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Tag: holding

  • Seven & I Reports Soaring Profits Driven by International Convenience Store Expansion

    Seven & I Reports Soaring Profits Driven by International Convenience Store Expansion

    In a significant financial update, Japan’s Seven & i Holdings reported a 9.7% rise in operating profit for the quarter spanning March to May, surpassing analysts’ expectations due to stronger results from its international convenience store operations. The company, best known for its 7-Eleven franchise, is navigating a challenging landscape as it comes under scrutiny following a $47 billion takeover bid from Canada’s Alimentation Couche-Tard.

    The first-quarter profit hit 65.1 billion yen ($445.19 million), which was markedly higher than the 58 billion yen anticipated by a poll of six analysts conducted by LSEG.

    Recently, Seven & i has implemented a strategic share buyback, divested non-core assets, and is preparing to float its North American convenience store segment. However, the domestic 7-Eleven stores have seen a downturn in profits, although the overall net profit was bolstered by the asset sales from subsidiary Ito-Yokado.

    In the competitive U.S. market, the company credited enhanced gross profit margins to the successful rollout of private-label products and improved labor cost management. But it wasn’t all good news; Seven & i shares slipped by 1.6% on the day of the earnings announcement, contributing to a 13% decline this year. Perhaps it’s a case of “no news is good news,” but in the volatile world of retail, even the smallest hiccup can set off alarm bells.

    As an indicator of its proactive measures, the retailer reported spending around 156 billion yen on share repurchases by the end of last month, while maintaining its earnings forecast amid these turbulent times.

    Questions & Answers

    What contributed to the rise in Seven & i Holdings’ operating profit?
    The increase in operating profit was primarily attributed to improved performance from its overseas convenience stores, particularly in the U.S., where the company benefited from enhanced gross profit margins and optimized labor costs.

    How is Seven & i responding to the pressure from Alimentation Couche-Tard’s takeover bid?
    To bolster its financial standing amid the takeover bid, Seven & i has initiated a share buyback program, sold off non-core assets, and is planning to list its North American convenience store business.

    What recent financial actions has Seven & i taken to strengthen its position?
    The company has reported spending approximately 156 billion yen on share repurchases and has maintained its earnings forecast, signaling confidence in its strategic plans despite recent challenges.

  • Malaysian bubble-tea chain Tealive Eying IPO

    Malaysian bubble-tea chain Tealive Eying IPO

    Loob Holding, parent of Malaysian bubble-tea chain Tealive, is preparing an IPO in Malaysia with a view to raising MYR300 million (US$72 million).

    The firm, which operates more than 200 food-and-beverage outlets in the territory, has reportedly hired advisors to facilitate the process and is seeking a valuation of up to MYR1 billion.

    “We have engaged corporate advisers for this exercise,” said Loo’s CEO Bryan Loo. “We cannot confirm the valuation sought nor the IPO portion, pending final recommendations from our advisers.”

    New listings have been slow off the mark this year, with only $9.4 million in first-time sales so far compared to $47.8 million during the same period last year. Several retail businesses are expected to list shortly, including Malaysia KFC operator QSR Brands and home improvement chain Mr DIY.

  • Vietnam Airlines approved for listing on HoSE

    Vietnam Airlines approved for listing on HoSE

    The national carrier Vietnam Airlines (UPCoM: HVN) has gained approval of the Hồ Chí Minh Stock Exchange (HoSE) to list its 1.4 billion shares on the southern bourse.

    The company will move to HoSE from the Unlisted Public Company Market (UPCoM) and the stock ticket will remain as HVN.

    The company’s market value on HoSE is approved at VNĐ14 trillion (US$602 million).

    Vietnam Airlines planned to switch to HoSE from UPCoM in 2018, but the decline of the stock market in the second half of 2018 made the firm delay its plan until now.

    The national carrier sold 49 million shares, equal to 3.48 per cent of the total, for VNĐ1.09 trillion at the initial public offering (IPO) in November 2014.

    In 2016, the Japanese aviation firm ANA Holdings bought 8.8 per cent of Vietnam Airlines’ capital for $108 million.

