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Irish Times
2 days ago
- Business
- Irish Times
Company behind Cuisine de France sees profits fall 15.5% as consumers seek out more value
Profits at Aryzta fell by 15.5 per cent to €49.1 million in the first half of the year as more cost-conscious consumers and upward inflationary pressures tightened margins for the Swiss-Irish maker of par-baked pastries and breads. The group, which owns the Cuisine de France brand here and supplies the likes of McDonald's and Subway, described its profitability performance as 'resilient'. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 0.5 per cent to €150.5 million, while EBITDA margin decreased by 0.3 per cent to 13.9 per cent. 'The decline in margin reflects the challenging market environment as well as the impact from delays in the finalisation of some tender agreements in the period,' the group told investors. READ MORE 'This is the result of the challenges faced from the significant price volatility in some key raw materials such as butter, eggs and cocoa, as well as increased labour costs across our geographies.' Aryzta said its focus remains on delivering continued business performance and efficiency improvements. The group is targeting cost reductions in the range of €40-€60 million from operations, procurement and structural costs initiatives between now and 2028. The plan also involves incremental ramp-up costs of €20-€30 million for the further roll-out of the IT infrastructure to secure the gross cost savings, resulting in a net projected saving of €20-€30 million. Innovation accounted for about 18 per cent of revenue in the first half. Aryzta chief executive Michael Schai said the company delivered a 'solid' first half year performance in a 'challenging market environment' marked by subdued consumer sentiment. 'We achieved organic growth of 2.8 per cent, underpinned by a healthy 2.1 per cent volume growth, which resulted in further market share gains,' he said. 'We remain committed to driving performance through a focus on organic growth, innovation, process automation and strict cost discipline. 'We continue to target our 2025 full year guidance for low to mid-single digit organic growth and improved performance across key financial metrics.' Solid organic growth helped generate revenue of €1.1 billion, which was up 3 per cent on the year before, with organic growth of 2.8 per cent. Total net debt including hybrid funding declined to €886 million compared to €927 million at June 2024 and €894 million at December 2024. The company generated free cash flow of €29.4 million, which was below the prior period to June 2024. The group's performance in Europe was described as 'solid' in most markets with good support from positive volume and pricing. EBITDA in the region reached €127.4 million, representing a margin of 13.2 per cent and a decrease of 0.4 per cent on the year before. Its activity in the rest of world significantly improved its performance over the period, achieving an EBITDA of €23.1 million, corresponding to a margin of 19.6 per cent, which was 0.9 per cent higher than a year earlier.
Yahoo
4 days ago
- Business
- Yahoo
Refiners Smell Profits as Heavy Crude Comes Roaring Back--But One Risk Lurks
Refiners may finally be catching a break. After months of margin pressure from tight heavy-light crude spreads, companies like Marathon Petroleum (NYSE:MPC), Valero (NYSE:VLO), and PBF Energy (NYSE:PBF) are positioning for a potential rebound in the second half of the year. On its latest earnings call, Marathon's Chief Commercial Officer Rick Hessling said wider differentials could be on the way, driven by OPEC production increases and Canadian supply coming back online post-maintenance. Gulf Coast refiners, many of which are configured to process heavy crude, stand to benefit if discounted barrels start flowing again. We expect differentials to widen out in the second half this year, Hessling said, pointing to September as a key turning point. Warning! GuruFocus has detected 6 Warning Sign with CASY. Valero's management echoed that optimismwith caution. Chief Operating Officer Gary Simmons flagged that while recent events like Venezuelan sanctions and Canadian wildfires have tightened supply, the worst may be behind. Going forward, we do think things will get better, Simmons noted, although he expects the margin boost to be more visible by Q4. PBF Energy's CEO Matthew Lucey added that the second quarter was tough, calling narrow crude spreads a significant challenge, but projected 2 million to 2.5 million barrels per day of heavy output could return by fall, just in time for seasonal refinery maintenance. Meanwhile, Californiaof all placesmight quietly become a swing factor. Recent regulatory shifts under Governor Gavin Newsom could revive in-state drilling, just as Phillips 66 and Valero prepare to shut down major refineries on the West Coast. With less refining capacity and more California crude staying local, Marathon sees those barrels as "advantaged." But one variable could complicate this recovery: potential sanctions on Russian crude under a future Trump administration. The only unknown here is really what happens with the Russian sanctions, Valero's Simmons warned. If sanctions tighten, that could cut off Russian barrels and push heavy crude prices back up, limiting gains for U.S. refiners. This article first appeared on GuruFocus.
