Latest news with #NPIs
Agriland
28-05-2025
- Business
- Agriland
Minister: ‘September at the latest' for ACRES NPI payment system
Minister for Agriculture, Food and the Marine Martin Heydon has said that it will be 'September at the latest' before the payments system for non-productive investments (NPIs) is ready under the Agri-Climate Rural Environment Scheme (ACRES). Under ACRES, farmers in the Co-operation Project (CP) section of the scheme can undertake NPIs to enhance their payments. NPIs are small-scale environmental actions available to farmers in the ACRES CP which support nature-friendly management of farms. NPIs are applied for on behalf of farmers by their ACRES advisor as part of a NPI – Annual Works Plan (AWP). According to the Department of Agriculture, Food and the Marine, completing approved NPIs allows a farmer to add to their ACRES payment by up to a maximum of €17,500 over the five-year period of their contract. There has been two application windows for farmers to apply for NPIs; one in 2023 and one last year in 2024. However, the payments system to support the submission of claims and the processing of payments in respect of approved NPI applications is not yet in place. The department had already said that the system would be in place in 2025. Minister Heydon, speaking at the first meeting of the new Joint Oireachtas Committee on Agriculture, Food and the Marine, which took place today (Wednesday, May 28), indicated a target of September for that system to be in place. He told Fine Gael Clare TD Joe Cooney: 'The great focus has been getting people their basic [ACRES] payment first and foremost, getting their problems resolved on that. 'On the NPI payments then, the officials are working through on his, but we are making progress on that side, and hope to have them resolved as soon as possible over the summer, or September at the latest, in terms of getting them resolved, and getting payments through on them,' Minister Heydon added. ACRES was one of the main topics that came up at today's committee meeting, the other top issues for TDs and senators being TB and the future of the Common Agricultural Policy (CAP). Other topics that featured were the nitrates derogation, GAEC (Good Agricultural and Environmental Condition) 2; and the EU-Mercosur Trade Agreement. This was the minister's first appearance at the Oireachtas agriculture committee in his role as the senior department minister. Minister Heydon's previous appearances at the committee, in its previous iteration before the general election last year, were in his then role as minister for state with responsibility for new market development, farm safety, and research and development. This was the first meeting of the current committee, post-general election, where it carried out its role of scrutinising the Department of Agriculture, Food and the Marine and the ministers responsible for it. As the first meeting, it had somewhat of an introductory tone, serving as a way for the committee to get off the ground for the new Dáil term and begin its formal engagement with the minister. One member of the committee, senator Victor Boyhan, said: '[Minister Heydon] indicated that he wanted a fresh start, a new relationship with agriculture, with stakeholders, and with us as committee members, so I think that's encouraging.'
Yahoo
06-03-2025
- Business
- Yahoo
Here's What 3M's Big News Means to Investors
At a glance, it's understandable that 3M's (NYSE: MMM) recent investor day didn't produce a significant move in the stock price. The industrial conglomerate's three-year targets were solid enough but not sufficiently inspiring to encourage investors to significantly upgrade medium-term expectations. However, based on the presentations, there's a strong case for 3M being able to deliver good returns in the coming years, with more to come over the long term. That's likely to suit many investors, and it's why the stock remains attractive to buy. Here's the lowdown. The financial targets laid out by management at the event are shown in the table below. Prospects for earnings growth are clearly coming not from organic sales but from expectations for higher margins, with management aiming to hit a 25% operating margin by 2027. Here's some quick math to make sense of what this table means for potential returns. If we pencil in the midpoint of 2025 guidance ($7.75) and assume 8% growth in 2026 and 2027 -- that's the midpoint of the 7% to 9% range usually defined as "high single digits" -- we get earnings per share of $9.04 in 2027. If we assume the stock trades at 20 times earnings, around the historical norm, it would reach $181 in 2027, resulting in a 6.4% annual return based on recent prices. Including a 2% dividend yield would mean an 8.4% yearly return. That outcome would provide a solid enough return but not a particularly exciting one. That said, there is a pathway to a better return for investors. 3M Guidance 2024 2025 Est. 2026/2027 Est. Organic sales growth 1.2% 2%-3% "outperform macro" Operating margin 21.4% 130 bp* to 190 bp expansion ~100bps annually Earnings per share $7.30 $7.60-$7.90 High-single-digit annual growth Free cash flow $4.9 billion ~100% conversion from net income >100% conversion from net income Data source: 3M presentations, *bp is basis points, where 100bp=1% In a nutshell, the upside opportunity comes from the potential for 3M to realize CEO Bill Brown's aim of revitalizing its new product introductions (NPIs). Doing so will likely lead to a pick-up in sales growth and margin expansion over the long term. As such, by 2027, investors in 3M could be pricing in better earnings growth in the future. NPIs tend to be differentiated products that command pricing power, and 3M can ramp up volume production as they gain in popularity, resulting in sales growth and margin expansion. Given the gestation period necessary to fundamentally change a research and development function, develop NPIs, and establish them in the market, it won't be an overnight process. Still, there's plenty of room for improvement at 3M, and investors have cause for optimism. For example, management disclosed that its five-year NPI sales was $7 billion in 2018, but that figure slumped to just $2.4 billion in 2024 due to a dearth of NPI. The slump in NPIs meant 3M's New Product Vitality Index (NPVI) (representing the share of total company sales from NPI over the last five years) slumped to just 10% in 2024 (compared to figures of 33% a decade ago). Management plans to get its NPVI to about 20% in 2027 through focused investment and implementing process improvements that should reduce its time to market for NPI. It was refreshing to hear chief technology officer John Banovetz openly outline why 3M's NPI had fallen behind in recent years. The good news is that all three reasons are likely to prove temporary. 