Sodexo Q3 Organic Revenue Growth At 10.5%; Now Sees FY23 Organic Revenue Growth Close To 11%

Sodexo (SDXAY.PK) reported that its third quarter consolidated revenues reached 6.0 billion euros, up 9.1% year-on-year including negative currency impact and a net contribution from acquisitions and disposals. Third quarter organic growth was 10.5%. On-Site Services organic growth was at 9.9% and Pluxee organic growth was 25.5%.

The company refined fiscal 2023 guidance to reflect the strong Pluxee performance and solid in-line performance of On-site Services in the third quarter. Group organic revenue growth is projected close to 11% and Group underlying operating profit margin
at 5.5%, at constant rates.

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Cummins Buys Out Hydrogenics By Acquiring Air Liquide's 19% Stake

Manufacturing and engineering company Cummins Inc. (CMI) announced on Friday that it is buying Air Liquide’s 19 percent stake in Hydrogenics Corporation, a fuel cell and hydrogen production technologies provider.

Cummins had acquired Hydrogenics in 2019 and already owns 81 percent stake. The latest deal will lead to Cummins’ full ownership of Hydrogenics, and thus the key fuel cell and electrolyzer technologies.

Hydrogenics will still continue to be one of Air Liquide’s suppliers for electrolyzer projects.

On Thursday, shares of Cummins closed at $242 up 1.20% or $2.87 on the New York Stock Exchange.

New Wave Group Acquires Swedish Company Tenson AB

New Wave Group AB (0KIZ.L,NWVGF.PK), a developer of brands and products for corporate promotions, sports, gifts, etc. announced on Friday that it has acquired Swedish outdoor and lifestyle company Tenson AB.

Goran Harstedt, New Wave’s 1st Senior Vice President commented, “Tenson fits perfectly into our Sports & Leisure business and our endeavor to expand within the outdoor segment.”

The consideration is based on the equity of Tenson AB at closing on the 1st of July 2023 of at least 6.53 million SEK, where the brand is booked at approximately 31 million SEK.

Tenson AB founded in 1951 is an outdoor company that reported revenue of around 130 million SEK and loss after tax of around 8.5 million SEK in 2022.

The acquisition is expected to have a positive impact in 2024 for New Wave.

Currently, shares of New Wave are trading at 94.30 SEK up 1.34% or 1.25 SEK on the London Stock Exchange.

Oil Prices Extend Gains On China Stimulus Hopes

Oil prices rose on Friday to extend gains from the previous session, as data showing a fall in U.S. crude stocks outweighed demand worries. Lackluster data on China’s factory activity also spurred hopes of more policy stimulus.

Benchmark Brent crude futures rose half a percent to $74.93 a barrel, while WTI crude futures were up half a percent at $70.21.

Oil prices remain on course for a fourth straight quarterly decline on concerns over a global economic downturn and fuel demand.

While the U.S. economy continues to show surprising resilience in the face of higher interest rates, concerns persist over China’s faltering post-COVID recovery.

Official data showed earlier today that manufacturing activity in China shrank for a third straight month in June, albeit at a slower pace.

The manufacturing PMI rose to 49.0 in June from 48.8 a month ago -matching expectations. The non-manufacturing sector continued to expand in June, with the corresponding index falling to 53.2 from 54.5 in the previous month.

A private survey released alongside showed that China’s stimulus measures unveiled last year did little to boot loan demand in the second quarter.

On the positive side, the EIA energy report released earlier this week showed a 9.6M bpd draw and robust demand signs everywhere.

Gold Dips As Dollar Firms Ahead Of Key Inflation Data

Gold edged lower on Friday and the dollar traded firm after jobless claims and revised GDP figures released overnight helped ease recession worries but spurred fresh concerns about the outlook for interest rates.

Spot gold dropped 0.2 percent to $1,905.13 per ounce, while U.S. gold futures were down 0.3 percent at $1,912.65.

U.S. GDP was revised up notably to a 2 percent annualized advance in the first quarter and the number of Americans filing new claims for unemployment benefits fell last week by the most in 20 months, pointing to continued strength in the world’s largest economy.

Risk sentiment also improved after the results of the U.S. Fed’s annual bank stress tests showed large banks are well positioned to weather a severe recession.

After China reported weak manufacturing and non-manufacturing data earlier today, investors now await a U.S. report on personal income and spending for May, which includes readings on inflation said to be preferred by the Federal Reserve.

Elsewhere in Europe, positive inflation and labor market data helped ease concerns around economic recovery and interest-rate hikes.

Eurozone consumer inflation fell to 5.5 percent in June from 6.1 percent in May, according to preliminary data from the European Union’s statistics agency Eurostat.

At the same time, the region’s unemployment rate held steady at 6.5 percent in May, matching expectations.

Constellation Brands Inc Q1 Profit Decreases, but beats estimates

Constellation Brands Inc (STZ) revealed earnings for first quarter that decreased from last year but beat the Street estimates.

The company’s bottom line totaled $135.9 million, or $0.74 per share. This compares with $389.5 million, or $2.06 per share, in last year’s first quarter.

Excluding items, Constellation Brands Inc reported adjusted earnings of $534.5 million or $2.91 per share for the period.

Analysts on average had expected the company to earn $2.83 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 6.4% to $2.51 billion from $2.36 billion last year.

Constellation Brands Inc earnings at a glance (GAAP) :

-Earnings (Q1): $135.9 Mln. vs. $389.5 Mln. last year.
-EPS (Q1): $0.74 vs. $2.06 last year.
-Analyst Estimates: $2.83
-Revenue (Q1): $2.51 Bln vs. $2.36 Bln last year.

-Guidance:
Full year EPS guidance: $11.70 – $12.00