Adidas, the sports apparel brand, reported a net income of €171 million ($182 million) from continuing operations in the first quarter (Q1) of fiscal year 2024 (FY24), marking a significant turnaround from the €24 million net loss reported in Q1 FY23.
In Q1 FY24, the company’s basic earnings per share from continuing operations amounted to €0.96, a notable contrast to the loss per share of €0.18 reported in Q1 FY23.
During the year, Adidas experienced an 8% growth in currency-neutral revenues, with a 5% increase attributed to the core Adidas business.
Revenues from the footwear segment surged by 13%, while those from the apparel segment increased by 2% during the first quarter.
Overall, the company’s direct-to-consumer (DTC) business emerged as a significant growth catalyst, experiencing a 20% increase in currency-neutral terms.
Sales in Adidas’ retail stores increased by 11%, whereas e-commerce revenues surged by 34% throughout the quarter.
Regionally, Europe led the way with a 14% surge in currency-neutral sales, driven by robust performances in both direct-to-consumer (DTC) and wholesale channels.
Although revenues in North America saw a 4% decline, there was a notable increase in emerging markets and Latin America, with rises of 17% and 18%, respectively.
Adidas achieved an operating profit of €336 million for Q1 FY24, representing a significant increase from €60 million in the corresponding quarter of the prior year.
Adidas CEO Bjørn Gulden expressed his satisfaction, stating, “I am pleased to see that our performance in Q1 exceeded our expectations. Sales, gross margin, and operating profit all outperformed our initial projections. We observed robust full-price sales in our direct-to-consumer channels, and our retail partners experienced higher sell-out than sell-in. This resulted in reduced inventories, fewer discounts, and improved gross margins for both our retail partners and ourselves.”
The company has updated its outlook for the full year of 2024, now anticipating currency-neutral revenue growth at a mid-to-high single-digit rate, along with an expected operating profit of €700 million.
Plant-based food sales through US retail dropped in value and volume terms in 2023, as revealed by new findings, with significant declines noted particularly in meat and seafood alternatives.
According to data from SPINS and the Good Food Institute’s (GFI) latest State of the Industry report, plant-based food dollar sales decreased by 2% last year to $8.1 billion. Sales volumes also saw a decline of 9% to 1.8 billion units.
Meat and seafood alternative dollar sales decreased by 12% since 2022 and by 13% since 2021, reaching $1.2 billion in 2023. Unit sales growth for plant-based meat and seafood saw declines of 19% compared to 2022 and 26% compared to 2021, totaling 215 million units.
According to the report, household penetration rates remained stagnant or declined in 2023, with plant-based meat and seafood experiencing a four-percentage-point drop to 15%. This highlights the necessity to reconnect with consumers.
Plant-based meal sales also experienced notable declines in US retail, with dollar sales growth reaching $498 million in 2023, marking a 14% decrease from 2022 and a 15% drop from 2021. Unit sales growth stood at 96 million, reflecting a 22% decline from 2022 and a 28% slump compared to the previous year.
Among all plant-based categories, milk alternatives secured the leading position, with dollar sales increasing by 1% compared to 2022 and by 9% compared to 2021. However, unit sales witnessed a year-on-year decline of 8% and a 10% drop compared to 2021.
In terms of purchase repeat rates for 2023, plant-based milks demonstrated the highest performance, with 79% of consumers repurchasing the product. The report highlighted that nearly half of US households bought the product at least once during the year.
Next in line were plant-based creamers, with 65% of consumers repeating their purchases, closely followed by meat and seafood alternatives, which saw 62% of consumers doing the same.
The repeat purchase rates were lowest for plant-based eggs and cheeses, at 48% and 49%, respectively.
As per the Good Food Institute (GFI), retail sales of plant-based foods in the US have surged by 51% since 2017, marking the inception of the think tank’s monitoring of this segment.
Starbucks, the renowned coffee chain, has partnered with Podback, a UK-based coffee pod recycling scheme, to facilitate the recycling of used coffee pods for customers.
This collaboration builds upon Podback’s current initiatives and presents a convenient resolution for the increasing population of coffee pod users in the UK.
As part of the new program, patrons who savor Starbucks At Home pods can grab complimentary Podback recycling bags at any of Starbucks’ 1,250 coffee shops across the UK.
Once packed with used pods, these bags can be deposited at any of the 6,500 Yodel drop-off points located nationwide.
To enhance convenience, Podback additionally provides kerbside collection services for 1.5 million households across 21 local authorities in the UK.
