Tag: results

French writing instruments vendor, BIC, has reported strong Q4 growth. According to the company, stationery sales increased by 7.8% to €165.6-million.

Sales were high in emerging markets such as South Africa and Brazil, owing to the back-to-school season, while in India sales also improved. The company reported mid-single digit growth in Europe and high-single digit growth in North America.

Overall, FY2016 sales for the Stationery division increased by 5.2% in constant currency to €736.6 million. Stationery volumes increased 1.5% to 6.9 billion units in 2016.
Looking ahead into 2017, the firm outlined priorities to deliver organic sales growth and gain market shares in the division through new product launches, increased R&D investment and new emerging channels such as e-commerce in developed countries.
Meanwhile in its Graphic arm, Q4 sales fell 13.6% to €94.6 million. Full-year sales also dropped, registering a 1.9% fall to €311.5 million.
BIC’s overall full-year sales rose 4.9% to €2.03 billion, while pre-tax profit dropped 10.7% to €408.1 million.
Earlier this month, BIC revealed that a strategic review of its promotional products unit would hit group FY2016 profits. The company has now revealed a €48.4 million hit from these operations.
Bruno Bich, chairman and CEO, says: “Our solid 2016 results are further testimony to the quality and strength of our business model. In a fast-moving and challenging market environment, such as in Shavers in the US, net sales growth was robust and consistent across all consumer categories. Despite the planned increase in operational investment, normalised income from operations remained healthy.
“In 2017, the volatility of currencies and the unpredictable global environment will require increased levels of agility from our teams to ensure continued success. We plan to deliver mid-single digit organic growth in Net Sales. We will continue to launch new products and strengthen our distribution, with a focus on e-commerce in developed markets.
“To enhance long-term growth, we plan another year of selected investments in R&D, CAPEX and Brand Support. The total impact of these investments on Normalized Income From Operations margin will be approximately -100 basis points compared to 2016, excluding major currency fluctuations.”

Source: www.finance.yahoo.com

A sales update from Massmart has revealed so-so results, but in these trying times that’s just a couple of notches down from a howling success.

Sales were up 7,7% to R91,3-billion in the 52 weeks to 25 December, ahead of product inflation of 6,7%, but down from market expectations, and from last year’s performance (growth of 8,4% against product inflation of 3%).

Masswarehouse – that’s Makro to the rest of us – grew fastest, at 11%, while Masscash (Cambridge, Jumbo and so on) grew at 7,5%, although this was beaten down by internal inflation of 9,3%.

Massdiscounters (Game, DionWired) came in at 5,3%, while Massbuild somewhat disappointingly trundled home at 5,6%.

While there was an uptick in sales at home, they declined elsewhere, vindicating the decision to take it easy in Africa.

Source: Trade Tatler

Bidvest has released its first results since unbundling its food division into separately listed Bidcorp in May.

The previous year’s figures were restated, with the divisions now housed in Bidcorp accounted for as discontinued operations.

The smaller group says revenue for the year to end-June grew 3.5% to R91.8bn but aftertax profit for the year from continuing operations fell 28.5% to R2.4bn.

A final dividend of R2.32 was declared, taking the dividend for the year to R7.14. Although down from the previous year’s R9.09, the company says this “needs to be viewed in the context of the interim dividend of R4.82 which was paid as part of the larger group, prior to unbundling”.

CEO Lindsay Ralphs included in his commentary an appeal for an end to disruption of key economic institutions.
“As one of SA’s largest employers and a significant investor in the local economy, Bidvest shares the concerns that have been raised by business leadership relating to the ongoing disruption of some of our country’s most important economic institutions. We appeal for a rapid resolution of this current state of affairs.”

Under its new structure, Bidvest fields seven divisions. Of these, freight is the biggest revenue generator but services division is the biggest trading profit centre.

Freight contributed nearly a third of the turnover Bidvest earned in SA. While most of Bidvest’s operations outside SA are now housed in Bidcorp. The group retained Bidvest Namibia, which added R4.3bn turnover to the R90bn contributed by its South African operations.

“Global freight trade remained depressed, and as a consequence, volumes declined. This division’s focus in 2016 has therefore been on innovation and flexibility in an effort to contain costs and enhance efficiencies. The 3.8% decline in trading profit is considered satisfactory given the significant decline in the movement of commodities — particularly minerals — out of the country. Grain imports assisted marginally in the last quarter. The continued import of grain will be positive for this division in the new financial year,” the results statement said.

While freight contributed a third of South African turnover, it contributed a fifth of operating profit. Services was nearly the opposite, contributing 19% of South African turnover and 29% of operating profit.

Brands within the services division included BidAir, Security, Cleaning and Bidtrack, which all posted excellent results, the company said in its statement.

Bidvest’s financial services division reported the fastest turnover growth of 64% to R3.3bn while its trading profit grew 10.4% to R582m.

“Bidvest Bank improved trading profit by 30%, and the insurance company performed satisfactorily, but was impacted by the decline in the mark-to-market profits of its equity portfolio. This division posted an overall increased trading profit of 10.4%,” Bidvest says.

Its commercial products division grew turnover 42% to R5.9bn and trading profit 42% to R745m.
This division was boosted by the acquisition of Plumblink and it is in the process of acquiring Brandcorp.

