Consumer Products and Services

Shein margin wobble takes bite out of IPO value

14 Nov 2024

The e-commerce giant’s revenue growth slumped in the first half of 2024, and the net margin fell to 2% per The Information. Even if the business recovers, it creates uncertainty that’s compounded by a protectionist US government. Investors may struggle to see the upside.

Just Eat’s discount deal puts CEO on notice

13 Nov 2024

The food delivery firm finally sold Grubhub for $650 mln, a stark decline from the $5 bln it paid three years ago. Investors’ cheer reflects that they feared an even worse price, and it gets rid of a dead weight. But Just Eat boss Jitse Groen can’t afford any more mistakes.

Giant LBO brings barbarians to Seven & i’s rescue

13 Nov 2024

The founding Ito family has offered $58 bln to take the 7-Eleven operator private. The whopping deal would stretch Japan’s financing markets and require a management overhaul to generate decent returns. Still, it gives the board another alternative to Canadian suitor Couche-Tard.

Prosus catches a moment of relief in India

13 Nov 2024

The Mumbai listing of Swiggy, one half of a food delivery duopoly, crystallizes gains in a priority market for the $100 bln Dutch tech investor. The stock market debut of the startup is decent but Prosus' other bets in fintech and e-commerce in the country look harder to monetise.

Gulf IPO may be Delivery Hero’s only tasty morsel

11 Nov 2024

The Frankfurt-listed group is selling 15% of Talabat in Dubai. A potential $13 bln valuation would mean an arm with a third of its sales is worth more than Delivery Hero itself. Yet beyond the Gulf, a value-boosting breakup looks hard given the business overall makes a loss.

Burberry buyer would need steel-plated trench coat

6 Nov 2024

Shares in the $4 bln UK luxury group rose after a website reported that Moncler was eyeing a bid. But the returns on offer look low, while boosting the brand will be costly. Possible suitors require deep pockets, and the patience to wait a long time for any kind of payback.

India’s stock market has a rising local flavour

6 Nov 2024

Food delivery app Swiggy is taking orders for its $1.3 bln IPO, shrugging off the risk of getting caught in any US election-induced global volatilty. It underscores both an urgency by its backers which include SoftBank and an increasingly domestic ownership of equities.

French fries make a tasty $11 bln takeover target

5 Nov 2024

Lamb Weston, which sells spuds to McDonald’s and others, is under pressure from pushy investor Jana. A bolder turnaround plan could get messy and leave it a hard-to-value oddball anyway. It’s a better side dish for a peer like agribusiness giant Cargill or cereal company Post.

India’s slowdown is touching the untouchable

5 Nov 2024

Shoppers have cut back on the basics for years. The latest company earnings suggest austerity is shifting from the rural poor to urban folks, from biscuits and milk to clothes and cars. Giants like $215 bln Reliance and Unilever are starting to reflect a souring economic reality.

Biden trustbusters get free rein to accessorize

25 Oct 2024

A US judge agreed to halt the $8.5 bln sale of Michael Kors owner Capri to Kate Spade parent Tapestry. Shares buoyed by overconfident traders halved. Others should take heed: the ruling adds substantial heft to novel theories pushed by this administration’s deal hawks.

Danone’s yogurt bounty can spur M&A spree

24 Oct 2024

The $47 bln company once lagged rivals like Nestlé and Unilever. But its portfolio of nutrition and dairy products is now driving stronger growth as it caters to health-conscious consumers. With a stronger balance sheet, CEO Antoine de Saint-Affrique can start splurging on deals.

Fintechs’ IPO valuations can look beyond Nubank

24 Oct 2024

The $70 bln Brazilian lender is seen as a benchmark for unlisted rivals. But Nubank’s focus on interest income, and the idiosyncrasies of its home market, make it look rather different to the likes of Revolut. Bankers prepping neobank IPOs may gain from looking at other peers.

McDonald’s moves off the grill and into the fryer

23 Oct 2024

An E. coli outbreak prompted the $210 bln fast-food chain to yank its Quarter Pounder in some places. The response suggests it can handle a health crisis quicker than Chipotle did. With high prices already hurting sales, though, it can’t afford to scare off more customers.

How to harvest cash crops amid a retail drought

23 Oct 2024

Shopkeepers worldwide are wrestling with fickle customers, clunky logistics and more. Tractor Supply, a $32 bln chain that sells everything from chicken feed to overalls, has defied the trends with lush returns on par with Apple and Netflix. There are seeds for peers to sow.

Beauty giants’ growth blemish needs an AI makeover

23 Oct 2024

L’Oréal became the latest consumer group to warn of slowing sales growth. With the industry downturn set to last, companies need to find new ways of cutting costs, like using artificial intelligence. For CEO Nicolas Hieronimus, there’s a near 20% valuation boost on offer.

Why brewers are betting big on alcohol-free beer

22 Oct 2024

Consumers are shunning booze due to health concerns and shifting tastes, forcing beermakers to adapt. In this episode of the Big View podcast Louise Fitzpatrick, an executive at the Dutch brewer Heineken, explains the opportunities and challenges of selling suds without alcohol.

JAB’s pricy coffee shot is not as dumb as it looks

21 Oct 2024

The German investment group scooped up a 18% stake in JDE Peet’s, which it listed in 2020, from Mondelez at a fat 32% premium. That eliminates a share overhang and risk of an interloper. And, with the $12 bln Douwe Egberts seller’s stock cheap, the markup is easy to swallow.

Bidders poke holes in Japan’s fair M&A push

21 Oct 2024

Seven & i and Fuji Soft have each dug in their heels against generous takeover approaches from Canada's Couche-Tard and buyout firm Bain Capital. New guidelines are reshaping the market for deals in the $4 trln economy, but reluctant targets retain power to simply say no.

Nestlé’s CEO needs to ride two horses at once

17 Oct 2024

Laurent Freixe, the new boss of the $260 bln KitKat maker, inherits a group with stalling sales growth. Longer term he will have to shuffle an outdated food portfolio. But right now he needs a splurge on marketing, or risk Nestlé’s market share withering on the vine.

Coldplay gives Hong Kong rush of blood to the head

17 Oct 2024

The UK band’s sold-out concert suggests the struggling economy’s affluent locals have plenty to spend. Yet city leader John Lee reckons policies like streamlining mortgages and IPOs will foster growth. He’d do better finding ways to help the less well off boost consumption.