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Trade Arabia
19-03-2025
- Business
- Trade Arabia
EDGE, CMN Naval to set up major Abu Dhabi JV
EDGE, one of the world's leading advanced technology and defence groups, and CMN Naval, a world-renowned naval shipbuilding group specialising in the design, engineering, and construction of superior naval and commercial vessels, and mega yachts, have formally agreed to create a new Abu Dhabi-based shipbuilding joint venture named AD Naval (ADN). Leveraging an existing order pipeline worth approximately EUR7 billion, the JV will bring together both companies under an exclusivity agreement on the segment of high value small to mid-size naval vessels including corvettes, offshore patrol vehicles (OPVs), high-speed interceptors, trimarans, and landing craft. The move will see EDGE significantly expand the scope of its capabilities in the naval domain. EDGE, holding a 51% stake in the new company, will collaborate with CMN Naval on sales, commercial activities, and engineering. It will also establish a design bureau which will assume intellectual property rights for all future designs. The JV will grant EDGE access to CMN Naval's global supply chain and its advanced Integrated Logistics Support (ILS) system and software, enhancing cost efficiency and operational performance through predictive and preventative maintenance, as well as the provision and management of all spare parts. The scope of the JV will also explore Combat Systems Integration (CSI) of EDGE's advanced autonomous air and sea, and smart weapons solutions onto vessels built by the new company. Hamad Al Marar, EDGE Group Managing Director & CEO, said: 'This is yet another example of our strategy of measured growth through international partnership with the world's leading players across the air, land, and maritime domains. The scope of our collaboration with CMN, which is particularly strong in EDGE's key focus markets in Africa, for example, will enable us to combine our expertise, and to share technology and know-how in the naval domain to build superior vessels in the UAE. Furthermore, it will enable us to develop cross-complementary integration programmes for our autonomous air and sea systems, smart weapons, radar, and cyber solutions, onto the vessels being manufactured for non-NATO navies around the world. Ultimately, it will also create valuable direct and indirect employment opportunities in the UAE and overseas, contributing to economic growth in this versatile and diverse sector. We are confident that CMN will be a great partner for continued innovation and success.' The announcement comes closely on the heels of an initial partnership agreement signed at IDEX 2025 last month in Abu Dhabi, where both parties laid the foundations for collaboration across multiple domains, including the development of cutting-edge naval platforms, system integration, maintenance, and commercial initiatives, aiming to set new benchmarks in naval innovation, leveraging next-generation technologies such as AI-driven autonomous systems, advanced combat solutions, and modular ship designs. The JV will create valuable direct employment opportunities for skilled personnel in the UAE, as well as related third-party opportunities across its global supply chain. Pierre Balmer, Chairman of CMN Naval, added: 'We are proud to join forces with EDGE Group in this strategic collaboration, which reflects our shared commitment to innovation, excellence, and the advancement of naval capabilities. By leveraging our deep expertise in shipbuilding and EDGE's cutting-edge defence technologies, we will deliver next-generation naval solutions tailored to the evolving needs of global maritime forces. This partnership not only strengthens our presence in key international markets but also paves the way for enhanced technology transfer, industrial cooperation, and job creation. Together, we look forward to setting new benchmarks in the industry and driving sustainable growth in the defence and maritime sectors.'
