Latest news with #operatingincome
Yahoo
19-05-2025
- Business
- Yahoo
ICL Reports First Quarter 2025 Results
Sales of $1.8 billion increased year-over-year, with operating income of $185 million, adjusted EBITDA of $359 million and adjusted diluted EPS of $0.09 TEL AVIV, Israel & ST. LOUIS, May 19, 2025--(BUSINESS WIRE)--ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company, today reported its financial results for the first quarter ended March 31, 2025. Consolidated sales were $1.8 billion versus $1.7 billion in the prior year. Operating income was $185 million versus $203 million of operating income in the first quarter of last year, with adjusted operating income of $208 million versus $215 million. For the first quarter, net income attributable to shareholders was $91 million versus $109 million in the prior year, with adjusted net income of $110 million compared to $118 million. Adjusted EBITDA was $359 million versus $362 million. Diluted earnings per share were $0.07 versus $0.08 in the first quarter of last year, with adjusted diluted EPS of $0.09 – the same as in the first quarter of last year. "ICL delivered sequential increases in first quarter sales, adjusted EBITDA and EPS, with results led by our specialties-driven businesses. Our Industrial Products, Phosphate Solutions and Growing Solutions businesses also reported year-over-year growth in sales and EBITDA, generally driven by higher volumes with limited price improvement. For our Potash segment, prices were lower year-over-year, as expected, with supply more heavily weighted toward our annual 2024 contracts with China and India, which are at lower prices than current market rates," said Elad Aharonson, president and CEO of ICL. "Looking forward, we expect to benefit from our existing distinctive global presence, as the industry awaits additional clarity regarding global tariff and trade negotiations. We plan to rely on our regionally diversified operations and will also continue to focus on specialties solutions for our global customers on a local basis using local production." The company reiterates its guidance for full year 2025, with specialties-driven EBITDA of between $0.95 billion to $1.15 billion and Potash sales volumes of between 4.5 million and 4.7 million metric tons. (1a) Key Financials First Quarter 2025 US$M Ex. per share data 1Q'25 1Q'24 Sales $1,767 $1,735 Gross profit $560 $557 Gross margin 32% 32% Operating income $185 $203 Adjusted operating income (1) $208 $215 Operating margin 10% 12% Adjusted operating margin (1) 12% 12% Net income attributable to shareholders $91 $109 Adjusted net income attributable to shareholders (1) $110 $118 Adjusted EBITDA (1) $359 $362 Adjusted EBITDA margin (1) 20% 21% Diluted earnings per share $0.07 $0.08 Diluted adjusted earnings per share (1) $0.09 $0.09 Cash flows from operating activities (2) $165 $292 (1) Adjusted operating income and margin, adjusted net income attributable to shareholders, adjusted EBITDA and margin, and diluted adjusted earnings per share are non-GAAP financial measures. Please refer to the adjustments table and disclaimer. (2) See "Condensed consolidated statements of cash flows (unaudited)" in the appendix below. Industrial Products First quarter 2025 Sales of $344 million vs. $335 million. EBITDA of $76 million vs. $72 million. Year-over-year growth driven by better volumes in flame retardants. Key developments versus prior year Flame retardants: Overall sales increased, with bromine-based product sales up slightly, as higher volumes offset lower prices. Sales of phosphorous-based solutions increased, with higher volumes mainly in Europe and the U.S., and overall higher prices. Both the electronics and construction end-markets remained somewhat soft, in the first quarter. Elemental bromine: Higher volumes drove an increase in sales, offsetting lower market prices. Clear brine fluids: Sales lower, despite solid trends and continued strength in oil and gas demand in the Gulf of America, while competition increased in the Eastern Hemisphere. Specialty minerals: A slight increase in sales was driven by higher volumes and prices for magnesium chloride used in deicing, while there was a decrease in specialty magnesia demand for pharma and food applications. Potash First quarter 2025 Sales of $405 million vs. $423 million. EBITDA of $118 million vs. $124 million. Grain Price Index decreased 12.1% year-over-year, with corn up 9.1%, while rice, soybeans and wheat were down 22.2%, 15.1% and 8.1%, respectively. On a sequential basis, the Grain Price Index increased 1.0%, with corn, soybeans and wheat up 10.5%, 3.3%, 4.5%, respectively, while rice declined 6.8%. Key developments versus prior year Potash price: $300 per ton (CIF). Up 5% sequentially but down 7% year-over-year. ICL continued to fulfill its 2024 annual contracts with China and India, and the prices in these agreements were lower than market rates, which improved as the first quarter progressed. Potash sales volumes: 1,103 thousand metric tons. Increased by 19 thousand metric tons year-over-year, with higher volumes mainly to Brazil and China. ICL Dead Sea Production decreased, with continued operational challenges primarily related to external forces. ICL Iberia Production lower, while efficiency efforts remain on-track. Phosphate Solutions