This partnership reinforces the already robust collaboration between Starbucks and Podback, demonstrating a mutual dedication to sustainability.
The timing of this initiative is crucial, especially considering the staggering statistic of approximately 800 million coffee pods purchased in the UK last year alone.
Jacqui Wetherly, Sustainability Director at Starbucks UK, expressed, “Given that Starbucks UK customers are already utilizing Podback to recycle our pods at home, we’re thrilled to provide them with a simpler method to acquire their bags from our outlets.”
“We remain dedicated to our ongoing mission of minimizing the environmental footprint of all our coffee products, encompassing everything from the beans to the milk we utilize and the manner in which it’s served.”
Rick Hindley, Executive Director at Podback, remarked, “Teaming up with one of the globe’s most renowned coffee brands signals the significant strides Podback has taken in establishing a convenient and straightforward method for individuals to recycle their used pods.”
“Starbucks’ endorsement further simplifies the recycling process for coffee pod users, who can now conveniently obtain a Podback bag at any Starbucks coffee shop throughout the UK.”
Every coffee pod collected by Podback undergoes recycling within the UK.
Once collected, used aluminium pods are repurposed into beverage cans, while plastic pods are transformed into an array of products, such as supermarket crates and building materials.
The remaining coffee grounds undergo anaerobic digestion, producing biogas and a soil enhancer.
Confectionery giant Mondelez International has reported a 1.4% increase in first-quarter net revenue to $9.29 billion, compared to an 18.1% increase in the year-ago quarter, despite a ‘challenging and dynamic’ operating environment.
This demanding environment may be attributed to escalating cocoa prices due to global supply shortages, resulting in price hikes and shrinkflation.
Addressing this matter while speaking to analysts following the publication of its financial results, Mondelēz CEO, Dirk Van De Put, remarked, “Although unexpected and transient, the cocoa inflation doesn’t diminish the resilience of our categories or the significant growth opportunities ahead.”
“It is evident that there is a great deal of discussion being generated by the record costs for cocoa ingredients & the consequent price increases that customers and consumers will face in the future,” he continued. Chocolate demand is still rising despite this short-term obstacle, and we are still fundamentally favoured in this expanding market with plenty of growth potential.
“Although adverse weather conditions and other factors impacting both supply and demand have propelled prices to unprecedented heights, we anticipate a market adjustment in due course.”
The $3.35 bn sale of its gum division to Perfetti Van Melle, stable product demand, and increased net pricing were the main drivers of the US confectionery giant’s 4.2% increase in organic net revenue for the three-month period.
Although the owner of Cadbury and Oreo raised its prices by 6.3 percentage points in the quarter, its volumes declined by 2.1 percentage points.
In Q1, Mondelēz’s Asia, Middle East, and Africa segment achieved a 0.6% increase in net revenue, contrasting with the 3.9% growth seen in Q1 2023 for the same region. Meanwhile, the company’s Europe business experienced a revenue growth of 1.8%, significantly lower than the 12.7% increase recorded last year.
In the first quarter, Mondelēz witnessed a 2.1% decrease in net revenue in North America, a significant drop from the region’s 26.8% growth in the same quarter of the previous year. Conversely, the company’s Latin America division posted an 8.9% increase, marking the highest growth among all of Mondelēz’s regions, yet notably less than the 46.6% growth reported for the region during the corresponding period last year.
Van de Put remarked, “In the first quarter, we achieved strong top-line performance along with robust earnings and free cash flow generation, propelled by effective pricing strategies, efficient cost control, and momentum in emerging markets.”
He went on to say, “Despite encountering a challenging and constantly changing operational landscape, our teams remained steadfast and adaptable in adhering to our long-term growth strategy. We persist in reinvesting in our brands, expanding distribution channels, and leveraging synergies from recently acquired assets to foster sustainable long-term growth.”
Lululemon Athletica, a renowned Canadian athletic apparel retailer recognized as the trailblazer of yoga pants, is planning to enter India, seizing the opportunity presented by the increasing demand for fitness and athleisure wear in the region.
Recently, a global team from Lululemon visited India to scout for potential locations where the company could open stores, as disclosed by two officials.
According to one of the executives, “They are not keen on collaborating with Indian companies and will probably enter on their own.”
He added, “They have reached out to a few malls in Bangalore, Delhi, as well as Mumbai.”
According to another source, the Lululemon team conducted a meeting with mall developers to inquire about the progress of new mall developments in major metro cities.
The individual added that numerous international brands are in talks and eager to participate in India’s retail growth narrative.
Queries directed towards Lululemon received no response.
