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Tag: positive

  • Fonterras Positive Momentum Continues with $1.5B Q3 Operating Profits Despite Global Uncertainties

    Fonterras Positive Momentum Continues with $1.5B Q3 Operating Profits Despite Global Uncertainties

    New Zealand-based dairy cooperative, Fonterra, is exuding optimism about its future performance amid global uncertainties. The company’s third quarter results showed a promising $1.5 billion in operating profits, marking an impressive year-on-year increase of $85 million.

    Fonterra’s Stellar Performance

    Richard Allen, Fonterra’s CEO, proudly announced this significant achievement, describing the results as another demonstration of their strength. Despite the disruption of global supply chains, the company has seen a substantial rise in milk production this season. The organization’s sales book is well contracted, and its shipping volumes have been robust, recording the highest third-quarter shipment volumes in the past decade.

    Allen became the CEO succeeding a 25-year veteran, Miles Hurrell, who declared his retirement in December. Looking forward, Allen expects the company’s high milk collections to persist, much like the current season.

    “Our in-market sales teams foresee robust demand from across all regions amid possible fluctuations. This expectation is mirrored in our opening forecast range,” Allen stated.

    Resilience Amid Challenges

    Despite the approaching final quarter of the financial year, Allen expresses confidence in the company’s ability to maintain its momentum. He acknowledges the uncertainty prompted by the ongoing conflict in the Middle East and other global challenges, such as cost inflation and shipping disruptions.

    “Like our farmers and many others worldwide, we are navigating these challenges. However, we are confident that our deep relationships with customers and logistics partners will continue to assist us in overcoming these obstacles,” he commented.

    Questions & Answers

    What is Fonterra’s latest operating profit?
    Fonterra reported a $1.5 billion operating profit for its third fiscal quarter, growing its profits by $85 million year-on-year.

    What challenges is Fonterra facing?
    Fonterra is dealing with global challenges such as cost inflation, shipping disruptions, and uncertainties caused by the ongoing conflict in the Middle East.

    Despite the challenges, how does Fonterra view its future performance?
    Fonterra is optimistic about its future performance. The company expects to maintain its strong momentum, anchored by high milk collections and robust demand from all regions. They also express confidence in their deep relationships with customers and logistics partners that will help them navigate the current global challenges.

  • Air China Soars Back to North Korea After Six-Year Hiatus: A Positive Shift Towards Open Borders

    Air China Soars Back to North Korea After Six-Year Hiatus: A Positive Shift Towards Open Borders

    After a six-year break, Air China has reinstated direct flights from Beijing to Pyongyang. This comes as another indication that North Korea is gradually becoming more accessible, following the reestablishment of train services between the two capitals.

    Resumption of Flight Services

    Air China’s Flight CA121 took off from Beijing Capital Airport at 7:58 a.m. and touched down at Pyongyang’s Sunan International Airport at 10:37 a.m. The aircraft used for the journey was a Boeing 737-700, which has a passenger capacity of up to 128. However, only individuals with business or study purposes or those with special reasons are currently allowed to undertake the cross-border trip.

    Chinese ambassador to North Korea, Wang Yajun, along with other Chinese diplomats, welcomed the passengers upon their arrival at the airport.

    Passenger Perspectives

    Among the passengers ready to embark on the flight was business traveler Zhao Bin, who conveyed positive sentiments about the resumption of services. He anticipates that the increased availability of transportation options will enhance travel and communication between the two countries. Zhao, a frequent visitor to North Korea, said that the renewed flight service will significantly benefit those who regularly journey between Beijing and Pyongyang.

    In addition, Zhao expressed his eagerness to explore North Korea’s diverse culinary scene and looked forward to the potential strengthening of relations between the two nations due to increased exchange.

    Implications for Tourism

    The cost of economy class tickets for the flight was around $200. A return flight from Pyongyang is planned for midday.

