Latest news with #EBIT
Yahoo
a day ago
- Business
- Yahoo
Freight forwarder Kuehne+Nagel posts fall in second-quarter operating profit
(Reuters) -Swiss logistics group Kuehne und Nagel reported a 15% drop in its second-quarter operating profit on Thursday, citing significant negative foreign exchange impacts in its Sea Logistics division. Its earnings before interest and taxes (EBIT) fell to 342 million Swiss francs ($431.76 million) in the three months ended June 30, missing analysts' median forecast of 363 million Swiss francs. On a currency-adjusted basis, EBIT declined by 9%. The company attributed the miss to an extraordinary provision of CHF 16 million related to an ongoing tax fraud investigation in Italy. The freight forwarder, which operates in more than a 100 countries, said its underlying earnings outlook and expectations for 2025 remain unchanged. However, due to persistent currency headwinds, Kuehne + Nagel has lowered its recurring EBIT forecast to the range of CHF 1.45 billion-CHF 1.65 billion from CHF 1.50 billion-CHF 1.75 billion. Analysts are expecting a median operating profit of 1.53 billion francs for 2025, a company-provided poll showed. Since the Covid-19 pandemic, logistics firms have weathered a series of disruptions from port congestion and labor strikes to geopolitical tensions and attacks on key shipping routes. More recently, the sector has been hit by a new wave of uncertainty stemming from U.S. tariff hikes and retaliatory measures by trade partners. These developments have reignited volatility across global supply chains and weighed heavily on demand visibility. Kuehne + Nagel has not been spared. The company's shares hit their lowest level since August 2020 in early April following the announcement of new U.S. tariffs. The stock, which is under pressure after issuing subdued EBIT guidance for 2025, has been underperforming the logistic sector over the last six months with declines of 15%. ($1 = 0.7921 Swiss francs)
Yahoo
2 days ago
- Business
- Yahoo
Returns On Capital At SCC Holdings Berhad (KLSE:SCC) Paint A Concerning Picture
When it comes to investing, there are some useful financial metrics that can warn us when a business is potentially in trouble. More often than not, we'll see a declining return on capital employed (ROCE) and a declining amount of capital employed. This indicates to us that the business is not only shrinking the size of its net assets, but its returns are falling as well. And from a first read, things don't look too good at SCC Holdings Berhad (KLSE:SCC), so let's see why. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Understanding Return On Capital Employed (ROCE) For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for SCC Holdings Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.024 = RM1.2m ÷ (RM54m - RM4.9m) (Based on the trailing twelve months to March 2025). So, SCC Holdings Berhad has an ROCE of 2.4%. In absolute terms, that's a low return and it also under-performs the Trade Distributors industry average of 11%. Check out our latest analysis for SCC Holdings Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for SCC Holdings Berhad's ROCE against it's prior returns. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of SCC Holdings Berhad. What The Trend Of ROCE Can Tell Us In terms of SCC Holdings Berhad's historical ROCE movements, the trend doesn't inspire confidence. Unfortunately the returns on capital have diminished from the 15% that they were earning five years ago. Meanwhile, capital employed in the business has stayed roughly the flat over the period. Companies that exhibit these attributes tend to not be shrinking, but they can be mature and facing pressure on their margins from competition. So because these trends aren't typically conducive to creating a multi-bagger, we wouldn't hold our breath on SCC Holdings Berhad becoming one if things continue as they have. The Bottom Line All in all, the lower returns from the same amount of capital employed aren't exactly signs of a compounding machine. Long term shareholders who've owned the stock over the last five years have experienced a 36% depreciation in their investment, so it appears the market might not like these trends either. Unless there is a shift to a more positive trajectory in these metrics, we would look elsewhere. One more thing to note, we've identified 4 warning signs with SCC Holdings Berhad and understanding them should be part of your investment process. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Gamuda Berhad (KLSE:GAMUDA) Might Have The Makings Of A Multi-Bagger
If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. Speaking of which, we noticed some great changes in Gamuda Berhad's (KLSE:GAMUDA) returns on capital, so let's have a look. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Return On Capital Employed (ROCE): What Is It? Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for Gamuda Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.042 = RM888m ÷ (RM29b - RM8.0b) (Based on the trailing twelve months to April 2025). So, Gamuda Berhad has an ROCE of 4.2%. Ultimately, that's a low return and it under-performs the Construction industry average of 11%. See our latest analysis for Gamuda Berhad Above you can see how the current ROCE for Gamuda Berhad compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for Gamuda Berhad . So How Is Gamuda Berhad's ROCE Trending? While in absolute terms it isn't a high ROCE, it's promising to see that it has been moving in the right direction. The data shows that returns on capital have increased substantially over the last five years to 4.2%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 69%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. What We Can Learn From Gamuda Berhad's ROCE A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Gamuda Berhad has. And a remarkable 255% total return over the last five years tells us that investors are expecting more good things to come in the future. In light of that, we think it's worth looking further into this stock because if Gamuda Berhad can keep these trends up, it could have a bright future ahead. Like most companies, Gamuda Berhad does come with some risks, and we've found 1 warning sign that you should be aware of. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
