OCADO shares soar 15% as supermarkets target positive cash flow
OCADO’s stock jumped nearly 15% after online-only supermarkets in the UK announced their “core priorities” to achieve positive cash flow in the upcoming fiscal year.
In its half-year update to investors, the company reported a 13% year-over-year increase in revenue, totaling £674 million ($903 million). They also reintegrated OCADO retail into their financials, which skewed the consensus numbers from analysts.Tim Steiner, CEO of Ocado Group, commented on the situation:
Even with this significant increase, the stock is down 11% annually, making it one of the shortest performers on the London Stock Exchange.
French strikes and fuel costs impact EasyJet’s profits as shares decline
EasyJet’s stock fell 7% after the company reported that strikes and increased fuel costs from French air traffic controllers negatively affected its quarterly performance.
These industrial actions resulted in a loss of £15 million ($20 million) for the low-cost airline, with fuel prices adding another £10 million impact in the third quarter.
“We’re quite frustrated with the strike by French ATC in early July; it caused significant challenges for our customers and crew, leading to unexpected costs for all airlines,” stated EasyJet CEO Kenton Jarvis in a trading update.
This earlier strike led to numerous flight cancellations across many airlines, not just those operating in France, due to protests over staffing shortages and outdated equipment.
Despite these challenges, EasyJet recorded a 21% increase in revenue compared to the previous year, aligning with market expectations for a headline net profit of £286 million.
Analysts are advising investors to look beyond the third quarter results, suggesting that the company often exceeds expectations.
EQT announces triple exit trading worth 13 billion euros by 2025
EQT, Europe’s largest private equity firm, revealed it has sold investments totaling 13 billion euros ($150.5 billion) in the first half of the year.
The Swedish firm divested its interest in a Swiss dermatology manufacturer through an IPO.
Global geopolitical tensions and market volatility have reportedly caused exits for private equity firms to decline sharply in 2024 and early this year.
According to Pitchic data, exit values in Europe decreased by 19% in the first quarter, with the number of exits dropping by 25.2%.
“Even with a challenging start to the year, the global market is finding its footing; though, the future remains uncertain,” EQT noted.
They emphasized they will persist in optimizing performance, exits, and funding, claiming to have announced 13 billion euros—over three times the volume from the previous year.
Furthermore, management fees increased by 10%, with interest and investments surging to 1191 million euros compared to just 41 million euros in the same period last year.
Earnings per share also rose by 23% to 0.293 euros, while overall inventory grew by 11% since the year began.
Novartis surpasses profit forecasts and unveils $10 billion buyback plan
Swiss pharmaceutical giant Novartis reported strong second-quarter profit figures, exceeding expectations and announcing a $10 billion share buyback program.
Excluding currency fluctuations, the company’s net profit surged by 26%, reaching $4.02 billion.
They also adjusted their core operating profit outlook for the year from low double digits to low teens.
CEO Vas Narasimhan highlighted, “Our strong balance sheet and confidence in medium- to long-term growth empower us to initiate this buyback program,” which is expected to be completed by 2027.
Inventory levels have seen a 7.2% increase since the start of the year.
Johnson Matthey appoints new chair amid activist investor pressure
Johnson Matthey, a prominent chemicals firm in London, has appointed Andrew Cosslett as the new chairman following pressure from activist investors. Cosslett currently chairs ITV and has previous experience leading the DIY retailer Kingfisher.
This change comes after US-based activist Standard Investments reduced its stake in Johnson Matthey, following a six-month push that prompted a significant organizational overhaul.
In February, the outgoing chairman, Patrick Thomas, facing criticism, announced his departure scheduled for July.
