Coca Cola European Partners 2019 revenue climbs following strong UK performance
Coca Cola European Partners PLC (LON:CCEP) have reported a rise in 2019 revenue on Thursday morning.
The drinks retailer and producer said that it expects single digit revenue growth in 2020, however performance in 2019 had been strong.
Coca Cola reported that revenue had rose 4.5% to €12.02 billion in 2019, compared to the 2018 figure of €11.52 billion. The multinational said that this reflected solid execution and innovation led growth which will please shareholders.
Notably, pretax profit also rose €1.45 billion from €1.21 billion, whilst operating profit also rose from €1.30 billion in 2018 to €1.55 billion.
On a sweet note for shareholders, Coca Cola also declared a full year dividend of €1.24 per share, which shows a 17% appreciation from last year.
Coca Cola across all business have looked to maintain its annualized dividend payout ratio of 50%.
The CEO commented “It is a fantastic time to be leading CCEP. Our 2020 guidance is firmly in line with our mid-term growth objectives, which when combined with a new €1 billion share buyback programme and a 50% dividend payout ratio, collectively demonstrate our commitment to driving sustainable value for our shareholders.”
Coca-Cola also announced that they will be commencing a 2020 share buyback program of up to €1 billion, as the firm concluded its update.
The drinks firm praised the strong performance in the British markets, as revenue grew by 2% in Coca-Cola Zero Sugar, Fanta & Monster drinks.
French revenue also jumped 4.5%, and European performance was steady with strong consistent performance in the Netherlands.
Damian Gammell, Chief Executive Officer said:
“2019 saw our business deliver another solid full-year demonstrating our continued focus on driving profitable revenue growth through managing price and mix across our portfolio, delivering solid in-market execution and a step up in innovation, collectively reflected in market value share gains across all our geographies. 2019 was a great year for our customers too; joint value creation remains a key priority, so it has been great to see that once again we were by far the largest FMCG value creator in the retail channel[6]. And all of this alongside the successful closure of our merger commitments.
Coca Cola are one of the world’s most established brands. Following strong European and British performance, there is every reason for the drinks firm to remain confident as the market for Coca Cola remains strong.
“Looking ahead to 2020 and beyond, our journey continues to be built on three pillars: great people, great service and great beverages. We continue to build our core business alongside scaling up recent innovations and enhancing our commercial capabilities, by investing to better serve our customers and further improve in-market execution”, the CEO concluded.
Shares in Coca Cola European Partners PLC trade at €49. (+1.86%). 13/2/20 11:24BST.
Coronavirus fatalities and secrecy drive down commodities and equities
With the Chinese Communist Party ousting its provincial leader in Hubei, and the Coronavirus death toll going past 1,350 on Wednesday evening, equities recoiled once again.
Markets were seemingly getting used to the idea of the virus, despite some experts predicting that 60% of the world will have contracted the illness before its day is done. Now, however, markets have doubled back on their tentative optimism, with Hubei adding 15,150 cases to its projected total and taking the global number to over 60,000 cases.
Even with the increase, there is little faith in these figures – only a gnawing understanding that the reality is likely worse than what we’re being told. We can choose whether or not to question the virus’s potency, what cannot be questioned is its reach, and the strain this puts on the movement of people and products. Speaking on the strain put on equities by the virus, Spreadex Financial Analyst Connor Campbell stated,BEIJING, Feb 13 (Reuters) – The Chinese province at the epicentre of the coronavirus outbreak reported a record rise in deaths and thousands more cases on Thursday under a new diagnostic method, raising fresh questions about the scale of the crisis.
— CoronaVirus Breaking News (@COVID_19NEWS) February 13, 2020
“Just as the markets seemed to break free of their coronavirus fears, an alarming spike in the number of deaths and new cases sent Europe lower.”
“Arguably the main driver of Wednesday’s growth was the hopes that the outbreak in China was being contained. Well, changes to the way in which authorities calculate figures surrounding the illness revealed a worse situation than first thought, with a 242 person jump in the number of deaths and a 15,000 surge in total cases.”
