Latest news with #FoodProcessing
Yahoo
5 days ago
- Business
- Yahoo
John Bean (NYSE:JBTM) Reports Upbeat Q2, Full-Year Outlook Slightly Exceeds Expectations
Food processing and aviation equipment manufacturer John Bean (NYSE:JBT) beat Wall Street's revenue expectations in Q2 CY2025, with sales up 132% year on year to $934.8 million. The company's full-year revenue guidance of $3.7 billion at the midpoint came in 1.3% above analysts' estimates. Its non-GAAP profit of $1.49 per share was 16.4% above analysts' consensus estimates. Is now the time to buy John Bean? Find out in our full research report. John Bean (JBTM) Q2 CY2025 Highlights: Revenue: $934.8 million vs analyst estimates of $891.2 million (132% year-on-year growth, 4.9% beat) Adjusted EPS: $1.49 vs analyst estimates of $1.28 (16.4% beat) Adjusted EBITDA: $156.2 million vs analyst estimates of $134.3 million (16.7% margin, 16.3% beat) Adjusted EPS guidance for the full year is $5.80 at the midpoint, beating analyst estimates by 0.8% Operating Margin: 5.2%, down from 6.7% in the same quarter last year Free Cash Flow Margin: 8.6%, up from 3.2% in the same quarter last year Backlog: $1.4 billion at quarter end Market Capitalization: $6.90 billion "We are pleased with our second quarter results, which exceeded our guidance, reflecting our ability to navigate a dynamic operating environment and manage the integration of two global businesses," said Brian Deck, Chief Executive Officer. Company Overview Tracing back to its invention of the mechanical milk bottle filler in 1884, John Bean (NYSE:JBT) designs, manufactures, and sells equipment used for food processing and aviation. Revenue Growth A company's long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Regrettably, John Bean's sales grew at a mediocre 7.3% compounded annual growth rate over the last five years. This was below our standard for the industrials sector and is a poor baseline for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. John Bean's annualized revenue growth of 27.9% over the last two years is above its five-year trend, suggesting its demand recently accelerated. This quarter, John Bean reported magnificent year-on-year revenue growth of 132%, and its $934.8 million of revenue beat Wall Street's estimates by 4.9%. Looking ahead, sell-side analysts expect revenue to grow 37.8% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and suggests its newer products and services will fuel better top-line performance. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin John Bean was profitable over the last five years but held back by its large cost base. Its average operating margin of 7% was weak for an industrials business. This result is surprising given its high gross margin as a starting point. Analyzing the trend in its profitability, John Bean's operating margin decreased by 6.1 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. John Bean's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. In Q2, John Bean generated an operating margin profit margin of 5.2%, down 1.5 percentage points year on year. Since John Bean's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. John Bean's EPS grew at a weak 3% compounded annual growth rate over the last five years, lower than its 7.3% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded. Diving into the nuances of John Bean's earnings can give us a better understanding of its performance. As we mentioned earlier, John Bean's operating margin declined by 6.1 percentage points over the last five years. Its share count also grew by 63.1%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For John Bean, its two-year annual EPS growth of 10.1% was higher than its five-year trend. This acceleration made it one of the faster-growing industrials companies in recent history. In Q2, John Bean reported adjusted EPS at $1.49, up from $1.05 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects John Bean's full-year EPS of $5.66 to grow 18.3%. Key Takeaways from John Bean's Q2 Results We were impressed by how significantly John Bean blew past analysts' EBITDA expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates by a wide margin. Zooming out, we think this was a solid print. The stock traded up 3% to $137.60 immediately after reporting. John Bean may have had a good quarter, but does that mean you should invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
30-07-2025
- Business
- Zawya
Tetra Pak releases Its 26th Sustainability Report