Yahoo
4 days ago
- Business
- Yahoo
Refiners Smell Profits as Heavy Crude Comes Roaring Back--But One Risk Lurks
Refiners may finally be catching a break. After months of margin pressure from tight heavy-light crude spreads, companies like Marathon Petroleum (NYSE:MPC), Valero (NYSE:VLO), and PBF Energy (NYSE:PBF) are positioning for a potential rebound in the second half of the year. On its latest earnings call, Marathon's Chief Commercial Officer Rick Hessling said wider differentials could be on the way, driven by OPEC production increases and Canadian supply coming back online post-maintenance. Gulf Coast refiners, many of which are configured to process heavy crude, stand to benefit if discounted barrels start flowing again. We expect differentials to widen out in the second half this year, Hessling said, pointing to September as a key turning point. Warning! GuruFocus has detected 6 Warning Sign with CASY. Valero's management echoed that optimismwith caution. Chief Operating Officer Gary Simmons flagged that while recent events like Venezuelan sanctions and Canadian wildfires have tightened supply, the worst may be behind. Going forward, we do think things will get better, Simmons noted, although he expects the margin boost to be more visible by Q4. PBF Energy's CEO Matthew Lucey added that the second quarter was tough, calling narrow crude spreads a significant challenge, but projected 2 million to 2.5 million barrels per day of heavy output could return by fall, just in time for seasonal refinery maintenance. Meanwhile, Californiaof all placesmight quietly become a swing factor. Recent regulatory shifts under Governor Gavin Newsom could revive in-state drilling, just as Phillips 66 and Valero prepare to shut down major refineries on the West Coast. With less refining capacity and more California crude staying local, Marathon sees those barrels as "advantaged." But one variable could complicate this recovery: potential sanctions on Russian crude under a future Trump administration. The only unknown here is really what happens with the Russian sanctions, Valero's Simmons warned. If sanctions tighten, that could cut off Russian barrels and push heavy crude prices back up, limiting gains for U.S. refiners. This article first appeared on GuruFocus. 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
Yahoo
04-08-2025
- Business
- Yahoo
Kyndryl's first-quarter profit soars as renegotiated contracts aid margins
(Reuters) -Kyndryl Holdings' first-quarter profit soared more than five-fold, the company said on Monday, as the former IBM unit's renegotiation of contracts helped improve margins on its services. The company, formerly IBM's infrastructure services business, has been restructuring multiple no-margin contracts it inherited from the Big Blue to generate higher profits, but at the cost of revenue growth. Kyndryl's net income soared to $56 million for the June quarter from a profit of $11 million in the year-ago-period, while revenue was flat at $3.74 billion. The software provider's quarterly net income margin stood at 1.5%, up from 0.3% in the year-ago period. Businesses have prioritized spending on essential software amid macroeconomic uncertainty spurred by U.S. President Donald Trump's ongoing global trade negotiations. This has shielded companies like Kyndryl, whose software helps businesses conduct day-to-day operations and enable artificial intelligence integration. "We're not completely immune to it (macroeconomic conditions), but definitely we're significantly insulated because of the nature of what we do. It is generally mission critical and not discretionary," CFO David Wyshner told Reuters. Sales in the consulting unit grew 30% in the June quarter, as clients seek expertise on integrating AI technology. Revenue tied to large cloud providers grew 86% to $400 million in the quarter. Customers continue to use a hybrid cloud approach and the company benefits from multi-cloud management, Oppenheimer analysts said last month. The company reaffirmed its forecasts for the fiscal year, still expecting constant-currency revenue growth of 1% in its current fiscal year. Kyndryl CFO Wyshner does not expect Trump's massive package of tax and spending cuts, signed into law last month, to have a significant impact on the company in the next two or three years. "But as we look at the longer-term, this will be helpful to us, potentially by a point or two in terms of our longer term effective tax rate," Wyshner said. Sign in to access your portfolio
Yahoo
01-08-2025
- Business
- Yahoo
Werner used equipment pricing boon helps Q2 earns
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. Dive Brief: Werner Enterprises' used equipment sales in Q2 helped strengthen margins, reflecting a hotter market, executives said Tuesday on an earnings call. Gains on sales of property and equipment totaled $5.9 million for the quarter, versus $2.7 million a year ago, according to an earnings release. The surge was driven by lucrative resale values reaching more than two-year highs, translating to the 'best gains on used equipment that we've had in six quarters,' EVP, Treasurer and CFO Chris Wikoff said on the call. Dive Insight: Pricing for used equipment has come amid shifts in U.S. trade policy and retreats across multiple carriers' capital expenditure plans. 'Used truck and trailer values have accelerated since March, benefiting from tariff and other macro uncertainty,' CEO and Chairman Derek Leathers said on the call. Trade policy was the driver in the elevated tractor pricing, Wikoff said. That meant even though there were fewer unit sales from one quarter to the next, the profit increased. Used pricing finally rose year over year for the first time in over two-and-a-half years, according to an ACT Research report Monday. That's when the average Class 8 retail sale price was up 10.4% in June compared to a year ago, according to the report. 'Well, it finally happened,' Steve Tam, VP of ACT Research, said in the report. But the reasoning may be more difficult to decipher, given forward pull due to tariffs amid a stubborn freight recession. 'The data and analysis are averages,' Tam added, 'and different segments of the industry are experiencing different realities.' For Werner, the pricing environment helped the carrier achieve $66.3 million in operating income for Q2, or an adjusted operating income of $16.6 million. Also during the quarter, a Texas Supreme Court decision reversed a $90 million jury award, Leathers said. 'This ruling led to the reversal of a $45.7 million net liability, including interest and benefiting GAAP operating income,' Wikoff said. Recommended Reading Texas Supreme Court reverses nuclear verdict involving Werner crash 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