Largely acting as a barometer of market sentiment towards the illness, oil prices have fallen sharply since the virus’s ascendancy. Today, the commodity-laden FTSE suffered as oil companies felt the heat.“Understandably this spooked investors. The commodity-heavy FTSE was the worst hit, which was an extra blow for the index as it was already left out of the market’s record peak party on Wednesday. With BP (LON:BP) and Shell (LON:RDSB) down 2.4% and 2.1% respectively, and its miners all falling at least 1%, the FTSE shed 80 points, sinking back towards 7460.”
“The Eurozone indices were comparatively unfussed by the latest coronavirus news. The DAX and CAC only slipped 0.3% apiece, leaving the former on a smidge under its recent all-time highs. The reason for this muted reaction could be partially due to the euro hitting its worst price since May 2017 against the dollar.”
“Similarly, investors may be waiting to see whether the sharp increase in deaths and new cases is a one-off, as Chinese officials adjusts their methods of calculation.”
“Looking ahead to the US session and the Dow Jones is currently pencilling in drop more in line with that seen in the Eurozone, the futures promising a 0.5% fall.”
Indivior shares crash 18% as profits drop by over a third
Shares of Indivior PLC (LON:INDV) have crashed on Thursday morning as the firm has given shareholders a worrying update.
Indivior said that future legal costs could bruise the company following a mixed few weeks for the pharmaceuticals firm.
Shares in Indivior trade at 39p (-18.92%). 13/2/20 10:58BST.
Shaun Thaxter, CEO commented:
“2019 was a challenging year for Indivior but I am proud that it brought out the very best in our people as we focused our efforts on improving the lives of patients suffering from addiction and its co-occurring disorders … At the same time, we were able to lay the foundations for the future success of our key growth drivers, SUBLOCADE® (buprenorphine extended-release) injection and PERSERIS® (risperidone) extended-release injection, while also further extending our scientific leadership in opioid use disorder (OUD).”
To make matters worse, the firm reported that profits had dived by over a third in 2019 which reflected the movement in their share price.
Indivior said that net revenue had fallen 22% to $785 million in 2019, whilst pretax profit also plummeted 35% to $180 million.
The firm gave these disappointing figures, but did note that costs did fall across 2019 which may make the results feel worse than they are.
Selling, general & administrative expenses was 16% lower than 2018, totaling $414 million. In addition, research and development costs dropped 42% to $53 million.
The company further warned shareholders by saying that it expects to swing to a net loss within the $20 million and $50 million ball park.
Going forward, Indivior said that they expect net revenue to lie within the range of $525 million and $585 million which could represent a huge year on year drop.
Thaxter concluded by adding “Looking to 2020, I am inspired by the opportunity we have in front of us to profoundly impact patient lives in a more meaningful way.”
“Although we are optimistic about delivering on our strategic priorities in 2020, we of course recognise the legal uncertainties we face. We are proactively working to manage these risks while our teams remain focused on leveraging the strategic and operational accomplishments of the past year to further our leadership position in addiction science and diversification into behavioral health.”
Indivior stumble following turbulent few weeks
In December, the firm told the market that they had made progress with their Sublocade Injection analysis. The firm said that new analysis from a year long investigation of monthly Sublocade injection showed either improved or stable patient-centred outcomes versus placebo. The 12-month study looked at a number of outcome measures, including treatment effectiveness and improvement in the severity of addition as measured by a patient reported Addiction Severity Index.Third quarter profit drop
In the third quarter, the results were not as positive for Indivior. The firm reported that net revenue had dropped 19% to $199 million from $245 million. Additionally, the company posted a $56 million pretax profit for the three months ended September 30, 18% lower than the $68 million profit posted the year before. Selling, General & Administrative expenses fell 21%, while research & development expenses fell 31% to $11 million from $16 million. For the nine months ending September 30th, pretax profit fell 14% to $222 million, versus $257 million. Net revenue was down 15% at $652 million from $768 million, which creates worries for investors and shareholders. Indivior are going through a tough time of trading at the moment, and there are some changes that need to be made to allow growth in a highly contested pharmaceuticals market.Domino’s Pizza UK confirm plans to exit from Norway
Dominos Pizza Group (LON:DOM) have said that they will exit all operations from their Norwegian business on Thursday morning.
