Latest news with #impairment
Yahoo
6 days ago
- Business
- Yahoo
Boston Beer Company books impairment but raises guidance
Boston Beer Company has booked an impairment in the second quarter of its fiscal 2025, but has also proceeded to raise guidance for its gross margin in the year. According to the US brewer's latest financial results, it booked an impairment of of its brewery assets of $5m, a $1.6m increase from the comparable period of 2024, attributed "to higher write-offs of equipment at third party and company-owned breweries". The group said it would also raise guidance for it's gross profit margin (excluding tariffs) from 45%-48% to 47%-48%. Including tariffs this has gone up from 44%-46.5%, to 46%- 47.3%. Boston Beer has also lowered its capital spending forecast for its full year from $90m-$110m to $70m-$90m. It said the move came "as we continue to see positive impacts from our multi-year margin enhancement initiatives". The US brewer saw net revenue increase 1.5% to $587.9m in its second quarter to the end of June. Net income reached $60.4m, an increase of $8.1m or 15.5% year over year. The group's shipments declined 0.8% year-on-year, while depletions declined 5% for the three-month period ending June 28. Last year, the US brewer reported a non-cash impairment linked mainly to its Dogfish Head brand, which it acquired in 2020. The move followed a review of the 'latest forecasts of brand performance' in September, which was 'below our projections made on the acquisition date', the group said in a statement at the time. The company's shipment volume for the second quarter was approximately 2.1 million barrels, a 0.8% decrease from 2024, primarily due to declines in Truly Hard Seltzer and Samuel Adams brands that were "partially offset" by growth in the company's Sun Cruiser and Dogfish Head brands. Meanwhile, for the 26 weeks to end of June 2025, the company reported revenue year-to-date of $1bn, rising 3.6% compared to year-to-date 2024 due to increased volume, increased pricing, and a 'favourable product mix.' Net income sat at $84.8m, a 30.7% increase on year-to-date figures in 2024. In its latest results, the business also adjusted its anticipated full-year total cost impact from tariffs. It now anticipates tariffs to cost the business $15 to $20m, a drop from its prior $20 to $30m estimate, which wasn't previously in its guidance, it said. "Boston Beer Company books impairment but raises guidance" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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
Daily Mail
23-07-2025
- Business
- Daily Mail
Strong dollar and US tech spin-off drive Informa to £254M loss
Informa shares jumped on Wednesday despite the publisher and events organiser slumping to a loss after shouldering a major impairment over the first half. The FTSE 100 firm, which owns academic publisher Taylor & Francis, posted a statutory pre-tax loss of £254.2million, compared to a £237.4million profit over the same period last year. Informa faced a £484.2million non-cash impairment related to its TechTarget business, which was spun-off and listed in the US late last year. The marketing business has seen its share price slump 70 per cent since its December IPO, meaning its market capitalisation has fallen below its net assets and resulting in the impairment TechTarget saw a 4.3 per cent decline in underlying revenues during the first half, which Informa blamed on a 'subdued market backdrop'. Its tech customers are prioritising 'AI-related research and development over investment in product marketing and sales support', according to Information. But the wider Informa business still saw bumper reported revenue growth of 20.1 per cent to just over £2billlion over the period, as it benefited from new product lines as well as strong growth in live business-to-business events and academic markets. And Informa expects momentum to be maintained as it upgraded it full-year underlying revenue growth guidance from around 5 per cent to more than 6 per cent, helped by growth of more than 8 per cent in live business to business events. The upgrade comes despite further weakening of the US dollar, which has fallen roughly 7.6 per cent since the start of 2025. Informa claims that every cent movement in the dollar impacts its revenues by around £18million and adjusted operating profit by roughly £7million on a full year basis. The group also revealed a fresh £150million share buyback programme for the second half, after buying £200million back at an average price of 757p during the first. Boss Stephen A. Carter sad: 'Informa is further increasing the pace of performance, delivering 20 per cent+ growth in our four key performance measures: revenues, profits, earnings and free cash flow.
Daily Mail
23-07-2025
- Business
- Daily Mail
Informa slumps to £254m loss as dollar and US tech spin-off weigh
Informa shares jumped on Wednesday despite the publisher and events organiser slumping to a loss after shouldering a major impairment over the first half. The FTSE 100 firm, which owns academic publisher Taylor & Francis, posted a statutory pre-tax loss of £254.2million, compared to a £237.4million profit over the same period last year. Informa faced a £484.2million non-cash impairment related to its TechTarget business, which was spun-off and listed in the US late last year. The marketing business has seen its share price slump 70 per cent since its December IPO, meaning its market capitalisation has fallen below its net assets and resulting in the impairment TechTarget saw a 4.3 per cent decline in underlying revenues during the first half, which Informa blamed on a 'subdued market backdrop'. Its tech customers are prioritising 'AI-related research and development over investment in product marketing and sales support', according to Informa. But the wider Informa business still saw bumper reported revenue growth of 20.1 per cent to just over £2billlion over the period, as it benefited from new product lines as well as strong growth in live business-to-business events and academic markets. And Informa expects momentum to be maintained as it upgraded it full-year underlying revenue growth guidance from around 5 per cent to more than 6 per cent, helped by growth of more than 8 per cent in live business to business events. The upgrade comes despite further weakening of the US dollar, which has fallen roughly 7.6 per cent since the start of 2025. Informa claims that every cent movement in the dollar impacts its revenues by around £18million and adjusted operating profit by roughly £7million on a full year basis. The group also revealed a fresh £150million share buyback programme for the second half, after buying £200million back at an average price of 757p during the first. Boss Stephen A. Carter sad: 'Informa is further increasing the pace of performance, delivering 20 per cent+ growth in our four key performance measures: revenues, profits, earnings and free cash flow. 'Informa is built around world class brands, leading International market positions, first party data and, most importantly, colleagues with specialist expertise and a passion to deliver for customers.' Informa shares were up 5.7 per cent to 873.4p in early trading, bringing 2025 gains to around 8 per cent.