In 2019, the Canadian company established a tech hub in Bengaluru, marking its first venture beyond North America. This move aimed to drive global expansion through the utilization of data science, machine learning, and full-stack cloud engineering. These technologies were employed to bolster merchandise planning and manage product and location information effectively.
Lululemon Athletica designs, distributes, and retails athletic apparel, footwear, and accessories.
As per the company’s 2023 annual report, it has a presence in more than 25 countries and has achieved robust net revenue growth across various regions, including 12% in the Americas, 67% in Mainland China, and 43% in other parts of the world.
Last year, the company inaugurated 56 new company-operated stores, leading to a 15% expansion in square footage. Additionally, net revenue from total company-operated stores rose by 21%, while ecommerce net revenue saw a 17% increase.
India, with its population of 1.4 billion, stands as one of the largest and most rapidly expanding markets for businesses.
While many global brands have established a presence in India for over two decades, their growth has been facilitated by promoting their products through partnerships with cricket and other sporting activities. Conversely, newer entrants are positioning themselves as comfortable lifestyle and everyday athletic wear brands.
In India, the sales of nearly half a dozen leading sports brands have surged over the past two years, both during the pandemic and thereafter.
According to regulatory filings obtained from the Registrar of Companies, brands like Puma, Decathlon, Adidas, Skechers, and Asics have experienced year-on-year growth ranging from 35% to 60% since FY21. Collectively, they recorded combined revenues of INR 11,617 crore in FY23.
Two years ago, the collective sales of these brands amounted to INR 5,022 crore.
The demand for fitness wear and sports equipment for disciplines beyond cricket experienced growth as people placed a higher priority on health with the onset of Covid-19.
Encouraged by a post-Covid consumption surge, approximately two dozen international brands established their stores in India in 2023. This marked a significant increase from the one global brand in 2020, three in 2021, and eleven in 2022. Prior to Covid-19, an average of 12-15 brands used to enter the Indian market annually.
Mars Cosmetics, a beauty brand focused on accessibility and affordability, aims to double its revenue this fiscal year by broadening its online and offline presence, according to Rishabh Sethia, the company’s director.
The bootstrapped brand, which ended the last fiscal year with INR 200 crore in revenue, is aiming to reach INR 400 crore this fiscal year.
“This fiscal year, we aim to go deeper and broaden both our online as well as offline presence. We intend to increase the number of our kiosks from 10 to 30, however as a result of growing at such a rapid rate, we have several gaps in our overall trade strategy. Consequently, we will eliminate those gaps in terms of execution,” he explained.
The brand intends to allocate INR 3.5 crore towards launching 20 new kiosks in states such as Rajasthan, Uttar Pradesh, Gujarat, and West Bengal. Additionally, it currently maintains a presence in 7,000 general trade (GT) stores.
“Aside from this, we are under-penetrated in South India as well as East India, so looking ahead we will be focusing more on expanding our retail footprint over there,” he went on to say.
The capital expenditure (CAPEX) required to establish one Mars Cosmetics kiosk, covering an area of 64 sq.ft, amounts to INR 15 lakh.
The brand, encompassing four categories – eyes, lips, face, and tools and accessories, boasts a selection of 1,000 SKUs.
“At present, we have no intentions of entering into new categories. Our focus remains steadfast on excelling within our current category. We still identify numerous areas for improvement within this segment,” he emphasized.
Presently, offline sources account for 55% of the brand’s revenue, with online channels contributing the remaining 45%.
“Our direct-to-consumer (D2C) channel accounts for about 5–7% of online sales, with the remaining revenue being split fairly evenly throughout marketplaces. On the other hand, company-owned & company-operated kiosks account for 2-3% of our offline revenue, with GT accounting for 97–98% of it,” he said.
Currently, the brand’s D2C website has an average bucket size of INR 800, and the cost of acquiring a new customer is INR 350. It has a 22 percent client retention rate.
Dabur, the FMCG giant, has been investing in expanding its rural footprint, which has driven the demand for its brands better by nearly 400 basis points than in urban areas, the company stated.
Furthermore, Dabur has boosted its investments in consumer activation within rural areas to extend the reach of its products.
“We’ve expanded our product offerings in rural markets by introducing new affordable and rural-specific packs across various categories. This strategic move aims to cater to the unique needs of these markets and drive demand growth,” the company stated.
Dabur CEO Mohit Malhotra emphasized that the company boasts the highest rural distribution, a key factor in its growth.
