I Bytes Retail & Consumer Goods industry

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I-Bytes
Retail & Consumer Goods
November Edition 2020
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Table of Contents
1. Financial, M & A Updates...................................................................................................................................1
2. Solution Updates................................................................................................................................................51
3. Rewards and Recognition Updates..................................................................................................................63
4. Customer success Updates................................................................................................................................86
5. Partnership Ecosystem Updates.......................................................................................................................88
6. Environment & Social Updates......................................................................................................................105

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Financial, M & A Updates
Retail & Consumer Goods Industry

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Financial, M&A Updates
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Alibaba (China) Acquires Controlling Stake in Sun Art
Alibaba Group Holding Limited announced it will invest approximately USD3.6 billion in
respect of Sun Art Retail Group Limited, a leading hypermarket and supermarket operator in
China, that will raise its aggregate direct and indirect stake to approximately 72%1 . This
transaction demonstrates Alibaba’s continued commitment to Sun Art, and its New Retail
strategy by further integrating online and offline resources in China’s retail sector. As part of
the transaction, Alibaba will acquire 70.94% of equity interest in A-RT Retail Holdings
Limited (“A-RT”) from Auchan Retail International S.A. and its subsidiary (“Auchan
Retail”) valued at approximately HKD28.0 billion (USD3.6 billion). A-RT holds
approximately 51% of the equity interest in Sun Art. Following the transaction, Alibaba will
consolidate Sun Art in its financial statements. Additionally, Peter Huang has been appointed
Chairman of Sun Art in addition to his current role as Chief Executive Officer.In November
2017, Alibaba Group, Auchan Retail and Ruentex Group announced a strategic alliance to
digitalize and introduce New Retail solutions at Sun Art stores, including omnichannel
integration and a more personalized customer experience. Over the past three years, Sun Art
has made significant progress in the digital transformation under a fast-changing market
environment by leveraging resources and technology from the Alibaba ecosystem, to
capitalize on the growth opportunities in China’s hypermarket and supermarket space.
Executive Commentary
Chairman and Chief Executive Officer of Alibaba Group, said: “Alibaba’s strategic
investment in Sun Art in 2017 was an important step in our New Retail strategy. The
alliance we formed with Auchan Retail and Ruentex was instrumental in building a
robust infrastructure to create opportunities and value in China’s retail sector. Led by
Chief Executive Officer Peter Huang, Sun Art has achieved impressive results in its
digitalization, and pursued promising synergies with businesses across the Alibaba
digital economy. As the COVID-19 pandemic is accelerating the digitalization of
consumer lifestyles and enterprise operations, this commitment to Sun Art serves to
strengthen our New Retail vision and serve more consumers with a fully integrated
experience.
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Amazon.com (USA) Announces Third Quarter Results
• Operating cash flow increased 56% to $55.3 billion for the trailing twelve months, compared
with $35.3 billion for the trailing twelve months ended September 30, 2019.
• Free cash flow increased to $29.5 billion for the trailing twelve months, compared with $23.5
billion for the trailing twelve months ended September 30, 2019.
• Free cash flow less principal repayments of finance leases and financing obligations increased to
$18.4 billion for the trailing twelve months, compared with $14.6 billion for the trailing twelve
months ended September 30, 2019.
• Free cash flow less equipment finance leases and principal repayments of all other finance leases
and financing obligations increased to $17.9 billion for the trailing twelve months, compared with
$10.5 billion for the trailing twelve months ended September 30, 2019.
• Common shares outstanding plus shares underlying stock-based awards totaled 518 million on
September 30, 2020, compared with 511 million one year ago.
• Net sales increased 37% to $96.1 billion in the third quarter, compared with $70.0 billion in third
quarter 2019. Excluding the $691 million favorable impact from year-over-year changes in foreign
exchange rates throughout the quarter, net sales increased 36% compared with third quarter 2019.
• Operating income increased to $6.2 billion in the third quarter, compared with operating income
of $3.2 billion in third quarter 2019.
• Net income increased to $6.3 billion in the third quarter, or $12.37 per diluted share, compared
with net income of $2.1 billion, or $4.23 per diluted share, in third quarter 2019.
“Two years ago, we increased Amazon’s minimum wage to $15 for all full-time, part-time,
temporary, and seasonal employees across the U.S. and challenged other large employers to do
the same. Best Buy and Target have stepped up, and we hope other large employers will also
make the jump to $15. Now would be a great time,” said Amazon founder and CEO. “Offering
jobs with industry-leading pay and great healthcare, including to entry-level and front-line
employees, is even more meaningful in a time like this, and we’re proud to have created over
400,000 jobs this year alone. We’re seeing more customers than ever shopping early for their
holiday gifts, which is just one of the signs that this is going to be an unprecedented holiday
season. Big thank you to our employees and selling partners around the world who’ve been busy
getting ready to deliver for customers this holiday.”
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Key Financial Highlights

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ADM (USA) Reports Third Quarter Earnings of $0.40 per Share, $0.89
per Share on an Adjusted Basis
• EPS as reported of $0.40 includes a $0.53 per share charge related to early debt
retirement, a $0.03 per share charge related to the mark-to-market adjustment of the
exchangeable bond issued in August 2020, a $0.10 per share credit related to the gain
on sale of Wilmar shares and certain assets, and other charges totaling $0.03 per
share. Adjusted EPS, which excludes these items, was $0.89.
• Net earnings of $225 million; adjusted net earnings of $499 million
• Outstanding results, great execution in all three businesses
• Continued focus on Readiness to drive growth, innovation, sustainability
• Segment operating profit of $904 million for the quarter includes charges related
to asset impairment, restructuring, and settlement activities of $2 million and gains
on the sale of Wilmar shares and certain assets of $57 million ($0.10 per share).
• During the quarter, the company leveraged its strong cash position to re-balance
its mix of long- and short-term debt, which will also reduce future interest payments,
by economically retiring $1.2 billion of higher-coupon debt, resulting in a debt
extinguishment charge of $396 million ($0.53 per share).
“We delivered an outstanding quarter, and I am proud of our team’s continued
great performance,” said Chairman and CEO.Across the enterprise, ADM
colleagues are doing what it takes to help our customers and our company
succeed and grow. Our strategic initiatives, combined with exceptional
execution, are driving strong results across all of our businesses. Readiness is
enhancing our performance, accelerating our work in areas ranging from
operations to sales. Our strong cash generation is allowing us to retire higher-cost
debt while retaining balance sheet flexibility. And Nutrition continues its
impressive upward trajectory, delivering a fifth consecutive quarter of 20-plus
percent year-over-year operating profit growth.From our Strive 35 sustainability
goals, to our partnership with Spiber to produce plant-based polymers, to the
announcement of a significant expansion in probiotics with our new state-of-the
art facility in Valencia, we’re advancing our work to enrich the quality of life
around the globe. We’re excited about our future as we look ahead to another
strong quarter, with positive momentum continuing through 2021.”
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Bed Bath & Beyond Inc. (USA) Launches $225 Million Accelerated Share
Repurchase Program
Bed Bath & Beyond Inc. announced a share repurchase program totaling up to $675 million over
the next three years. As part of the program, the Company has entered into an accelerated share
repurchase agreement (ASR) to repurchase an aggregate of $225 million of Bed Bath &Beyond's
common stock.Under the terms of the ASR, the purchase price per share will be determined based
on the daily volume-weighted average stock price over the term of the ASR, less an agreed
discount and subject to adjustments. The final number of shares repurchased under the ASR will
be determined based on such purchase price. The final settlement of the transaction is expected
to occur no later than the end of the Company's fiscal 2020 fourth quarter ending on February 27,
2021. JPMorgan Chase Bank, National Association acted as sole counterparty to the ASR
agreement.Bed Bath & Beyond is funding the share repurchases under the ASR with existing
cash resources primarily generated from the monetization of some non-core assets. In addition to
the accelerated share buyback that will occur in fiscal 2020, the Company expects to return up to
$150 million per year in share repurchases over the next three years for a total share repurchase
program of up to $675 million. In March of 2020, the Company suspended its previously
authorized share repurchase program as part of the decisive actions taken to proactively manage
the unprecedented financial and operational impacts of COVID-19. Since that time, the
Company has continued to prioritize investments that would allow it to rebuild and grow, while
reducing its cost structure and enhancing its financial flexibility.
"We're focused on maximizing value for our shareholders and the ASR reflects our
commitment to returning capital as part of a balanced approach to drive shareholder value
creation and sustainable growth for the business. Our decision to resume our share buyback
program coupled with our actions to date to pay down debt, sell non-core assets and increase
liquidity, reflect the strength of our business and financial position, capacity for strategic
investments, disciplined approach to capital allocation and our confidence in our growth
plan," said President and Chief Executive Officer.
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BAT strengthens its US New Category portfolio: Announces acquisition of Dryft
Modern Oral business
British American Tobacco p.l.c. announces that the US business of the BAT
Group (BAT) has acquired the nicotine pouch product assets of Dryft Sciences,
LLC (Dryft), a US-based Modern Oral nicotine product company.
New Category portfolio expansion in the US:
• This acquisition expands BAT’s Modern Oral portfolio in the US, expanding
from 4 to 28 product variants. It follows the acceptance of Dryft’s recent
Pre-Market Tobacco Product Application (PMTA) submission for filing by the
US Food and Drug Administration.
• The enhanced portfolio will include a wider range of nicotine strengths and
flavours providing adult nicotine consumers with a greater degree of choice,
covering all key consumer preferences. This will significantly strengthen BAT’s
portfolio in a fast-growing nicotine category in the US.