First quarter 2025 Sales of $573 million vs. $559 million. EBITDA of $139 million vs. $131 million. Year-over-year growth driven by strength in commodities, while specialties results were lower but in-line with market dynamics. Key developments versus prior year White phosphoric acid: Sales increased, as strong volume growth in all regions offset lower prices. Industrial phosphates: Sales increased, as higher volumes in all major regions offset lower prices related to decreasing cost inputs. Food phosphates: Despite higher volumes, sales decreased due to lower market prices, which reflected reduced raw material costs. Battery materials: Sales decreased, as higher prices in China were unable to offset lower volumes. In January, ICL signed a strategic agreement with Shenzhen Dynanonic to establish battery materials production in Europe, and in early April, the company formally commissioned its Battery Materials Innovation and Qualification (BMIQ) Center in St. Louis. Commodity phosphates: Overall phosphate prices were stable to higher, as global demand remained firm and as China continued to restrict exports. Growing Solutions First quarter 2025 Sales of $495 million vs. $479 million. EBITDA of $47 million vs. $42 million. Continued focus on innovative, regional solutions helped drive year-over-year growth. Key developments versus prior year Brazil: Sales increased on both higher volumes and prices, however, product mix and exchange rate fluctuations caused a decrease in gross profit. Europe: Sales decreased on lower volumes, but gross profit increased, due to higher prices and improved product mix. North America: Sales increased, with higher volumes – in part due to the 2024 acquisition of Custom Ag Formulators – and slightly higher prices contributing to increased gross profit. Asia: Sales increased, as higher volumes drove higher gross profit. Product trends: Specialty agriculture sales increased on both higher volumes, in Europe, the U.S., China and Brazil, and higher prices – mainly in Brazil. Turf and ornamental sales increased, with turf and landscape experiencing both higher volumes and prices, while ornamental horticulture volumes declined in the U.S. and China. In early April, ICL acquired a leading ag-biologicals company, and this acquisition further advanced the company's stated goal of expanding its Growing Solutions product offerings and to position the business for further growth in new and adjacent end-markets. Financial Items Financing Expenses Net financing expenses for the first quarter of 2025 were $37 million, up versus $35 million in the corresponding quarter of last year. Tax Expenses Reported tax expenses in the first quarter of 2025 were $42 million, reflecting an effective tax rate of 28%, compared to $42 million in the corresponding quarter of last year, reflecting an effective tax rate of 25%. Available Liquidity ICL's available cash resources, which are comprised of cash and deposits, unutilized revolving credit facility, and unutilized securitization, totaled $1,491 million, as of March 31, 2025. Outstanding Net Debt As of March 31, 2025, ICL's net financial liabilities amounted to $1,993 million, an increase of $142 million compared to December 31, 2024. Dividend Distribution In connection with ICL's first quarter 2025 results, the Board of Directors declared a dividend of 4.26 cents per share, or approximately $55 million, versus 4.57 cents per share, or approximately $59 million, in the first quarter of last year. The dividend will be payable on June 18, 2025, to shareholders of record as of June 4, 2025. About ICL ICL Group Ltd. is a leading global specialty minerals company, which creates impactful solutions for humanity's sustainability challenges in the food, agriculture and industrial markets. ICL leverages its unique bromine, potash and phosphate resources, its global professional workforce, and its sustainability focused R&D and technological innovation capabilities, to drive the company's growth across its end markets. ICL shares are dual listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs more than 12,000 people worldwide, and its 2024 revenue totaled approximately $7 billion. For more information, visit ICL's website at access ICL's interactive CSR report, visit can also learn more about ICL on Facebook, LinkedIn, YouTube, X and Instagram. Guidance (1a) The company only provides guidance on a non-GAAP basis. The company does not provide a reconciliation of forward-looking adjusted EBITDA (non-GAAP) to GAAP net income (loss), due to the inherent difficulty in forecasting, and quantifying certain amounts that are necessary for such reconciliation, in particular, because special items such as restructuring, litigation, and other matters, used to calculate projected net income (loss) vary dramatically based on actual events, the company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income (loss) at this time. The amount of these deductions may be material, and therefore could result in projected GAAP net income (loss) being materially less than projected adjusted EBITDA (non-GAAP). The guidance speaks only as of the date hereof. The company undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law. The company provides guidance for specialties-driven EBITDA, which includes Industrial Products, Growing