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Tag: #growth

  • Pharma Leaders At Flypharma Highlight Air Cargo’s Role In Global Health

    Pharma Leaders At Flypharma Highlight Air Cargo’s Role In Global Health

    At the FlyPharma Amsterdam 2025 conference, leaders from the worldwide pharmaceutical industry gathered to highlight the importance of collaboration for the steady global transportation of essential healthcare items and life-saving medicines. The conference took place amidst the backdrop of rapidly changing regulations, shifting trade flows, and an uncertain geopolitical landscape.

    Growth in Pharma Sector Increases Demand for Specialised Air Cargo

    The global healthcare and pharmaceutical industry is projected to achieve a total worth of USD 1.77 trillion by 2025. This growth is primarily attributed to advances in biologics, digital health, and personalized medicine, along with increased patient access on a global scale.

    The industry’s momentum is directly reflected in increased demand for airfreight capacity, especially for temperature-sensitive, high-value shipments. The pharma airfreight segment alone is predicted to witness over 6 percent annual growth, as manufacturers and logistics providers prioritize speed, dependability, and adherence to Good Distribution Practice (GDP) standards.

    Air cargo carriers and airports are making significant investments in IoT tracking, cold-chain infrastructure, and digital visibility tools to cater to this growing vertical. The fastest growth is anticipated in corridors linking Asia, Europe, and North America. The pharma and healthcare logistics sector is emerging as a strong and premium segment within the global air cargo market.

    Schiphol: A Global Centre for Pharma Logistics

    Amsterdam Airport Schiphol is a crucial global hub for pharmaceutical logistics. With its central European location, advanced infrastructure, and robust network of logistics partners, the airport is essential for global pharmaceutical supply chains. Schiphol contributes significantly to the worldwide distribution of vaccines and medicines and enhances the Dutch economy, further establishing the Netherlands as a hub for international trade and innovation in life sciences.

    The pharmaceutical logistics ecosystem at Schiphol has considerable implications not only for global public health but also for the Dutch economy. In 2024, the Netherlands exported pharmaceutical products worth USD 38.49 billion, highlighting the sector’s role in driving trade, innovation, and high-value employment. Schiphol’s success as a pharma logistics hub encourages companies to invest, expand, and drive innovation in the Netherlands, making the country more competitive and appealing to life sciences entities.

    Schiphol’s importance as a global logistics hub was further underscored during the COVID-19 pandemic, during which it served as one of Europe’s primary gateways for vaccine transportation and temperature-sensitive pharmaceuticals.

    The Role of Air France KLM Martinair Cargo in Pharma Logistics

    Air France-KLM Martinair Cargo (AFKLMP Cargo) has positioned itself as a leading player and innovator in pharmaceutical logistics, being among the first airlines to receive IATA CEIV Pharma certification. The airline’s dual-hub structure in Amsterdam Schiphol and Paris Charles de Gaulle, situated in Europe’s “pharma belt,” provides unique resilience and adaptability in a fluctuating market.

    According to GertJan Roelands, SVP Commercial, AFKLMP Cargo, the company’s growth in the pharmaceutical and healthcare segment has been a strategic priority over the past five years. The airline has made considerable investments in infrastructure and introduced new digital solutions while optimizing processes to enhance resilience and transport quality. The airline’s commitment to this strategy is reflected in its record-breaking performance in the pharmaceutical and healthcare segment and its increasing market share.

    Innovation, Sustainability, and Excellence in Cool Chain

    AFKLMP Cargo continues to expand cool-room capacity, develop digital monitoring dashboards for operational visibility, and pioneer sustainable temperature-control solutions such as CO₂-based refrigerant technology at Paris CDG. As personalized medicine and advanced therapies gain traction, the airline collaborates closely with shippers, forwarders, and life science clusters, providing time-critical solutions that are fully compliant with GDP and CEIV.

    Despite market volatility and geopolitical pressures, AFKLMP Cargo remains steadfast in its focus on on-time delivery and maintaining the integrity of the cool chain supply. The resilience demonstrated during the pandemic continues to shape the airline’s long-term strategy.

    In the words of GertJan Roelands, “Pharmaceutical logistics is not just about transportation — it’s about trust, responsibility, and resilience. Our mission is to deliver healthcare products safely and reliably, adapting to new challenges while ensuring patients around the world receive the medicines they need.”

    Questions & Answers

    What are the main factors driving the growth of the global pharmaceutical industry?
    The main factors driving this growth include advances in biologics, digital health, and personalized medicine, along with increased patient access globally.

    What is the projected growth for the pharma airfreight segment?
    The pharma airfreight segment is predicted to grow more than 6 percent annually.

    What role has Schiphol played in global pharmaceutical logistics?
    Schiphol serves as a crucial global hub for pharmaceutical logistics, contributing significantly to the worldwide distribution of vaccines and medicines, and enhancing the Dutch economy.

  • Liege Airport records a strong growth of +23% in the third quarter of 2025

    Liege Airport records a strong growth of +23% in the third quarter of 2025

    Liege Airport (LGG) has been experiencing an upward trajectory in terms of both aircraft movements and cargo volumes during the third quarter. A robust 23% growth in tonnage was recorded for the months of July, August, and September in 2025 as compared to the same quarter in 2024, while aircraft movements increased by 9%.