• BAT will rebrand Dryft’s US portfolio under its global Modern Oral brand,
VELO, and expects to accelerate growth through superior distribution, marketing
and channel capabilities.
President of DRYFT Sciences, LLC, said:“We’re proud of the tremendous
momentum we’ve built with Dryft and thrilled that our strong product
portfolio will now serve to enhance the Velo brand. We remain confident that
modern oral innovations like Dryft and Velo will continue to find an adult
consumer base seeking alternatives to traditional products.”
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Bunge (USA) Reports Third Quarter 2020 Results
• Q3 GAAP EPS of $1.84 vs. $(10.57) in the prior year; $2.47 vs. $1.28
on an adjusted basis excluding certain gains/charges and mark-to-market
timing differences
• Strong results driven by outstanding execution across Bunge’s global
platform
• Exceptional Agribusiness performance driven by oilseed processing,
which benefited from higher margins and volumes
• Edible Oils results better than expected; year to date results higher than
prior year despite COVID-19 impacts
• Increasing full-year adjusted EPS outlook to between $6.25 and $6.75
based on strong Q3 results and improving market trends
Bunge's Chief Executive Officer, commented, “Our team delivered a
strong third quarterwith outstanding execution across our global
platform, leveraging improving market trends. We achievedrecord
crush utilization and captured exceptionally strong margins while
supporting our customers andmaintaining measures to protect the health
of our employees. These results, and our performance overthe past few
quarters, reflect the meaningful changes we’ve made to our operating
model, portfolio andfinancial approach.Looking into next year, we
expect many of the favorable trends to continue with demand for our
productsremaining strong. We also expect additional global demand for
vegetable oil from the growth of biofuels.With our strength in oilseed
processing, in addition to our global origination and distribution
capabilities,we believe we are well positioned to meet market demands
and capitalize on this growth."
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Bunge (USA) Agrees to Sell its Refinery in Rotterdam
Bunge Limited announced that its Bunge LodersCroklaan JV has entered into
an agreement to sell its refinery located in Rotterdam to Neste Corporation
(NESTE.HE) for €258 million in cash, excluding working capital. Bunge will
lease back the facility from Neste in a phased transition through 2024 so that it
can continue to supply its customers with its products. The transaction is
expected to close in the first quarter of 2021, subject to regulatory
approvals.Bunge is a world leader in sourcing, processing and supplying
oilseed and grain products and ingredients. Founded in 1818, Bunge's
expansive network feeds and fuels a growing world, creating sustainable
products and opportunities for more than 70,000 farmers and the consumers
they serve across the globe. The company is headquartered in St. Louis,
Missouri and has almost 25,000 employees worldwide who stand behind more
than 350 port terminals, oilseed processing plants, grain facilities, and food
and ingredient production and packaging facilities around the world.
With a portion of the proceeds from this transaction, Bunge will reinvest in
its asset footprint to reach greater operational flexibility and efficiency and
provide an enhanced portfolio of multi-oil refined products to its
customers. “This transaction supports our long-term strategy in
value-added oils and oilseeds-based ingredients by enabling us to further
enhance our footprint in an innovative and sustainable way,” said Bunge’s
Chief Executive Officer.
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Carlsberg (Denmark) acquires Wernesgrüner Brewery
The Carlsberg Group has entered into an agreement with
BitburgerBraugruppe to acquire the Wernesgrüner Brewery, including
the Wernesgrüner brand, in the Vogtland region of Saxony, Germany.
The Wernesgrüner brand is one of the most traditional German beer
brands and will strengthen our portfolio and market position in our
core regions of northern and eastern Germany. The addition of
Wernesgrüner brewery to our supply chain network will improve
efficiency and flexibility in production and logistics in our German
business. It is a modern and efficient brewery with a capacity of
approximately 1m hl. In 2019, production volume was approximately
0.5m hl, and revenue was EUR 31m. The transaction is anticipated to
complete on 1 January 2021, subject to competition clearance.
CEO says: “The acquisition of the Wernesgrüner Brewery will
strengthen our position in our core regions of northern and eastern
Germany. We will be able to offer a stronger portfolio to our
customers, and the acquisition will bring considerable benefits in
both production and logistics.”
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Church & Dwight (USA) Reports Q3 Results
Third Quarter Review
• Consumer Domestic net sales were $954.6 million, a $127.0 million or 15.3% increase driven by household and personal care sales growth.
Organic sales increased 10.7% due to higher volume (+11.1%), offset by lower price and product mix (-0.4%) as a result of increased promotion
and couponing for new products. Strong consumption was the primary driver for the sales increase. Organic sales growth was led by
VITAFUSION® and L’IL CRITTERS® gummy vitamins, WATERPIK® oral care products, ARM & HAMMER® liquid laundry detergent,
OXICLEAN® stain fighters, KABOOM® bathroom cleaners, ARM & HAMMER® clumping cat litter and baking soda, and FIRST
RESPONSE® diagnostic kits.
• Consumer International net sales were $213.6 million, a $27.2 million or 14.6% increase versus the prior year. Organic sales increased
11.6% due to higher volume (+11.7%). Organic sales growth was driven primarily by the Global Markets Group and Canada.
• Specialty Products net sales were $72.8 million, a $2.6 million or 3.4% decrease. Organic sales also decreased 3.4% due to lower volume
(-3.8%) offset by higher pricing (+0.4%). The lower volume was primarily driven by the non-dairy Animal and Food Production and specialty
chemical businesses as they face continuing challenges from the COVID-19 pandemic reducing demand.
• Gross margin decreased 110 basis points to 45.5% due to the impact of tariffs, COVID-19 pandemic related expenses, higher
manufacturing costs due to outsourcing, and acquisition accounting, partially offset by productivity improvements. Specifically, gross margin
was impacted by a 200 basis point headwind in the quarter, from the year-over-year impact of tariffs (-110 basis points), and acquisition
accounting (-90 basis points).
• Marketing expense was $170.9 million, an increase of $45.7 million or 36.5% reflecting brand investments to provide momentum going
into 2021. Marketing expense as a percentage of net sales increased 230 basis points to 13.8%.
• Selling, general, and administrative expense (SG&A) was $120.5 million or 9.7% of net sales, a 550 basis point decrease, primarily due to
an acquisition related earn-out adjustment. Adjusted SG&A of $171.5 million decreased 30 basis points as a percentage of net sales primarily due
to leverage from strong sales growth. 2
• Income from Operations was $273.8 million or 22.0% of net sales. Adjusted Income from Operations was $222.8 million or 17.9% of net
sales excluding the acquisition related earn-out adjustment. 2
• Other Expense of $12.3 million declined $3.9 million due to lower interest expense resulting from lower interest rates.
• The effective tax rate was 17.3% compared to 21.6% in 2019, a decrease of 430 basis points, primarily driven by higher tax benefits related
to stock option exercises.
Chief Executive Officer, commented, “Q3 was an extraordinarily strong quarter for Church & Dwight. Both our household and personal
care businesses delivered higher volume growth as consumers and retailers focused on core essentials. Our brands experienced strong
consumption in Q3 and we continue to see similar strength in October. The pandemic drove double digit consumption growth in most
domestic categories, especially gummy vitamins, women’s hair removal, cleaners, and baking soda. Restrictions on consumer mobility
continued to suppress the condoms and dry shampoo categories, although we saw significant sequential improvement in Q3. Consumption
of water flossers was flat in Q3 and positive for October, after experiencing double-digit declines in Q2. Year-to-date shipments and
consumption are generally in balance for our brands. However, retailer in-stocks continue to lag normal levels for some brands, including
gummy vitamins, baking soda, and cleaners. Online sales as a percentage of total sales continued to grow rapidly and reached 13% of sales
in Q3, up from 8% last year. The International business had a strong quarter despite the global COVID-19 pandemic, with extremely strong
and broad-based consumption increases across many countries and brands. After 3 consecutive quarters of growth, SPD sales contracted
primarily in the non-dairy segment.”
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Coca-Cola (USA) Reports Third Quarter 2020 Results, Provides Update
on Strategic Actions to Emerge Stronger from the Pandemic
Quarterly Performance
• Revenues: Net revenues declined 9% to $8.7 billion. Organic revenues (non-GAAP)
declined 6%. Revenue performance included a 4% decline in concentrate sales and a 3% decline
in price/mix. The company reported improvement in trends versus the prior quarter, with revenue
declines versus the prior year driven by ongoing pressure in away-from-home channels partially
offset by sustained growth in at-home channels.
• Margin: Operating margin, which included items impacting comparability, was 26.6%
versus 26.3% in the prior year, while comparable operating margin (non-GAAP) was 30.4%
versus 28.1% in the prior year. Operating margin expansion was primarily driven by effective
cost management, partially offset by top-line pressure and currency headwinds.
• Earnings per share: EPS declined 33% to $0.40, and comparable EPS (non-GAAP) declined
2% to $0.55.
• Market share: The company lost value share in total nonalcoholic ready-to-drink (NARTD)
beverages as an underlying share gain was more than offset by negative channel mix due to
continued pressure in away-from-home channels, where the company has a strong share position.
• Cash flow: Year-to-date cash from operations was $6.2 billion, down 20%. Free cash flow
(non-GAAP) was $5.5 billion, down 17%.
"Throughout this year's crisis, our system has remained focused on its beverages for life
strategy. We are accelerating our transformation that was already underway, shaping our
company to recover faster than the broader economic recovery," said, chairman and CEO of
The Coca-Cola Company. "While many challenges still lie ahead, our progress in the quarter
gives me confidence we are on the right path."