    While this is a promising step, there is still no clear information regarding the resumption of tourism for Western visitors. Before the pandemic, Chinese tourists made up the majority of foreign visitors in North Korea, with approximately 350,000 in 2019, making it a significant source of revenue for Pyongyang.

    By contrast, around 5,000 Western tourists visited North Korea annually from 2009, with U.S. citizens making up 20% of these numbers.

    Slow Reopening

    North Korea has been slower in reopening its borders fully compared to China. The country resumed direct flights and train services with Russia last year, and state carrier Air Koryo reinstated flights from Beijing to Pyongyang in 2023.

    Questions & Answers

    What is the capacity of the Boeing 737-700 used for the flight between Beijing and Pyongyang?
    The Boeing 737-700 used for the flight can accommodate up to 128 passengers.

    Who are currently allowed to travel between Beijing and Pyongyang?
    Only individuals traveling for business or study purposes or those with special reasons are currently allowed to undertake the cross-border trip.

    How many Chinese tourists visited North Korea before the pandemic?
    Before the pandemic, Chinese tourists made up the majority of foreign visitors in North Korea, with approximately 350,000 in 2019.

  • Starbucks Strikes Success: Turnaround Strategy Brews Positive Sales Growth After Two Years

    Starbucks Strikes Success: Turnaround Strategy Brews Positive Sales Growth After Two Years

    Starbucks has finally shown a surge in comparable sales growth, marking the first increase in nearly two years. This promising development suggests the early success of the renowned coffee company’s turnaround strategy.

    Turnaround Indicators

    The fourth quarter, which ended on September 28, witnessed a 1 per cent increase in global comparable store sales. This significant growth, the first in seven quarters, was mainly due to an increase in comparable transactions.

    In North America, and particularly in the US, comparable store sales remained steady. There was a 1 per cent rise in the average ticket, which was counterbalanced by a 1 per cent drop in comparable transactions. This is a notable improvement from a 2 per cent dip in the third quarter, a change credited to the positive momentum generated by the ‘Back to Starbucks’ initiative. Moreover, the company pointed out that comparable sales in the market began to show positive growth as of September.

    International Growth

    International comparable store sales saw a 3 per cent increase, with China’s comparable store sales experiencing a 2 per cent hike.

    The consolidated net revenues for the quarter grew by 5 per cent, amounting to US$9.6 billion, thus extending the 4 per cent rise witnessed in Q3.

    Brian Niccol, the chairman and CEO, expressed his optimism regarding the progress of the ‘Back to Starbucks’ strategy. He stated, “It’s clear that our turnaround is taking hold. Our return to global comp growth and the momentum we are building give me confidence that we are on the right path to deliver the very best of Starbucks for our customers, partners and shareholders.”

    However, for the entire year, comparable store sales witnessed a 2 per cent fall, with a 2 per cent decline in North America and the US, a flat growth in international markets, and a 1 per cent decrease in China.

    Financial Summary

    On the financial front, net earnings plummeted by 85 per cent to $133 million in the fourth quarter and fell by 50 per cent to $1.8 billion for the entire year.

    Starbucks closed 107 net stores in Q4, including 627 stores, with a majority (90 per cent) being in North America. This aligns with the restructuring plan announced earlier, where Starbucks unveiled its plans to cut its North American store network by approximately 1 per cent and eliminate around 900 non-retail partner roles.

    At the quarter’s end, Starbucks’ global portfolio consisted of 61 per cent of stores located in the US and China, including 16,864 stores in the US and 8,011 outlets in China.

    Questions & Answers

    What is the ‘Back to Starbucks’ strategy?
    The ‘Back to Starbucks’ strategy is a turnaround plan designed to boost the company’s sales growth and profitability.

    How has this strategy impacted Starbucks’ performance?
    The ‘Back to Starbucks’ strategy has positively impacted the company, resulting in a 1 per cent increase in global comparable store sales and a 5 per cent rise in consolidated net revenues in Q4.