    Unwavering Performance

    Liege Airport’s performance remains commendable not only in the short term but also over the past two years. The airport’s CEO, Laurent Jossart, shed light on the recent success, stating that the air cargo community processed a significant 334,956 tons of freight in Q3 2025. This figure represents an impressive 23% growth from the previous year’s Q3 tonnage of 272,210. In addition, a year-to-date growth of 14.4% was reported.

    The notable growth of the last quarter was primarily driven by a healthy uptick in e-commerce imports, as well as the robust European exports flown via Liege Airport, which saw a quarterly growth of 26% compared to the previous year. This substantial growth underscores the increasing significance of Liege Airport to the European export industry.

    Concerning aircraft movements, a total of 7,262 cargo flights were operated – a 9% rise from Q3 2024, which recorded 6,691 cargo flights.

    Europe’s Prominent Full Freighter Airport

    Further highlighting LGG’s success is its consolidation as the leading full freighter airport in Europe, a milestone reached in 2025. In the first nine months of the year, Liege Airport became the leading hub for three verticals – flowers, e-commerce, and horses. Jossart added that a total of 961,640 tons of air cargo passed through their facilities.

    Looking at a longer timeframe, from 2019 to 2024, a recent global air traffic survey positioned Liege Airport among the top 5 cargo airports worldwide in terms of freight growth, having experienced a 29% increase.

    Laurent Jossart concluded by stating that this performance solidifies Liege Airport’s strategy of being a sustainable, efficient, and multimodal European logistics hub.

    Questions & Answers

    What has been the growth rate of Liege Airport in Q3 2025 as compared to Q3 2024?
    The airport recorded a 23% increase in tonnage and a 9% rise in aircraft movements in Q3 2025 compared to the same period in 2024.

    What factors contributed to the significant growth of Liege Airport in the last quarter?
    The growth was primarily driven by the healthy flow of e-commerce imports and the robustness of the European exports flown via the airport.

    What leadership position did LGG consolidate in 2025?
    LGG consolidated its position as Europe’s leading “full freighter” airport in 2025, handling a total of 961,640 tons of air cargo in the first nine months of that year.

  • Levi Strauss & Co. Sees Robust Q3 Growth Driven By Direct-to-consumer Sales Surge

    Levi Strauss & Co. Sees Robust Q3 Growth Driven By Direct-to-consumer Sales Surge

    Levi Strauss & Co. continues to prove its strength in the retail industry, experiencing significant profit in the third quarter. The primary factor driving this growth is the double-digit increase in sales through the company’s direct-to-consumer (DTC) channel.

    Financial Performance

    By the end of the third quarter on August 31, the firm’s net revenues had reached $1.5 billion, showing a 7% rise year-on-year. This growth is consistent in both reported and organic terms. Sales in the Americas, Asia, and Europe also saw considerable increases, with 6%, 12%, and 5% respectively. Specifically, the U.S. saw a 3% increase in sales, reflecting the company’s strong presence in the domestic market.

    The DTC channel played a significant role in this surge with net revenues increasing by 11% as per reported data and 9% organically. This is attributed to a 7% jump in the U.S., a 4% rise in Europe, and a staggering 14% surge in Asia. Meanwhile, wholesale net revenues also observed an uptick, though at a slower pace, with a 3% rise in reported terms and a 5% increase organically.

    Profit and Future Strategy

    The company’s operating margin saw remarkable growth, reaching 10.8% from the previous year’s 2.3%. The gross margin also improved by 110 basis points to a robust 61.7%. The driving factors for this improvement were a favorable channel mix and price increases, which were slightly offset by the effects of import tariffs.

    The net income from continued operations, excluding the Dockers business, stood at $122 million, a significant increase from last year’s $23 million. The company also successfully sold the Dockers intellectual property and operations in the U.S. and Canada for $194.7 million as of July 31. The remaining operations are projected to be sold in the first quarter of the upcoming year.

    The President and CEO of Levi Strauss & Co., Michelle Gass, lauded the company’s impressive performance, attributing it to the strategic shift towards becoming a DTC-first, comprehensive denim lifestyle retailer. Despite the complex macroeconomic environment, Gass expresses optimism about the company’s ability to sustain this profitable growth well into 2026 and beyond.

    Expectations for the Coming Year

    Levi Strauss & Co. has revised its full-year guidance upward, predicting a 3% increase in net revenues. This is a significant rise from the 1-2% growth forecast provided in the second quarter. This prediction assumes that import tariffs from China will remain at 30% and the rest of the world at 20%.

    Questions & Answers

    What was the primary driver behind Levi Strauss & Co’s growth in the third quarter?
    The key driver was the double-digit growth in sales from the company’s direct-to-consumer (DTC) channel.

    What led to the improved operating margin of Levi Strauss & Co.?
    The improvement in operating margin was driven by a favorable channel mix and price increases, partially offset by the impact of tariffs.

    What are Levi Strauss & Co.’s growth expectations for the upcoming year?
    For the coming year, the company predicts a 3% increase in net revenues, assuming that import tariffs remain the same.

  • Vietnam Leads In Projected Salary Growth In Southeast Asia, Says Global Study

    Vietnam Leads In Projected Salary Growth In Southeast Asia, Says Global Study

    Vietnam is projected to have the most significant salary increase among Southeast Asian countries in 2025, with an estimated growth rate of 7.7%, according to a recent study by a leading global professional services firm.