Reuters
23-07-2025
- Business
- Reuters
Blaming Trump, Equinor books a $955 million US offshore wind writedown
OSLO, July 23 (Reuters) - Norway's Equinor ( opens new tab booked on Wednesday a $955 million impairment on an offshore wind project in the United States, citing U.S. tariffs and the uncertainty of the U.S. regulatory environment under President Donald Trump. Hopes the industry had harboured that projects in the United States would revive the sector were dashed on Trump's first day back in office in January when he suspended offshore wind leases. Then in April, Interior Secretary Doug Burgum shut down Equinor's Empire Wind development in New York state. He later lifted the stop-work order on the project. For Equinor, however, the damage has been done. On Wednesday, it reported its net operating income for the second quarter fell due to having to book a near-billion dollar impairment on its U.S. offshore wind projects. Equinor CFO Torgrim Reitan said a combination of tariffs, the U.S. administration changing its mind on developing offshore wind, and the removal of tax credits had affected the value of the group's large onshore terminal in South Brooklyn, built to serve offshore wind farm installations. "(The impairment) is driven by regulatory changes in the U.S., particularly related to that investment tax credits have been taken away for new developments. You also have tariffs, and there's also a presidential order stopping permitting of new offshore wind projects," Reitan told Reuters. "It is those new offshore wind projects that drive the impairment, because we have a terminal, the South Brooklyn Marine terminal, where we had assumed two more developments than our own Empire Wind to pay for that. That is now unlikely." Out of the $955 million impairment, $763 million is related to Empire Wind 1 and its South Brooklyn Marine Terminal project, with the remainder related to the lease of the Empire Wind 2 farm, the company said. Equinor, majority-owned by the Norwegian state, had won a federal lease for Empire Wind in 2017 under Trump's first administration and secured approval for its investment plans in 2023 during former President Joe Biden's time in the White House. Tariffs, including on steel, had increased costs on the project by $300 million, Reitan said. Equinor would still receive tax credits for the first phase of Empire Wind, but not for the second one. "Without investment tax credits and without a government that wants it to happen, we are not going to invest in it," said Reitan. The global offshore wind market, once touted by governments as a cornerstone of efforts to cut carbon emissions, has faltered under escalating costs and logistical setbacks. The total book value after the latest impairments was $2.3 billion, Equinor said on Wednesday. With a planned installed capacity of 810 megawatts, Empire Wind 1 could generate enough electricity to power half a million homes a year and was expected to begin operating in 2027. Equinor on Wednesday also reported a decline in core second-quarter results, as expected, due to lower oil prices.
Reuters
23-07-2025
- Business
- Reuters
, PIX Blaming Trump, Equinor makes $955 million US offshore wind writedown
OSLO, July 23 (Reuters) - Norway's Equinor ( opens new tab booked on Wednesday a $955 million impairment on an offshore wind project in the United States, citing U.S. tariffs and the uncertainty of the U.S. regulatory environment under President Donald Trump. Hopes the industry had harboured that projects in the United States would revive the sector were dashed on Trump's first day back in office in January when he suspended offshore wind leases. Then in April, Interior Secretary Doug Burgum shut down Equinor's Empire Wind development in New York state. He later lifted the stop-work order on the project. For Equinor, however, the damage has been done. On Wednesday, it reported its net operating income for the second quarter fell due to having to book a near-billion dollar impairment on its U.S. offshore wind projects. "This is impacted by an impairment of $955 million due to regulatory changes causing loss of synergies from future offshore wind projects and increased exposure to tariffs," Equinor said in a statement on Wednesday. "Of this, $763 million is related to Empire Wind 1/South Brooklyn Marine Terminal project and the remainder is related to the Empire Wind 2 lease." Equinor, majority-owned by the Norwegian state, had won a federal lease for Empire Wind in 2017 under Trump's first administration and secured approval for its investment plans in 2023 during former President Joe Biden's time in the White House. The global offshore wind market, once touted by governments as a cornerstone of efforts to cut carbon emissions, has faltered under escalating costs and logistical setbacks. Equinor CFO Torgrim Reitan said the U.S. administration changing its mind on developing offshore wind had affected the value of the group's large onshore terminal in South Brooklyn, built to serve offshore wind farm installations. "It is a result of changing regulations so there is very little probability for more offshore wind projects coming in the U.S. over the foreseeable future and that is impacting a project that we have related to staging facilities," he told Bloomberg TV. Equinor would not develop the second phase of the Empire Wind farm, as it had earlier planned, he added. "We don't intend to push it forward currently," Reitan said of Empire Wind 2. The total book value after the latest impairments was $2.3 billion, Equinor said on Wednesday. With a planned installed capacity of 810 megawatts, Empire Wind 1 could generate enough electricity to power half a million homes a year and was expected to begin operating in 2027. Equinor on Wednesday also reported a decline in core second-quarter results, as expected, due to lower oil prices.
