Smartkarma Daily Briefs

• Deckers Brands delivered a robust performance in its third quarter of fiscal 2025, signaling both high levels of growth and notable profitability.
• The company’s revenue increased by 17% compared to the previous year, reaching $1.83 billion, with significant contributions from the UGG and HOKA brands.
• The gross margins improved to 60.3%, and diluted earnings per share rose by 19% to $3.

• The sugar tax in Indonesia is plan to be introduced July this year, around Rp 1500/liter for sweetened packaged drinks including soft drinks, bottled tea.
• Mayora Indah (MYOR IJ) tea product is Teh Pucuk Harum, that is widely sold in hypermarts and convenience stores, while Unilever Indonesia (UNVR IJ) no longer owns Teh Sosro. 
• Expecting sentiment to be better, Short Mayora and Long Unilever. 

• CIE Automotive launches a 10%partial takeover offer at €24.00, offering a 7% premium to recent trading levels, taking advantage of recent share price weakness.
• Valuation suggests shares are undervalued; DCF and peer comps support a fair value of €31–33.
• Offer aims to boost liquidity, with potential future placements to improve free float and attract institutional investors.

Games Workshop Group (GAW) has declared its fifth dividend of FY25. We believe this reflects enhanced cash generation as a result of the success of the video game Space Marine 2, which has passed through its minimum guarantee income, on top of the strong growth provided by the FY25 launch of the latest edition of Age of Sigmar. GAW’s strong free cash flow growth in FY25 is evidenced by the relative step-up in the dividend versus profit growth from FY24 and when comparing the changes for profit and dividend in FY24 from FY23. We make no changes to our estimates beyond increasing the FY25 dividend to £5.20/share.

• The Hershey Company recently reported its fourth-quarter 2024 earnings, revealing various elements influencing its financial performance and outlook.
• The company addressed challenges such as elevated cocoa prices, sustaining growth despite market pressures, and strategically managing its product line.
• Hershey has been proactive in handling cocoa price volatility through hedging, allowing it to avoid paying market prices immediately.

• Friday Takeaway—delving a little deeper into UK small caps Friday Takeaway from UK Small Caps This will delve a little deeper on individual companies and focus on non-house stocks under £200m market capitalisation to raise awareness 14th March 2025 Alphabetically arranged Share prices and market capitalisations taken from Alpha Terminal from the current price on the day of publication.
• Top three shareholders are taken from the websites of the companies that we are writing about, unless there is a more up to date TR-1 notification RNS announcement.
• Disruptive changes could generate opportunities for these two companies ABDX Flowing Downhill NXQ Follow the Money Abingdon Health 6.75p £12.32m (ABDX) Financial Calendar: Year End June, Report October, Interims December, Report April Three Main Shareholders: Octopus Investments Limited 10.1%, Cannacord Genuity Group Inc 9.7% Mercia 9.3% Key Investment Points: Fund Raise, Acquisition, US office Opened, Growth should follow Interims to December 2024 are due to be reported by this lateral flow test contract research (CRO) and contract development and manufacturing organisation (CDMO).

• Botswana Diamonds 0.105p £1.3m (BOD.L) The diamond exploration Company recently announced securing Polymetallic Acreage following a comprehensive artificial intelligence driven exploration programme in Botswana.
• Eleven prospecting licences were applied for to secure the key polymetallic targets identified, with the licenses including Copper, Silver, Cobalt, Gold, Nickel, Zinc and PGM targets.
• The initial focus was on diamonds, however, this has been expanded to look for hidden polymetallic deposits. 

• When investing in a larger company, one can expect higher liquidity, higher expectations of endorsement of the activist investor’s views because of the large institutional holdings, and smoother communication.
• As cross-shareholding structures are beginning to break down, there’re many opportunities for activist investors to attack such companies because they couldn’t create value and grow due to underutilization of resources.
• Activist investors have invested in Japanese companies in the past, but never with such success. This success is largely due to a change in the environment.

• Carnival Corporation & plc recently reported strong results for the fourth quarter of 2024, closing an exceptional year marked by solid financial performance.
• The company achieved record revenues and customer deposits, with net income improving significantly year-over-year.
• This performance was driven by robust demand, reflecting a continuation of the momentum observed over the past two years.

• Celsius Holdings, Inc. recently shared its fourth-quarter and full-year financial results for 2024, along with the announcement of its acquisition of Alani Nu, a significant player in the U.S. energy drink category.
• The company’s fiscal performance indicates a robust revenue of $1.36 billion for the year, marking a 3% increase from the previous year, despite facing challenges that have affected many consumer packaged goods sectors.
• Key positives from the report include a solid 22% year-over-year volume growth, outstripping the overall energy drink category’s growth of 5%.