The pizza and takeaway firm have recently announced their intentions to depart from Norway, in order to focus their business plans in the United Kingdom and Ireland.
Dominos have agreed to sell their 71% stake in DP Norway AS to minority shareholders including Pizza Holding AS and EYJA Fjarfestingafelag III EHF.
Eirik Bergh of Pizza Holding AS said: “This is great news for our hard working store colleagues, our loyal pizza fans and our supply chain partners. We believe Domino’s is the best pizza in the world and we’re delighted to ensure this brand will remain in Norway. I’m confident our in depth knowledge of Norwegian consumers is key to unlocking the potential of Domino’s in this important market. The management team and I have lots of exciting plans and innovations we’re looking forward to sharing.”
The firm have said that it will need to make a cash outlay of around £7 million as part of the sale. This will cover marketing campaign costs, future liabilities and cash retained within the disposed business.
The deal is expected to be completed by the end of May, Dominos said. The full disposition is subject to shareholder and US brand owner Dominos Pizza International Inc clearance.
Norway operations led to an underlying operating pretax £6.6 million for 2018, and the UK branch arm has agreed to cover further losses until the completion of the deal in May.
David Wild said: “We are today announcing the disposal of our Norwegian business to its minority shareholders, subject to shareholder approval. This transaction is positive for all stakeholders and also provides DPG with a clean exit from Norway following operating losses and high levels of capital expenditure over a number of years. The new owners have exciting plans for the business and importantly, the Domino’s brand will retain its presence in Norway.
“Now we have agreed the transaction for Norway, we will focus on progressing transactions for our businesses in Sweden, Switzerland and Iceland. We are focused on securing the best possible terms for shareholders and are working closely with Domino’s International throughout. We will update the market in due course.”
Dominos plan to quit international operations
Dominos already gave shareholders a pre-warning on their intentions to quit operations overseas. In October, the firm said that It said that though the financial results have stabilised, international system sales remain “disappointing”. “Although the financial results have stabilised, the performance of our international business remains disappointing,” David Wild, Chief Executive Officer, commented in a third quarter trading update.Fourth quarter update
Last week, the firm gave an update on its fourth quarter trading. In the UK and Ireland, sales jumped 4.4% from £312.9 million to £326.7 million, on organic measures this also showed a 4.5% rise. Like-for-like sales in the UK alone were 3.9% higher during the quarter, though in Ireland, they were down 1.0%. Internationally, Domino’s have struggled and business has slumped. Once again this sentiment was reflected in the figures from today’s update. Looking at international business, sales were down 4.9% to £25.3 million from £26.6 million. Domino’s said its disposal program is “progressing” and added that it is focusing on offloading its Norway operations. Dominos should remain optimistic that their plans to dispose of business in Norway are underway. The strong performance of the firm in both the UK and Ireland will allow a focus following this disposition and should lead to stronger trading in the future. Shares in Dominos trade at 311p (+1.34%). 13/2/20 10:50BST.South32 see earnings drop due to ‘volatile’ commodity prices
South32 Ltd (LON:S32) have seen their earnings drop in the first half of its financial year amid a period of volatile commodity prices.
The mining firm told the market that its pretax profit had been totaled at $187 million for the six months ending in December 2019.
Notably, this sees a significant drop from the $870 million figure one year ago. Additionally, revenue declined 16% to $3.22 billion from $3.81 billion.
South32 said that six month figures had suffered from volatile macroeconomic conditions which bruised the price of commodities.