    Salary Increase and Turnover Study for Southeast Asia

    The study, which ran from July to September 2025, assessed salary alterations and staff turnover rates from over 700 businesses in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. The research indicated that the anticipated salary hikes for Southeast Asia (SEA) are projected to be 5.3% for 2026.

    When examining salaries across various industries per country, the life sciences and medical devices sector is predicted to witness the highest increase in Singapore (4.6%), whereas technology is leading in Vietnam (7.1%) and Indonesia (5.9%). In Malaysia, the consulting, business, and community services sector takes the lead with an expected increase of 4.8%.

    Retaining Top Talent and Reducing Attrition

    Rahul Chawla, the partner and head of Talent Solutions for Southeast Asia at the professional services firm, highlighted the dual challenges organizations are currently grappling with. As companies across SEA ramp up their investments in technology and strategic ventures, they are increasingly concentrating on retaining their best and most skilled employees. According to Chawla, balancing escalating compensation costs with the necessity for agility is paramount. The most successful enterprises are utilizing real-time market data and total rewards strategies to stay competitive.

    The study found that employee attrition rates were in double digits across all countries in the region. The Philippines and Singapore are anticipated to have the highest turnover rates, at 20.0% and 19.3% respectively, followed by Malaysia at 18.2%.

    Attrition rates also differ across industries, with the consulting, business, and community services sector topping the list with a rate of 22.6%. This is followed by the retail sector at 21.6% and manufacturing at 17.5%. The research revealed that 42% of businesses report difficulties in hiring or keeping employees.

    Skills Gap Challenges

    The study also found that 63% of businesses are currently dealing with skills gap challenges, while 12% anticipate short-term gaps, and 16% foresee longer-term gaps. Roles in information technology, engineering, and sales remain the most difficult to fill, while new hire premiums range between 1.3 to 8.2%, which is lower than the previous year, indicating an increased focus on cost control.

    The most sought-after “hot jobs” include sales (24%), information technology (24%), artificial intelligence (AI)/machine learning (ML) (21%), cybersecurity (20%), and engineering (19%). This trend towards digital and risk-focused skills suggests that firms are emphasizing sustained compensation strategies to secure skills that are crucial for the future in an increasingly competitive market.

    Evon Lock, head of data solutions for Southeast Asia at the professional services firm, commented that despite the hiring and retention pressures, most organizations remain cautiously optimistic and plan to maintain or slightly increase their workforce.

    Questions & Answers

    What is the expected salary increase in Vietnam in 2025?
    The expected salary increase in Vietnam in 2025 is 7.7%.

    Which industry is projected to have the highest salary increase in Singapore?
    The life sciences and medical devices industry is expected to have the highest salary increase in Singapore.

    What are the most in-demand jobs according to the study?
    The most in-demand jobs are in sales, information technology, artificial intelligence/machine learning, cybersecurity, and engineering.

  • Singapore’s Retail Sector Sees Robust Growth In July, Led By Tech Industry

    Singapore’s Retail Sector Sees Robust Growth In July, Led By Tech Industry

    In July, the retail sector in Singapore displayed promising growth, with most categories reporting an uptick in sales.

    July’s Retail Sales Growth

    Singapore’s retail industry experienced an impressive 4.1% increase in July, a significant improvement over June’s modest 0.5% rise, when motor vehicle sales are excluded from the total. The total estimated retail sales value for the month was SG$3.6 billion (US$2.8 billion), with online sales accounting for 15.5% of this figure.

    On a seasonally adjusted basis, July’s retail sales figures represented a 3.8% increase from the previous month.

    Industries Contributing to Retail Growth

    The majority of industries within the retail trade sector contributed to July’s growth. The most substantial improvement was observed in the computer and telecommunications equipment industry, which reported a year-on-year increase in sales of 11.1%.

    Sales in the watches and jewellery sector, as well as supermarkets and hypermarkets, rose by 9.6%. Department stores, cosmetics, recreational goods, along with optical goods and books, also experienced sales uplifts, ranging between 4.1% and 8.6%.

    However, not all industries enjoyed a rise in sales. Food and alcohol, apparel and footwear, and petrol service stations saw declines in sales of between 2% and 5.6%.

    Growth in Food and Beverage Services

    The food and beverage services sector also registered growth in July. This sector saw a rise of 1.7% in sales, an improvement over the flat growth reported in June. The total sales value of F&B services was approximately SG$1 billion, with online sales representing 25.9% of this figure.

    Questions & Answers

    Which retail sector experienced the most substantial growth in July?
    The computer and telecommunications equipment industry reported the most significant growth, with sales up 11.1% year-on-year.

    Did all retail sectors in Singapore experience growth in July?
    No, the food and alcohol, apparel and footwear, and petrol service stations sectors saw a decline in sales.

    How did the food and beverage services sector perform in July?
    The food and beverage services sector saw a 1.7% rise in sales, compared to flat growth in June. Online sales made up 25.9% of the total sales in this sector.

  • Tim Hortons China Sees Q2 Recovery, Cites New Strategy And Franchise Growth As Key Drivers

    Tim Hortons China Sees Q2 Recovery, Cites New Strategy And Franchise Growth As Key Drivers

    TH International Limited, the company responsible for operating Tim Hortons coffee shops in China, has reported a slight recovery in the second quarter. This recovery has helped to counterbalance the economic strain resulting from store closures and decreased revenue from company-operated outlets.

