Recently, Jollibee Foods Corp. $JBFCF has experienced a significant surge in its stock value, reaching its highest level in nearly four years with an increase of 8.9%. This notable development has resonated within the Philippine market, largely due to the recent approval from the Philippine Stock Exchange (PSE) to lift the 40% foreign ownership limit on the company.
Reasons Behind the Stock Surge
One of the pivotal factors driving this sudden rise is the approval for amendments to the company's Articles of Incorporation, allowing for a reduction in restrictions on foreign investments. This endorsement from PSE opens the door for a broader array of potential investors and creates opportunities for capital influx, which could further bolster Jollibee Foods’ expansion and growth.
Australian company Origin Energy $ORG.AX has delivered outstanding financial results for the first half of 2023. Thanks to high sales of liquefied natural gas (LNG), the company has increased its underlying profit by 24%, surpassing analyst forecasts and strengthening its market position.
Origin Energy reported an underlying profit of AUD 924 million, significantly exceeding the Visible Alpha consensus forecast of AUD 888.3 million. This successful result allowed the company to declare an interim dividend of AUD 0.30 per share, surpassing market expectations of AUD 0.27.
Origin's shares rose by 1.5% in early trading amid a steady market $^AXJO. The company's success highlights its ability to adapt to changing market conditions and efficiently manage its assets.
An important update from the world of winemaking and investments: Australian company Treasury Wine Estates $TWE.AX, the producer of the renowned brand Penfolds, has decided to retain its affordable beverage division. The decision came following an inability to secure attractive offers for its sale. Alongside this, the company has adjusted its annual profit forecast, leading to an immediate impact on its stock market value.
Decision to Retain Affordable Brands
Over the past year, Treasury Wine Estates considered selling brands like Lindeman and Wolf Blass, which are known for producing affordable wines. This move was driven by the global trend of younger people increasingly turning away from drinking. However, after evaluating the offers received, the company indicated that retaining these assets is a more beneficial option.
Key Factors for Retention:
Orange SA $ORAN continues to maintain its market position, as evidenced by its recently released financial results for the fourth quarter. The figures indicate a slight increase in revenue that aligns with analysts' expectations. The primary driver of this growth has been the successful performance in the Middle East and Africa, which compensated for declines in Europe and the corporate sector.
Financial Overview
Orange SA's revenue rose by 0.5% on a constant currency basis, reaching €10.4 billion ($10.9 billion) in the fourth quarter of 2024 compared to the same period last year.
Regional Revenue Breakdown:
Amid significant deals in the cybersecurity industry, the Japanese company Trend Micro $4704.T has attracted attention from several major private equity firms. Among the potential buyers are Bain Capital, Advent International, and EQT AB. The expected deal value is estimated at 1.32 trillion yen, equivalent to $8.54 billion.
Interest in Acquisition
In recent weeks, negotiations with potential buyers have intensified. Companies have expressed interest in acquiring Trend Micro, although the deal remains uncertain. Sources caution that Trend Micro's management may opt to remain independent.
Nestle SA $NSRGY, the renowned producer of Nespresso coffee and KitKat chocolate bars, has announced plans to accelerate sales growth as current levels are historically low. In the context of rising raw material prices, Nestle intends to increase prices on its products while simultaneously optimizing costs.
Sales Growth Overview
According to data released by the company, revenue for the fourth quarter grew by 2.7% in real terms, surpassing analysts' predictions of approximately 2% growth. However, total sales for the past year only increased by 2.2%, marking one of the worst performances in recent decades and presenting challenges that need to be addressed in the coming years.
Cost Optimization
In January, the UK housing market experienced a notable slowdown due to declining property prices and decreased buyer demand. Nevertheless, the Royal Institution of Chartered Surveyors (RICS) predicts an upturn in activity in the coming year.
Current Market Conditions
Results from the RICS survey reveal that the net balance of house prices fell to +22 in January, down from a revised +26 in December. It's important to note that this is still the highest level since September 2022. Economists surveyed by Reuters had predicted the index to reach +27.
1. Price and Demand Shifts: The decrease in the net balance of house prices points to the difference between the number of surveyors reporting price increases and those noting declines. Despite the drop, this figure remains relatively high.
Media giant Paramount Global $PARA finds itself in a challenging situation as its channels, including popular networks like CBS and Nickelodeon, became unavailable on YouTube TV, following a failure to renew their agreement. Both sides acknowledged the breakdown in negotiations.
The Cause of the Disagreement
According to Paramount, YouTube TV is pushing for "unilateral terms" and "non-market demands," which hindered any agreement. Paramount has stated that it made several fair proposals to maintain their ongoing partnership.
YouTube, owned by Alphabet Inc. $GOOGL, expressed its commitment to finding a solution that keeps Paramount's channels on YouTube TV without negatively impacting its subscribers. However, the negotiations so far have been fraught with challenges.
Sony Corporation $SONY, a global technology and entertainment conglomerate, has once again captured the attention of investors and analysts with its remarkable achievements. The recent quarterly results showcased significant profit growth in its gaming and music segments, leading to a notable increase in stock prices during morning trading in Tokyo.
Sony's Gaming Division
In the last quarter, Sony's gaming division reported a 37% increase in profits. During the holiday season, 9.4 million units of the PlayStation 5 console were sold, reaffirming its dominant position in the gaming market.
Mexican airline Aeromexico has postponed its plans to go public on the New York Stock Exchange due to unfavorable market conditions. This decision was communicated by the airline's CEO, Andrés Conesa, who mentioned that the listing would proceed only when market conditions improve.
Reasons for IPO Delay
According to Aeromexico's CEO, the current market environment poses challenges for the proposed listing. Although Conesa did not specify the exact reasons, given the volatility of global markets and the high competition in the airline industry, such a move seems reasonable.
In 2022, the company announced its intention to launch an IPO on the NYSE under the ticker AERO, planning to offer American Depositary Shares. However, at that time, neither the shareholders nor the company disclosed the expected size or price range of the offering.
Mining giant Grupo Mexico $GMEXICOB.MX, controlled by billionaire Germán Larrea, has reported a decline in net profits for the fourth quarter of 2024, missing analysts' expectations. The company faced losses in its infrastructure segment and a decrease in profits within the transportation division.
Profit and Revenue Indicators
Grupo Mexico's net profit decreased by 6.5% to $686.5 million, falling short of analyst forecasts, which predicted net profits of $945 million.
Meanwhile, the company's revenue grew by 13% to $3.85 billion. Despite this growth, it still fell short of expectations from the research company LSEG, which had forecasted revenues of $4.04 billion.
Telecommunications giant America Movil $AMX has recently reported a significant drop in net income for the fourth quarter, despite overall revenue growth. This outcome was largely influenced by currency losses, as explained by the company, which is controlled by the family of Mexican billionaire Carlos Slim.
Impact of Currency Fluctuations
America Movil attributed a substantial part of its reduced earnings to a higher overall cost of financing, with nearly half stemming from currency losses. This was particularly noticeable in Mexico, where the domestic market accounts for about 35% of total revenue. The Mexican peso depreciated by over 20% against the US dollar in 2024, heavily impacting the company's financial performance.