Graham, Kerr CEO commented: “Against a challenging backdrop for our key commodities we delivered another strong operating result with production for the majority of our operations tracking on or ahead of schedule. Our operating costs trended down in the half and we have lowered our cost guidance across most of our operations.
“We delivered record production at Brazil Alumina and maintained higher output rates at Worsley Alumina. We responded to lower manganese prices at South Africa Manganese, cutting higher cost trucking.
On a better note, the Australian miner paid an interim dividend of 1.1 US cents in addition to a special distribution of a further 1.1 cents.
Shareholders of South32 should not be as concerned as once thought, as the firm did reiterate its confident nature to make sure that 2020 is a successful year.
“We advanced our pre-feasibility study at Hermosa and increased exploration across the broader land package.
“Demonstrating our strong financial position, track record of returning excess capital to shareholders and positive outlook for our business, today we announced a fully franked interim dividend of US$54 million and a US$180 million increase to our capital management program, including US$54 million which will be returned via a fully franked special dividend.” Kerr concluded.
South32’s interim update
A few weeks back, the firm gave shareholders a positive interim update which showed progress for the firm. For the first half ended December, South32’s production rose 4% year-on-year to 2.6 million tonnes, with Brazilian operations delivering a record performance. Aluminium production was flat at 496,000 tonnes, which will not worry shareholders. Nickel production did see a 2% slip in production to 20,600 tonnes whilst silver rose 2% to 6.1 million ounces. The lead sector saw impressive growth for South32 as there was a rise in production to 55,300 tonnes seeing a 14% growth. Additionally, Zinc production surged 24$ to 32,500 tonnes, and manganese ore production fell 3% to 2.9 million wet metric tonnes, and manganese alloy put was down 17% to 91,000 tonnes. The coal sector, which is one of South32’s biggest operations saw production fall 2% to 12.6 million tonnes, as did metallurgical coal output declined by 7% to 2.9 million tonnes. Shares in South32 trade at 134p (-2.46%). 13/2/20 10:32BST.Coronavirus: updates
Fears rise as the deadly coronavirus continues to spread across the world.
Last week, the World Health Organisation said that the international community has launched a $675 million plan to prepare and respond to the coronavirus outbreak over the next few months.
Sunday was one of the deadliest days as the number of people killed by the virus increased by 97 in one day alone.
Let’s take a look at the conversation on Twitter:
The World Health Organisation has shared how countries around the world are responding to the virus outbreak:
https://platform.twitter.com/widgets.js Meanwhile, the Department of Health and Social Care provided an update on the situation in the UK:Around the 🌎🌍🌏 countries are preparing and responding to #COVID19.
Watch this video and follow the thread below for just a few examples 👇 pic.twitter.com/wOlXciP8uS — World Health Organization (WHO) (@WHO) February 12, 2020
https://platform.twitter.com/widgets.js The NHS has also tweeted about the virus, providing some tips to stay protected:UPDATE on #coronavirus testing in the UK:
As of 2pm on Wednesday 12 February 2020, a total of 1,758 tests have concluded 1,750 were confirmed negative 8 positive Updates will be published at 2pm daily until further notice For latest information visit ▶️https://t.co/CZh5JdyN2Q pic.twitter.com/SYysPyjy1s — Department of Health and Social Care (@DHSCgovuk) February 12, 2020
https://platform.twitter.com/widgets.js Other media outlets have taken a look at the situation in China:Find out the latest updates on the outbreak of #coronavirus in China, including the current situation in the UK and information about the virus and its symptoms: https://t.co/m6vs04XyhN pic.twitter.com/StvQapL5iL
— NHS London (@NHSEnglandLDN) February 12, 2020
https://platform.twitter.com/widgets.jsChinese state media footage shows a restaurant in Beijing that has found a creative way to help prevent spread of the coronavirus. https://t.co/lhRWMnCLL1 pic.twitter.com/SqA2pRldTg
— ABC News (@ABC) February 12, 2020
https://platform.twitter.com/widgets.js UK Investor Magazine will provide updates as further news emerges.Patients that have recovered from the #coronavirus walk out of hospitals and pose for photos with the doctors that cared for them.