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Coca-Cola European Partners (UK) announces it has made a non-binding
proposal to acquire Coca-Cola Amatil Limited
The Board of Directors of CCEP: has made a non-binding offer to acquire 69.2% of the entire existing issued share capital of CCL, which is held by shareholders other
than The Coca-Cola Company (“Independent Shareholders”), to be effected by means of a scheme of arrangement; and has entered into a non-binding heads of terms
and cooperation letter with The Coca-Cola Company (KO), setting out the terms on which CCEP proposes to acquire KO’s 30.8% interest in CCL, conditional upon
Australian regulatory approvals and the implementation of the scheme of arrangement If confirmatory due diligence is completed by CCEP, other conditions satisfied
and an acceptable scheme implementation deed is negotiated, the Board of Directors of CCL (excluding KO’s nominee directors), intends to unanimously recommend
the scheme to Independent Shareholders, in the absence of a superior proposal and subject to an independent expert concluding, and continuing to conclude, that the
scheme is fair and reasonable and in the best interests of Independent Shareholders. The proposed transaction would create a broader and more balanced footprint for
CCEP whilst almost doubling CCEP’s consumer reach, with the aim of ultimately driving sustainable and faster growth, through geographic diversification and scale
Under the terms of the proposal:
• CCL’s Independent Shareholders would receive A$12.75 per share in cash, representing a premium of 23 per cent to the 1-week Volume Weighted Average Price
(VWAP), 28 per cent to the 1-month VWAP and a premium of 38 per cent to the 3-month VWAP of CCL’s shares
• KO would receive A$9.57 per share in cash for part of their shareholding, which comprises 10.8% of CCL’s shares. CCEP will work with KO to acquire all of KO’s
remaining 20% shareholding in CCL, in connection with which CCEP may satisfy part of the consideration for these CCL shares by the issue of CCEP shares at an
agreed conversion ratio
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Coca-Cola European Partners (UK) announces it has entered into binding
agreements to acquire Coca-Cola Amatil
CCEP announces that it has completed its confirmatory due diligence and entered into a
binding Scheme Implementation Deed (“SID”) with CCL. Under the terms of the SID,
CCEP will offer to acquire 69.2% of the entire existing issued share capital of CCL,
which is held by shareholders other than The Coca-Cola Company (“Independent
Shareholders”) for $12.75 per share in cash, pursuant to a scheme of arrangement. The
Board of Directors of CCL (excluding The Coca-Cola Company’s (KO) nominee
directors) have reaffirmed that they intend to unanimously recommend the Scheme to
Independent Shareholders, in the absence of a superior proposal and subject to an
independent expert concluding, and continuing to conclude, that the Scheme is fair and
reasonable and in the best interests of Independent Shareholders. The Scheme is subject
to customary conditions, including CCL shareholder approval, court approval, no
material adverse change, no prescribed occurrences, Australian Foreign Investment
Review Board approval and New Zealand Overseas Investment Office approval.
Chief Executive Officer of CCEP, said:“This is a fantastic opportunity to bring
together two of the world’s best bottlers to drive faster and more sustainable growth.
Since the creation of CCEP four years ago, we have proven our ability to create value
through expansion and integration. Now is the right time to move forward by taking
on these great franchises and markets.The strategic rationale behind this transaction
is compelling, solidifying our position as the largest Coca-Cola bottler by revenue. I
am eager to apply our proven formula in Western Europe to Coca-Cola Amatil’s
markets, including leadership in areas such as revenue growth management,
in-market execution, digital and sustainability. However, I am equally excited and
genuinely convinced that there will be many more opportunities as we move forward
together with speed, scale, excellent people and a richer, more diverse culture.This
larger platform will unlock enhanced value for our shareholders, all underpinned by
an even stronger and more aligned strategic partnership with The Coca-Cola
Company and our other brand partners. We look forward to executing on the
ambitious growth plans ahead of us, as we build on the best of who we are and create
a very exciting future together.”
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Essity(Sweden) divests partly owned company in Tunisia
Hygiene and health company Essity divests its 49% stake in Sancella Tunisia to the other owner Sotupa. Sancella
Tunisia offers a range of Essity's products and brands in Tunisia, Algeria, Morocco, and Libya. Essity will retain a
presence on these markets through license and distribution agreements. In 2019, Sancella Tunisia reported net sales
of SEK 575m (TND 154m). The divestment is expected to give rise to a gain of approximately SEK 25m, which
will be recognized as an item affecting comparability when the transaction is completed. The transaction is subject
to approval by Tunisian authorities and is expected to be completed during Q4 2020.
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FEMSA Comercio (Mexico) announces agreement with Chilean retailer SMU to
acquire OK Market stores
FomentoEconómicoMexicano, S.A.B. de C.V. announced that its subsidiary,
FEMSA Comercio has reached an agreement with SMU, S.A, a leading Chilean
retailer, to acquire its OK Market store chain for a total amount of 1,515,965
Unidades de Fomento1 or approximately CLP $43,500 million. The transaction is
subject to final confirmatory due diligence, the signing of definitive agreements
and customary regulatory and anti-trust approvals and is expected to close during
2021.FEMSA Comercio is a company that creates economic and social value in
the countries where it has a presence. It operates different small-format store
chains in Mexico, Colombia, Chile, Peru, Ecuador and Brazil, among which there
are OXXO proximity stores, drugstores under the brands YZA, Farmacon,
Moderna, Cruz Verde, Fybeca and SanaSana, and Maicao beauty stores. It also
operates service stations in Mexico under the OXXO GAS brand. Through its
business units, FEMSA Comercio has more than 198,000 employees and serves
more than 13 million consumers every day.
FEMSA Comercio’s CEO, commented:“In recent years, we have made great
progress developing the value proposition and footprint of our OXXO
proximity stores in Chile. The transaction announced will allow us to improve
the way we serve this key market and our Chilean customers.”
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Group 1 Automotive (USA) Announces All-Time Record Quarterly
Earnings Per Share
• Group 1 Automotive, Inc. an international, Fortune 500 automotive retailer, reported
2020 third quarter net income of $126.4 million, diluted earnings per common share of
$6.83, adjusted net income (a non-GAAP measure) of $129.0 million, and adjusted diluted
earnings per common share (a non-GAAP measure) of $6.97.
• This compares to diluted earnings per common share of $2.04 and adjusted diluted
earnings per common share (a non-GAAP measure) of $3.02 in 2019. The Company's 2020
third quarter total revenue was $3.0 billion.
• Third quarter 2020 adjusted net income and diluted earnings per share excluded a net
after-tax adjustment related to a loss on debt redemption of $3.3 million, or $0.14 per share.
• Third quarter 2019 adjusted net income and diluted earnings per share excluded
approximately $18.4 million net after-tax adjustments, or $0.98 per common share.
• These adjustments consist primarily of $9.0 million related to catastrophic weather
events, or $0.48 per common share; non-cash asset impairments of $8.3 million, or $0.44 per
common share; and $1.1 million related to dealership and real estate transactions, or $0.06
per common share. Reconciliations of non-GAAP financial measures are included in the
attached financial tables. Certain disclosures may not compute due to rounding.
"Our record earnings are a function of our hard working, resilient teammates and a
responsive and creative management team that quickly reacted to the realities of the
pandemic. As we rebuilt our U.S. and U.K. businesses from the extreme furlough levels
in April, we targeted a 20% efficiency improvement in our sales and service processes,
which drove our key cost metric, SG&A as a percent of gross profit, below 60% for the
first time in our history. Lower U.S. vehicle sales were offset by improved F&I
performance and higher margins supported by lower inventory levels. Additionally, our
U.K. business turned in a record performance with year-over-year growth in service and
vehicle sales," said Group 1's President and Chief Executive Officer.
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Fiber network cooperative Sterk Midden-Drenthe transferred to KPN
KPN and the Sterk Midden-Drenthe cooperative have agreed on the acquisition of the
cooperative's fibre network. The cooperative's members' council unanimously approved
this. The network consists of approximately 5,900 addresses and is located in the outer
area of the municipality of Central Drenthe, consisting of 23 villages and cores. The
acquisition is expected to be completed in November 2020. The network is and remains
an open network, accessible to various telecom providers. Nothing changes for the
affiliated consumers and also the members of the cooperative. The current subscription
for phone, internet and TV continues. KPN will also start offering services on the
network in 2021. The parties have not disclosed any financial details.Fiber delivers better
quality than the copper network and offers the fastest internet. It is the most stable
technology, because it uses light signals instead of electricity. As a result, the signal on
the road hardly loses any speed. Fiber also is more economical with energy. In the
coming years, data growth will continue to grow enormously, not only through ever more
intensive internet use and increasing number of devices, but also because of gaming,
virtual reality and artificial intelligence, and because of applications in healthcare and
school.
Chairman of the Supervisory Board of the Sterk Midden-Drenthe cooperative:
"Since 2014, volunteers from the cooperative have worked extremely hard to get the
network built. The acquisition by KPN is now a logical next step, which ensures that
our members can enjoy fast internet in the future. Our goal has been achieved. Kpn,
with its knowledge and expertise, is able to manage and maintain the fibre network
well in the future. That's why we like to transfer it, including the employees."