    Financial Performance

    The system sales experienced a 1.4 percent increase since last year, reaching a total of $57.2 million. Despite this growth, total revenues decreased by 4.9 percent, amounting to $48.7 million. However, the company recorded a positive adjusted EBITDA of $300,000 and a reduced adjusted net loss of 16.2 percent, which amounts to $5.5 million.

    The company’s CEO, Yongchen Lu, stated the company’s “Coffee + Freshly Prepared Food” strategy as the driving force behind the improved results. New product offerings led to an increase in food revenue by 8.6 percent from last year. Consequently, the contribution of food revenue to system sales rose to a record 35.2 percent.

    Albert Li, the CFO, pointed out the efficiency enhancements in the company’s operations. The costs of food, packaging, and labor dropped as a percentage of store revenues. He attributed the improved financial performance to the refinement of store unit economics and operational efficiencies at both store and corporate levels.

    Growth and Challenges

    During the quarter, the company introduced 40 made-to-order stores while discontinuing 49 non-made-to-order outlets, mainly smaller Tim Hortons Express units. Despite this, the contribution from company-operated stores dropped to $3.8 million, a decrease from the previous year. This decrease can be attributed to store consolidation and declining same-store sales.

    Franchising proved to be a successful venture. Revenues from franchised stores increased by 50.7 percent, reaching $9.4 million. The franchise network expanded from 333 to 449 locations. In addition, other revenues, including sub-franchise and retail businesses, more than doubled compared to last year.

    Despite a net loss of $10.6 million, the management remains optimistic. They believe the operational enhancements and an improved food mix put the company in a position for steady growth.

    Questions & Answers

    What was the company’s strategy that drove its stronger results?
    The company employed a “Coffee + Freshly Prepared Food” strategy that particularly improved results through new product offerings.

    How did the company improve its financial performance?
    The company refined store unit economics and enhanced operational efficiencies at both the store and corporate levels.

    What changes occurred in the company’s franchising operations?
    There was a revenue increase of 50.7 percent from franchised stores. The franchise network also expanded to 449 locations from 333 in the previous year.

  • Nike’s Strategic Pivot To Outdoor Recreation: Revitalizing Acg Amid Rising Competition

    Nike’s Strategic Pivot To Outdoor Recreation: Revitalizing Acg Amid Rising Competition

    Nike, the sportswear behemoth, is making a strategic move into the expanding outdoor recreation industry. Starting with the launch of a new trail running shoe, Nike aims to invigorate its lesser-known sub-brand, ACG, and turn it into a vital source of growth.

    Nike’s Outdoor Recreation Strategy

    Beginning with the Ultra-Trail du Mont-Blanc event, an ultramarathon in France, Nike plans to release its Ultrafly trail running shoe, which is a part of the ACG (All Conditions Gear) outdoor sub-brand. This move is an attempt by Nike to reestablish ACG as a credible contender in the realm of performance-focused trail running shoes.

    Commenting on the broader strategy, Nike’s CEO, Elliot Hill, explained that the company is refocusing on core sports such as running in response to the growing competition from smaller brands. Nike is striving to catch up in the outdoor recreation industry, which has seen substantial growth during the pandemic, and in China, where outdoor activities have gained considerable popularity. The company’s struggle in these two markets has been a factor in its diminished share of the global sportswear industry.

    ACG Ultrafly and Future Plans

    Nike-sponsored athletes, including Anthony Costales, will wear the ACG Ultrafly during races. The shoe is scheduled to be available to consumers in spring 2026. In addition, a rejuvenated version of the Zegama trail runner, also under the ACG brand, will be released later in 2026.

    However, revitalizing the ACG brand, initially launched in 1989 with an emphasis on hiking and biking, will not be without its challenges. The brand is currently associated with “gorpcore”, a fashion trend that blends functional gear with style. Despite these challenges, Nike is looking towards the long-term benefits of this strategy, especially in the Chinese market.

    The Chinese Market

    Nike established its ACG team as a sub-brand in October and appointed Angela Dong, VP for all of Greater China, to lead the unit. Sales of outdoor apparel in China nearly doubled between 2019 and 2025, and outdoor footwear sales increased by 65% in the same period. Despite this, Nike has reported double-digit sales declines in China over the past three quarters.

    The Chinese market has posed significant challenges for Nike as it faces stiff competition from other retailers. Economic instability and high youth unemployment have also impacted spending.

    Nike’s global sportswear market share fell to 26% from 29% in 2021. Other brands such as Hoka have used trail running to bolster growth, underscoring the potential that Nike sees in this segment.

    Launching at a Hoka-sponsored event could be viewed as Nike’s attempt to overshadow its rival, demonstrating Nike’s ability to leverage its financial strength against smaller brands.

    Questions & Answers

    What is Nike’s new strategy in the sportswear market?
    Nike is focusing on outdoor recreation, reviving its ACG sub-brand with the launch of a trail running shoe.

    What challenges does Nike face in revitalizing the ACG brand?
    ACG, launched with a focus on hiking and biking, has become associated with the “gorpcore” fashion trend, which may make it difficult for the brand to reposition itself as a serious contender in the outdoor recreation space.

    What is the current state of Nike in the Chinese market?
    Despite the growth in outdoor apparel and footwear sales in China, Nike has experienced double-digit sales declines in this market over the past three quarters due to tough competition and economic factors.