“The result was slightly below my expectation — closer to indifferent than bad,” Avior Capital Markets analyst Mark Hodgson says. “The outlook should be for growth assisted by acquisitions.”

Ron Klipin, a portfolio manager at Cratos Capital, says the results were in line with expectations. “Bidvest is a different entity, having unbundled its global food division, which now has a market cap of R90bn, against Bidvest’s R51bn.”

“The sum of the parts is now greater than the original Bidvest Group, having unlocked value for shareholders. Bidvest is now a diversified industrial business, with seven entities, ranging from services to trading divisions and substantial property holdings,” he says.

“The diversification is a positive aspect, with no segments having more than a 30% contribution,” Klipin says. He said services made up 56% of trading profits, with the trading distribution division making up the rest.

Good cash flow from operations and gearing of 26% gave Bidvest plenty of scope for acquisitions, both in SA and abroad.

Meanwhile, noncore assets such as Comair, Adcock Ingram and Bidvest’s remaining share in India’s Mumbai Airport could soon be disposed of “at the right price”.

“Lazy assets, which do not contribute benchmark returns, could also be on the chopping board,” he says, adding that this would probably not include property assets — their profits contributed about R300m.

By Robert Laing with Mark Allix for Bdlive

Bidvest, whose business spans pharmaceuticals, auto showrooms, shipping and catering, said diluted headline earnings per share totalled 1,001.5 cents in the six months to end-December, compared with 886.3 cents a year earlier.

The group said tough trading conditions at home, where sales grew by only 3%, weighed on its results, but its food services business showed exceptional growth in Britain, Europe and some of China’s large cities.

Office and print

The consolidated business, combining Office and Paperplus, achieved satisfactory results, with turnover 3,5% higher at R5,2-billion (2014: R5-billion) and trading profit up 24,7% at R415,3-million (2014: R333,1-million).

Lithotech was buoyed by export income and changes to its service mix. Bidvest Data created a competitive advantage from the shift to electronic communication. Bidvest Packaging maintained strong momentum after a period of consolidation. Rotolabel achieved a pleasing turnaround, as did Silveray. Kolok performed strongly, with rand weakness contributing to its results.

Performance at Waltons continued to disappoint. A strong performance was put in by Konica Minolta. Zonke Monitoring Systems again did well. Among the furniture businesses, Cecil Nurse performed exceptionally well and the furniture contribution was well above budget.

“The average rand exchange rate weakened against sterling and the euro, resulting in a 3,7% benefit to trading profit,” the company said.

Bidvest announced earlier this month that it plans to list its food services business separately on the Johannesburg Securities Exchange.

In the half year to 31 December, 2015, Bidvest achieved 13% growth in headline earnings per share (HEPS) to 1 001,5 cents despite challenging trading conditions, particularly in Southern Africa.

Highlights of Bidvest’s half-year results include:

  • HEPS up 13% to 1 001,5 cents (2014: 886,3 cents);
  • Most Foodservice businesses achieved real organic growth in local currency;
  • Improved trading result by Bidvest South Africa;
  • Turnover up 9,6% to R114,5-billion (2014: R104,4-billion);
  • Trading profit rises 11,6% to R5,2-billion (2014: R4,6-billion);
  • Strong contributions by Europe and UK;
  • Gross profit percentage rises to 20,5% (2014: 20,1%); and
  • Cash generated by operations up 6,5% to R6,4-billion (R6-billion).

Source: www.biznews.com

Packaging and paper group Mondi has announced an increase in full year pre-tax profit to €796-million from €619-million a year ago.

On a per share basis, earnings were 124 euro cents, up from 97.4 euro cents in the previous year. Underlying earnings for the full year was 133.7 euro cents per share.

Group revenue climbed 7% to €6,819-billion from €6,402-billion in the prior year.

In a separate release, Mondi group said it plans to sell interest in uncoated fine paper operations in Austria, Hausmening and Kematen known as Neusiedler to subsidiary Mondi SCP for €30-million. Remaining 49% of SCP is with Eco-invest. The transaction is expected to complete in March 2016.

David Hathorn, Mondi group chief executive says its outlook for the business remains positive. However, the company sees some softness in certain of its packaging paper grades and sees firmer prices in the European uncoated fine paper markets following recent industry capacity rationalisation.

Source: www.nasdaq.com

Bic reports successful 2015

Bic has announced that its full year 2015 stationery net sales increased 7,4% as reported and were up 3,6% on a comparative basis. Full-year 2015 volumes grew 2%.

Bic reports that its 2015 results were good thanks to the success of its “champion brand” strategy fueled by successful new product introductions, continued investments in brand support, and sustained investments in geographic expansion.

The Europe region recorded net sales up high-single digit, sustained by good results during back-to-school and market share gains in most countries. This performance reflected the success of core segments such as ball pens, colouring and correction and the “champion brand” strategy.

The North America zone generated net sales up low-single digit, reflecting the good execution of its strategy and the success of new products (such as the BIC Atlantis range and BIC X-tra fun graphite pencils).

This performance was supported by the positive impact of its “Fight for your write” campaign.

Developing markets saw net sales increase low-single digit with most of the regions delivering strong performances.

Source: www.office-times.com

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