Geox IPO will sound out appetite for growth 4 Nov 2004 The Italian shoemaker has an attractive story to pitch. It has been growing sales of its "breathing" shoes rapidly. But the equity story is as yet untested. This could limit the premium that the shares will obtain.
Unilever’s sales decline accelerates 27 Oct 2004 The consumer goods giant s leading brands supposedly the powerhouse of the business are going backwards. Unilever plans to up its ad spending to counter price deflation. So it isn t surprising that the new boss is reviewing its targets.
Electrolux cuts 2004 outlook 20 Oct 2004 But there are doubts about how radical these will be. And Electrolux s strong balance sheet may ensure survival but delay reform. The homeappliance maker plans some changes to deal with fierce competition and soaring raw materials costs.
Henkel moves to reduce conglomerate discount 7 Oct 2004 The German household products group is swapping its stake in US bleach giant Clorox for $2.8bn of cash and assets. While it has had to accept a 15% discount to Clorox s market value to pull off the deal, at least Henkel s getting a big tax break.
Electrolux adds to the profits gloom 23 Sep 2004 Yet another consumer staples company is struggling with high input costs and a lack of pricing power. Electrolux has been propping up its share price with a fat dividend. But doubts are surfacing over its ability to keep paying out.
Henkel slashes sales growth target 6 Jul 2004 The German retailer's problems at home stagnant markets and tougher price competition have spread further across Europe. Henkel saw trouble ahead hence its purchase of America's Dial. But bedding down this deal well is now more important than ever.
Reckitt Benckiser rockets in Q1 13 May 2004 But despite its strong performance at an operating level, the stock has raced ahead so far that there isn't much upside left. There's still some discount compared to rivals like P&G. But unless it can use its balance sheet better, the gap won't narrow rapidly.
Unilever should have one boss – not two 7 May 2004 The AngloDutch food giant is reforming its doubleheaded structure. But only a bit. It should go the whole hog. It s not as if having two bosses has pepped up its performance. Quite the reverse.
P&G backtracks on Wella stand-off 27 Apr 2004 It's offering preference shareholders 12% more to bring them into a domination agreement it says it never needed in the first place. Yet the price it's offering won't put an end to its legal wrangles, though it's guaranteed to anger supportive shareholders in the process.
LVMH driven by LV brand 3 Mar 2004 The group s trusty engine even speeded up in the second half of the year, with dollar sales growth of more than 50% in Q4. A luxury rebound may finally be underway. But LVMH which is up more than 50% in the last year is already pricing a hefty one in.
L’Oreal hangs on to growth target by fingernails 20 Feb 2004 Strip out Sanofi s contribution, hedging gains and the reintegration of provisions, and the picture looks a lot less rosy. With L Oreal s core business trading at 30 times this year s earnings, the premium to rivals looks too steep.
Stodgy Unilever rings the changes 12 Feb 2004 Another AngloDutch doubleheaded monster disappoints. But unlike Shell, Unilever seems willing to change. Chairman Niall Fitzgerald is leaving early and the company plans to move to a unitary board structure.
Reckitt does embarrassingly well 11 Feb 2004 Revenues and margins are growing rapidly at the household products group. At 17 times earnings, the stock looks a buy. Reckitt s cash pile is also growing embarrassingly fast. Its £250m buyback programme isn t enough. It should be closer to £400m.
Henkel in $3bn Dial purchase 15 Dec 2003 That's a lot to pay for the lowgrowth US soap maker, which has been on the block for donkey's years. Indeed, including debt and few synergies, Henkel's return on investment at 5.5% is pretty unexciting.
Nestle shooting straight for growth target 23 Oct 2003 Unlike rival Unilever, the Swiss foods group is on track to hit its 56% annual growth target. But Nestle is relying on just a couple of key units for growth. Nestle would do well to inject some innovation into its brands.
Allianz sells E4.4bn Beiersdorf stake to Tchibo 23 Oct 2003 This allGerman stitchup suits Tchibo, Beiersdorf management, Allianz and other insiders. But outsiders are shortchanged. The company s decision to buy 7.4% of its own shares to help thwart a takeover by P&G is particularly reprehensible.
Minorities may be stranded in Germany, again 13 Oct 2003 Beiersdorf s minority shareholders are likely to be left out in the cold if current shareholder Tchibo Holdings buys up Allianz s 44% stake. This wouldn t be the first time minorities in Germany got a raw deal. The country s reformed takeover rules have proved insufficient.
Reckitt returns cash but keeps powder dry 26 Aug 2003 The household products group is achieving this juggling act by virtue of the fact that it has net cash on its balance sheet. Shareholders could have demanded more but they will probably give Reckitt the benefit of the doubt. It must use this trust wisely.
Don’t expect rapid decision on Beiersdorf’s future 14 Aug 2003 There may be a willing seller in the form of Allianz and a willing buyer in Procter & Gamble. But the intentions of Tchibo, which has a blocking stake, remain unclear.
Unilever laments dead hand of fund management 6 Aug 2003 Democratic capitalism relies on the exercise of voting rights. Investors who don't bother voting are failing in their fiduciary obligation. If European institutions don't rectify this, they may see the imposition of costly rules similar to those recently mandated by the SEC.