  • Treasury Wine Estates Records Robust Financial Growth; Penfolds Brand Sales Surge 7.3%

    Treasury Wine Estates Records Robust Financial Growth; Penfolds Brand Sales Surge 7.3%

    Treasury Wine Estates (TWE) has seen a substantial growth pattern in its financial performance for the present fiscal year. The company’s net group sales have experienced a 7.2% increase, elevating the figure from $2.7 billion to $2.9 billion.

    Growth in Profit and Profit Margin

    The gross profit of the group has witnessed a 15% surge, amounting to $1.4 billion. This growth is mirrored in the company’s gross profit margin, which has moved up from 45.3% to 48.6% year-on-year.

    The firm’s Earnings Before Interest and Taxes (EBITS) has also seen a significant growth, marking a 17% increase to reach $770 million. The company’s net profit after tax followed suit, with an 8.1% increase, amounting to $450.7 million.

    Brand Performance

    The company’s renowned brand, Penfolds, has also reported a positive net sales revenue growth of 7.3%, reaching $1 billion. The brand’s EBITS has also risen, showing a 13.2% increase to reach $477 million.

    The Treasury Americas brand of the group has reported a notable 16.8% surge in its net sales revenue, bringing the total to $1.2 billion. This growth was accompanied by a 33.9% increase in its EBITS, reaching $308.6 million.

    However, TWE’s Treasury Premium Brands reported a decrease in its net sales revenue by 5.9% year-on-year, with the figure standing at $693.5 million. The brand’s EBITS also plummeted, reflecting a 27.6% drop to $55.1 million.

    CEO Statement

    Tim Ford, CEO of Treasury Wine Estates, expressed his satisfaction with the company’s fiscal performance. Despite facing challenges in several markets, the company remained committed to executing its business strategies, strengthening the company’s long-term growth.

    Ford attributed the company’s strong financial performance to Penfolds’ continued momentum and the successful integration of Daou Vineyards into their luxury portfolio. He also highlighted the company’s recent transition to a new luxury portfolio-led operating model that enhances strategic clarity and positions the firm well for the future.

    Questions & Answers

    What is the reported increase in Treasury Wine Estates’ group net sales?
    The group net sales have seen a 7.2% increase, moving from $2.7 billion to $2.9 billion for the current fiscal year.

    What has been the performance of Penfolds and Treasury Americas brands in terms of net sales revenue?
    Penfolds reported a 7.3% increase in net sales revenue to $1 billion, while Treasury Americas revealed a 16.8% rise, amounting to $1.2 billion.

    What measures has the company undertaken for long-term growth as per the CEO’s statement?
    The CEO revealed that the company has remained focused on executing its business plans, integrating Daou Vineyards into their luxury portfolio, and transitioning to a luxury portfolio-led operating model.

  • Australian Food Industry Shows Resilience With Robust Growth Amid Global Challenges

    Australian Food Industry Shows Resilience With Robust Growth Amid Global Challenges

    The food and grocery manufacturing industry in Australia has demonstrated robust growth, further solidifying its significance as the country’s biggest manufacturing sector and a crucial provider of regional employment opportunities.

    The Australian Food and Grocery Council’s (AFGC) State of the Industry 2023-24 report reveals that the sector’s turnover has experienced a 5.3 per cent growth, equating to a total of $173 billion.

    Employment and Exports

    Employment in the industry has also seen an increase of 4.4 per cent, resulting in almost 300,000 people now being employed in the sector, with over a third of these individuals located in regional Australia.

    Exports within the industry recorded a 5.2 per cent growth, while imports declined by 3.3 per cent. Interestingly, the US has surpassed China as the leading export market for Australia.

    Colm Maguire, CEO of AFGC, expressed his optimism for the sector’s future, emphasizing its “enormous potential”. He highlighted the need for policy and strategic backing as key for continued growth.

    Maguire added, “With the proper policy framework and strategic support, the food and grocery manufacturing sector can further enhance Australia’s economy – fostering regional employment, reinforcing Australia’s standing as a strong manufacturing nation, and securing our food and grocery supply amidst an increasingly complicated global landscape.”

    Challenges and Future Perspectives

    Despite the encouraging figures, the report also drew attention to certain challenges faced by the sector. These include an 11 per cent decline in capital investment, which currently stands at $3.8 billion, and ongoing cost pressures.

    As the Albanese Government progresses with its “Future Made in Australia” agenda, the AFGC argues that the food and grocery manufacturing industry is in a strong position to take the lead. This is reflected in their proposed seven productivity pillars, which concentrate on reducing bureaucracy, building resilient supply chains, and ensuring access to affordable, reliable energy.

    Questions & Answers

    What growth has the Australian food and grocery manufacturing industry seen recently?
    The industry has seen a 5.3 per cent increase in turnover, equating to $173 billion. Employment in the sector has risen by 4.4 per cent, with nearly 300,000 people now employed.

    Who is now Australia’s top export market?
    The US has now overtaken China as Australia’s top export market.

    What challenges does the Australian food and grocery manufacturing industry face?
    The industry faces challenges such as an 11 per cent decrease in capital investment and ongoing cost pressures.

  • Yili Group Forecasts Robust Revenue Growth; Investments Boost Dairy Production Capacity

    Yili Group Forecasts Robust Revenue Growth; Investments Boost Dairy Production Capacity

    Yili Group, a leading dairy company based in New Zealand, is predicting a steady increase in revenue for the upcoming year, following impressive growth during the first half of the current year. The company’s subsidiaries, Westland Milk Products and Oceania Dairy, reported a joint unaudited revenue growth of 16% during the first half of this year, compared to the same timeframe in the previous year. In addition, the pre-tax profit experienced a 12% increase.