3M had cut back on local product development 3M was focused on reengineering products in light of the removal of PFAS compounds in its products and the need to adjust to the supply chain crisis caused by the lockdowns Management had overinvested time and money in the healthcare business, now spun off as Solventum These are entirely plausible arguments and issues likely to have caused disruptions, and given management's commitment to reinvigorating research and development, working through the PFAS-induced changes, and the absence of the healthcare business, 3M has an opportunity to improve NPIs. If 3M can generate the operational improvements necessary to improve long-term margin and NPIs, the market could start pricing in improved long-term growth prospects. The back-of-the-envelope figure of a yearly total return of 8.4% calculated above has upside potential. That might suit many investors looking for a relatively safe way to invest in the industrial sector. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $295,759!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $45,128!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $525,108!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 3, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 3M. The Motley Fool recommends Solventum. The Motley Fool has a disclosure policy. Here's What 3M's Big News Means to Investors was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
05-03-2025
- Business
- Yahoo
Here's What 3M's Big News Means to Investors
At a glance, it's understandable that 3M's (NYSE: MMM) recent investor day didn't produce a significant move in the stock price. The industrial conglomerate's three-year targets were solid enough but not sufficiently inspiring to encourage investors to significantly upgrade medium-term expectations. However, based on the presentations, there's a strong case for 3M being able to deliver good returns in the coming years, with more to come over the long term. That's likely to suit many investors, and it's why the stock remains attractive to buy. Here's the lowdown. The financial targets laid out by management at the event are shown in the table below. Prospects for earnings growth are clearly coming not from organic sales but from expectations for higher margins, with management aiming to hit a 25% operating margin by 2027. Here's some quick math to make sense of what this table means for potential returns. If we pencil in the midpoint of 2025 guidance ($7.75) and assume 8% growth in 2026 and 2027 -- that's the midpoint of the 7% to 9% range usually defined as "high single digits" -- we get earnings per share of $9.04 in 2027. If we assume the stock trades at 20 times earnings, around the historical norm, it would reach $181 in 2027, resulting in a 6.4% annual return based on recent prices. Including a 2% dividend yield would mean an 8.4% yearly return. That outcome would provide a solid enough return but not a particularly exciting one. That said, there is a pathway to a better return for investors. 3M Guidance 2024 2025 Est. 2026/2027 Est. Organic sales growth 1.2% 2%-3% "outperform macro" Operating margin 21.4% 130 bp* to 190 bp expansion ~100bps annually Earnings per share $7.30 $7.60-$7.90 High-single-digit annual growth Free cash flow $4.9 billion ~100% conversion from net income >100% conversion from net income Data source: 3M presentations, *bp is basis points, where 100bp=1% In a nutshell, the upside opportunity comes from the potential for 3M to realize CEO Bill Brown's aim of revitalizing its new product introductions (NPIs). Doing so will likely lead to a pick-up in sales growth and margin expansion over the long term. As such, by 2027, investors in 3M could be pricing in better earnings growth in the future. NPIs tend to be differentiated products that command pricing power, and 3M can ramp up volume production as they gain in popularity, resulting in sales growth and margin expansion. Given the gestation period necessary to fundamentally change a research and development function, develop NPIs, and establish them in the market, it won't be an overnight process. Still, there's plenty of room for improvement at 3M, and investors have cause for optimism. For example, management disclosed that its five-year NPI sales was $7 billion in 2018, but that figure slumped to just $2.4 billion in 2024 due to a dearth of NPI. The slump in NPIs meant 3M's New Product Vitality Index (NPVI) (representing the share of total company sales from NPI over the last five years) slumped to just 10% in 2024 (compared to figures of 33% a decade ago). Management plans to get its NPVI to about 20% in 2027 through focused investment and implementing process improvements that should reduce its time to market for NPI. It was refreshing to hear chief technology officer John Banovetz openly outline why 3M's NPI had fallen behind in recent years. The good news is that all three reasons are likely to prove temporary. 3M had cut back on local product development 3M was focused on reengineering products in light of the removal of PFAS compounds in its products and the need to adjust to the supply chain crisis caused by the lockdowns Management had overinvested time and money in the healthcare business, now spun off as Solventum These are entirely plausible arguments and issues likely to have caused disruptions, and given management's commitment to reinvigorating research and development, working through the PFAS-induced changes, and the absence of the healthcare business, 3M has an opportunity to improve NPIs. If 3M can generate the operational improvements necessary to improve long-term margin and NPIs, the market could start pricing in improved long-term growth prospects. The back-of-the-envelope figure of a yearly total return of 8.4% calculated above has upside potential. That might suit many investors looking for a relatively safe way to invest in the industrial sector. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $295,759!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $45,128!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $525,108!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 3, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 3M. The Motley Fool recommends Solventum. The Motley Fool has a disclosure policy. Here's What 3M's Big News Means to Investors was originally published by The Motley Fool
