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RNZ News
22-05-2025
- Business
- RNZ News
Will your My Food Bag investment ever recover?
My Food Bag has reported a 5 percent profit increase in the most recent full year, but shareholders could be waiting a while for shares to return to their initial list price. Photo: RNZ My Food Bag has reported a positive year in its latest update, but shareholders are being told they could have a long wait ahead of them for shares to return to their initial list price. My Food Bag listed on the NZX in 2021, in what it said at the time would be the largest IPO by amount raised since 2014. Shares were issued at $1.85 each, including to many customers. But the price dropped in initial trading and has largely continued to decline from there. Shares were trading for 20c on Thursday afternoon, after chief executive Mark Winter told the market it had lifted its profit 5 percent in the most recent full year. Greg Smith, head of retail at Devon Funds, said the prospect of the share price recovering to anything like its list price was "incredibly remote". "It was a classic private equity exit, which has seen a lot of retail investors lose out. The stock was floated in peak conditions, as lockdowns were in force, and the idea of everyone ordering meal kits on a regular basis reinforcing the hype. The firm actually did deliver on its prospectus forecasts in the early days, but many investors extrapolated a situation that as we know now was only ephemeral," he said. The bulk of the shares sold came from private equity firm Waterman Capital, with smaller parcels from founding shareholders Cecilia and James Robinson and Theresa Gattung. "At under three times earnings (EBITDA) the stock seems very cheap, however investor confidence is pretty shot, and the question is how does the company deliver a sustainable earnings growth path? "Consumer spending pressures will ease at some point, but it has tried to expand overseas and that didn't work, competition in NZ has also intensified. As management also notes they have 'right sized' the business so it would be hard to see the shares ever getting back to former glories." Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene, agreed it would be tough. "Never say never, although it's a long way off. There's no doubt that a lot has happened since they listed, including Covid, high food price inflation and rising interest rates. These factors have certainly hampered demand. "However, with rates starting to fall and people beginning to feel the pressure come off, things might start to turn around for the company, [Thursday's] announcement is an encouraging sign in that direction." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Times
22-05-2025
- Business
- Times
BT dials up dividend and predicts rising profits
BT has promised 'sustained' revenue growth from next year and an even stronger rise in profits, as it continues to slash costs in an effort to turn around the 179-year-old telecommunications group. The FTSE 100 company said adjusted revenue for the current financial year would be flat at £20 billion before returning to growth. It also guided towards adjusted earnings of between £8.2 billion and £8.3 billion, before growing ahead of the top line from next year, and reiterated a target to produce normalised free cashflow of £3 billion by the end of the decade. Revenue at the former phone monopoly declined 2 per cent last year to £20.4 billion, at the bottom end of guidance, weighed down by weaker handset sales and a poorer
Yahoo
15-05-2025
- Business
- Yahoo
Thomas Cook India Ltd (BOM:500413) Q4 2025 Earnings Call Highlights: Record Profits and ...
Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Thomas Cook India Ltd (BOM:500413) reported a robust financial performance with a 19% increase in revenue and a 15% rise in profitability for the full year. The company achieved a 51% increase in quarterly profit, marking the highest ever quarterly profit for this specific quarter. The financial services segment reported a 14% growth in revenue with improved margins, aligning with market guidance. Sterling Holiday Resorts, a subsidiary, achieved a 10% revenue growth and maintained a strong EBITDA margin of 34%, reflecting successful expansion and operational efficiency. The company has successfully expanded its distribution network, adding 21 new locations, and continues to invest in digital tools to enhance customer engagement and operational efficiency. The DEI segment faced challenges throughout the year, including geopolitical issues and operational difficulties, impacting overall performance. The company experienced a dip in margins in the foreign exchange segment due to front-loaded investments, affecting short-term profitability. Despite growth in the travel segment, the corporate travel side faced slower offtake due to budget freezes and tariff impacts, affecting quarterly performance. The closure of US operations in the DEI segment due to high costs indicates challenges in maintaining profitability in certain markets. Seasonality and external factors, such as geopolitical tensions and economic conditions, continue to pose risks to consistent growth across all segments. Warning! GuruFocus has detected 3 Warning Signs with DTRUY. Q: What is the guidance for room addition for Sterling Holiday Resorts in FY 26? A: Vikram Lalvani, MD and CEO of Sterling Holiday Resorts, stated that in FY 525, they added 14 resorts, amounting to about 600 to 700 rooms. In FY 526, they plan to open another 14 to 15 resorts, with room inventory expected to come close to 4,000. Q: What is the expected growth rate for Thomas Cook India Ltd's DI segment over the next couple of years? A: The management expects the DI segment to grow at a compounded rate of around 12% annually. Q: How is Thomas Cook India Ltd addressing the challenges faced by DEI in FY 2025? A: KS Ramakrishnan, CEO of DEI, explained that despite challenges such as geopolitical issues and the closure of US operations, DEI has implemented strong cost controls and enhanced technology. They have renewed over 50 accounts with a total value of $34 million and acquired 30 new accounts, indicating a robust outlook for FY 26. Q: How does Thomas Cook India Ltd plan to maintain or improve occupancy levels with the aggressive expansion of Sterling Holiday Resorts? A: Vikram Lalvani mentioned that the company will continue to expand in the leisure space domestically, focusing on strengthening their presence in wildlife, hill, and spiritual segments. They are also targeting tier 2 and tier 3 towns where there is a mix of leisure and business demand. Investments in technology and distribution systems will support this expansion without adding significant fixed costs. Q: What is the impact of technology on Thomas Cook India Ltd's business, and how are they leveraging AI? A: Mahesh Ayer, Managing Director and CEO, stated that technology is an enabler for seamless customer interaction and operational efficiency. They are investing in AI for customer interactions and corporate travel management, aiming to enhance customer experience and improve productivity. Technology is used to drive customer conversions and improve turnaround times in B2B operations. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