Solutions and Phosphate Solutions, as the Phosphate Solutions business is now predominantly specialties focused. For the Potash business, the company is providing sales volume guidance. The company believes this information provides greater transparency, as these new metrics are less impacted by fertilizer commodity prices, given the extreme volatility in recent years. Non-GAAP Statement The company discloses in this quarterly report non-IFRS financial measures titled adjusted operating income, adjusted net income attributable to the company's shareholders, diluted adjusted earnings per share, and adjusted EBITDA. Management uses adjusted operating income, adjusted net income attributable to the company's shareholders, diluted adjusted earnings per share, and adjusted EBITDA to facilitate operating performance comparisons from period to period. The company calculates adjusted operating income by adjusting operating income to add certain items, as set forth in the reconciliation table under "Adjustments to reported operating, and net income (non-GAAP)" below. Certain of these items may recur. The company calculates adjusted net income attributable to the company's shareholders by adjusting net income attributable to the company's shareholders to add certain items, as set forth in the reconciliation table under "Adjustments to reported operating, and net income (non-GAAP)" below, excluding the total tax impact of such adjustments. The company calculates diluted adjusted earnings per share by dividing adjusted net income by the weighted-average number of diluted ordinary shares outstanding. Adjusted EBITDA is calculated as net income before financing expenses, net, taxes on income, share in earnings of equity-accounted investees, depreciation and amortization, and certain adjustments presented in the reconciliation table under "Consolidated adjusted EBITDA, and diluted adjusted earnings per share for the periods of activity" below, which were adjusted for in calculating the adjusted operating income. You should not view adjusted operating income, adjusted net income attributable to the company's shareholders, diluted adjusted earnings per share or adjusted EBITDA as a substitute for operating income or net income attributable to the company's shareholders determined in accordance with IFRS, and you should note that the company's definitions of adjusted operating income, adjusted net income attributable to the company's shareholders, diluted adjusted earnings per share, and adjusted EBITDA may differ from those used by other companies. Additionally, other companies may use other measures to evaluate their performance, which may reduce the usefulness of the company's non-IFRS financial measures as tools for comparison. However, the company believes adjusted operating income, adjusted net income attributable to the company's shareholders, diluted adjusted earnings per share, and adjusted EBITDA provide useful information to both management, and investors by excluding certain items that management believes are not indicative of ongoing operations. Management uses these non-IFRS measures to evaluate the company's business strategies and management performance. The company believes these non‑IFRS measures provide useful information to investors because they improve the comparability of financial results between periods and provide for greater transparency of key measures used to evaluate performance. The company presents a discussion in the period-to-period comparisons of the primary drivers of change in the company's results of operations. This discussion is based in part on management's best estimates of the impact of the main trends on the company's businesses. The company has based the following discussion on its financial statements. You should read such discussion together with the company's financial statements. Forward Looking Statements This announcement contains statements that constitute "forward‑looking statements", many of which can be identified by the use of forward‑looking words such as "anticipate", "believe", "could", "expect", "should", "plan", "intend", "estimate", "strive", "forecast", "targets" and "potential", among others. The company is relying on the safe harbor provided in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in making such forward-looking statements. Forward‑looking statements appear in a number of places in this announcement and include, but are not limited to, statements regarding the company intent, belief or current expectations. Forward‑looking statements are based on the company management's beliefs and assumptions and on information currently available to the company management. Such statements are subject to risks and uncertainties, and the actual results may differ materially from those expressed or implied in the forward‑looking statements due to various factors, including, but not limited to: Changes in exchange rates or prices compared to those the company is currently experiencing; loss or impairment of business licenses or mineral extractions permits or concessions; volatility of supply and demand and the impact of competition; the difference between actual reserves and the company reserve estimates; natural disasters and cost of compliance with environmental regulatory legislative and licensing