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ICA Gruppen (Sweden) interim report Q3 2020
• Consolidated net sales increased by 5.3% to SEK 31,400 million (29,818)
• Operating profit excluding items affecting comparability increased by 6.2%
to SEK 1,698 million (1,599)
• Consolidated sales and operating profit were affected by the continuing
Covid-19 pandemic. ICA Sweden has benefited, while other segments have been
negatively impacted. The estimated, overall earnings effect during the third
quarter is approximately SEK -15 million
• Profit for the period was SEK 1,302 million (1,202)
• Earnings per share were SEK 6.45 (5.96)
• Cash flow from operating activities, excluding ICA Bank, was SEK 1,752
million (2,342)
• An Extraordinary General Meeting on 22 September resolved in favour of a
dividend of SEK 6 per share, which is the second part of the year's total dividend
of SEK 12 per share
Comment from CEO : “During the third quarter we saw essentially the same
pattern as in the preceding quarter – strong volume growth for ICA Sweden,
while sales were weaker for Rimi Baltic and Apotek Hjärtat. In terms of
earnings, however, Rimi Baltic had a strong quarter. The updated market
appraisal of our property portfolio shows continued stable development.”
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Sale of Inchcape (UK) Fleet Solutions In The UK For £100m
Inchcape plc the leading independent multi-brand automotive Distributor with global scale,
announces that it has agreed to sell its Inchcape Fleet Solutions business (“IFS”) to Toyota
Fleet Mobility GmbH (‘Toyota’) for total cash consideration of £100m. It follows recent
disposals of less productive dealerships in the UK, and Retail-only disposals in Australia and
China. Inchcape is focused on its core Distribution operations and these disposals have
meaningfully streamlined the Group along those lines. The IFS business leases fleet vehicles
and provides fleet management services to B2B customers including Toyota. The scope of
the business means there is limited synergy with Inchcape’s UK retail dealership business,
where Inchcape acts as a franchisee of brands including BMW, MINI, JLR, Mercedes, VW,
Audi, Porsche, Toyota and Lexus. The UK Retail dealership business remains strategically
important to the Group, where Inchcape is a top five partner for key OEM partners,
supporting the expansion of Group Distribution contracts since 2016. The transaction
consideration is payable in cash at completion and will give rise to a gain on disposal. In the
year to December 2018, IFS contributed revenue of £60m and trading profit of £9m. The
gross assets of IFS, as included within the Inchcape Group consolidated balance sheet, as at
30 June 2019 were £78m. The transaction is expected to complete in Q4 2019 and as such
the impact on Inchcape’s 2019 trading profit will be minimal.
Group CEO Of Inchcape Plc, Commented:“This transaction is a further demonstration of
strategic progress and focus on our core Distribution activities which generate 90% of
Group trading profit. We are pleased to have been able to further streamline our UK
Retail market activities by selling IFS at a good valuation. We remain focused on our
Ignite strategy which frames our operational excellence initiatives, has driven 10
Distribution deals since 2016, and sets the foundations for capabilities that will enable us
to position Inchcape well for the future. I would like to thank our IFS team for all their
hard work and dedication and wish them success under Toyota, Inchcape’s oldest OEM
partner.”
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Inchcape plc (UK):Acquisition of Mercedes-Benz Distributor In Uruguay And
Ecuador
Inchcape plc (“Inchcape” or the “Group”), the leading independent multi-brand
Automotive distributor with global scale, has agreed to acquire Autolider, a distributor of
Daimler brands, for £47m. Autolider is the distributor of Mercedes-Benz passenger and
commercial vehicles in both Uruguay and Ecuador. Autolider is also the distributor of
Daimler’s Freightliner and Fuso brands in Uruguay.
Transaction Highlights:
• Builds further on the recently strengthened Latin America platform, adding Uruguay
and Ecuador; brings Inchcape to six new LatAm markets entered since 2016 and a
meaningful increase in strategic OEMs represented in the region to six, in addition to
emerging OEMs
• Acquisition represents Inchcape’s first Distribution contracts with Daimler brands,
after more than 30 years of Mercedes-Benz partnership in Retail-only markets
• Consistent with focus on core Distribution capabilities and on the disciplined
re-allocation of capital; follows the recent disposals of less strategic Retail-only assets
which will generate c.£250m on completion
• A milestone for two pillars of the Ignite strategy - OEM partner of choice and
investing to accelerate growth
Group CEO Of Inchcape Plc, Commented:“transaction represents a significant
milestone in the development of our core higher margin, capital light Distribution
business utilising some of the proceeds realised through recent Retail-only disposals
in Australia, China and the UK. We are strengthening our presence in a region with
attractive growth prospects and further value creation opportunities, adding Daimler
brands to a strong and balanced existing brand partner set of BMW, Subaru, Hino,
Suzuki and JLR. I am particularly pleased that our OEM Partner of Choice focus has
again demonstrated Inchcape’s value as a distributor, this time to Daimler, a key
OEM partner.”
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Ingredion Incorporated (USA) Reports Third Quarter 2020 Results
• At September 30, 2020, total debt and cash and short-term investments were $2.2 billion and $553 million, respectively, versus $1.8 billion
and $268 million, respectively, at December 31, 2019. The increase in total debt and cash and short-term investments was primarily due to the
Company's sale of $1.0 billion of senior notes in the second quarter 2020, partially offset by the redemption of $400 million of November 2020
senior notes in July.
• Net financing costs were $22 million, which includes $5 million for interest payments associated with the early retirement of the senior
notes in July. Net financing costs were $2 million lower in the third quarter from the year-ago period. The decrease resulted from lower net
interest expense due to lower interest rates.
• Reported and adjusted effective tax rates for the quarter were 30.1 percent and 26.2 percent, respectively, compared to 27.1 percent and
23.2 percent, respectively, in the year-ago period. The increase in reported and adjusted tax rates resulted primarily from US foreign tax credits,
country earnings mix, and other one-time adjustments.
• Year-to-date capital expenditures were $250 million, up $19 million from the year-ago period.
• Third quarter net sales were down from the year-ago period. The decrease was driven by foreign exchange impacts in South America and
sales volume declines in North America. Excluding foreign exchange impacts, net sales were down 2 percent for the quarter.
• Year-to-date net sales were down from the year-ago period. The decrease in year-to-date net sales was driven by sales volume declines in
North America and South America and foreign exchange impacts in South America which were partially offset by favorable pricing. Excluding
foreign exchange impacts, net sales were down 3 percent year-to-date.
• Reported and adjusted operating income for the quarter were $153 million and $179 million, respectively, both of which decreased by 7
percent, from the year-ago period. The decreases were largely attributable to lower sales volumes in North America and the inclusion of
PureCircle results. Excluding foreign exchange impacts, reported and adjusted operating income were both down 4 percent from the same period
last year.
• Year-to-date reported and adjusted operating income were $419 million and $473 million, respectively, decreases of 15 percent and 12
percent, respectively, from the year-ago period. The decreases were largely attributable to lower sales volumes in North America and higher
corporate costs due to continued investments to drive business and digital transformation. Excluding foreign exchange impacts, reported and
adjusted operating income were down 11 percent and 8 percent, respectively, from the same period last year.
• Third quarter and year-to-date reported operating income were lower than adjusted operating income by $26 million and $54 million,
respectively, due to asset closures and restructuring costs related to Cost Smart, acquisition and integration costs, and the impact of the August
storm damage in Iowa.
“We are pleased with our operational execution and financial performance for the third quarter. We experienced sequential improvement
over second quarter 2020 in customer volume demand across all four of our regions, driven by increased consumer activity in response to
easing of COVID-19 restrictions,” said Ingredion’s president and chief executive officer. “Reported and adjusted operating income were
up 35% and 41%, respectively, from the second quarter. Our intense focus on servicing customers and operational execution, enabled us
to deliver year-over-year profit growth in most of our regions.”
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Ingredion (USA) to Acquire 100% Ownership in Joint Venture Accelerating
Growth in Plant-Based Proteins
Ingredion Incorporated, a leading global provider of ingredient solutions to
the food and beverage manufacturing industry, announced that it has signed
an agreement with James Cameron and Suzy Amis Cameron to acquire the
remaining portion of ownership in Verdient Foods Inc. that the Company
did not already own. The acquisition is expected to close this month. The
transaction was funded from the company's available liquidity. No other
terms of the transaction were disclosed.As a result of the acquisition and
once construction is complete on an adjacent facility, the Company will
operate two facilities that can produce a wide range of high-quality,
sustainable, specialty pulse-based concentrates and flours from peas, lentils
and faba beans. Both facilities are located in Vanscoy, Saskatchewan, in the
heart of Canada’s pulse-crop production area and serve as a prime location
for the manufacturing and distribution of pulse-based ingredients to global
markets.
“Acquiring 100% ownership in Verdient Foods enables Ingredion to
accelerate net sales growth, further expand our manufacturing capability
and co-create with our customers to serve the increasing consumer
demand for plant-based foods,” said Ingredion’s president and chief
executive officer. “Over the last two years, we have strategically
invested over $200 million to build a leadership position in
consumer-preferred plant-based proteins, which is central to Ingredion’s
strategy and accelerating our Driving Growth Roadmap. We are well
positioned to continue capitalizing on and benefiting from the
megatrends driving the changes in the global food and beverage
industry. We look forward to building on the foundation set by James
and Suzy Amis Cameron, who have been pioneers in driving
transformational change in the food industry and creating a shared
sustainable future for all.”
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Intact Financial Corporation (Canada) reports Q3-2020 results
• Net operating income per share up 46% to $2.78, driven by solid
underwriting performance across all lines, driven in part by benign
weather, and strong distribution results
• Healthy premium growth of 8% driven by strong retention and new
business and including The Guarantee Company of North America ("The
Guarantee") acquisition
• Relief efforts helped more than 1.2 million customers, with $510
million provided year-to-date, including the recently launched $50 million
targeted relief program for our most vulnerable small business customers
• OROE of 16.9% and BVPS up 4% in the quarter to $56.22
• Strong capital position with $1.9 billion of total capital margin available
to manage potential further shocks and capture strategic opportunities
Chief Executive Officer said:"We entered this crisis in a position of
strength, which enabled us to provide relief to over 1.2 million
customers, while protecting our employees and maintaining our
excellent service levels. Our small business customers have been
significantly impacted by this crisis. We are continuing to support them
with targeted relief and policy adjustments, and will help throughout the
economic recovery period. Our resilient operations, coupled with the
benefit of our action plans over time and benign weather, led to solid
underwriting results this quarter. Our balance sheet remains strong,
ready to absorb potential further shocks and capture strategic
opportunities."