    Investing in Production Capacity

    Zhiqiang Li, the Executive Director of Yili Group, stated that the companies are in an excellent position for sustained growth due to significant investments in their production capacity at essential sites.

    “Major investments have been made to increase the production capacity of high-demand, high-value products at Westland’s Hokitika and Rolleston sites, as well as ODL’s Glenavy facility. This is in response to the rising global demand for top-quality dairy products,” said Li.

    Among the significant upgrades is an increase in butter production by 10,000 tonnes at the Hokitika site, as well as enlarged skim milk powder output at the Glenavy site.

    Boosting UHT Cream Production and Export

    These enhancements have facilitated a 20% growth in UHT cream production at the Rolleston site. A considerable amount of this production is exported to China, facilitated by the addition of new equipment such as a silo and revamped unloading facilities.

    In the past year, Westland and Oceania have partnered in sales and marketing ventures to offer a wider variety of dairy products.

    “While the profits for the individual companies will experience a period of consolidation, both total revenue and profit margins are projected to continue their healthy growth trend,” added Li.

    Questions & Answers

    **What is the projected growth for Yili Group?**
    Yili Group is anticipating consistent revenue growth in the upcoming year, following a significant increase in the first half of the current year.

    **What key upgrades have been made to increase production?**
    Key upgrades include a 10,000-tonne increase in butter production at the Hokitika site, as well as an expanded skim milk powder output at the Glenavy site.

    **What collaborations have occurred between Westland and Oceania?**
    In the past year, Westland and Oceania have collaborated on sales and marketing to offer a broader range of dairy products.

  • Smashburger Promotes Jim Sullivan To Ceo, Aims To Accelerate Franchise-driven Expansion

    Smashburger Promotes Jim Sullivan To Ceo, Aims To Accelerate Franchise-driven Expansion

    Fast-casual dining chain Smashburger has elevated Jim Sullivan to the position of CEO as part of its strategy to bolster its market standing and speed up its franchise-driven expansion.

    A Wealth of Experience

    The newly appointed CEO brings with him over two and a half decades of executive expertise in the restaurant development and franchising sector. Prior to his tenure at Smashburger, Sullivan held the position of Chief Development Officer at QDoba and executed senior roles at establishments such as CKE Restaurant Holdings, Friendly’s Ice Cream, Modern Restaurant Concepts, and American Hospitality Concepts.

    Starting his journey with Smashburger as president in February, Sullivan will now helm the brand’s strategy and operations. His focus will be on rebranding, introducing non-traditional formats, and enhancing the customer experience within the restaurant.

    Richard CW Shin, CEO of Jollibee Group International and global chief finance and risk officer of Jollibee Group, the parent company of Smashburger, commented on Sullivan’s appointment. He stated that Sullivan brings dynamic leadership and a well-defined vision, along with a profound understanding of Smashburger’s market position. Shin added that Sullivan has already set the groundwork for a leaner brand that offers superior food, an improved customer experience, and revitalised momentum throughout the system.

    Previous Achievements and Future Plans

    Sullivan’s promotion follows several initiatives he spearheaded, including the launch of the company’s biggest-ever marketing campaign, ‘Summer of Smash.’ He also introduced a new value tier and menu items like the Bacon Brisket Smash, and oversaw the recent opening of a new location at Detroit Metro Airport, marking a return to unit growth.

    Speaking on his new role, Sullivan expressed his vision for the brand. “Leveraging the strategic backing of JFC, we are focusing on scaling and operational flexibility to stimulate focused, capital-efficient growth,” he said. He added that Smashburger is a brand centered on craveable taste customized for the modern consumer. He affirmed his commitment to developing it for prolonged performance for their customers, teams, and franchisees.

    Questions & Answers

    Who is the new CEO of Smashburger?
    Jim Sullivan has been appointed as the new CEO of Smashburger.

    What are some of the initiatives led by Jim Sullivan at Smashburger?
    Some initiatives led by Jim Sullivan include the largest-ever marketing campaign ‘Summer of Smash,’ the introduction of a new value tier and menu items like the Bacon Brisket Smash, and the opening of a new unit at Detroit Metro Airport.

    What is Jim Sullivan’s vision for Smashburger?
    Sullivan’s vision for Smashburger is to leverage scale and operational flexibility, backed by strategic support from JFC, to drive a focused, capital-efficient growth. The brand will be built on craveable taste tailored for today’s consumer, aiming for long-term performance for its customers, teams, and franchisees.

  • Coupang Surpasses $8 Billion Mark: Record Revenue And Profit Turnaround Amid Taiwan Expansion

    Coupang Surpasses $8 Billion Mark: Record Revenue And Profit Turnaround Amid Taiwan Expansion

    South Korean retail behemoth Coupang has experienced substantial growth this year, boasting a record revenue of $8.52 billion in Q2, a rise of 19% year-over-year with an FX-neutral basis. This marks the first time the company has surpassed the $8 billion mark.

    Additionally, Coupang achieved a net profit of $31 million, a significant turnaround from last year’s Q2 deficit of $105 million. The company’s adjusted EBITDA hit $428 million.

    Core Strengths

    Coupang’s primary source of income comes from its Product Commerce sector, which encompasses Rocket Delivery, Rocket Fresh, Rocket Growth, and the marketplace. The adjusted EBITDA for this segment climbed to $663 million, and margins reached an unprecedented 9%.