restrictions including laws and regulation related to, and physical impacts of climate change and greenhouse gas emissions; failure to "harvest" salt which could lead to accumulation of salt at the bottom of the evaporation Pond 5 in the Dead Sea; disruptions at the company seaport shipping facilities or regulatory restrictions affecting the company ability to export the company products overseas; general market, political or economic conditions in the countries in which the company operates, including tariffs and trade policies; price increases or shortages with respect to the company principal raw materials; delays in termination of engagements with contractors and/or governmental obligations; the inflow of significant amounts of water into the Dead Sea which could adversely affect production at the company plants; labor disputes, slowdowns and strikes involving the company employees; pension and health insurance liabilities; pandemics may create disruptions, impacting the company sales, operations, supply chain and customers; changes to governmental incentive programs or tax benefits, creation of new fiscal or tax related legislation; and/or higher tax liabilities; changes in the company evaluations and estimates, which serve as a basis for the recognition and manner of measurement of assets and liabilities; failure to integrate or realize expected benefits from mergers and acquisitions, organizational restructuring and joint ventures; currency rate fluctuations; rising interest rates; government examinations or investigations; disruption of the company, or the company service providers', information technology systems or breaches of the company, or the company service providers', data security; failure to retain and/or recruit key personnel; inability to realize expected benefits from the company cost reduction program according to the expected timetable; inability to access capital markets on favorable terms; cyclicality of the company businesses; changes in demand for the company fertilizer products due to a decline in agricultural product prices, lack of available credit, weather conditions, government policies or other factors beyond the company control; sales of the company magnesium products being affected by various factors that are not within the company control; the company ability to secure approvals and permits from the authorities in Israel to continue the company phosphate mining operations in Rotem Amfert Israel; volatility or crises in the financial markets; hazards inherent to mining and chemical manufacturing; the failure to ensure the safety of the company workers and processes; litigation, arbitration and regulatory proceedings; exposure to third party and product liability claims; product recalls or other liability claims as a result of food safety and food-borne illness concerns; insufficiency of insurance coverage; closing of transactions, mergers and acquisitions; war or acts of terror and/or political, economic and military instability in Israel and its region; including the current state of war declared in Israel and any resulting disruptions to the company supply and production chains; filing of class actions and derivative actions against the company, its executives and Board members; The company is exposed to risks relating to its current and future activity in emerging markets; and other risk factors discussed under "Item 3 - Key Information— D. Risk Factors" in the company's Annual Report on Form 20-F for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission (the "SEC") on March 13, 2025 (the "Annual Report"). Forward-looking statements speak only as of the date they are made, and the company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Investors are cautioned to consider these risks and uncertainties and to not place undue reliance on such information. Forward-looking statements should not be read as a guarantee of future performance or results and are subject to risks and uncertainties, and the actual results may differ materially from those expressed or implied in the forward-looking statements. This announcement for the first quarter of 2025 should be read in conjunction with the Annual Report of 2024 published by the company on Form 20-F, as of and for the year ended December 31, 2024, including the description of the events occurring subsequent to the date of the statement of financial position, as filed with the US SEC. Appendix Condensed Consolidated Statements of Income (Unaudited) $ millions Three-months ended Year ended March 31,2025 March 31,2024 December 31,2024 Sales 1,767 1,735 6,841 Cost of sales 1,207 1,178 4,585 Gross profit 560 557 2,256 Selling, transport and marketing expenses 268 273 1,114 General and administrative expenses 77 64 259 Research and development expenses 18 17 69 Other expenses 16 3 60 Other income (4) (3) (21) Operating income 185 203 775 Finance expenses 62 60 181 Finance income (25) (25) (41) Finance expenses, net 37 35 140 Share in earnings of equity-accounted investees - - 1 Income before taxes on income 148 168 636 Taxes on income 42 42 172 Net income 106 126 464 Net income attributable to the non-controlling interests 15 17 57 Net income attributable to the shareholders of the Company 91 109 407 Earnings per share attributable to the shareholders of the