At least 744 people have been discharged in China after recovering from the virus #CoronavirusOutbreak #新型肺炎 pic.twitter.com/HqzTH4p8F4 — QuickTake by Bloomberg (@QuickTake) February 12, 2020
Ofcom given power to regulate UK internet
The UK government said on Wednesday that Ofcom will be given the power to regulate social media platforms in order to create a safer online environment.
In an attempt to achieve the government’s pledge to make the UK the safest place in the world to be online, Ofcom will be given new powers to ensure users are protected.
As social media platforms such as Facebook (NASDAQ:FB), Instagram and Twitter (NYSE:TWTR) become increasingly popular among young people, the move aims to protect children and vulnerable people in online environments.
“We will work with the Government to help ensure that regulation provides effective protection for people online and, if appointed, will consider what voluntary steps can be taken in advance of legislation,” Jonathan Oxley, Ofcom’s interim Chief Executive, responded to the news.
Interacting with one another is largely a positive experience, but there are also many dangerous aspects of the internet which put users at risk.
The watchdog will help protect users from harmful and illegal online content, such as child abuse.
“While the internet can be used to connect people and drive innovation, we know it can also be a hiding place for criminals, including paedophiles, to cause immense harm,” Home Secretary Priti Patel commented.
“It is incumbent on tech firms to balance issues of privacy and technological advances with child protection. That’s why it is right that we have a strong regulator to ensure social media firms fulfil their vital responsibility to vulnerable users,” Priti Patel continued.
Meanwhile, the Chief Executive of the charity Barnardo’s, Javed Khan, also commented on the news: “Children face growing risks online, including cyber-bullying, sexual grooming, and exposure to self-harm forums. Two thirds of the vulnerable children supported through our sexual exploitation services were groomed online before meeting their abuser in person.”
“We cannot expect children to protect themselves. Instead we need a regulator to act without delay. To do so, it will need the necessary powers to carry out work effectively and to hold tech companies to account,” Javed Khan said.
Kosmos Energy agree liquefied natural gas deal with BP Gas Marketing
Kosmos Energy (LON:KOS) have agreed to sell liquefied natural gas to BP Gas Marketing Ltd, which is a subsidiary of BP PLC (LON:BP).
The firm said that the liquefied natural gas will be sourced from phase one of the Greater Tortue Ahmeyim project, offshore Mauritania.
The agreement will mean that BP takes 3.45 million tonnes per year of liquefied natural gas over an initial twenty year period.
Kosmos have expressed high expectations after agreeing this deal, and working with an oil major in BP will give them much exposure and a good platform to work from.
The firm said that they expect to book an additional proved reserves of 100 million barrels of oil equivalent associated with phase one, as evaluated by its reserve auditor Ryder Scott Co LP.
BP and Kosmos are partners on the Greater Tortue project, alongside National Oil Cos Petrosen and the Societe Mauritanienne des Hydrocarbures.
“The signing of the SPA is an important milestone in the Greater Tortue Ahmeyim project for the Governments of Mauritania and Senegal, SMHPM, Petrosen, BP and Kosmos,” said Todd Niebruegge, Senior Vice President and Head of the Mauritania-Senegal business unit at Kosmos Energy. “With the signing of this agreement, we have materially increased the proved reserve base of the company and the project remains on track to deliver first gas in the first half of 2022.”
“The SPA is another positive step forward for the Greater Tortue Ahmeyim project,” said Norman Christie, BP’s Regional President for Mauritania and Senegal. “We’re grateful to the Governments of Mauritania and Senegal for their continued commitment to this innovative project, as well as our partners SMHPM, Petrosen and Kosmos.”
Kosmos also said that its total proved reserves at the end of 2019 was 169 million boe, which saw a 2 million rise from one year ago.
The firm attributed the strong performance off the Jubilee Field in Ghana, where additionally drilling produced better results.
