Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
So many property reviews and IRR’s for Mks ! Here’s another:
https://www.thecourier.co.uk/fp/news/dundee/3772150/new-ms-former-dw-sports-dundee/
Hi Chilting,
I hope you are well and staying happy.
Thanks for your appraisal and as usual very sound. I agree and my purchase here and elsewhere is to capture some value in well run companies.
GIST purchase will soon be cash positive.
Golden quarter ahead and things are always darkest before the dawn.
Thankfully, I am extremely busy trying to stabilise more earth.
Good luck
FY results for 2021/22
Strong all-round performance
· Profit before tax and adjusting items of £522.9m (2019/20 £403.1m).
· Statutory profit after tax of £309.0m (2019/20 £27.4m).
· Food growth of 10.1%, ex hospitality and franchise sales1 up 14.7%.
· M&S share of Ocado Retail net profit £13.9m including £7.2m net exceptional costs.
· C&H sales up 3.8%. Online growth of 55.6%, stores down 11.2%.
· Strong cash flow, reducing net debt excluding lease liabilities by £1.0bn to £420m
There was no forecast given for 22/23 at FY numbers release.
There has been no numbers communicated on 22/23 performance whatsoever.
We have just over 4 weeks to wait until the HY update 9 Nov’22
The facts are much simpler to understand than rumour and speculation.
SP down trend is macro geo political, Ocado JV performance, analysts know very little more than that, institutional ownership RWC etc have not changed their investments on Mks.
Shorts have grown to over 3% to balance the likely outcomes for 3 investment houses-they do it to most.
Good luck all.
Mks strategy day coming up this Wednesday, they normally publish a summary of it. Analysts and top shareholders will be there too.
Mks has an experienced leadership with winning strategies as witnessed through covid and since.
Mks have a growing market attracting the middle to upper classes, digitally wired internationally, renewed and disruptive supply chain that is growing it’s use of natural fabrics.
425m in debt, excluding property dilapidation accruals. Significantly less than Tesco.
Strong cash flow, increasingly so!
I don’t think £400m + pre tax is unreasonable this financial year.
I don’t know what all the fuss is about, obviously the long wait for Mks numbers makes short term holders nervous, whilst the long investors want long term targets and returns.
Bear markets turn into bull as a cycle, the timelines depend on larger issues fading, when the egos fade and fanatics are replaced we will see a large bull rampage.
Presumably most shareholders bought here based on its leadership, its market, and clear strategy/results.
Stay healthy
I have taken a small re-entry today. Golden quarter ahead and a sitting target.
Just a quick post; last two years M&S have given a Trading update 18-19 August, I wonder if this year maybe the same?
I’v had little time to watch the market, it’s a busy time for myself.
Hope all are keeping well.
Good luck
just rejoice at that news !!
Have a great weekend all, and life, it’s cheerio from me. My last post.
https://shorttracker.co.uk/company/GB0031274896/
Nothing above 0.50%!
Medium to small size suppliers I would say are much more transparent with their issues and supermarkets usually fall over themselves to help when they are honest and communicate effectively!
Communication is key and timely.
Personally I would like to see at least 25% less range in supermarkets, and the first to go are those products that are heavily processed and those that have highest carbon footprint.
Before anyone starts playing the violin for Kraft/Heinz:
Their EBITDA 2020 6,669 billion $, and 2021 5,980 b $
Usual tactics will apply; source alternative products or extend own label and relay the fixtures and remove gaps. Re issue new planograms to the stores.
Heinz need Tesco more.
Explain on shelf edge POS that excessive price increases from supplier will not be acceptable to our customers, apologies for inconvenience, alternatives are displayed.
That’s what I have done 40 odd years ago.
Excessive price increases in contract are usually as a result of raw material cost increases or SC, AND the company’s failure to make their operations cheaper. Together with poor decisions in the past on debt.
Supermarkets should not be taking the whole cost increase burden, but it can be shares based on evidence.
)) thanks JJ
Pleasure is all mine.
Tesco and other large retail buyers negotiate base product prices 2 years in advance and this is in full sight of the suppliers margin. Margin showing all operating costs, prices are contracted and changed have to be negotiated outside the contract. If Tesco in this case do it agree with price increases it’s because they can not see justification or they don’t agree with justification and, or, Tesco don’t agree the increase in costs is being fairly split between them and supplier.
There is also market intelligence within the category concerning raw materials.
Besides base buy price there are volume discounts on sales targets being achieved, additionally listing fees for new stores, and promotional fees to support marketing.
Invoicing to suppliers for case movement costs through Tesco supply chain is separate and these case costs have probably increased due to energy/fuel etc (these are shown in suppliers operating costs for base price negotiations)
It’s not straight forward but simple as a routine if buyers and suppliers are experienced.
In truth suppliers fix raw materials and most external operations costs 2-3 years in advance regardless of what you read in the media! Swings and roundabouts as raw costs do drop below and above contract costs.
Tesco and others category reviews, negotiations, trade planning, volume forecasts etc are agreed years up front and have been for at least 15-20 years, these are automatically scheduled.
Kraft/Heinz and others have to fairly show any ‘request’ to increase base prices are split fairly between the 2 parties and are a true reflection of reality on commodity markets, or their own base growing costs.
In many cases the likes of Kraft/Heinz have their own tomato crops and farms in the case of ketchup and likely that their wage/fuel/packaging costs are putting the pressure on, not energy as it’s wholesale is bought years in advance.
This share just keeps giving!
“Its up to the supplier to set their prices, not the retailer”
))))))
Businesses have to make the rules or be done to.
Walgreens wanted nearer 8-9£b
This may or may not mean anything at all to Mks! However, it is very interesting.