3 days ago
- Business
- Yahoo
Return Trends At ARB (ASX:ARB) Aren't Appealing
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. With that in mind, the ROCE of ARB (ASX:ARB) looks decent, right now, so lets see what the trend of returns can tell us. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Return On Capital Employed (ROCE): What Is It? For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for ARB, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.18 = AU$144m ÷ (AU$881m - AU$101m) (Based on the trailing twelve months to December 2024). So, ARB has an ROCE of 18%. On its own, that's a standard return, however it's much better than the 11% generated by the Auto Components industry. See our latest analysis for ARB In the above chart we have measured ARB's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for ARB . How Are Returns Trending? While the current returns on capital are decent, they haven't changed much. The company has consistently earned 18% for the last five years, and the capital employed within the business has risen 94% in that time. Since 18% is a moderate ROCE though, it's good to see a business can continue to reinvest at these decent rates of return. Stable returns in this ballpark can be unexciting, but if they can be maintained over the long run, they often provide nice rewards to shareholders. Our Take On ARB's ROCE In the end, ARB has proven its ability to adequately reinvest capital at good rates of return. Therefore it's no surprise that shareholders have earned a respectable 89% return if they held over the last five years. So while the positive underlying trends may be accounted for by investors, we still think this stock is worth looking into further. While ARB doesn't shine too bright in this respect, it's still worth seeing if the company is trading at attractive prices. You can find that out with our on our platform. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
3 days ago
- Business
- Yahoo
Berentzen-Gruppe issues profit warning on weak consumer demand
Berentzen-Gruppe has cut its forecasts for annual revenue and operating profit, pointing to continued low consumer confidence. Ahead of the planned publication of the Germany-based distiller and soft-drinks maker's half-year results next month, the Pushkin vodka set out new projections for revenue and operating profit. The business now expects its revenues to be between €172m ($201m) and €178m in 2025, down from its previous forecast of €180-190m. In 2024, the group recorded revenue of €181.9m. Berentzen-Gruppe is projecting consolidated operating profit to range between €8m and €9.5m this year. In 2024, it generated EBIT of €10.6m and had been forecasting between €10m and €12m for 2025. 'Development in the first half of 2025 thus fell short of our expectations, which is primarily attributable to very challenging market conditions in the spirits segment,' Berentzen-Gruppe CEO Oliver Schwegmann said. 'When we set our forecast at the beginning of the year, we still assumed that the very poor consumer sentiment that manifested itself in 2024 would brighten significantly again in 2025. Instead, this trend has continued in 2025 and has even intensified across the entire alcoholic beverages market.' Schwegmann said all promotions with discount retailers for the company's Berentzen-branded liqueurs were cancelled in the first half. 'This was one of the main reasons why the second quarter was weak for our branded spirits,' he added. However, Schwegmann pointed to the 13.2% increase in revenues from the company's Mio Mio soft-drinks brand, which he described as 'finally back on its dynamic growth path'. He added: 'We achieved double-digit revenue growth with our premium and medium products from our private label spirits segment, which are strategically important, particularly for our international business. Overall, our strategic core areas therefore recorded an increase in revenues. This shows once again how important and right it was to position ourselves broadly as a group of companies. 'Despite this market environment, we expect the marketing initiatives outlined above to take effect later in the year, enabling us to report revenues and earnings figures for the second half of the year at the strong level of the previous year.' Last week, Berentzen-Gruppe announced a deal to source Bourbon from Whiskey House of Kentucky. Berentzen-Gruppe, which supplies private-label Bourbon, said the tie-up has started, with the first whiskey barrels filled. A spokesperson for Berentzen-Gruppe told Just Drinks: 'We are one of the largest Bourbon suppliers in Europe for private-label business. 'Particularly in view of the long storage times, we need firm, long-term contracts that ensure we will have sufficient quantities available in the coming years.' "Berentzen-Gruppe issues profit warning on weak consumer demand" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