“The quality of our diverse portfolio was demonstrated again in 2019 as Kosmos organically replaced approximately 106% of production on a 1P basis, marking the seventh consecutive year of greater than 100% of production replacement,” said Chair and CEO Andrew Inglis.
“In addition, we reached another milestone in the Greater Tortue Ahmeyim development with the signing of the phase one SPA with BP Gas Marketing, enabling Kosmos to book our 1P reserves for the project. With a 1P reserve base of 268 mmboe, split approximately 60% oil, 40% gas, we have a 1P reserve to production ratio of approximately 11 years, supporting growth with an increasing contribution of gas,” Inglis added.
Shares in Kosmos Energy trade at 403p (-0.58%). 12/2/20 13:59BST.
OptiBiotix sign licensing deal with Granja Pocha SA in Uruguay
OptiBiotix (LON:OPTI) have told shareholders that they have signed a licensing deal with Granja Pocha SA on Wednesday.
The firm said that the deal will allow the the LPLDL probiotic added to a yoghurt project in Uruguay. The probiotic strain is a development product from OptiBiotix, and has uses to reduce cholesterol and blood pressure.
The strain will be included in fermented milk products in Uruguay. Additionally, there is an inclusion of “a functional yoghurt”.
Functional foods include foods which have had probiotic bacteria or vitamins added to them, are becoming a hit in markets where health foods have never been so in demand.
Steve Prescott, CEO of ProBiotix, commented:
“We are pleased to announce this agreement with Granja Pocha, which will expand LPLDL®’s presence into South America and extends its use into dairy products. Granja Pocha was chosen as our partner to create a functional yogurt containing LPLDL® because of their technical expertise in dairy, track record of successfully launching new products, and extensive knowledge of the local market. The work carried out by Granja Pocha is a significant milestone as it extends the use of LPLDL® into functional foods, in this case dairy, which may be replicated in other territories. Functional foods like this yogurt containing ProBiotix’s LPLDL® provide a unique format for customer to receive the cholesterol reducing benefits of LPLDL® and capitalises on a growing industry trend towards functional foods.”
OptiBiotix expand into the Philippines
In December, the firm announced that it had reached agreements for a production distribution in the Philippines. OptiBiotix said that it has signed an exclusive deal for distribution of probiotic supplement ‘CholBiome x3’ in the Philippines. The deal was signed between OptiBiotix subsidiary ProBiotix Health Ltd and CTC Group unit CTC Far East Philippines Inc. CTC Group itself is the global business network group of Koen Visser Corp. The deal’s exclusivity is subject to minimum order quantities, as well as a multi-year business plan aimed at improving OptiBiotix’s security in terms of income and revenue growth. The expansion into both Uruguay and the Philippines is impressive from OptiBiotix, and will show shareholders that there is an active effort to diversify their markets. Shares in OptiBiotix trade at 61p (-2.08%). 12/2/20 13:12BST.Nissan could report first quarterly loss on Thursday following sales slump
Nissan Motor Co Ltd (TYO:7201) could report its first quarterly loss for more than a decade, when results are announced on Thursday.
The firm said that slumping sales have contributed to a poor performance in their most recent quarter, whilst pressure on the company rises.
Nissan have been bruised by a tough few months of trading, which was topped by the recent departure of ex-Chief Executive Officer and Chairman Ghosn who slashed jobs, cut production sites all in attempts to ensure that the company survives.
If things were already tough for Nissan, then the recent outbreak of the coronavirus has only made things worse.
The Japanese car giant have faced supply disruptions and production chains have been disrupted following the outbreak of the lethal disease.
The car giant are not the only firm that have been hammered by the coronavirus as many Chinese and Asian businesses have seen billions wiped off their stock prices and production issues.
Two officials told Reuters that there was a possibility that Nissan could be announcing a quarterly loss, which would be the first since March 2009.
Nissan have refused to comment on their financial results, however tension has circulated around the company as there is anticipation for the firm and shareholders for the results to be released.