Cairo: Tetra Pak the world-leading company in food processing and packaging solutions launched its full-year 2024 (FY24) Sustainability Report, highlighting a 25% reduction of greenhouse gas (GHG) emissions across its value chain since 2019, marking a further five percentage-point improvement since 2023. Within its own operations, the company has achieved a 54% reduction in GHG emissions since 2019 and reports 94% renewable energy consumption in its own operations, keeping the company on track to achieve net-zero GHG emissions in its own operations by 2030. Moreover, these environmental achievements go hand in hand with the company's continuous efforts to improve livelihoods and strengthen economies through the delivery of safe food everywhere. Adolfo Orive, President & CEO at Tetra Pak, comments: "By 2050, the global population is projected to reach 10 billion, driving a 60% surge in food demand. Yet, while food systems are vital to sustaining modern life, they also account for more than one-third of global greenhouse gas emissions." He added: "This growing tension between the need for increased food production and reduced environmental impact presents a critical challenge – one that Tetra Pak is committed to addressing. As highlighted in our latest Sustainability Report, we are driving more secure and sustainable food systems, while mitigating climate impacts and improving livelihoods. We look forward to working with our customers and other stakeholders as we continue the journey." The progress illustrated in the Tetra Pak FY24 Sustainability Report puts the company on track to achieve its 2030 ambition of reducing GHG emissions across its value chain by 46% (Scopes 1, 2 and 3) compared to the 2019 base year. This follows another year of significant development in decarbonising the company's own operations and helping its customers reduce their emissions through the equipment, technology and services that Tetra Pak provides. Such advancements demonstrate the company's ongoing commitment to working collaboratively with suppliers, customers and other stakeholders to achieve net-zero GHG emissions across the value chain by 2050, compared to the 2019 baseline. One significant contributor to Tetra Pak's progress in reducing GHG emissions across its value chain in 2024 was the company's resource-efficient equipment, whole-factory optimisation technology, and packaging solutions with lower carbon footprints. These innovations have helped food and beverage producers maintain their competitive edge while reducing their own emissions. The report indicates that in 2024, GHG emissions from delivered ambient dairy lines decreased by 13% compared to 2023, and by 42% from the 2019 baseline. New equipment introduced this year, such as the Tetra Pak® Tubular Heat Exchanger featuring unique, patent-pending Q corrugation, has proved particularly impactful. This design reduces the pressure drop by 40% (that is, the reduction in pressure as fluid flows through the tubes), allowing customers to cut the electricity consumption of the heat exchanger pump used during food and beverage production for processes such as sterilization and pasteurization by up to 40% compared to the previous market-leading model. As a result, customers benefit from both lower energy costs and a reduced carbon footprint at the same time. Other notable achievements shared in the company's FY24 Sustainability Report include: Helping food production factories achieve up to a 40% reduction in energy consumption and a 60% improvement in quality consistency, thereby preventing food waste, through Tetra Pak's advanced manufacturing solutions. Providing 66 million children in 49 countries with milk or other nutritious beverages in packages through school feeding programmes. Helping 84,000 smallholder dairy farmers across 29 Dairy Hub sites worldwide achieve greater income security while providing stable raw milk supply to dairy manufacturers. Investing approximately €100 million in research and development to further enhance the environmental profile of cartons without compromising food safety. This investment led to innovations such as recycled polymer caps developed in partnership with Elle & Vire, and the Tetra Brik® Aseptic 200 Slim Leaf with a paper-based barrier. Launching the company's award-winning Approach to Nature framework, which outlines specific actions, and more than 20 measurable targets aimed at halting and reversing nature loss. This framework supports ecosystem restoration and enhances water security. Strengthening and scaling the company's engagement with workers across the value chain through worker voice surveys, impact assessments, and third-party interviews. Engaging 150 suppliers through its supplier sustainability initiative, Join Us in Protecting the Planet. It is worth noting that Tetra Pak Egypt follows a clear sustainability strategy focused on protecting food, people, and the planet. The company is also committed to developing an integrated infrastructure that supports building a more efficient and sustainable economy, through initiatives that promote the circular economy and contribute to strengthening the recycling sector in Egypt. One of its most successful partnerships is with Uniboard, the only factory in Egypt with the capacity and infrastructure to handle large day to day volumes of used beverage cartons. Tetra Pak Egypt also recently launched the first recycling line for beverage cartons in the Egyptian market through a joint investment with Uniboard worth approximately €2.5 million. Tetra Pak will continue working to expand its initiatives to achieve a more sustainable future for Egypt and the region.