“Our rural coverage expanded by 22,000 villages to reach 122,000 villages during the year. Dabur’s rural distribution stands out as the highest in the industry, providing us with a distinct advantage and driving rural growth. These proactive investments have led to our rural business outpacing urban growth by 400 basis points,” he explained.
The company’s CFO, Ankush Jain, also mentioned that volume growth for FY25 is anticipated to surpass that of FY24, with a more favorable recovery rate expected from Q2 onwards through Q3.
In this quarter, Dabur also reported a 13.9 percent increase in operating profit, attributed to its effective execution of the Power Brand strategy, enhanced premiumization, and cost reduction measures, among other factors.
“We’ve concluded the year with a consistent performance, highlighting the strength of Dabur’s brands. We’ve significantly increased investments in our brands, up by 33 percent, to stimulate demand and maintain growth momentum. Despite encountering various challenges, this commitment has enabled us to achieve steady sales and profit growth in the fourth quarter,” remarked Malhotra.
The consumer company reported a 16 percent growth in its consolidated net profit, reaching INR 350 crore for the quarter ended March 2024. Revenue from operations also saw a 5 percent year-on-year increase, totaling INR 2,815 crore for the reporting period. Additionally, the Board has proposed a final dividend of INR 2.75 per equity share for the fiscal year 2023-24.
Minor Hotels, a global hotel owner and operator boasting over 540 properties in 56 countries, is planning to expand its presence in the Indian hospitality market. The company aims to achieve this by targeting 50 new openings within the next decade.
The group will concentrate its strategy on the upper-upscale and luxury hotel segments, expecting strong interest from owners in its Anantara, Avani, and NH Collection brands.
Minor Hotels stated that for Anantara Hotels & Resorts, the group is enhancing its ‘core brand differentiators’ by focusing on opportunities in Ayurvedic wellness retreats, wilderness lodges, and historical palaces. Additionally, it sees Avani Hotels & Resorts as strategically positioned to address a notable gap in the lifestyle hotel sector throughout India, while NH Collection Hotels & Resorts are expected to attract attention for upper-upscale conversion opportunities.
With a focus on greenfield developments, Minor Hotels is targeting hotel management contracts and aims to pinpoint opportunities in emerging locations. This strategy, rooted in the group’s 46-year history, emphasizes destination creation and will continue to be pursued.
Amir Golbarg, Senior Vice President for Middle East, Africa, and India at Minor Hotels, expressed confidence in India’s potential and noted the overwhelming interest from owners. However, the chain is adopting a ‘partnerships over properties’ approach, prioritizing collaborative ventures.
“We’re being highly discerning about the hotels we include in our portfolio, emphasizing the cultivation of meaningful alliances with partners who share our values and vision,” he explained. “Minor’s forte lies in our capacity to think globally while acting locally, allowing us to adeptly tailor our standards and operations to suit the distinct characteristics of each market. This adaptability, we believe, will provide a significant advantage for us in India.”
Minor Hotels entered the Indian market in 2017 with the launch of Oaks Bodhgaya in Bihar. Later this year, the group will introduce its flagship luxury brand to India with the opening of the Anantara Jaipur Hotel.
To bolster its expansion efforts, Minor Hotels has inaugurated a new office in Bengaluru and has appointed Vijay Krishnan as Vice President of Operations for India.
Dillip Rajakarier, CEO of Minor Hotels and Group CEO of its parent company Minor International, expressed the chain’s strong belief in India.
“We think it has the potential to be a top-tier inbound destination. Additionally, we think that the booming domestic market offers huge prospects. We intend to keep investing there in order to achieve our growth goals, which is why we made significant expenditures to establish our business there,” he stated. “With our years of expertise in managing world-class hotels in emerging areas, along with the strong recognition of our existing hotel brands within the Indian market, we are confident in our ability to play a significant role in India’s ongoing tourism success story,” he said.
Minor Hotels stated that its expansion strategy in India aligns with an ‘ambitious’ global expansion plan for the Bangkok-based group. The company aims to add over 200 hotels within the next three years as part of this initiative.
Last month, the startup’s board approved a resolution to secure funding through the issuance of compulsorily convertible preference shares to investors. According to estimates, the funds were raised at a post-money valuation of approximately $66 million.
Entrackr was the first to report on this development.
The latest fundraise comes almost two years after DaMENSCH raised $16.4 Mn in a funding round led by A91 Partners.
With the addition of the recent funding round, DaMENSCH has now amassed over $25 million in total funding to date.
Established in 2018 by Anurag Saboo and Gaurav Pushkar, DaMENSCH is a direct-to-consumer men’s lifestyle brand specializing in innerwear and casual wear apparel. Its products are available for purchase on its official website as well as prominent e-commerce platforms such as Amazon, Flipkart, and Myntra.