    What is the future plan of Starbucks in light of the recent restructuring?
    Starbucks plans to focus more on the US and Chinese markets, which currently comprise 61 per cent of the company’s global portfolio. The company also intends to reduce its North American store network by about 1 per cent and cut 900 non-retail partner roles as a part of its restructuring plan.

  • Waze adds cats and dogs voices and moods, car icons to its app

    Waze adds cats and dogs voices and moods, car icons to its app

    More voices are coming to one of the most popular navigation app, Waze. This time we have something special to talk about, as Waze is adding cats and dogs voices to its mobile apps. So, regardless of whether you’re a cat or dog person, Waze now has you covered.

    From today for a limited time, Waze users can choose between two navigation voices that personify a dog or a cat. But we’re getting a lot more than just two voices, as each is themed toward a different mood.

    The dog voice is upbeat, positive, encouraging, and excited (distracted too!), while the cat voice is c, but also funny and irreverent. So it’s up to each user to choose the theme they like.

    In addition to the new voices, Waze introduces new car icons that can be used on the live map, such as the Meow Mobile and the Woof Wagon. There are also meant to show the user’s pet preference as they’ll have to change their mood to Cat or Dog.

    Keep in mind that the Cat & Dog theme will be available in English, French, and Spanish for a limited time, so make sure to download them before they’re gone.

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  • Esprit positive as network shrinks

    Esprit positive as network shrinks

    Fashion retailer Esprit continues to cull its retail network, but despite reduced sales is confident its turnaround program is on track.

    In the third quarter to March 31, the Hong Kong-listed company’s turnover fell 25.5 per cent in Hong Kong dollar terms to HK$4.51 billion, or 12.2 per cent in local currencies where it trades. The Hong Kong figure has been exaggerated by a 17.7 per cent depreciation in the Hong Kong dollar-euro exchange rate.

    Retail turnover in Asia Pacific grew by two per cent year-on-year in the third quarter, despite a 2.6 per cent reduction in net sales area, or 20 fewer company-owned stores.

    Over the last 12 months Esprit has reduced the number of Asia-Pacific stores supplied by its wholesale division by 40 per cent, or 188 stores.

    Wholesale turnover in Asia Pacific thus declined by 8.8 per cent year-on-year in local currency (compared with a 49.3 per cent reduction in the first half of the year). Esprit says this improvement was mainly attributable to the success of its special return agreements with wholesale partners in China which helped to clear considerably aged inventories in the same period last year. That, in turn, has resulted in an improved order intake for the third quarter.

    “In the third quarter, the Transformation phase continued to make good progress,” Esprit said in a stock exchange filing.

    “Our leaner supply chain maintained its positive impact on our sourcing costs, enabling us to reinvest the savings to further improve the value-for-money of our products. Consequently, the new collections developed under the Vertical Model, which were available in stores since February 2015 have received a more positive response.

    “While this favorable response is encouraging, it is too early to assess the full impact of the new products on our sales given their short time in the market.”

    Esprit said to drive sales development and support its sustainable growth, the company will be increasing its marketing efforts and implementing an ambitious omni-channel model to enhance the customer experience across its multiple distribution channels.

    “The savings from a leaner supply chain are also driving a year-on-year improvement of our gross profit margin, which is key for the profitability of the company.

    “We remain fully confident that our current strategies will enable us to turn around Esprit and to establish a strong foundation for future long term growth.”

    Esprit concluded by saying it was encouraged by improved sales of its new collections which went on sale from February this year.

    “Retail turnover for the months of February and March 2015 declined year-on-year by 2.9 per cent in local currency – better than our square meters reduction.

    “The positive performance in Asia Pacific, where we did not face the same issues from Autumn/Winter 2014 season, was attributable to  better availability of merchandise in stores as a result of improved logistics support and more successful tactical promotions in all of our Asian markets for the Chinese New Year holiday.”

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