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ITOCHU (Japan) Announces Acquisition of Exclusive Distribution Rights
for “Slowear” Brand
ITOCHU Corporation announced that it has acquired the exclusive distribution rights in the Japanese market for the Italian apparel brand group
"Slowear ". ITOCHU will start offering the products in autumn-winter 2021 through Coronet Corporation. Slowear is an Italian conglomerate of
brands comprising similarly craft-minded companies. In the 1980s, the group started the wholesale distribution of products from “Incotex”,
which is known for the best trousers in the world. Alongside its expansion, Slowear acquired other brands that are aligned with Incotex for style,
heritage and elegance, such as "Montedoro" for outerwear, "Zanone" for knit, and "Glanshirt" for shirts. The portfolio of brands owned by the
Slowear group are available and distributed in the best department stores and specialty stores in over 40 countries globally. In 2010, Slowear
started its retail concept, and since then it has expanded globally with 32 stores in the main international capitals including London, Paris, and
New York. In the Japanese market, in addition to the development of the existing directly-managed stores through Slowear Japan Co., Ltd., from
the autumn/winter season of 2021, ITOCHU will start the development through Coronet in department stores, specialty stores and select shops
nationwide. In the future, by fusing the rich experience and know-how of Slowear Japan Co., Ltd. and Coronet Co., Ltd., we will strongly
emphasize the world view of the "Slowear" brand and further raise the brand recognition, aiming to achieve sales of 3.0 billion yen on a retail
sales basis in three years.
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ITOCHU (Japan) Announces Acquisition of Master License Rights to
Kumarba Channel in Japan
ITOCHU Corporation announced that it has acquired master license rights for the merchandise of Kumarba Channel, a
project run by Kumarba Inc. for the creation of IP*1 for kids. The merchandise will launch in the Japanese market in 2021
Spring/Summer. Kumarba, which creates and produces IP for kids, was established in September 2020 as part of the new
content business of Akatsuki Inc. which is strong in the development and operation of mobile games. Kumarba Channel,
run by Akatsuki started distributing content through its IP-creating project that began on YouTube in May 2019. Since
then, the channel has drawn attention for the entertainment and educational content it provides in ways that enable
children to enjoy growing with the characters.ITOCHU utilizes its abundant experience and network in the textiles
industry while pursuing continued evolution of its brand business through efforts such as expanding its e-commerce
business and diversifying its distribution channels.
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JCPenney (USA) Files Draft Asset Purchase Agreement
J. C. Penney Company, Inc. announced that it has filed a draft asset purchase
agreement (“APA”), which tracks the terms of the previously announced letter of
intent, to sell JCPenney. All parties are working to conclude negotiations and
intend to utilize the ongoing mediation process to help achieve that goal. Key
terms of the draft APA are as follows:
• Brookfield Asset Management, Inc (“Brookfield”) and Simon Property Group
(“Simon”) will acquire substantially all of JCPenney’s retail and operating assets
(“OpCo”) through a combination of cash and new term loan debt.
• The formation of separate property holding companies (“PropCos”),
comprising 160 of the Company’s real estate assets and all of its owned
distribution centers, which will be owned by the Company’s
Debtor-in-Possession and First Lien Lenders (“First Lien Lenders”).
• The OpCo and PropCos will enter into a master lease with respect to the
properties and distribution centers moved into the PropCos.
“This is another important milestone in our restructuring plan, bringing us
one step closer to finalizing the APA, closing the sale process and exiting
Chapter 11 ahead of the December 2020 holiday season,” said chief executive
officer of JCPenney. “Our talented team is focused on working with
Brookfield and Simon to build on our over 100-year history of serving
customers and working seamlessly with our vendor partners. We look forward
to completing this sale and continuing our progress implementing our Plan for
Renewal to Offer Compelling Merchandise, Drive Traffic, Deliver an
Engaging Experience, Fuel Growth and Build a Results-Minded Culture.”
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JCPenney (USA) Signs Asset Purchase Agreement with Brookfield,
Simon and First Lien Lenders, Charting Course for the Future
J. C. Penney Company, Inc. announced that it has entered into an asset purchase
agreement (“APA”) with Brookfield Asset Management, Inc (“Brookfield”), Simon
Property Group (“Simon”) and a majority of the Company’s DIP and First Lien
Lenders (“Majority First Lien Lenders”).Key terms of the APA are as follows:
• Brookfield and Simon will acquire substantially all of JCPenney’s retail and
operating assets (“OpCo”) through a combination of cash and new term loan debt.
• The formation of separate property holding companies (“PropCos”), comprising
160 of the Company’s real estate assets and all of its owned distribution centers,
which will be owned by the Company’s DIP and First Lien Lenders.
• The OpCo and PropCos will enter into master leases with respect to the
properties and distribution centers moved into the PropCos (the “Master Lease
Agreement”). JCPenney, Simon and Brookfield, and the Majority Lender Group
have reached agreement on all outstanding business points in the Master Lease
Agreement.
“Signing a definitive APA with Brookfield, Simon and our Majority First Lien
Lenders allows us to move forward towards the completion of our financial
restructuring – and we are looking forward to operating under new ownership
outside Chapter 11 in advance of the 2020 holiday season,” said Chief executive
officer of JCPenney. “This transaction is a testament to the thousands of
dedicated employees who have been working incredibly hard over the last
several months under difficult circumstances. Our customers are at the heart of
JCPenney and we look forward to serving them under the JCPenney banner for
decades to come. Our team remains laser focused on implementing our Plan for
Renewal to Offer Compelling Merchandise, Drive Traffic, Deliver an Engaging
Experience, Fuel Growth and Build a Results-Minded Culture.”
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The J.M. Smucker Co. (USA) to Divest its Crisco® Business
The J.M. Smucker Co. announced it has entered into a definitive agreement
to sell its Crisco® oils and shortening business to B&G Foods, Inc. in a cash
transaction valued at approximately $550 million. The divestiture of the
Crisco® business aligns with the Company's previously stated intent to exit
the U.S. baking category and focus more of its resources on its core growth
platforms of pet food, coffee, and snacking. The transaction encompasses
oils and shortening products sold under the Crisco® brand, certain
trademarks and licensing agreements, dedicated manufacturing and
warehouse facilities located in Cincinnati, Ohio, and approximately 160
employees who support the Crisco® business. The business generated net
sales of approximately $270 million for the Company's fiscal year ended
April 30, 2020, which were primarily reported in its U.S. Retail Consumer
Foods segment. The transaction also includes the Company's oils and
shortening business outside the U.S., which is primarily in Canada.
"Crisco® is an iconic brand that is beloved by consumers, and the
business has been a solid contributor to our financial performance," said
President and Chief Executive Officer, The J.M. Smucker Co.
"However, our strategic priorities include an increased focus and
allocation of resources toward pet food and pet snacks, coffee, and
snacking to maintain momentum in these categories. The announcement
helps position the Company to further grow our core businesses and
unlock value for our shareholders."
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Keurig Dr Pepper (USA) Reports Strong Third Quarter Results
• On a GAAP basis, net sales in the third quarter of 2020 increased 5.2% and diluted earnings per share totaled
$0.31, compared to $0.21 in the year-ago period. Constant currency net sales in the third quarter advanced 5.8% versus
year ago and Adjusted1 diluted EPS grew 22% to $0.39.
• GAAP operating income increased 29.8% to $753 million in the third quarter of 2020, compared to $580 million
in the year-ago period, reflecting the benefits of the strong growth in net sales, lower discretionary expenses, including
marketing, continued productivity and merger synergies. Partially offsetting these factors were higher operating
expenses associated with the increased consumer demand, inflation in logistics and the unfavorable year-over-year
impact of items affecting comparability, including certain COVID-19 related expenses.
• The COVID-19 related operating costs incurred in the third quarter of 2020 totaled $49 million, all of which were
recognized as items affecting comparability, consisted of temporary compensation increases and incentives for
front-line employees, as well as incremental safety and sanitation expenses.
• GAAP net income in the third quarter of 2020 increased 45.7% to $443 million, or $0.31 per diluted share,
compared to GAAP net income of $304 million, or $0.21 per diluted share, in the year-ago period, reflecting the strong
growth in operating income, lower interest expense and a lower effective tax rate reflecting comparison to favorable
discrete tax items and valuation adjustments in the prior year period, as well as the favorable year-over-year impact of
items affecting comparability, which included a $12 million non-cash impairment on equity investments in the current
quarter.
• The Company generated strong free cash flow totaling $525 million in the third quarter of 2020, enabling KDP to
reduce bank debt by approximately $225 million. The Company's management leverage ratio declined from 4.8x at the
end of the third quarter of 2019 to 3.8x at the end of the third quarter of 2020, primarily driven by ongoing debt
reduction and earnings growth. Since the close of the merger in July 2018, KDP's management leverage ratio has
declined 2.2x.
Commenting on the announcement, Chairman and CEO stated, "Since the beginning of the pandemic, our broad
beverage portfolio, unique route to market capabilities and resilient and dedicated team members have enabled
KDP to successfully navigate through the challenging and volatile operating environment. In Q3, we delivered
another strong quarter, marked by accelerated growth in net sales, adjusted operating income and EPS, while
continuing to post strong market share growth across our portfolio and reducing our management leverage ratio.