Company: Basic earnings per share (in dollars) 0.07 0.08 0.32 Diluted earnings per share (in dollars) 0.07 0.08 0.32 Weighted-average number of ordinary shares outstanding: Basic (in thousands) 1,290,452 1,289,530 1,289,968 Diluted (in thousands) 1,290,944 1,290,362 1,290,039 Condensed Consolidated Statements of Financial Position as of (Unaudited) $ millions March 31,2025 March 31,2024 December 31,2024 Current assets Cash and cash equivalents 312 363 327 Short-term investments and deposits 121 121 115 Trade receivables 1,497 1,492 1,260 Inventories 1,629 1,630 1,626 Prepaid expenses and other receivables 277 301 258 Total current assets 3,836 3,907 3,586 Non-current assets Deferred tax assets 151 155 143 Property, plant and equipment 6,526 6,285 6,462 Intangible assets 918 897 869 Other non-current assets 260 242 261 Total non-current assets 7,855 7,579 7,735 Total assets 11,691 11,486 11,321 Current liabilities Short-term debt 570 623 384 Trade payables 1,031 914 1,002 Provisions 62 54 63 Other payables 940 849 879 Total current liabilities 2,603 2,440 2,328 Non-current liabilities Long-term debt and debentures 1,856 1,883 1,909 Deferred tax liabilities 486 492 481 Long-term employee liabilities 333 352 331 Long-term provisions and accruals 229 218 230 Other 61 57 55 Total non-current liabilities 2,965 3,002 3,006 Total liabilities 5,568 5,442 5,334 Equity Total shareholders' equity 5,844 5,762 5,724 Non-controlling interests 279 282 263 Total equity 6,123 6,044 5,987 Total liabilities and equity 11,691 11,486 11,321 Condensed Consolidated Statements of Cash Flows (Unaudited) $ millions Three-months ended Year ended March 31,2025 March 31,2024 December 31,2024 Cash flows from operating activities Net income 106 126 464 Adjustments for: Depreciation and amortization 151 147 596 Fixed assets impairment - - 14 Exchange rate, interest and derivative, net 44 59 152 Tax expenses 42 42 172 Change in provisions (5) (42) (50) Other 3 2 13 235 208 897 Change in inventories 28 51 (7) Change in trade receivables (202) (141) 26 Change in trade payables 31 26 104 Change in other receivables (15) 18 39 Change in other payables 18 10 43 Net change in operating assets and liabilities (140) (36) 205 Income taxes paid, net of refund (36) (6) (98) Net cash provided by operating activities (*) 165 292 1,468 Cash flows from investing activities Proceeds (payments) from deposits, net (4) 50 56 Purchases of property, plant and equipment and intangible assets (190) (145) (713) Proceeds from divestiture of assets and businesses, net of transaction expenses 2 15 19 Interest received (*) 3 7 17 Business combinations (3) (22) (74) Other - - 1 Net cash used in investing activities (192) (95) (694) Cash flows from financing activities Dividends paid to the Company's shareholders (52) (61) (251) Receipts of long-term debt 361 198 889 Repayments of long-term debt (397) (386) (1,302) Receipts (repayments) of short-term debt 109 17 (1) Interest paid (*) (16) (20) (122) Receipts (payments) from transactions in derivatives - 3 (2) Dividend paid to the non-controlling interests - - (57) Net cash provided by (used in) financing activities 5 (249) (846) Net change in cash and cash equivalents (22) (52) (72) Cash and cash equivalents as of the beginning of the period 327 420 420 Net effect of currency translation on cash and cash equivalents 7 (5) (21) Cash and cash equivalents as of the end of the period 312 363 327 (*) Reclassified - see Note 2(b) to the Company's Interim Financial Statements. Adjustments to Reported Operating and Net Income (non-GAAP) $ millions Three-months ended March 31,2025 March 31,2024 Operating income 185 203 Charges related to the security situation in Israel (1) 10 12 Fire incident at Ashdod Port (2) 4 - Provision for early retirement (3) 9 - Total adjustments to operating income 23 12 Adjusted operating income 208 215 Net income attributable to the shareholders of the Company 91 109 Total adjustments to operating income 23 12 Total tax adjustments (4) (4) (3) Total adjusted net income - shareholders of the Company 110 118 (1) For 2025 and 2024, reflects charges relating to the security situation in Israel. (2) For 2025, reflects expenses related to the fire incident at Ashdod Port. (3) For 2025, reflects provisions for early retirement, due to restructuring at certain sites, as part of the Company's global efficiency plan. (4) For 2025 and 2024, reflects the tax impact of adjustments made to operating income. Consolidated EBITDA for the Periods of Activity $ millions Three-months ended March 31,2025 March 31,2024 Net income 106 126 Financing expenses, net 37 35 Taxes on income 42 42 Less: Share in earnings of equity-accounted investees - - Operating income 185 203 Depreciation and amortization 151 147 Adjustments (1) 23 12 Total adjusted EBITDA 359 362 (1) See "Adjustments to Reported Operating and Net income (non-GAAP)" above. Calculation of Segment EBITDA $ millions IndustrialProducts Potash PhosphateSolutions (1) Growing Solutions Three-months ended March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Segment operating income 62 59 56 62 91 84 28 23 Depreciation and amortization 14 13 62 62 48 47 19 19 Segment EBITDA 76 72 118 124 139 131 47 42 (1) For the first quarter of 2025, Phosphate Specialties accounted for $324 million of segment sales, $39 million of operating income, $12 million of D&A and $51 million of EBITDA, while Phosphate Commodities accounted for $249 million of segment sales, $52 million of operating income, $36 million of D&A and represented $88 million of EBITDA. View source version on Contacts Investor and Press Contact – Global Peggy Reilly TharpVP, Global Investor Relations+ Investor and Press Contact - Israel Adi BajayoICL Spokesperson+ 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
