Consumer Products and Services

Cox: P&G counting on an investor electoral college

6 Oct 2017

There's no strong reason for the insular consumer-goods titan to deny Nelson Peltz a board seat. Hedge funds will back him, but as in U.S. elections only half the retail shares may vote. That leaves Vanguard, BlackRock and State Street to play Wisconsin, Ohio and Pennsylvania.

Fintech deal suggests everything old is new again

5 Oct 2017

Navient is buying student-loan refinancer Earnest for less than half its 2015 valuation. Even then, it'll eat into the buyer’s earnings and buybacks. Worse, Navient faces a fresh lawsuit over dodgy practices. Modern finance is feeling a lot like the kind it's supposed to replace.

Europe faces bigger tax foe than Amazon and Apple

4 Oct 2017

The bloc’s antitrust chief ordered Luxembourg to collect 250 mln euros from the e-commerce giant. She is also pursuing Ireland over a 13 bln euro Apple case. The EU is winning the loophole battle. But a bigger war to level the global tax playing field may meet U.S. intransigence.

Tesco is spinning its wheels to get nowhere fast

4 Oct 2017

CEO Dave Lewis has boosted margins at Britain’s biggest supermarket, shrunk the pension deficit and cut debt. The first dividend in three years confirms the rebound. Yet the threat from inflation, weak consumer demand and online rivals have left Tesco shares stuck in a rut.

ChemChina makes quick buck from Pirelli flip

3 Oct 2017

The Chinese state giant and its European partners had to put the brakes on their pricing ambitions for the tyremaker’s 6.5 bln euro IPO. Yet less than two years after taking Pirelli private, the consortium is on course to squeeze private equity-style returns from the relisting.

Nestlé can pre-empt Dan Loeb with refreshed board

3 Oct 2017

The Kit Kat maker’s directors are light on consumer and digital expertise. Half of them are Swiss, a market worth just 2 percent of sales. Nestlé’s latest revamp plans are far from radical, and the activist may next seek boardroom changes. The company could beat him to it.

Ryanair’s cheapskate reputation is its best asset

29 Sep 2017

Angry customers and an irate regulator might pose an existential threat for most companies. Not the budget airline. Cancelling 20,000 flights will cost it a little in compensation and slower growth. As long as travellers favour discount fares, though, its planes will remain full.

Amazon European shopping talk is wishful thinking

28 Sep 2017

Supermarkets Carrefour and Sainsbury have been floated as potential targets following the e-commerce giant’s $13.7 bln purchase of Whole Foods. But CEO Jeff Bezos already owns the one grocer he really needs. Bid speculation only obscures the broader competitive pressures.

EU probe may be least of EssilorLuxottica problems

27 Sep 2017

Brussels is polishing its glasses for a close antitrust read of the $54 bln merger of Essilor and Luxottica. But the eyewear behemoths face other headaches, like customer defections and new competitor alliances. By the time the deal closes, its benefits could look fuzzy.

Nestlé turnaround plan is bravely boring

26 Sep 2017

Under activist pressure, Europe’s largest food group is aiming to boost profitability. But the newish CEO isn’t inclined to flashy moves like a sale of the L’Oréal stake or a big acquisition. That’s praiseworthy in a way, but it will disappoint Nestlé’s more impatient investors.

Unilever gets more than beauty tips from Carver

25 Sep 2017

The Pot Noodle owner is paying 2.3 billion euros for fast-growing Carver Korea, maker of “Eye Cream for Face” serums. Owners Bain Capital and Goldman Sachs pocket a hefty profit. Unilever gains access to a booming Asian market, and exposure to e-commerce and duty-free outlets.

Nestlé’s L’Oréal stake is ready for a makeover

22 Sep 2017

The head of French cosmetic group’s founding family, Liliane Bettencourt, has died, reviving the debate about the Nescafé owner’s 23 pct stake. The best solution is to offload it. The challenge for Nestlé boss Ulf Mark Schneider is how to distribute 24 billion euros of value.

Kingfisher’s DIY skills show room for improvement

20 Sep 2017

The power drill-to-paint retailer’s first-half pre-tax profit beat expectations – welcome for a company that has lost a fifth of its value since May due to a messy business transformation. In a supposedly recession-proof sector, Kingfisher’s woes are largely self-inflicted.

Heineken tries its hand at conscious uncoupling

19 Sep 2017

The brewer’s second-largest investor, Femsa, has sold a stake worth 2.5 billion euros. A spat over Brazilian distribution was a hiccup in an otherwise successful relationship. Co-dependence in the lucrative Mexican market is a good reason for both sides to keep things friendly.

Asian bid for Pret A Manger won’t cut the mustard

18 Sep 2017

Filipino fast-food joint Jollibee is eyeing the fancy sandwich chain, says Reuters, potentially uniting Chickenjoy buckets and posh ploughman’s baguettes. But a mooted price of more than $1 bln looks far too downmarket. It might need to double that to derail Pret’s IPO plans.

Retailer Next confronts last corporate taboo

14 Sep 2017

The UK clothes chain has sketched out a scenario where high-street store sales keep shrinking until they can’t cover their cash costs. Even in that dismal situation, Next would be worth only a third less than now. Few companies consider their own demise in this way; more should.

Akzo investors get whiff of reality. It smells bad

8 Sep 2017

The Dutch paint maker promised much better earnings in its defence against an attractively priced takeover by U.S. rival PPG. A profit warning for 2017 shows Akzo will struggle to meet its fanciful targets. But it’s hard for new chief Thierry Vanlancker to wipe the slate clean.

Peltz pulls his punches on P&G’s weak governance

7 Sep 2017

The Trian boss wants the $235 bln toiletries giant to restructure and pursue M&A to rev up growth. He blames directors for tolerating mediocrity yet declines to target any of them. It’s a missed opportunity. The company’s CEO-heavy board is bucking the tide of corporate America.

“Angry Birds” maker preps dubious market catapult

6 Sep 2017

Rovio, known for the popular mobile game, is planning a Helsinki IPO. At a mooted $2 bln valuation it would struggle to defy gravity, as investors are effectively betting on one franchise. Like peers King and Supercell, the more logical end-point may be a sale to a larger group.

Lego slams into virtual wall

5 Sep 2017

The Danish toymaker is packing away 1,400 jobs after its decade-long sales boom faltered. Attaching itself to hit movies like "Star Wars" cemented strong growth, including from nerdy adults. As toy-market competition intensifies, Lego’s success requires an augmented-reality shift.