As a result, we're confident in our ability to deliver 2020 at the high-end of our guidance, while reinvesting any
upside performance in brand marketing and innovation."
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Kimberly-Clark (USA) Announces Third Quarter 2020 Results
Executive Summary
• Third quarter 2020 net sales of $4.7 billion increased 1 percent compared to the
year-ago period, including organic sales growth of 3 percent.
• Diluted net income per share for the third quarter was $1.38 in 2020 and $1.94 in
2019.
• Third quarter adjusted earnings per share were $1.72 in 2020 compared to $1.84 in
2019. Adjusted earnings per share exclude certain items described later in this news
release.
• Diluted net income per share for 2020 is expected to be $6.41 to $6.72.
• The company is now targeting full-year 2020 organic net sales growth of 5 percent
and adjusted earnings per share of $7.50 to $7.65. The prior outlook was for organic
sales growth of 4 to 5 percent and adjusted earnings per share of $7.40 to $7.60.
• The third quarter effective tax rate was 20.1 percent in 2020 and 22.8 percent in
2019. The third quarter adjusted effective tax rate was 22.4 percent in 2020 and 21.5
percent in 2019. Kimberly-Clark's share of net income of equity companies in the third
quarter was $31 million in both 2020 and 2019.
Chairman and Chief Executive Officersaid, "Kimberly-Clark teams around the
world are managing our near-term operating priorities extremely well, with strong
focus on employee health and safety and supply chain excellence during this
unprecedented time period. At the same time, we are significantly increasing our
growth investments for future success, our market share positions are healthy overall
and we are on track to achieve excellent financial results this year."
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Kraft Heinz (USA) Reports Third Quarter 2020 Results
Q3 2020 Financial Summary
• Net sales increased 6.0 percent versus the year-ago period to $6.4 billion, including an unfavorable 0.3 percentage
point impact from currency. Organic Net Sales increased 6.3 percent despite a negative 1.2 percentage point impact
from exiting the McCafélicensing agreement. Pricing was up 3.7 percentage points versus the prior year period, with
positive pricing in each business segment.
• Net income attributable to common shareholders decreased 33.7 percent versus the year-ago period to $597
million and Diluted EPS decreased to $0.49, down 33.8 percent versus the prior year driven by charges related to the
pending Cheese Transaction(2) in the current period and a gain on sale of the Canadian natural cheese business in the
year-ago period.
• Adjusted EPS increased to $0.70, up 1.4 percent versus the prior year as Adjusted EBITDA growth more than
offset a higher effective tax rate, unfavorable changes in other income, and higher non-cash equity award compensation
expenses versus the year-ago period.
• Adjusted EBITDA increased 13.5 percent versus the year-ago period to $1.7 billion, including an unfavorable 0.1
percentage point impact from currency. Excluding the impact of currency, Adjusted EBITDA growth was driven by
pricing gains, volume growth, and favorable mix versus the year-ago period, as well as procurement savings in the
United States.
• Year-to-date net cash provided by operating activities increased to $3.3 billion, up 67.0% versus the comparable
prior year period, primarily driven by Adjusted EBITDA growth, reduced cash outflows resulting from lower payments
related to the timing of promotional activity, and favorable changes in inventory, primarily due to reduced inventory
levels from COVID-19-related demand. Free Cash Flow(1) for the first nine months of 2020 increased to $2.9 billion,
up 107.8% versus the comparable prior year period, from a combination of the previously mentioned items and lower
capital expenditures versus the prior year period.
“The continuation of our strong growth into the third quarter is a reflection of the agility we are creating as an
organization and because of that, we are raising our outlook for the full year,” said CEO Miguel Patricio. “We are
building momentum, and we are confidently optimistic about our near-term performance. We are heading into
2021 with our new operating model fully implemented, our platform strategy coming to life in the marketplace,
and our growth investments ramping up. And although there are multiple future scenarios we must plan for and
manage against, we are in a strong position to both accelerate and exceed the strategic plan we finalized earlier this
year.”
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METRO (Germany) acquires Aviludo and strengthens its presence in Portugal
In 2019, Aviludo achieved net sales of €152 million and supplied
more than 13,500 customers nationwide, with a focus on
independent restaurateurs, canteens and restaurant chains. This
acquisition is a decisive step towards becoming fully focused on
HoReCa. With the resulting access to complementary HoReCa
customer groups, METRO strengthens its position in the growing
FSD segment while creating an additional offer for local customers.
In addition to the operational business the transaction comprises the
distribution platforms of Aviludo. Both parties have agreed not to
disclose the financial details of the transaction. The acquisition is
subject to the approval of the relevant authorities and is expected to
be completed in the first half of calendar year 2021.
CEO of METRO AG, explains: "Following the acquisitions of
Pro à Pro, Rungis Express and Classic Fine Foods in recent
years, the acquisition of the Aviludo Group is a logical next step
to further strengthen METRO’s expertise and reach. We are now
expanding the range of services for our customers in the
important Portuguese market. Thanks to Aviludo's strong
position, we will strengthen our nationwide presence in Portugal
and we can offer our customers real added value in products and
services, hence becoming very well positioned for further
growth."
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Capri Holdings Limited Announces Second Quarter Fiscal 2021 Results
Overview of Capri Holdings Second Quarter Fiscal 2021 Results:
• Total revenue of $1.1 billion decreased 23.0% compared to last year. On a constant currency basis,
total revenue decreased 24.6%.
• Gross profit was $710 million and gross margin was 64.0%, compared to $874 millionand 60.6% in
the prior year. Adjusted gross profit was $701 million and adjusted gross margin was 63.2%, compared to
$879 million and 61.0% in the prior year.
• Income from operations was $153 million and operating margin was 13.8% compared to $75 million
and 5.2% in the prior year. Adjusted income from operations was $182 million and operating margin was
16.4%, compared to $202 million and 14.0% in the prior year.
• Net income was $122 million, or $0.81 per diluted share compared to $73 million, or $0.47 per diluted
share in the prior year. Adjusted net income was $137 million, or $0.90 per diluted share, compared to $177
million or $1.16 per diluted share in the prior year.
• Net inventory at September 26, 2020 was $930 million, a 13% decrease compared to the prior year.
Versace Second Quarter Fiscal 2021 Results:
• Versace revenue of $195 million decreased 14.5% compared to the prior year. On a constant currency
basis, total revenue decreased 18.9%.
• Versace operating income was $20 million and operating margin was 10.3% compared to $9 million
and 3.9% in the prior year. Last year, adjusted operating income was $14 million and adjusted operating
margin was 6.1%.
The Company’s Chairman and Chief Executive Officer, said, "The COVID-19 pandemic continues to
profoundly impact the entire world. My thoughts and prayers go out to all those who have been
affected by the virus and to everyone on the front lines who are tirelessly helping combat this
pandemic. At Capri Holdings, we are prioritizing the health and safety of our employees, customers
and communities. I want to thank our teams around the world for the hard work and dedication they
demonstrate every day to support each other and their communities during this unprecedented time."
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Mondelēz International (USA) Reports Q3 2020 Results
Third Quarter Commentary
• Net revenues increased 4.9 percent driven by Organic Net Revenue growth of 4.4 percent.
Volume and pricing drove growth, partially offset by unfavorable mix. Organic Net Revenue grew in
all four regions.
• Gross profit increased $276 million and margin increased 230 basis points to 41.9 percent due to
higher mark-to-market gains from currency and commodity derivatives and higher Adjusted Gross
Profit1. Adjusted Gross Profit increased $152 million at constant currency while Adjusted Gross
Profit margin increased 20 basis points to 39.9 percent due to volume leverage, pricing and
productivity, partially offset by higher raw material costs and incremental COVID-19 related costs.
• Operating income increased $259 million and margin was 17.0 percent, up 320 basis points
primarily due to favorable year-over-year mark-to-market gains from currency and commodity
derivatives, higher Adjusted Operating Income1, and lower restructuring expenses. Adjusted
Operating Income increased $112 million at constant currency, and margin increased 70 basis points
to 17.5 percent driven by SG&A leverage and Adjusted Gross Profit margin expansion.
• Diluted EPS was $0.78, down 20.4 percent, lapping a prior-year benefit from Swiss tax reform.
• Adjusted EPS was $0.63, flat on a constant-currency basis, primarily driven by operating gains
offset by unfavorable taxes.
Capital Return: The company returned $0.4 billion to shareholders in cash dividends. The
company suspended its share repurchase program in March, providing flexibility while managing
the COVID-19 situation and response."Our third quarter performance was strong across all key
metrics, with broad-based revenue growth as demand remained elevated in Developed Markets
and sequentially improved in Emerging Markets. Our teams are executing well and we continue
to deliver share gains by meeting the needs of customers and consumers, despite the uncertainties
caused by COVID-19. Our strategy remains unchanged and we are accelerating certain initiatives
and increasing the investment behind our brands to further support long-term sustainable
growth," saidChairman and Chief Executive Officer.