The Independent
11-07-2025
- Business
- The Independent
Breakfast cereal sales declined for decades before Kellogg's sale to Italian company
Breakfast cereal could use a lucky charm. U.S. sales of the colorfully packaged morning staple have been in a decades-long decline, a trend back in the spotlight with news that Italian confectioner Ferrero Group plans to purchase the American company that makes Kellogg 's Corn Flakes, Froot Loops, Rice Krispies and other familiar brands. Except for a brief period during the coronavirus pandemic, when many workers were home and had time to sit down with a bowl of cereal and milk, sales of cold cereal have steadily fallen for at least 25 years, experts say. In the 52 weeks ending July 3, 2021, Americans bought nearly 2.5 billion boxes of cereal, according to market research company Nielsen IQ. In the same period this year, the number was down more than 13% to 2.1 billion. Cereal has been struggling for multiple reasons. The rise of more portable options like Nutri-Grain bars and Clif Bars – which both went on sale in the early 1990s – made it easier for consumers to grab breakfast on the go. Concerns about food processing and sugar intake have also dimmed some consumers' enthusiasm for cereals. One cup of Lucky Charms contains 24% of a consumer's daily recommended intake of sugar, for example. 'Cereal finds it really hard to get out from underneath that,' said Tom Rees, global insight manager for staple foods at the consulting company Euromonitor. 'It can't escape the fact that it doesn't look like a natural food. You have to create it and form it.' Rees noted that for decades, cereal manufacturers focused on adding vitamins and minerals to build cereal's health credentials. But consumers now are looking for simplified ingredient lists. Artificial dyes — like the petroleum-based colors that brighten Froot Loops — have also come under fire. Last fall, dozens of people rallied outside WK Kellogg's Battle Creek, Michigan, headquarters demanding that it remove artificial dyes from its cereals. Kellogg and General Mills — another major U.S. cereal maker — have since pledged to phase out artificial dyes. Add to that, consumers are expanding their idea of what breakfast can be. Yogurt and shakes have replaced the traditional bacon and eggs. Kenton Barello, a vice president at the market research firm YouGov, said his polling shows that Generation Z consumers, who were born between 1997 and 2007, eat more vegetables for breakfast than other generations. Barello said YouGov's polling also shows that members of Gen Z are less likely to eat breakfast but still buy ready-to-eat cereal, suggesting they're eating it as a snack or for other meals. 'With younger generations, there are differences in their relationship with food and these eating moments,' Barello said. 'They are going about breakfast in a different way than Millennials, Gen X and Baby Boomers.' Cereal's struggles are part of what led to the breakup of the Kellogg Company. In 2023, the century-old company that put Battle Creek, Michigan, on the map split into two companies. Kellanova took popular snack brands like Cheez-Its, Pringles and Pop-Tarts as well as international cereals, and WK Kellogg made cereals for the U.S., Canada and the Caribbean. In 2024, M&M's maker Mars Inc. announced a plan to buy Kellanova for more than $30 billion. That plan has cleared U.S. regulators but is still awaiting regulatory approval in Europe. WK Kellogg was left to try to rejuvenate the cereal business. The sale of WK Kellogg to Ferrero doesn't mean supermarket cereal aisles are at risk of extinction. Packaged food companies have options for turning around their soggy cereal sales, Rees said. He thinks Kellogg's Mashups line, which mixed brands like Frosted Flakes and Froot Loops into one box, appeal to younger consumers, who tend to like interesting flavor combinations. The market may also have a fragmented future, according to Rees. Companies may have to accept that younger buyers want a sweet-and-spicy cereal while older buyers might want a Keto-friendly option. 'The future might be realizing that the era of 'This brand will serve everybody' isn't going to happen,' Rees said. Julia Mills, a food analyst with the consulting company Mintel, thinks the shrinking population of children in the U.S. gives cereal makers the opportunity to shift to more sophisticated flavors and packaging. Cereal could be positioned as a fancy topping for yogurt, for example, or a fiber-rich food that can improve gut health. Some niche cereal brands, like high-fiber Poop Like a Champion cereal and high-protein, zero-sugar Magic Spoon, are already doing that. But legacy brands say they shouldn't be counted out. Jeffrey Harmening, the chairman and chief executive officer of Cheerios maker General Mills, said his company considered trying to acquire Magic Spoon. Instead, it made high-protein versions of Cheerios, which now outsells Magic Spoon. 'The key to longer term is, honestly, is giving consumers more of what they want,' Harmening said during a conference call with investors in March.
Washington Post
10-07-2025
- Business
- Washington Post
Want Medicaid coverage? Go pick some vegetables.
Sen. Eric Schmitt (R-Missouri) is tired of the American worker being slandered. 'You just saw a food-processing plant open up that, you know, you had some folks who were arrested and sent away,' he said Wednesday on Fox Business, 'and then you had American workers actually sign up and do those jobs. It's a myth that Americans don't want to work hard and don't want to do these jobs. Of course they will.'