The direct-to-consumer brand experienced a 22.5% increase in operating revenue, reaching INR 72.3 crore in the financial year 2022-23 (FY23), up from INR 59.3 crore in the preceding fiscal year. However, the net loss more than doubled to INR 62.34 crore from INR 26.89 crore in FY22.
In the men’s innerwear segment, DaMENSCH competes with brands such as Bummer, XYXX, Freecultr, and Dollar Industries.
It’s worth mentioning that several direct-to-consumer (D2C) brands have emerged in the country over the past few years, spanning sectors such as apparel, beauty, personal care, and snacks. These emerging brands, supported by investor funding, are challenging established players and striving to shake up their respective markets.
Only a month ago, the direct-to-consumer innerwear brand Bummer raised INR 9.25 crore from the Gruhas Collective Consumer Fund.
According to data, India’s overall ecommerce market is anticipated to reach a size of over $400 billion by 2030. Within this projection, the fashion apparel and accessories segment is expected to contribute $112 billion, compared to over $23 billion in 2023.
“The listing plans are currently being discussed internally, and HCCB has begun exploring potential bankers to lay the groundwork for the listing,” shared one of the executives.
Beverages are outperforming other fast-moving consumer goods (FMCG) categories due to their “under-penetration” and affordable price points, according to another source.
Moreover, the source mentioned that India’s per-capita consumption of soft drinks ranks among the lowest globally, suggesting significant growth opportunities. They also highlighted India’s emergence as a sought-after market for investors.
A specific date for the listing has not been determined yet, but the company is optimistic about India’s prospects, considering it a key market for growth. He further noted that the country is experiencing an IPO surge due to market confidence in its status as the fastest-growing economy.
HCCB manages Coca-Cola’s bottling operations in India, alongside several franchisees responsible for producing and delivering popular fizzy drinks like Coke, Thums Up, and Sprite, as well as juices such as Minute Maid and Maaza, and Kinley water. Bottling responsibilities are shared equally between HCCB and the franchisees.
Queries directed to Coca-Cola India and HCCB went unanswered.
The bottling partner of rival PepsiCo, Varun Beverages Ltd (VBL), which went public in 2016, currently boasts a market capitalization of INR 1.96 lakh crore. Its stock has witnessed a remarkable surge of over 200% in the past two years.
According to Registrar of Companies (RoC) filings accessed by business intelligence platform Tofler, HCCB saw a 40% rise in revenue from operations for FY23, reaching INR 12,840 crore compared to INR 9,147.74 crore in FY22. This increase can be attributed to growing demand following a year of Covid-19-related disruptions. Additionally, net profit surged by over twofold to INR 809.32 crore.
HCCB operates 16 factories nationwide, with a portion of its operations divested to independent entities in the northern and eastern regions. In January, Coca-Cola unveiled plans for “strategic business transfers in India,” involving the sale of company-owned bottling operations in certain territories—Rajasthan, Bihar, the Northeast, and specific areas of West Bengal—to local partners. Coca-Cola’s bottling operations in southern and western India remain under HCCB’s purview.
In its quarterly earnings statement released in the US on Wednesday, the company disclosed that it had generated $293 million (INR 2,420 crore) from refranchising activities earlier in the year in India.
In December, HCCB revealed plans for a INR 3,000 crore investment in Gujarat, and in November, it announced a INR 1,387 crore investment for a plant in Maharashtra.
“The company has delivered an impressive performance for FY23 after two straight years of Covid-related disruptions and business impact,” HCCB had stated in its RoC filing. The company has maintained a “laser-sharp” focus on execution, expanding its market reach, and safeguarding its business model.
In its RoC filing, HCCB expressed a “very positive” long-term outlook for the beverage business in India.
“The fundamental forces propelling long-term growth, including rising spending power, heightened consumer awareness, limited penetration of consumer goods, favorable demographics, burgeoning urbanization, and a growing preference for established brands, remain steadfast,” the statement read. “Our company remains committed to pursuing new avenues such as e-commerce, grocery, pharmacy, and more, both organically and through strategic acquisitions, aligning with our vision and mission.”
According to the RoC filing, HCCB, established in 1997, caters to 2.5 million retailers and operates with 3,500 distributors.
Coca-Cola’s bottling partners globally consist of both publicly traded and privately owned firms. As per its website, the top five principal bottling partners of Coca-Cola worldwide accounted for 42% of the company’s total unit case volumes in 2022.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