17-05-2025
- Business
- Yahoo
Walmart CEO has a harsh warning for customers
While many retailers across the country are seeing their sales take a dip as consumers tighten their spending, Walmart () , the largest retailer in the U.S., has managed to keep its sales afloat. In its first-quarter earnings report for fiscal year 2026, Walmart revealed that its U.S. comparable sales increased by 4.5% year-over-year, while the average number of transactions and amount of money shoppers spent per purchase spiked. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 This increase in sales contributed to Walmart generating $5.7 billion in its U.S. operating income, which is 7% higher than what it earned during the same quarter last an earnings call on May 15, Walmart CEO Doug McMillon said the increased sales 'were not driven by inflation,' but higher transactions. He also said that despite increased sales in health and grocery categories, the company has noticed customers are pulling back their spending in other areas. 'Health and wellness sales increased high teens, reflecting higher prescription volumes and over-the-counter sales, while general merchandise sales declined slightly with softness in electronics, home products, and sporting goods,' said McMillon. As Walmart faces increased momentum from consumers, McMillon has issued a major warning about the future of the company's prices amid President Donald Trump's ever-changing tariff policy (tariffs are taxes companies pay to import goods from overseas). On April 2, Trump announced a 10% "baseline" tariff on all countries importing goods to the U.S., with roughly 60 countries seeing higher tariff rates. Then, on April 9, he enforced a 90-day pause on reciprocal tariffs on all countries (except China), dropping them to a universal rate of 10%. He also hiked tariffs on China to a whopping 145%. However, earlier this week, Trump agreed to lower tariffs on China from 145% to 30% after recent negotiations. McMillon said that despite Trump's recent efforts to lower tariffs, Walmart still won't be able to fully absorb all of the extra costs it will face to import goods.'We will do our best to keep our prices as low as possible,' said McMillon. 'But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren't able to absorb all the pressure given the reality of narrow retail margins. In retail, managing inventory is always important. In this situation, it's even more important and even more challenging.' Walmart U.S. CEO John Rainey emphasized during the call that customers will see higher prices for goods as a result of tariffs. 'We're very pleased and appreciative of the progress that's been made by the administration to bring tariffs down to this level…' said Rainey. 'But let me emphasize, we still think that's too high. There are certain items, certain categories of merchandise that we're dependent upon to import from other countries. And prices of those things are likely going to go up, and that's not good for consumers.' However, McMillon said keeping food prices low is one of Walmart's top priorities. 'We want to keep our food and consumables prices as low as we can. Food prices in the U.S. have gone up in recent years, and our customers have been feeling that all along,' he said. 'We won't let tariff-related cost pressure on some general-merchandise items put pressure on food prices. But as it relates to food, tariffs on countries like Costa Rica, Peru, and Colombia are pressuring imported items like bananas, avocados, coffee, and roses.' The warning from Walmart comes after its executives met with Trump on April 21 to discuss his tariff policy. 'We had a productive meeting with President Trump and his team and appreciated the opportunity to share our insights,' said a Walmart spokesperson last month in a statement to TheStreet. More Retail: Costco quietly plans to offer a convenient service for customers T-Mobile pulls the plug on generous offer, angering customers Kellogg sounds alarm on unexpected shift in customer behavior It is no surprise that Walmart is growing concerned about the impact tariffs could have on its business, as many consumers are already changing the way they shop in order to save money. According to a recent survey from market research company Numerator, 83% of Americans are changing their shopping habits to prepare for the higher prices Trump's tariffs could bring. Some of these changes include scavenging for sales and coupons, delaying purchases, and buying fewer imported goods. Amid this trend, Walmart's foot traffic in stores during the first few months of the year declined by 2.4% year-over-year, according to recent data from In February specifically, Walmart visits shrank by 5.9% year-over-year, and in March, visits fell by 4%. However, visits shot back up by 4.5% in April, aligning with the Easter holiday.