    In 2018, Vietnam Airlines posted a record-high revenue of VNĐ96.8 trillion, up 17 per cent year on year.

    Its pre-tax profit for 2018 rose 34 per cent year on year to VNĐ3.24 trillion.

    Vietnam Airlines shares on UPCoM have increased by nearly a quarter since the end of last year, ending Tuesday at VNĐ41,200 per share.

    The private-equity new-age carrier Vietjet is now the only aviation firm that lists shares on the stock market with the market value of $3 billion.

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  • Pret-a-Manger owner JAB Holding in difficult position

    Pret-a-Manger owner JAB Holding in difficult position

    JAB Holding, the German owner of Krispy Kreme and Pret-a-Manger, has pledged to pay US$11.3 million to charity after the family-owned company’s ties to the Nazi party were revealed. The German newspaper uncovered a significant historical connection between the wealthy Reimann family and the Nazis. The Reimann forebears were ardent anti-semites and strong supporters of Hitler, and used both Russian and French slaves in their factories.

    JAB Holding recently divested the Jimmy Choo and Bally businesses to shift its focus from apparel to food. It also owns Green Mountain Coffee, Panera bread, Mighty Leaf Tea, Caribou Coffee, Jacobs Douwe Egberts, Einstein Bros Bagels and a 38-per-cent stake in cosmetics giant Coty, among other investments.

    According to the German newspaper report, back in the Hitler era, its factory workers were treated brutally, with female slaves forced to attend barracks checks naked – suffering beatings and sexual abuse as punishment for refusal.

    In a 1937 letter to SS leader Heinrich Himmler, Albert Reimann Jr – the father of the four Reimann family members who now own the businesses – wrote that his company was more than 100 years old, and that the owners at the time were unconditional followers of the race theory.

    “It is all correct,” family spokesman Peter Harf, who is one of two managing partners of JAB Holdings told. “Reimann Senior and Reimann Junior were guilty. The two men have passed away, but they actually belonged in prison.”

    The family has commissioned historian, Paul Erker of Munich University, to study its ties to the Nazi regime. Already four years in the making, more information will be released to the public when it is complete.

    The report was commissioned by the family because it wanted to better understand the extent of their past connection to the Nazi regime. They are currently the second richest family in Germany.

  • Tealive parent Loob Holding eyes on IPO

    Tealive parent Loob Holding eyes on IPO

    Tealive parent Loob Holding, is planning an IPO to fund ‘aggressive expansion’. The company is looking to open 1000 Tealive stores in 15 countries by the end of next year.

    Along with another 150 new outlets in India by 2024.

    China is still its focus market, with 500 more outlets to come after first outlet opened last November.

    Tealive has more than 200 outlets in its home market, seven in Vietnam, two in China, and one in Australia. About one third of these are operated by franchisees.

    Loob Holding CEO Bryan Loo said the company is building relationships with potential business partners in Japan, Indonesia, Myanmar, Mongolia, and the UAE, while Singapore is also in its expansion plan.

    Apart from Tealive, Loob also runs F&B franchises in Malaysia, including Gindaco, Croissant Taiyaki, Define:food, Define:burgers and Ko Ko Kai.

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  • Thai BJC shareholders approve $6.2 billion Big C buy

    Thai BJC shareholders approve $6.2 billion Big C buy

    Thailand’s Berli Jucker shareholders have voted in favor of a $6.2 billion acquisition of hypermarket operator Big C Supercenter Pcl (BIGC.BK) from France’s Casino Group.

    Some 99.99 percent of voters approved the plan at Monday’s meeting, two financial sources who attended it said.

    Berli, the core retail business of Thai tycoon Charoan Sirivadhanabhakdi’s TCC group, won a hotly contested auction for Casino’s 58.6 percent stake in Big C.

    Earlier, Casino said it was on track to reduce debt as promised after Standard & Poor’s cut the French retailer’s credit rating to junk, citing falling profits, weakness in Brazil and competition at home.

    The Thai group secured $6.2 billion short-term financing deal with 15 banks to fund the Big C acquisition on Wednesday.

    Berli is expected to pay Casino by the end of March and the company will buy the remaining shares from minority shareholders in a tender offer, to be completed by May, one source said.

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