Yahoo
10-02-2025
- Business
- Yahoo
L'Oreal SA (LRLCF) (FY 2024) Earnings Call Highlights: Record Growth and Strategic Innovations
Revenue: Consolidated sales increased by 5.6%, reaching EUR43.5 billion. Like-for-Like Growth: 5.1% growth, marking market outperformance. Gross Margin: Reached a record high of 74.2%, up 30 basis points from last year. Operating Profit Margin: Increased 20 basis points to 20%. Operating Net Cash Flow: EUR6.6 billion, up close to 9%. Professional Products Growth: 5.3% like-for-like growth. Consumer Products Growth: 5.4% like-for-like growth. L'Oreal Luxe Growth: 2.7% like-for-like and 4.5% reported growth. Dermatological Beauty Growth: 9.8% increase in sales, reaching EUR7 billion. Regional Performance - Europe: Advanced by 8.2%. Regional Performance - North America: Growth of 5.5%. Regional Performance - Emerging Markets: 11.7% growth. Regional Performance - North Asia: Sales declined by 3.2% like-for-like. Fragrances Growth: 14.1%, the most dynamic category. Haircare Growth: 12.7%, driven by premiumization. Net Profit (Excluding Nonrecurring Items): EUR6.8 billion. Diluted Earnings Per Share: EUR12.66, up by 5%. Dividend Proposal: Increase of 6.1% to EUR7 per share. Warning! GuruFocus has detected 8 Warning Signs with SBSNF. Release Date: February 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. L'Oreal SA (LRLCF) achieved a record year in 2024 with like-for-like growth of 5.1%, outperforming the market. The company's gross margin reached an all-time high of 74.2%, and the operating profit margin increased to 20% for the first time. L'Oreal SA (LRLCF) reported a strong cash flow with operating net cash flow at EUR6.6 billion, up nearly 9%, indicating a cash conversion of over 100%. The Dermatological Beauty Division reported a 9.8% increase in sales, reaching EUR7 billion for the first time, with a profit margin of 26.1%. The Professional Products Division grew by 5.3%, driven by premium haircare and a successful omnichannel strategy, achieving a market share of 26%. Sales in North Asia declined by 3.2% on a like-for-like basis, primarily due to weakness in Mainland China and Travel Retail. The Chinese beauty market continued to decelerate, with total market growth deteriorating from minus 2% in the first half to minus 4% for the full year. The Travel Retail business in Asia faced challenges, with sales in Hainan and Korea down 35% from 2022 levels. CeraVe experienced a slowdown in the US, partly due to the law of big numbers, despite being the second biggest brand in the US. The Consumer Products Division's growth of 5.4% was slightly below the market, impacted by a slower market in China and a soft makeup market in the US. Q: What are the key drivers for maintaining growth in the fragrance category in 2025, and can you provide more details on BETiq's progress? A: Fragrances have been dynamic due to increased penetration and valorization. Penetration rates are lower in regions like China and the US compared to Europe, indicating growth potential. Valorization is driven by consumer preference for more selective fragrances. L'Oreal's strong brand portfolio and dedicated R&I in fragrances support continued success. Regarding BETiq, it has been rolled out to six countries, covering 45% of consumer-facing A&P, with plans to expand to eight countries in 2025. BETiq has improved productivity by 10-15%, and while A&P weight may lower, investments will continue for new brands and markets. Q: How do you see market growth in 2025, particularly in China and the US, and what are the sell-in and sell-out dynamics? A: L'Oreal expects 4% to 4.5% market growth in 2025, driven by dynamic emerging markets and steady Europe. The US is seen as a land of opportunity with potential for premium goods consumption. China remains uncertain, with a flattish market expected. In the US, sell-out remained dynamic, especially in Luxe and Consumer Products divisions, with strong performances in fragrances and haircare. The US market is robust despite a soft makeup market, and L'Oreal is optimistic about future opportunities. Q: Is the increased innovation pipeline in 2025 a new pace for L'Oreal, and how do you plan to adapt to changes in the Chinese market? A: L'Oreal aims to seduce consumers with more innovative products, increasing the innovation pipeline by 200 basis points compared to last year. This is a concerted effort to compete in a market with more indie brands. In China, the focus is on providing innovative products that justify their price, as the market is more value-focused. L'Oreal plans to strengthen its innovation team in China to better compete and win market share. Q: How is pricing in Europe shaping up for 2025, and what is the outlook for market growth and L'Oreal's performance? A: Pricing in Europe will see minimal straight pricing increases, but value creation will continue through innovation and mix. L'Oreal expects to outperform the market on a full-year basis, with a progressive acceleration in growth throughout the year. The company remains committed to delivering modest margin expansion while investing in brand growth and new opportunities. Q: Can you provide more details on L'Oreal's exposure to the travel retail channel and the rationale behind taking minority stakes in some brands? A: L'Oreal's exposure to travel retail has decreased, with Hainan now less than 1% of sales. The company expects a progressive recovery in travel retail, particularly in the West. Regarding minority stakes, L'Oreal takes stakes in promising brands to learn and discover potential stars. This strategy allows L'Oreal to spread risks and potentially acquire successful brands in the future. The stake in Galderma is to understand the aesthetics market and explore scientific partnerships. For the complete transcript of the earnings call, please refer to the full earnings call transcript. 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