Yahoo
11-06-2025
- Business
- Yahoo
MIDD Q1 Earnings Call: Spin-Off, Tariffs, and Share Buyback Dominate Management's Focus
Kitchen product manufacturer Middleby (NYSE:MIDD) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 2.2% year on year to $906.6 million. Its non-GAAP profit of $2.08 per share was 5.3% above analysts' consensus estimates. Is now the time to buy MIDD? Find out in our full research report (it's free). Revenue: $906.6 million vs analyst estimates of $941.7 million (2.2% year-on-year decline, 3.7% miss) Adjusted EPS: $2.08 vs analyst estimates of $1.97 (5.3% beat) Adjusted EBITDA: $182.1 million vs analyst estimates of $185.7 million (20.1% margin, 1.9% miss) Operating Margin: 15.5%, in line with the same quarter last year Organic Revenue fell 3.8% year on year (-8.7% in the same quarter last year) Market Capitalization: $7.96 billion Middleby's first quarter results were shaped by segment-specific trends and operational discipline across its diversified kitchen equipment portfolio. Management attributed stable margins and cash flow generation to effective cost controls and selective growth in the Residential segment, particularly outdoor products. CEO Timothy FitzGerald discussed ongoing investments in automation, digital connectivity, and the build-out of innovation centers as crucial to sustaining Middleby's position in commercial foodservice and food processing. Bryan Mittelman, CFO, noted that while the commercial segment saw benefit from beverage platform wins and favorable customer mix, muted spending by large chain customers and delivery delays in food processing held back broader sales momentum. Looking ahead, Middleby's outlook is defined by three major themes: the anticipated spin-off of its Food Processing Group, substantial tariff-related cost headwinds, and a stepped-up share buyback program. Management expects ongoing pricing actions and operational adjustments to mitigate the impact of tariffs, though margin pressures are likely to persist in the near term. FitzGerald stated, 'We have a high degree of confidence that through the balance of this year, [tariff costs] will all be offset,' but acknowledged persistent uncertainty in customer investment decisions. The company remains focused on product innovation and leveraging its U.S.-centric manufacturing base to capture share in impacted categories. Management identified the pending Food Processing spin-off, new tariffs, and accelerated share repurchases as the largest business developments, while also highlighting evolving customer demand and product innovations. Food Processing spin-off progress: Middleby reiterated that it remains on track to separate its Food Processing Group into a standalone public company in early 2026. Management believes this will allow targeted growth and capital allocation strategies for both businesses, aiming to unlock shareholder value and better align each entity with relevant industry peers. Accelerated share buyback: The board authorized an additional 7.5 million shares for repurchase, representing about 21% of outstanding equity. Management plans to deploy the majority of annual free cash flow to buybacks, citing a belief that the current share price undervalues Middleby's long-term prospects. Tariff mitigation underway: New tariffs, especially on Chinese-sourced components, are expected to add $150–$200 million in annual costs, mainly impacting the Commercial and Residential segments. Management is responding with mid- to high single-digit price increases, operational adjustments, and supply chain shifts, aiming to offset the majority of these costs by year-end. Commercial segment mix shift: Successes in beverage platforms and select cooking and refrigeration brands were partially offset by muted buying from large chain customers. Management noted a positive margin impact from favorable customer and product mix despite overall revenue softness. Product innovation and market expansion: Middleby highlighted progress in automation, ventless cooking, IoT-enabled kitchen equipment, and new beverage dispensing solutions. The company is investing in adjacent markets like poultry, pet, and snack foods, and reported strong early traction for its Open Kitchen connectivity platform and next-generation appliances. Middleby's forward guidance centers on the interplay of tariff headwinds, execution on pricing strategies, and the strategic separation of its Food Processing business. Tariff cost management: Management expects tariff-driven cost increases to pressure margins through the year, particularly in Commercial and Residential segments. The company is depending on price increases, supply chain initiatives, and operational efficiencies to restore profitability, but acknowledged that customer demand and competitive reactions could affect the pace and effectiveness of these efforts. Food Processing spin-off execution: The planned spin-off is expected to bring greater strategic focus and unlock new growth opportunities for both the remaining Middleby business and the new standalone entity. Management will provide more detail on leadership, cost structure, and financials later this year, with a dedicated shareholder event scheduled for the fourth quarter. Innovation and customer adoption: Ongoing investments in automation, digital sales tools, and connected kitchen platforms like Open Kitchen are seen as key to driving organic growth. Management indicated that successful rollout and customer uptake of new products—especially in international markets—will be critical for revenue improvement in the second half of the year. Over the coming quarters, the StockStory team will monitor (1) progress on offsetting tariff-related costs and the success of announced price adjustments, (2) milestones toward the Food Processing Group spin-off—including leadership appointments and detailed financial disclosures, and (3) evidence of sustained demand for new product rollouts and digital connectivity solutions, especially internationally. Execution on these fronts will signal whether Middleby can deliver on its strategic transformation despite current macro headwinds. Middleby currently trades at a forward P/E ratio of 14.9×. At this valuation, is it a buy or sell post earnings? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
