earnings-growth-story-remains-intact-nyse-jhx/ express All things considered, major fiber cement supplier James Hardie’s (NYSE: JHX) The revised FY2023 forecast range was better than expected, slightly reduced while implied growth remained in the double digits. Even more impressively, JHX is making progress in its high added value mix strategy, with ColorPlus volume growth accelerating in Q1 23. And with […]]]>

express

All things considered, major fiber cement supplier James Hardie’s (NYSE: JHX) The revised FY2023 forecast range was better than expected, slightly reduced while implied growth remained in the double digits. Even more impressively, JHX is making progress in its high added value mix strategy, with ColorPlus volume growth accelerating in Q1 23. And with the latest round of price increases implemented alongside some easing of cost pressures, I see a clear path to margin expansion over the next quarters. Still, the James Hardie story comes with risks, including a drop in real estate activity as long-term bonds and mortgage rates rise. Yet equities offer a large margin of safety against these risks at the current discount to historical levels, although the company retains strong opportunities for growth and FCF generation through the cycle. The upcoming September Investor Day and the impending appointment of the new CEO will be the main revaluation catalysts to watch.

Summary of a resilient neighborhood

James Hardie posted strong Q1 23 numbers, with adjusted NPAT (“net profit after tax”) of $154.3 million (+15% year-on-year). On the revenue front, the main contributor was broad-based price/mix growth across all three regions: North America led the way at +17%, followed by Europe at +14% and the Asia-Pacific at +12%. Encouragingly, the quality of growth shows that the higher value-added product strategy is paying off, as the +5% price increase over the period implies a +12% benefit from an improved product mix. ColorPlus remains the benchmark, with its continued market penetration driving accelerated volume growth of +31% (vs. +27% in FY22). All of this culminated in impressive overall revenue growth of +28% for North America for the quarter (previous guidance called for revenue growth of +18-22% for FY2023 ).

Overview of the first quarter of 2023 in North America

Jacques Hardie

Europe, on the other hand, was a source of weakness – revenues were down c. 5%, with fiber cement sales down sharply c. 10% year-on-year (+1% in euros). Production and distribution costs were also c. Gross margin headwind of 300 bps, with energy costs the main driver at +62% YoY. As a result, EBIT margins ended at 10.3% for the Europe segment – a generally weaker than expected margin result as costs increased significantly across the board. Overall EBIT margins were stronger at 25.9%, although cost inflation also played a role. The largest costs were pulp (+16% T/T) and freight (+9 T/T), followed by natural gas, labor and cement (+5% T/T) /T). In total, these costs resulted in a massive increase of c. 310 basis points of net gross margin pressure. Still, the company’s plan to implement further price increases should bring relief. In Asia-Pacific, for example, the company has shown that it has the power to set prices to recover significant cost increases, while the increase in prices in North America (from July) is also expected to cause improved margins throughout the year.

Orientation lower but well positioned to exit on top

Unsurprisingly, James Hardie lowered his adjusted net profit guidance range for fiscal 2023 to $730-780 million (previously $740-820 million). By region, North America net sales growth is guided at 18+% (vs. previous guidance of 18-22%), with EBIT margins of 28-32% (down from 30-33% previous) which are expected to increase Q/Q through FY2023. Management noted the following impacts as drivers of the lower guide – inflation, a weaker European outlook, unfavorable currency movements, as well as uncertainty of the housing market. In light of the cost pressures and uncertainties prevailing in the market, a reduction seems logical to me. In fact, the slightly lowered guide could even be conservative, given that management has also outlined various scenarios where growth could exceed the previous upper bound of the forecast at 22%.

Guidance overview

Jacques Hardie

Interestingly, the price/mix forecast remains strong into “low teens” with further momentum from the upcoming ColorPlus and Trim capacity increases and marketing efforts gaining momentum in America North. The company’s previously announced price increases in June in Asia (approximately 5% effective in September in Australia and October in New Zealand and the Philippines) will also be key to boosting margins after the cost inflation seen in Q1. 23. As 2023 approaches, JHX plans to implement even more price increases, which should support margins in the upper half of the 25-30% range for the coming year. Also noteworthy is management’s indication that it expects to revert to value-based increases in January, potentially indicating expectations of moderating cost inflation trends. Even without cost moderation, expectations of sequential improvement in margins throughout the year seem very likely as recent price increases take effect.

