In today’s briefing:
- NZME Limited (NZM NZ/AU): In Need Of A Good Story
- Yum! Brands: The Digital Surge Is Real—But Will It Be Enough to Fend Off Competition?
- Hilton Worldwide: The Luxury Expansion That Could Send Shares to New Highs!
- Harley-Davidson: Can “The Hardwire” Strategy Save This Iconic Brand from Market Share Collapse?
- Philip Morris: Is This Tobacco Giant’s Pricing Power Strong Enough to Defy Declining Demand?
- MarketEnterprise Co Ltd (3135 JP): 1H FY06/25 flash update
- Performance Food Group: Expansion of New Accounts & Customer Penetration Powering Our ‘Outperform’ Rating!
- Capri Holdings: Fashion Empire in Crisis? What Went Wrong After the Failed Tapestry Merger?
- Piala (7044 JP): Full-year FY12/24 flash update
- Qb Net Holdings (6571 JP): 1H FY06/25 flash update
NZME Limited (NZM NZ/AU): In Need Of A Good Story
- After NZME Limited (NZM NZ/AU), publisher of the NZ Herald, recently announced sweeping job cuts, the country’s largest private sector union called for the government to step in.
- The union said the cutbacks not only affected staff, but also readers seeking information on important issues. NZME’s revamped strategy focuses on stories that engage audience. Or clickbait by detractors.
- Reports are now emerging of a possible takeover from local entrepreneurs. Those reports appear tenuous, at best.
Yum! Brands: The Digital Surge Is Real—But Will It Be Enough to Fend Off Competition?
- Yum!
- Brands’ recent earnings presentation offers insights into the company’s performance and strategic trajectory, highlighting both strengths and challenges.
- The company, encompassing renowned brands like KFC, Taco Bell, and Pizza Hut, presented a mixed set of results for the latest financial year, characterized by robust digital growth, strategic expansions, and cost management, contrasted by varied performance across different market segments.
Hilton Worldwide: The Luxury Expansion That Could Send Shares to New Highs!
- Hilton Worldwide Holdings Inc. provided a comprehensive overview of its performance in the fourth quarter and full year of 2024, demonstrating robust growth and strategic expansion across its hotel portfolio.
- The company reported strong financial results, including record unit growth, significant increases in revenue per available room (RevPAR), and notable expansion in strategic partnerships and brand diversity.
- For 2024, Hilton achieved a system-wide RevPAR increase of 2.7% compared to the previous year, showing growth across all segments and major regions.
Harley-Davidson: Can “The Hardwire” Strategy Save This Iconic Brand from Market Share Collapse?
- Harley-Davidson’s recent performance reflects a mixed bag of operational and strategic shifts amid challenging macroeconomic conditions.
- The company’s 2024 fourth-quarter results exhibited a significant decline, with consolidated revenue decreasing by 35% compared to the previous year.
- This decline was primarily driven by the Harley-Davidson Motor Company (HDMC) segment, which saw revenue drop by 47% as a result of a 53% decrease in wholesale shipments.
Philip Morris: Is This Tobacco Giant’s Pricing Power Strong Enough to Defy Declining Demand?
- Philip Morris International (PMI) delivered a notable performance in 2024, showcasing both strengths and challenges that investors should weigh.
- The company’s expansion in the smoke-free product sector, alongside resilient performance in combustible products, is a significant aspect of its strategy, supporting growth in both revenue and profitability.
- Positives from the 2024 results show strong momentum in smoke-free products, particularly IQOS, with substantial progress in markets like Japan and parts of Europe despite regulatory challenges such as the EU characterizing flavor ban.
MarketEnterprise Co Ltd (3135 JP): 1H FY06/25 flash update
- Revenue reached JPY11.5bn (+34.6% YoY), with significant growth in Second-hand Online and Mobile & Telecommunications segments.
- Operating profit turned positive at JPY249mn, with a 2.2% margin, despite JPY68mn relocation expenses.
- Revenue in the Media business declined by 19.4% YoY, impacted by changes in Google’s search algorithm.
Performance Food Group: Expansion of New Accounts & Customer Penetration Powering Our ‘Outperform’ Rating!
- Performance Food Group Company (PFGC) reported its fiscal second-quarter results with a mixed performance reflecting both positive steps and ongoing challenges.
- The company’s organic growth of 5% in the independent restaurant case volume was a significant achievement, driven by market share gains and improving consumer conditions.
- However, this growth needs to be viewed in the context of difficult year-over-year comparisons, primarily due to calendar differences in December.
Capri Holdings: Fashion Empire in Crisis? What Went Wrong After the Failed Tapestry Merger?
- Capri Holdings Limited’s recent earnings call highlighted several challenges and strategic pivots across its three primary luxury brands—Versace, Jimmy Choo, and Michael Kors.
- During the third quarter of fiscal 2025, the company experienced a 12% decrease in revenue compared to the prior year, amounting to $1.3 billion.
- This decline was primarily attributed to weakened demand for fashion luxury goods globally, with a notable downturn in China, along with strategic missteps and a store optimization program that affected sales.
Piala (7044 JP): Full-year FY12/24 flash update
- FY12/24 revenue increased 48.8% YoY to JPY13.5bn, with narrowing losses and a return to quarterly profitability.
- FY12/25 forecast projects 18.1% YoY revenue growth, JPY161mn operating profit, and focus on Mail Order DX Service.
- Key strategies include growing top 20 clients, accelerating new client acquisition, and utilizing generative AI for efficiency.
Qb Net Holdings (6571 JP): 1H FY06/25 flash update
- Revenue increased by JPY248mn (+2.0% YoY), driven by growth in both domestic and overseas businesses.
- Operating profit declined JPY567mn (-44.0% YoY) due to higher costs and decreased profits in both markets.
- The company opened 10 new salons, increasing the total number of salons to 698 by end-Q2 FY06/25.
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