    Most of the revenue growth in Q2 came from existing customers. According to Bom Kim, Coupang’s founder and CEO, even the oldest customer cohorts demonstrated robust spending increases in the double digits.

    Kim stated, “As we expand our selection to match customer preferences, they’re also purchasing across a broader number of categories.”

    The Rocket Delivery model, previously criticized for its extravagant spending and capital intensity, is now viewed as a competitive advantage. Same-day and dawn delivery volumes soared over 40% year-over-year, primarily due to the addition of over half a million new Rocket SKUs in Q2.

    Taiwan’s Progress

    Coupang’s Developing Offerings segment, which encompasses Taiwan Rocket Delivery, Coupang Eats, Coupang Play, and Farfetch, posted a revenue of $1.19 billion, an increase of 33% year-over-year. Although this unit is still not profitable, with an adjusted EBITDA loss of $235 million, a majority of this loss can be attributed to increased investment in Taiwan.

    Coupang’s CFO, Gaurav Anand, noted that Taiwan is the main reason behind a revised full-year EBITDA loss prediction for the segment, estimated to be between $900 million and $950 million.

    Coupang launched its Wow membership program in Taiwan in March, targeting a population of 23 million and a retail sector valued at $152.7 billion. Since entering the market in 2022, the company has invested approximately $355 million in expanding its logistics infrastructure and product selection.

    This investment appears to be producing early results, with Taiwan’s revenue surging 54% quarter-over-quarter and recording triple-digit growth year-over-year. These improvements are not only due to customer acquisition but also improved customer retention and spending.

    Kim commented, “Our Taiwan offering is growing faster and stronger than even the most optimistic forecasts we set at the beginning of the year.” He added that they see a similar growth trajectory in Taiwan as they did in the early years of scaling their retail offering in Korea.

    Despite initial concerns, Coupang’s aggressive investment indicates growing belief that Taiwan could become a second profitable market in the long term.

    While Taiwan’s progress overshadows other areas, Coupang’s other businesses continue to develop. Food delivery service Coupang Eats showed continuous double-digit growth, benefiting from the company’s established logistics infrastructure.

    Additionally, Coupang Play, its streaming platform, has added new features like a Sports Pass, providing access to premium sports leagues ranging from the Premier League to Nascar.

    Although these businesses are not yet profitable, they help to retain users within the Coupang ecosystem.

    Looking forward, Coupang faces significant challenges. The South Korean retail sector has been declining for 13 consecutive quarters – the longest recorded downturn. With limited room for further growth at home, the company’s future hinges on maximizing each customer’s value or finding new customers abroad. Taiwan is off to a strong start, but expanding it into a second growth engine may prove challenging, and the level of investment required could test investor patience if results don’t keep up the pace.

    Questions & Answers

    What contributed to the growth of Coupang’s Q2 revenue?
    Existing customers contributed to most of the growth, with spending increases across all cohorts. Additionally, the company expanded its product selection, leading to customers buying across a wider range of categories.

    What is the role of Taiwan in Coupang’s financial strategy?
    Taiwan is a significant focus for Coupang’s investment, aimed at expanding its market beyond South Korea. The company’s aggressive investment in Taiwan indicates a growing belief that it could become a second profitable market in the long term.

    What challenges does Coupang face moving forward?
    Coupang is challenged by the continuous decline in the South Korean retail sector. With limited potential for domestic growth, the company’s future success increasingly relies on maximizing value from each customer and expanding its customer base abroad. Additionally, the level of investment required in markets like Taiwan could test investor patience if results don’t match the pace of investment.

  • Jollibee Group Unveils Global Expansion Plan With Comprehensive Rebranding Strategy

    Jollibee Group Unveils Global Expansion Plan With Comprehensive Rebranding Strategy

    Jollibee Foods Corporation (JFC) has recently undergone a rebranding effort, now going by Jollibee Group, with an eye on further global expansion.

    Rebranding for Global Growth

    Despite retaining its legal entity as JFC, the firm has announced that this comprehensive rebranding will encompass a new visual identity, a simplified brand hierarchy, and harmonized naming across all business divisions. The objective is to further fortify the company’s global footprint and enhance its brand value.

    Jollibee Group’s global president and CEO, Ernesto Tanmantiong, explained the reasoning behind this significant move: “Our fundamental aim is to bring joy through superior flavor. This purpose is the driving force behind our innovation, it shapes our customer promise, and it propels our momentum forward.”

    Unveiling the New Identity

    The introduction of the fresh identity took place during internal events, such as the supplier summit and the annual stockholders’ meeting, which were attended by employees and partners. The company is currently deploying this new identity through global media channels and corporate communications.

    Tanmantiong further added, “As we expand globally, we’re not only extending our reach, but also establishing a company that is not only known for business success but also for the joy and quality we bring to people’s lives.”

    Jollibee Group currently has a strong presence in 33 countries, with over 9000 outlets, including locations in the US, the Middle East, and Southeast Asia. Its diversified portfolio includes well-known brands such as Tim Ho Wan, The Coffee Bean and Tea Leaf, Jollibee, Chowking, Greenwich, Red Ribbon, and Mang Inasal.

    Questions & Answers

    What is the main reason for Jollibee Group’s rebranding?
    The main reason for the rebranding is to position the company for further global expansion and enhance its brand value.