Reduce cyclicality

Faced with a slowing new housing market, the fact that James Hardie obtained c. 65% of its business coming from less cyclical R&R (“repair and refurbishment”) markets will be a welcome relief. According to management, the backlog remains strong, with a healthy backlog remaining intact in R&R and volumes expected to continue into the coming fiscal year. Management is also anticipating any potential inventory issues by “starving the channels,” which could yield a potentially favorable outcome given the macro uncertainties ahead.

Repair and renovation approach

Jacques Hardie

In general, commercial relations with distribution partners seem to have improved, allowing better management of demand according to the evolution of final demand. For example, management noted good visibility, even in the R&R market, through Q4 ’23. In addition, the company has also developed various scenarios to deal with a possible market downturn. These include suspending non-critical hiring and implementing a return-on-investment approach to SG&A spending. Capacity additions are also on hold given the uncertain outlook, which should further strengthen the very strong balance sheet (net leverage was around 0.7x at the end of the quarter).

Final grip

James Hardie’s strong execution capabilities were on full display this quarter as the company continued to deliver positive growth and market share gains throughout the cycle through successful price increases and strategic initiatives to move up the value chain. With management also positioning the business for future uncertainties and maintaining its outsized exposure to the resilient repair and refurbishment end market, the company is well positioned to navigate slower markets. Overall, the recent stock price discount (to a historically significant discount) looks overdone at this point, and I view the current pullback as a buying opportunity. While I recognize the downside risk in real estate activity, the implied rate cuts in fiscal 2023 (based on the forward yield curve) and the wide margin of safety at current valuation levels should reassure investors. Going forward, next month’s Investor Day could be key to lifting excess management succession and refocusing the market on the medium to long-term growth story.

James Hardie EV to EBITDA
JHX EV to EBITDA given by Y-Charts

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Shenzhou International shares tumble after lower H1 margins, weak outlook https://stormbirds.net/shenzhou-international-shares-tumble-after-lower-h1-margins-weak-outlook/ Fri, 26 Aug 2022 02:33:00 +0000 https://stormbirds.net/shenzhou-international-shares-tumble-after-lower-h1-margins-weak-outlook/ By Clarence Leong The shares of Shenzhou International Group Holdings Ltd. fell sharply in Hong Kong, after profit margins fell in the first half and the clothing maker warned of weaker demand in the second half. Shenzhou International fell 8.9% to HK$78.40 on Friday morning, taking year-to-date losses to 48%. It was the leading laggard […]]]>

By Clarence Leong

The shares of Shenzhou International Group Holdings Ltd. fell sharply in Hong Kong, after profit margins fell in the first half and the clothing maker warned of weaker demand in the second half.

Shenzhou International fell 8.9% to HK$78.40 on Friday morning, taking year-to-date losses to 48%. It was the leading laggard among blue chips, with the city’s benchmark Hang Seng Index recently rising 0.6%.

The company on Thursday reported net profit of 2.37 billion yuan ($346.0 million) for the first half, up 6.3% from a year earlier, while revenue rose by 20% to reach 13.59 billion yuan. But its gross profit margin for the period fell 7.1 percentage points to 22.6% from a year earlier, which it said was due to sharply lower raw material and energy costs. higher, as well as a production shutdown due to the pandemic in January in Ningbo, Zhejiang. province where it has its headquarters.

Shenzhou also said it was not optimistic about the export outlook as high levels of inflation in major economies “suppress growth in consumer demand.” Shenzhou expects lower capacity utilization in the first half of next year, due to insufficient demand in the textile and apparel industry.

Citi analysts said in a note that the company appears “cautious about end demand in excess inventory among global customers,” leading them to cut their earnings estimates for Shenzhou by 6% to 7% in 2022-24. The US bank also lowered its price target on the stock to HK$113 from HK$120, while maintaining its buy rating.

Write to Clarence Leong at clarence.leong@wsj.com

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