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Murphy USA Inc. Reports Third Quarter 2020 Results
• Net income was $66.9 million, or $2.27 per diluted share, in Q3 2020 compared to net
income of $69.2 million, or $2.18 per diluted share, in Q3 2019. The current quarter
included a $10 million increase to SG&A expense related to a donation to the Company's
charitable foundation while Q3 2019 included a loss on early debt extinguishment of $14.8
million
• Total fuel contribution (retail fuel margin plus product supply and wholesale ("PS&W")
results including RINs) for Q3 2020 was 22.3 cpg compared to 20.1 cpg in Q3 2019
• Total retail gallons decreased 11.9% in Q3 2020 compared to Q3 2019, while volumes
on a same store sales ("SSS") basis decreased 12.7%
• Merchandise contribution dollars increased 6.2% to $118.1 million compared to the
prior-year quarter, on average unit margins of 15.6% in the current quarter
• During Q3 2020, 4 new stores opened and 5 raze-and-rebuilds reopened, while 1 store
closed. Since the quarter end 1 additional new site and 6 raze-and-rebuilds have opened;
there are 13 new retail sites and 14 raze-and-rebuild sites currently under construction
• Common shares repurchased during the third quarter of 2020 were approximately 0.7
million for $89.9 million at an average price of $136.98 per share
“Murphy USA delivered strong third quarter performance as continued improvements in
customer traffic, sustained gains and double digit sales growth in key merchandise
categories, along with higher total fuel margins in a rising price environment shaped
performance for the past three months," said President and CEO. “These trends have
continued into October where traffic continues to rebound and same store fuel gallons
have recovered to 94% of prior year. As we begin to put 2020 in the rear view mirror,
we are excited about our accelerated 2021 growth plans and our enhanced shareholder
friendly capital allocation strategy.”
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Newell Brands (USA) Announces Third Quarter 2020 Results
Third Quarter 2020 Executive Summary
• Net sales were $2.7 billion, an increase of 5.1 percent compared with the prior year period.
• Core sales grew 7.2 percent compared with the prior year period. Seven of eight business units
and all major regions delivered core sales growth.
• Reported operating margin was 13.4 percent compared with a negative 33.4 percent in the prior
year period. Normalized operating margin was 14.9 percent compared with 12.7 percent in the prior
year period.
• Reported diluted earnings per share were $0.71 compared with a $1.48 diluted loss per share in
the prior year period.
• Normalized diluted earnings per share were $0.84 compared with $0.73 per share in the prior year
period.
• Year to date operating cash flow was $820 million compared with $424 million in the prior year
period, with the improvement driven by working capital.
• The company redeemed the remaining $305 million of its 4.7 percent senior notes upon maturity.
• The company's leverage ratio improved to 3.9x at the end of the third quarter from 4.6x at the end
of the previous quarter.
• The company reinstituted guidance for 2020, with projected full-year normalized earnings per
share of $1.63 to $1.69 and operating cash flow of $1.1 to $1.2 billion.
"We delivered very strong third quarter results, including broad-based sales growth underpinned
by strong consumption, and significant improvement in operating margin and cash flow
generation, as the organization rallied behind our strategic priorities,” said Newell Brands
President and CEO. “We are heading into the fourth quarter with a renewed sense of energy as we
chase demand in certain high growth categories. We remain laser focused on increasing
shareholder value by sustaining growth momentum, driving meaningful innovations that
leverage consumer trends, building a competitive edge through omni-channel and significantly
reducing organizational complexity."
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Olam (Singapore) upsizes flagship debt facility by US$300 million to
US$1,975 million; 4 new banks joined facility
Leading global food and agri-business Olam International Limited (“Olam’’) announced that it has upsized its flagship
US$1,675 million multi-tranche revolving credit facility that was secured on September 10, 2020 by an additional
US$300 million. Four new banks joined the facility – Bank of Baroda as a Senior Mandated Lead Arranger, Bank of
China and Unicredit Bank AG as Mandated Lead Arrangers and Westpac Banking Corporation as a Lead Arranger, taking
the total banking group to 25 banks. The upsized facility of US$1,975 million, which has Olam’s wholly owned
subsidiary, Olam Treasury Pte. Ltd. (“OTPL”) as a co-borrower, consists of three tranches – a 364-day revolving credit
facility of US$790 million, a 2-year revolving credit facility of US$790 million and a 3-year revolving credit facility of
US$395 million. Proceeds from the facility will be applied towards refinancing of existing loans of Olam and its
subsidiaries.
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Performance Food Group Company (USA) Reports First-Quarter Fiscal
2021 Results
First-Quarter Fiscal 2021 Financial Summary
• Total case volume increased 8.9% for the first quarter of fiscal 2021 compared to the prior year period. Total case volume included Reinhart
Foodservice, LLC (“Reinhart”) and a 28.0% increase in independent cases. Excluding the impact of the Reinhart acquisition, case volume
declined 17.5% and independent cases declined 6.3% in the first quarter of fiscal 2021 compared to the prior year period.
• Net sales for the first quarter of fiscal 2021 grew 12.9% to $7.0 billion compared to the prior year period. The increase in net sales was
primarily attributable to the acquisition of Reinhart, partially offset by the effects of the novel coronavirus (“COVID-19”) pandemic. The
acquisition of Reinhart contributed $1,457.5 million to net sales for the first three months of fiscal 2021. Overall food cost inflation was
approximately 1.5%.
• Gross profit for the first quarter of fiscal 2021 increased 14.6% to $815.5 million as compared to the prior year period. The gross profit
increase was led by the acquisition of Reinhart, partially offset by the current environment surrounding the outbreak of COVID-19. For the first
three months of fiscal 2021, the Company recorded a total of $11.9 million of inventory write-offs primarily as a result of the impact of
COVID-19 on our operations, which is a $5.7 million increase from the first three months of fiscal 2020. Gross margin as a percentage of net
sales was 11.6% for the first quarter of fiscal 2021 compared to 11.4% for the prior year period.
• Operating expenses rose by 20.3% to $779.7 million in the first quarter of fiscal 2021 compared to the prior year period. The increase in
operating expenses was primarily due to the acquisition of Reinhart. In the first quarter of fiscal 2021, the Company recorded a benefit of $2.7
million related to reserves for expected credit losses as compared to bad debt expense of $3.6 million for the first quarter of 2020. The increase
in operating expenses was partially offset by decreases in personnel expenses, fuel expense, travel expenses, professional fees, and contingent
consideration accretion expense compared to the prior year period.
• The first quarter of fiscal 2021 resulted in a net loss of $0.7 million compared to net income of $36.1 million in the prior year period. The
decline was primarily a result of the $27.7 million decrease in operating profit and a $21.5 million increase in interest expense, partially offset by
a $11.4 million decrease in income tax expense. The effective tax rate in the first quarter of fiscal 2021 was approximately 64.7% compared to
21.9% in the first quarter of fiscal 2020. The increase in the tax rate was due to the increase of non-deductible expenses and discrete items as a
percentage of book income, which was significantly lower than the book income for the prior year period.
• EBITDA increased 12.0% to $118.9 million in the first quarter of fiscal 2021 compared to the prior year period. For the quarter, Adjusted
EBITDA rose 5.9% to $135.2 million compared to the prior year period.
• Diluted loss per share was $0.01 in the first quarter of fiscal 2021 compared to diluted EPS of $0.34 in the prior year period. Adjusted
Diluted EPS decreased 56.1% to $0.25 per share in the first quarter compared to Adjusted Diluted EPS of $0.57 per share in the prior year period.
“I am very pleased with our first-quarter results as the organization continues to take market share and prove its resiliency,” saidPFG’s
Chairman, President & Chief Executive Officer. “Our Foodservice segment once again outperformed the industry, particularly in the
independent restaurant channel. The integration of Reinhart has progressed smoothly and Vistar, despite its exposure to some of the hardest
hit channels, has remained profitable due to strength in the convenience store channel. Our associates are engaged and winning new
business every day, solidifying our position in the food distribution industry. Our organization has done an outstanding job managing costs
and the balance sheet to put us in a strong financial position for the current operating environment.”
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Philip Morris International Inc. (USA) Reports 2020 Third-Quarter
Results
2020 Third Quarter
• Reported diluted EPS of $1.48, up by 21.3%; up by 28.7%, excluding currency
• Adjusted diluted EPS of $1.42, down by 0.7%; up by 5.6% on an organic basis
• Cigarette and heated tobacco unit shipment volume down by 7.6% (reflecting cigarette shipment volume down by 9.8%,
and heated tobacco unit shipment volume up by 18.7% to 19.0 billion units)
• Market share for heated tobacco units in IQOS markets, excluding the U.S., up by 1.5 points to 6.0%
• Net revenues down by 2.6%; down by 1.5% on an organic basis
• Operating income up by 16.3%; up by 20.9%, excluding currency
• Adjusted operating income up by 5.8% on an organic basis
• Adjusted operating income margin up by 3.1 points to 44.8% on an organic basis
• Total IQOS users at quarter-end estimated at approximately 16.4 million, of which approximately 11.7 million have
stopped smoking and switched to IQOS
• Increased the regular quarterly dividend per share by 2.6% to an annualized rate of $4.80
2020 Nine Months Year-to-Date
• Reported diluted EPS of $3.90, up by 9.2%; up by 17.1%, excluding currency
• Adjusted diluted EPS of $3.92, down by 1.3%; up by 7.4% on an organic basis
• Cigarette and heated tobacco unit shipment volume down by 8.0% (reflecting cigarette shipment volume down by 10.9%,
and heated tobacco unit shipment volume up by 27.9% to 54.4 billion units); down by 7.8% on a like-for-like basis
• Market share for heated tobacco units in IQOS markets, excluding the U.S., up by 1.7 points to 6.0%
• Net revenues down by 3.8%; down by 0.9% on an organic basis
• Operating income up by 9.2%; up by 14.5%, excluding currency
• Adjusted operating income up by 5.6% on an organic basis
• Adjusted operating income margin up by 2.6 points to 42.6% on an organic basis
"We delivered stronger-than-anticipated results in the third quarter, despite the ongoing challenges of the pandemic, with
adjusted diluted EPS growth of 5.6% on an organic basis," said Chief Executive Officer. The sustained momentum of
IQOS was excellent, with an estimated 16.4 million total users at the end of September and smoke-free products
accounting for nearly one-fourth of our total net revenues in the quarter. Furthermore, our combustible tobacco business
recorded an improved sequential performance, supported by better underlying total industry volumes across both
developed and emerging markets. Despite continued headwinds for our duty-free business and in Indonesia, we are
raising our full-year 2020 guidance and now anticipate adjusted diluted EPS growth of around 5% to 6% on an organic
basis, compared to a range of approximately 3.5% to 5.0% previously."