    How was the new identity introduced?
    The new identity was introduced during internal events including a supplier summit and the annual stockholder’s meeting. It is now being introduced through global media and corporate communications.

    How many stores does Jollibee Group operate and in how many countries?
    Jollibee Group currently operates more than 9000 stores across 33 countries, including the US, the Middle East, and Southeast Asia.

  • DFI Retail Group Surmounts Static Sales With Strong Profit Growth: Health And Beauty Sectors Lead The Way

    DFI Retail Group Surmounts Static Sales With Strong Profit Growth: Health And Beauty Sectors Lead The Way

    Despite relatively stationary sales figures, Hong Kong’s DFI Retail Group has reported robust profit growth in the first half of the fiscal year. Sharing profits with shareholders saw an impressive rise of 39 per cent to US$105 million in the six months concluding on June 30. Additionally, subsidiary profits also marked an increase by 3 per cent, reaching $75 million.

    Growth Drivers

    The management cites several reasons for this significant growth. Enhanced profitability in health and beauty sectors, increased contributions from associates, and steady revenue growth trends are the primary contributors to this success. For the first half of the year, subsidiary revenue totalled $4.4 billion, a marginal increase of 0.3 per cent on a comparable basis. This figure excludes the impact of the increased cigarette tax in Hong Kong and the sale of the Hero Supermarket business in Indonesia the previous year.

    Total revenue, accounting for 100 per cent of associates and joint ventures, noted a 1 per cent rise to $8.2 billion. The health and beauty division experienced a 4 per cent rise in sales, highlighting the growing brand value of Mannings and Guardian.

    Revenue Fluctuations

    On the other hand, the convenience segment, operating 7-Eleven stores in Hong Kong, Macau, Guangdong province, and Singapore, saw a 4 per cent revenue decline. The food division registered a slight dip in sales, not considering the sale of the Hero Supermarket.

    The home furnishings division, which runs Ikea in Hong Kong, Macau, Taiwan, and Indonesia, continues to face challenges due to fierce competition and changes in consumer purchasing patterns.

    CEO’s Remarks

    “Our ongoing portfolio evolution allows us to focus resources on high-profit businesses and growth initiatives. It also provides strategic flexibility for non-organic opportunities,” remarked Group CEO Scott Price.

    Despite lowering its revenue outlook for the full year, DFI has upgraded its profit guidance. Revenue growth is now anticipated to rise between 0.5-1 per cent, as opposed to the previously estimated 2 per cent. In contrast, an underlying attributable profit is expected to be within the range of $250-270 million, compared to the previously estimated $230-270 million.

    The group asserts its confidence in navigating the evolving market landscape, backed by strategic initiatives designed to increase market share and profit growth across all businesses.

    Questions & Answers

    What was the reason for the significant profit growth?
    Enhanced profitability in health and beauty sectors, higher contributions from associates, and steady revenue growth trends were the primary contributors to the growth.

    How did the convenience segment perform?
    The convenience segment, which operates 7-Eleven stores in various locations, reported a 4 per cent revenue decline.

    What are the expectations for the full-year revenue growth and profit?
    Revenue growth is now anticipated to rise between 0.5-1 per cent, while an underlying attributable profit is expected to be within the range of $250-270 million.

  • Popeyes Expands In The Philippines: New Franchising Program Launched Amid Record-breaking Performance

    Popeyes Expands In The Philippines: New Franchising Program Launched Amid Record-breaking Performance

    Popeyes, the renowned American fast food brand, has initiated its franchise program in the Philippines. This move comes in the wake of the country’s stellar performance, making it the leading global market for Popeyes in terms of transactions, as reported by the company’s parent organization, Restaurant Brands International (RBI).

    Franchising: The Logical Next Step

    Dustin Ngo, the Managing Director for Popeyes Philippines, expressed his views on the new franchising initiative. According to Ngo, franchising was the logical next phase in the company’s growth trajectory. He lauded it as a lucrative investment opportunity that aligns perfectly with Popeyes’ expansion plans over the next three years.

    Franchise investment for a 1000sqm drive-thru store varies between PHP$45 million and $50 million, equivalent to US$793,000 to $800,000. The investment package encompasses construction, equipment, training, and a 10-year franchise fee. The continued costs include an 8 per cent royalty and a 5 per cent advertisement fee, calculated based on sales.

    Comprehensive Support for Franchise Partners

    RBI, along with the local team, will offer comprehensive support to ensure a smooth and efficient setup and operation for the franchise partners. The objective is to make the operation of Popeyes franchises as hassle-free as possible.

    Dan Hayton, the Chief Operating Officer of Popeyes Philippines, further elucidated this point. He expressed the company’s desire for franchise partners to run their Popeyes franchise effortlessly, with the operation starting up as easily as turning a key.

    Questions & Answers

    What is the investment range for opening a Popeyes franchise in the Philippines?
    The investment for a 1000sqm drive-thru store ranges from PHP$45 million to $50 million (US$793,000 to $800,000), which includes costs for construction, equipment, training, and a 10-year franchise fee.

    What are the ongoing costs for a Popeyes franchise?
    The ongoing costs include an 8 per cent royalty and a 5 per cent advertisement fee, calculated based on sales.

    What kind of support does Popeyes provide to its franchise partners?
    Popeyes, in collaboration with RBI and the local team, provides comprehensive end-to-end support. The focus lies on ensuring a fast setup and operational efficiency for the franchise partners.