Daily Brief Consumer: Soft99 Corp, LG Electronics India, ADF Foods , TSE Tokyo Price Index TOPIX, Tesla , Primo Brands Corporation, Greggs PLC, DFI Retail Group Holdings, Topps Tiles and more

• Soft99 Corp (4464 JP) announced that the close of the MBO offer period has been extended from 2 to 17 October. There are two key takeaways from the announcement.
• First, KeePer has not yet tendered its shares, despite providing an irrevocable. Second, the non-KeePer acceptances have increased from 6,108,200 shares on September 18 to 6,598,149 shares on October 2.
• The chances that KeePer accepts the Effissimo offer have increased. However, the current non-KeePer acceptances of the MBO make it highly challenging for Effissimo to succeed. Take profits.

• LG Electronics India (123D IN) is looking to list on the exchanges by selling 101.8m shares at a valuation of US$8.7bn and raising around US$1.3bn in its IPO.
• The new valuation is around 24% lower than the rumoured valuation at the time of the DRHP filing last December.
• The stock will not get Fast Entry to global indices. Inclusion at regular rebalances will commence in June 2026 but flow will be small given the low float.

• On 25 September, with the stock trading just below Effissimo’s terms, the Soft99 Corp (4464 JP) Board came out AGAINST the Effissimo proposal 66% higher than the MBO terms.
• The fine print said that the Soft99 deal had enough shares to get over the line assuming Keeper Labs tendered according to agreement due to Board Support. Shares plummeted. 
• Effissimo issued a stunning rebuttal which showed Board incompetence/negligence, possible breach of fiduciary duty. Today, MBO Bidco extended, the stock popped, but details are key.

• ADF Foods is shifting from an agency-based distribution model to a brand-led, in-house manufacturing approach, focusing on the U.S. frozen food segment to improve margins and supply control.
• This strategic pivot enhances margin stability, mitigates raw material and geopolitical risks, and deepens market penetration in mainstream international retail, positioning ADF for sustainable long-term growth and profitability.
• Market focus should move from export volatility to ADF’s brand premiumization and successful US greenfield execution, the key drivers of sustainable growth and long-term re-rating.

• More companies have appointed outside directors as board chairpersons, driven by investor demands. For corporate governance to improve, it’s essential that investors continue speaking out, demanding management that creates value.
• Corporate Governance Code called for appointing outside directors to strengthen supervisory function of BODs, driven by concerns that a board composed solely of internal executive directors couldn’t effectively address challenges.
• If corporate governance has become a mere formality, it is the company itself that has driven this trend, so the company has no choice but to change its previous course.

• Tesla remains a leader in the electric vehicle (EV) market, but is facing significant margin pressure from slowing demand and intense competition, particularly from Chinese manufacturers.
• The company’s future growth and lofty valuation are increasingly dependent on its ambitious pivot to artificial intelligence, robotics, and the successful commercialization of a robotaxi network.
• While revenue growth has decelerated and profitability has declined in recent quarters, the company’s strong brand, technological lead, and expanding energy division provide a foundation for future opportunities, albeit with high execution risk.

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• After shedding 28% of its value year-to-date, Primo Water’s stock has come under intense scrutiny.
• The sharp decline reflects operational dislocations following its November 2024 merger with BlueTriton Brands, as well as broader disruptions across weather-impacted sales regions and distribution bottlenecks.
• In Q2 2025, comparable net sales fell 2.5% year-over-year, prompting a downward revision of full-year guidance to flat-to-1% growth from the previously guided 3% to 5%.

Greggs’ Q325 trading update shows improving trading as the period progressed, following the already-flagged negative effect of July’s hot weather. With a slight improvement to the outlook for cost inflation, management’s expectations for full year profit are unchanged. This is despite indications of lower new space growth than initially guided, due to phasing of new build opportunities. Management was clear that there is potential for significantly more than 3,000 stores, and returns will not be sacrificed as the estate grows. The company is now lapping weak comparatives from Q424, and with ongoing menu innovation as well as new initiatives, such as the expanding partnership with Tesco, management is hopeful of better revenue growth.

• DFI Retail Group is undergoing a significant strategic shift, unlocking capital through divestments (over US$900 million) and returning a substantial portion to shareholders (US$600 million special dividend), signaling confidence in its refined focus.
• The company’s financial performance is mixed, with 1H2025 underlying profit growth of 39% driven by lower financing costs and strong Health & Beauty segment performance, but this is contrasted by multi-year declines in revenue and net income.
• The forward outlook is challenging, characterized by intense competition and weak consumer sentiment across key Asian markets, making future growth heavily dependent on the successful expansion of its Health & Beauty footprint and effective cost control.

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Topps Tiles enjoyed better momentum across all of its businesses in H225 as its strategic initiatives to drive growth in larger addressable markets combined with more favourable dynamics in some of its end markets. This implies trade customers continue to drive growth, while trends for the retail customer are less negative. As a result, the company expects to be in line with consensus profit expectations, which are materially ahead of FY24. The CEO designate, Alex Jensen, is on board and there will be an orderly transition ahead of Rob Parker’s departure at the end of 2025.