Yahoo
16-05-2025
- Business
- Yahoo
Block's (XYZ) Square Resilence Shines Through Cash App Headwinds
Block (XYZ) continues to face challenges with its Cash App segment amid intensifying competition and a soft macroeconomic environment. The company's first-quarter 2025 earnings report fell short of market expectations, primarily driven by Cash App's underperformance, leading to missed EPS and revenue targets and subsequent downgrades from several analysts. Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter However, the report also highlighted positive developments. Despite a 3% decline in overall revenue, Block's operating income rose an impressive 28% year-over-year, reaching $466 million. The company's Square business showed strong momentum, particularly in key verticals such as retail and food & beverage, while its international operations achieved robust 15% year-over-year growth. In light of these factors, despite Cash App's setbacks, Block's diversified business model and attractive valuation underpin a bullish outlook for the stock moving forward. Cash App's growth has plateaued, with monthly active users holding steady at 57 million for the fourth consecutive quarter. Additionally, the app's gross profit fell short of expectations, largely influenced by shifts in consumer spending behavior. It's important to note that Cash App's user base skews toward lower-income adults, a demographic particularly sensitive to economic fluctuations. The competitive landscape for Cash App is increasingly challenging. Major players such as PayPal (PYPL), Zelle, Apple (AAPL), and Google (GOOGL) exert significant pressure. Apple and Google present unique challenges given that their payment solutions are pre-installed on their respective smartphones, creating a seamless user experience. Zelle, owned by leading banks like Bank of America and JPMorgan Chase, benefits from deep integration with users' banking relationships, further enhancing convenience. Meanwhile, Venmo has gained traction through its social networking features, appealing to younger demographics. This saturated market and fierce competition from established financial institutions and technology giants have constrained Cash App's growth prospects. However, there are promising signs on the horizon. Block is actively pursuing initiatives aimed at reigniting growth for Cash App. Notably, the FDIC recently approved Block's application to offer consumer loans through the platform. This development aligns with Square's expanding focus on the buy-now-pay-later market, following its strategic acquisition of Afterpay in 2021, and could unlock new revenue streams and user engagement opportunities moving forward. Beyond Cash App's challenges, Block's broader business outlook appears more promising. For those unfamiliar, Block operates a diverse portfolio of brands, including Cash App, Square (which provides commerce and financial services for sellers), Afterpay, TIDAL (a music streaming platform), Bitkey (a bitcoin wallet), and Proto (a bitcoin mining products and services provider). Square, often regarded as Block's legacy business, showed notable improvement in the first quarter, driven by market share gains despite stiff competition from companies like Toast and Fiserv's Clover. It's worth remembering that Square was a pioneer in this space, and the company continues to innovate by targeting new verticals such as retail. Additionally, Square's international markets experienced robust growth, increasing 15% year-over-year. Block's strategic focus remains on mid-market seller segments, specifically those generating over $500,000 in annualized Gross Payment Volume (GPV). This high-value customer segment now represents 41% of Square's GPV, up from 39% in the first quarter of 2024. Moreover, the company is successfully expanding cross-selling efforts, with nearly half of Square merchants now utilizing Block's suite of banking products, highlighting growing integration and customer loyalty across the platform. The most notable highlight of Block's first-quarter earnings was its record-high adjusted operating income of $466 million, with an impressive 20% operating margin despite facing revenue headwinds. Reflecting ongoing macroeconomic uncertainties, the company adopted a more cautious stance in its full-year 2025 guidance. Block now projects gross profit of $9.96 billion, representing a 12% year-over-year increase. Additionally, Square anticipates that growth will accelerate throughout the year, aiming for mid-teen revenue growth by the fourth quarter. According to Wall Street, XYZ has accrued a Moderate Buy rating based on 25 Buy, 10 Hold, and one Sell