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P&G (USA) Announces Fiscal Year 2021 First Quarter Results
• Operating cash flow was $4.7 billion for the quarter. Adjusted free cash flow productivity
was 95%. The Company returned $4 billion of cash to shareholders via $2 billion of dividend
payments and $2 billion of common stock repurchases.
• Diluted net earnings per share were $1.63, a 20% increase versus the prior year driven by the
increase in net sales and an increase in operating margin. Diluted net earnings per share grew
19% versus the base period Core EPS due to non-core restructuring charges in the base period.
Currency-neutral net EPS increased 22% versus the prior year core EPS.
• Reported gross margin increased 170 basis points versus the prior year reported gross
margin. Reported gross margin increased 140 basis points versus the prior year core gross margin
due to 30 basis points of non-core restructuring charges in the base period.
• Selling, general and administrative expense (SG&A) as a percentage of sales decreased 160
basis points on a reported basis versus the prior year. SG&A as a percentage of sales decreased
170 basis points versus the prior year core SG&A due to lower non-core restructuring charges in
the base period. Unfavorable foreign exchange negatively impacted SG&A by 10 basis points.
• Operating profit margin increased approximately 320 basis points versus the base period
reported operating margin and increased 300 basis points versus the base period core operating
margin. Unfavorable foreign exchange negatively impacted operating margins by 50 basis
points.
“We delivered another strong quarter of organic sales growth, core earnings per share and
cash returned to shareowners, enabling us to increase our outlook for fiscal year results,”
said Chairman, President and Chief Executive Officer. “Our near-term priorities continue to
be employee health and safety, maximizing availability of P&G products for consumers
around the world, and helping society meet the challenges of the COVID crisis. We remain
firmly focused on executing our strategies of superiority, productivity, constructive
disruption and improving P&G’s organization and culture to deliver balanced top-line and
bottom-line growth along with strong cash generation.”
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The Sherwin-Williams Company (USA) Reports 2020 Third Quarter
Financial Results
• The Sherwin-Williams Company announced its financial results for the third quarter ended September 30, 2020. Compared to the same
period in 2019, consolidated net sales increased $254.5 million, or 5.2%, to $5.12 billion in the quarter and increased $86.5 million, or 0.6%, to
$13.87 billion in the first nine months.
• Diluted net income per share increased to $7.66 per share in the third quarter compared to $6.16 per share in the third quarter of 2019. Third
quarter 2020 included a charge of $.63 per share for acquisition-related amortization expense. Third quarter 2019 included charges of $.63 per
share for acquisition-related amortization expense and $.14 per share for integration costs, partially offset by a benefit from the resolution of the
California litigation of $.28 per share.
• Diluted net income per share increased to $17.60 per share in the first nine months compared to $13.82 per share in the same period in
2019. The first nine months of 2020 included a charge of $1.87 per share for acquisition-related amortization expense. The first nine months of
2019 included charges of $1.90 per share for acquisition-related amortization expense, $.33 per share for integration costs, $.79 per share for a
tax credit investment loss and $.27 per share for pension settlement expense, partially offset by a benefit from the resolution of the California
litigation of $.28 per share.
• Net sales in The Americas Group increased 2.8% to $2.98 billion in the quarter and were flat at $7.81 billion in the first nine months.
• Segment profit increased $83.8 million to $747.4 million in the quarter and $128.3 million to $1.74 billion in the first nine months due
primarily to favorable customer and product mix and moderating raw material costs.
• Segment profit as a percent of net sales increased to 25.1% in the third quarter compared to 22.9% in the third quarter last year, and
increased to 22.2% in the first nine months compared to 20.6% in the first nine months last year.
• Net sales of the Consumer Brands Group increased 23.5% to $838.1 million in the quarter and increased 14.2% to $2.44 billion in the first
nine months. The increase in the quarter was due primarily to higher volume sales to most of the group's retail customers in all regions.
• The Performance Coatings Group's net sales increased 1.2% to $1.31 billion in the quarter and decreased 5.6% to $3.62 billion in the first
nine months. The increase in the quarter was due primarily to higher sales volume and improving demand in most businesses and regions, led by
our Packaging and Industrial Wood divisions.
• The Company generated $2.56 billion in net operating cash during the first nine months of 2020, an increase of 54% compared to the same
period in 2019, primarily driven by an increase in earnings and improved working capital management. The Company's liquidity position
remained strong with $619.9 million in cash and $3.50 billion of unused capacity under its revolving credit facilities at September 30, 2020.
"Continued and unprecedented strength in our DIY business, solid demand across our residential repaint and new residential segments, and
improving demand in our industrial coatings businesses and regions drove our strong third quarter results," said Chairman and Chief
Executive Officer. "I am extremely proud of our 61,000 employees, who continue to demonstrate resiliency and determination while
providing our customers with differentiated solutions. Improving sales, coupled with favorable customer and product mix, lower input
costs and ongoing continuous improvement efforts, drove strong double-digit growth in EBITDA and diluted net income per share. Strong
cash flow generation in the quarter enabled us to continue making strategic investments across the business while returning over $500
million to our shareholders in the form of treasury share purchases and dividends, an over 100% increase compared to the third quarter of
2019.
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Snap-on (USA) Announces Third Quarter 2020 Results
• Net sales of $941.6 million in the third quarter of 2020 increased $39.8 million, or 4.4% from
2019 levels, reflecting a $34.6 million, or 3.8%, organic sales gain, $4.2 million of favorable
foreign currency translation, and $1.0 million of acquisition-related sales.
• Operating earnings before financial services for the quarter of $185.7 million, or 19.7% of
sales, including $4.5 million of unfavorable foreign currency effects and $1.5 million of direct
costs associated with COVID-19, improved $18.0 million, or 10.7%, from $167.7 million, or
18.6% of sales, in 2019.
• Financial services revenue in the quarter of $85.8 million increased $1.7 million from 2019
levels; financial services operating earnings of $65.6 million compared to $61.0 million last year.
• Consolidated operating earnings for the quarter of $251.3 million, including $4.3 million of
unfavorable foreign currency effects and $1.5 million of direct costs associated with COVID-19,
compared to $228.7 million last year. As a percentage of revenues (net sales plus financial
services revenue), consolidated operating earnings were 24.5% and 23.2% in the third quarters
of 2020 and 2019, respectively.
• The third quarter effective income tax rate was 23.4% in 2020 and 23.5% in 2019.
• Net earnings of $179.7 million, or $3.28 per diluted share, compared to $164.6 million, or
$2.96 per diluted share, a year ago.
“We’re encouraged by Snap-on’s third quarter, which included sequential improvements in
each of our operations, as well as overall year-over-year progress,” said Snap-on chairman
and chief executive officer. “The momentum we experienced in the month of June continued
in the period, confirming the ongoing accommodation to the virus as we deploy measures to
proceed safely in the COVID-19 environment. Despite the turbulence of these times, our
performance rose, even as we maintained and expanded our advantages in product, brand,
and people. To that end, the benefits of Snap-on Value Creation Processes continued to be
realized in a variety of ways. We were honored again this year with product awards from
both Motor Magazine and Professional Tool & Equipment News, demonstrating our deep
understanding of work and our ability to translate that insight into winning innovations that
add to the considerable strength of our line-up. At the same time, while prioritizing the health
and well-being of all our constituents, we remain focused on seizing the abundant
opportunities inherent in our essential business segments and on driving improvements that
we believe will combine to author overall progress going forward. Finally, and especially in
the current conditions, I want to thank our franchisees and associates worldwide for their
ongoing dedication, continued contributions, and unfailing confidence in our future.”
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Sojitz (Japan) Invests in Idein Inc., a Tech Startup with Unparalleled,
World-class Technological Capabilities
Sojitz Corporation has acquired stake in Idein Inc., a startup with an edge AI (edge computing) * platform, through third party allotment of shares.
Sojitz will partner with Idein to provide AI, IoT, and big data-related services to its wide-ranging business fields as a general trading company in
order to visualize on-site operations. In doing so, Sojitz aims to further increase efficiency and provide value-added services in the industries in
which it demonstrates a strong market presence. Through this edge AI platform, Sojitz and Idein will promote societal implementation of AI to
realize a highly-convenient society.Edge AI technology provides a solution to cloud-based AI challenges such as privacy protection, higher data
volumes, and demand for ultra-low latency. While cloud computing uses remote data centers, edge AI runs AI learning algorithms on local
devices (edge devices) in closer proximity to the site. Edge AI technology makes it possible to process customer data in stores and other on-site
facilities and to assess abnormalities in any devices and products.Actcast is a platform developed using Idein’s original technology optimizing
computing functions to enable high-speed computing on low-cost devices, which significantly reduces initial investment costs for users. In the
marketplace, users can purchase any combination of apps that are developed and offered by vendors, and easily install, change, and update these
apps remotely. The Actcast platform is anticipated to further accelerate the societal implementation of edge AI.
Description
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