recommendations in the past three months. XYZ's average price target of $65.50 implies a potential upside of 12.25% over the next twelve months. Earlier this month, analyst Gustavo Gala from Monness maintained a Buy rating on XYZ with a price target of $75. The analyst noted, 'Block's ability to consistently beat EBIT/EBITDA guidance suggests a strong underlying business model.' Also, Gala said he is encouraged by the 'potential for network effects across its ecosystems,' which helps differentiate Block from some of its competitors. Analyst Trevor Williams of Jefferies is also bullish on Block. He reiterated a Buy rating with a price target of $60, noting Square's product features and integration with Uber Eats and DoorDash. In summary, Block's diversified portfolio effectively offsets the challenges Cash App faces. The Square business is gaining market share within key verticals and successfully expanding into higher-value segments. Moreover, despite moderating growth, the company's solid financial performance underscores its fundamental strengths—strengths that the market may be overlooking given the stock's recent underperformance. Currently, Block is trading well below its historical valuation levels, with a forward P/E ratio of just 12, down more than 70% from a recent average of 44. This valuation presents a compelling opportunity for patient investors willing to navigate the ongoing Cash App headwinds. The combination of Square's momentum, improving profitability, and projected acceleration in growth during the second half of the year suggests brighter prospects ahead. Should Cash App stabilize, investors stand to benefit from significant upside potential. That said, there are reasons to exercise caution. Despite its diversification, Block's businesses remain sensitive to macroeconomic conditions. An economic slowdown could negatively impact multiple segments, particularly Cash App and Square, which serve predominantly lower-income consumers and small business owners. Additionally, Block faces formidable competition from industry giants like Apple, which benefit from extensive ecosystem advantages, such as their pre-installed iPhone payment solutions. Overall, the market appears to have priced in more risk than opportunity in Block, positioning Square as a contrarian investment worth considering in the months ahead. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
CNA
15-05-2025
- Business
- CNA
Ubisoft shares plummet as it guides for further cash burn
Shares in video game maker Ubisoft dropped heavily on Thursday after the French game developer guided for this year's cash generation to remain negative, while expecting its operating income at a breakeven. The company, which is behind the Assassin's Creed franchise, reported on Wednesday a 20.5 per cent drop in its full-year 2024-2025 net bookings due to delayed releases and the underperformance of some of its leading titles. Ubisoft shares were down about 20.5 per cent by 0720 GMT at 9.28 euros, heading for their biggest single-day drop in more than 11 years.
Zawya
14-05-2025
- Business
- Zawya
Al Ansari's net profit after tax surges to $29.70mln
DUBAI - Al Ansari Financial Services PJSC has reported solid first-quarter results for 2025, with a 7 percent year-on-year (YoY) increase in operating income to AED294 million. Net profit after tax rose 10 percent YoY to AED109 million, up from AED98.7 million in the same period last year. EBITDA climbed 13 percent YoY to AED138 million, with an EBITDA margin of 46.8 percent, driven by higher operating income. The company recorded a 1 percent YoY increase in total transactions, reaching 12.5 million. Banknote transaction value rose 6 percent to AED22 billion, while salary disbursals under the Wage Protection System (WPS) jumped 27 percent to 2.5 million. Digital channels saw a 16 percent YoY rise in transactions, accounting for 24 percent of total outward remittances, reflecting the growing role of digital platforms in the Al Ansari's operations. Commenting on the results, Rashed A. Al Ansari, Group CEO of Al Ansari Financial Services, said, 'Despite ongoing geopolitical challenges and fierce competition, we achieved solid growth across our core segments through disciplined execution and an unwavering focus on customer experience.' Mohammad Bitar, Deputy Group CEO of Al Ansari Financial Services, said that a key milestone during the first quarter was the closing of the BFC acquisition, which marks a major step forward in Al Ansari's regional growth strategy. He also announced the launch of digital wallet, expected to transform how customers manage their finances and drive innovation in the market.
