Langton Capital – 2024-04-29 – DPP, Remy, Accor, Red Flags, pricing, trading, cost of living & other:
DPP, Remy, Accor, Red Flags, pricing, trading, cost of living & other:A DAY IN THE LIFE: I spent Friday doing the firm’s VAT return and I can confirm that that’s not as much fun as it sounds. Because, long and painful as it is, it ends with something worse in that you have to, unless you’re running at some horrendous form of loss, remit a payment to HMRC so that the government can carry on with its business and borrow just that fraction less on the international markets to do so. Anyway, that’s done now. But it seems as though I blinked and it’s Monday. What joy. And another five day week before a blessedly shorter one next time around. And Hull City, what can one say? Coming from behind three times to force a 3-3 draw against a higher team isn’t too bad. And it’s still arithmetically possible that we could make the Playoffs. We’re unbeaten in six but, having said all that, we needed 3 points. On to the news: LANGTON EMAIL: The Free Email is now written in short form. Extended versions of many stories (after the ellipses) are in the Premium Email. Reply to this email if you would like to upgrade. Prices for the Premium are £395 for one subscription, £695 for multiple, £995 for very large subscribers, all plus VAT. Or sign up for easy in, easy out monthly option per subscriber HERE https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=87YUG2Z5W7PSN DOMINO’S PIZZA POLAND DP Poland has updated on Q1 trading and our comments are set out below. Headline comments: DPP reports total system sales in Poland in Q1 of 62.2m PLN, up 17.3% on last year. LfL system sales are up 17.9%. Non-delivery is up 17.7% and delivery is +18.0%. In terms of order count, total system orders in Poland are up 14.4% and LfL orders are up 14.8%. Croatian total system sales were €0.9m, up 72.2% with LfL growth of 7.5% Company comment: CEO Nils Gornall reports ‘in the first quarter of 2024 we delivered another strong performance with LFL system sales growth of 17.9% YoY in Poland, driven by a strong order count up 14.8% YoY.’ He says ‘after almost two years since the adoption of a High Volume Mentality across all operations, we have transformed the Polish business into one of the fastest growing Domino’s markets globally.’ He adds ‘momentum in the business is very strong and we are in an excellent position to drive Company expansion.’ Mr Gornall concludes ‘we are very pleased with the Domino’s Pizza Group investment and results of the recent oversubscribed fundraise.’ He says he and the company ‘are ready to embark on the journey to deliver 200 stores by the end of 2026 and transition the business towards a franchise led model….’ • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. PUBS & RESTAURANTS: Prices: The latest CGA Prestige Foodservice Price Index shows that foodservice price inflation has fallen below 10% for the first time in two years. The year to March featured the largest ever monthly decline of 1.4% in that month. Whilst this is good news, CGA does point out that ‘the rate in the Foodservice Price Index remains more than double the level of retail, which stands at 4.0% year-on-year….’ • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Trading: CGA’s latest Daily Drinks Trackers have combined some data from March and April in order to smooth the impact of Easter moving into the earlier month this year. Despite the good news generated by some March data, CGA says ‘drinks sales in late March and April have stayed broadly in line with the levels of last year….’ • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Cost of living issues: Barclaycard is altering its minimum payment terms, transitioning from a tiered structure to a formula based on interest and fees. The will reduce minimum payments for many customers but, for those who pay off the minimum each month, it will significantly raise the amount paid back and the time over which it is paid…. CGA’s latest Cost of Living Pulse research has suggested that consumers’ spending confidence has risen as some cost of living pressures have abated. CGA reports that 43% of ‘consumers went out to eat or drink at least weekly in March—two percentage points more than in February, and the joint highest figure since early 2023.’ It adds that ‘more than a third (37%) of consumers say they spent more money on eating and drinking out than they did in February—a month-on-month increase of eight percentage points, and significantly higher than the 28% who are spending less…..’ • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. The Association of British Insurers reports that the cost of car insurance has risen around 30% over the last year. Other news: ITV News Business and Economics Editor Joel Hills reports that ‘for retailers across the country, a post-Brexit world means being tangled up in red-tape and customs charges. He quotes one operator as saying Brexit is ‘a massive pile of paperwork….’ James Simpson MW chairman of the UK’s Champagne Agents Association – and MD of Pol Roger Portfolio – has emphasised the importance of long-term trends and advised against overreacting to short-term fluctuations amidst a slowdown in Champagne sales, which started in the second half of 2023…. Property agent Christie Group plc, which provides Professional & Financial Services and Stock & Inventory Systems & Services to the hospitality sector amongst others, has reported full year numbers saying that ‘2023 was a challenging and extremely disappointing year for the Group as the effects of continual increases in interest rates and high inflation led to a significant reduction in the volume of business sales….’ • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Restaurateur and marketing expert Andrew Fishwick – who this month launched Hestia a £50m restaurant fund alongside former Sainsbury’s boss Justin King – told City A.M. the market had become “really lazy” and “poor value”. He puts this in part down to backing by private equity. COMPANY NEWS: Albert’s Schloss will debut its largest venue yet in London this July at the Trocadero on Shaftesbury Avenue, featuring an Alpine-inspired beer hall with capacity for more than 600 guests. The venue will boast five bars, a stage for live performances, and an on-site bakery….. • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Luckin Coffee commenced operations at what is now the largest coffee roastery in China, a new 570,000sq ft facility in Suzhou City, Jiangsu. Luckin, which has around 16,240 stores in China, opened a mind-boggling 8,000 new units last year. The group reported 87% year-on-year sales growth in the 12 months ending 31 December 2023. Accor has updated on Q1 saying the company ‘once again delivered a solid performance, increasing revenue in all regions, notably in the Middle East and Asia-Pacific.’ It says ‘the first quarter of 2024 once again demonstrates the strength of hotel demand in all Accor Group regions and segments….’ • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. Rémy Cointreau reported a smaller-than-expected fall in Q4 sales, with organic cognac sales growing 15.4% driven by significant growth in China. The company faced challenges in the US market due to promotional pressures and destocking…. HelloFresh reported a 3.8% YoY increase in revenue in constant currency for Q1, reaching record revenue of €2.07bn driven by a 6.5% increase in average order value….. HOLIDAYS, HOTELS & LEISURE TRAVEL: Aviation consultant John Strickland predicts tight airline capacity and high airfares due to delays in new aircraft deliveries, leading to uncertainty in network planning and rescheduled flights…. Venice has introduced a tourist tax for day trippers, charging €5 via an online booking system during peak hours on selected days, aiming to tackle overtourism. The measure includes spot controls at access points and exempts overnight hotel guests who already pay a tax based on their stay. The Times reports that the US hedge fund behind Travelodge is in talks to buy £40 million of hotels from their landlords as it ‘gears up for a fresh tilt at a sale…’ OTHER LEISURE: Snapchat shares soared 21% in after-hours trading as the social media group surpassed Wall Street’s expectations for quarterly revenue and user growth. Snap reported daily active users of 422 million and revenue rising 21% to $1.2bn in Q1, driven by improvements to its advertising system. 888 Holdings. The Guardian reports that the company ‘will withdraw adverts from locations including London’s transport network after a backlash against their tone, prompting criticism of the capital’s mayor, Sadiq Khan, for allowing them to appear in the first place.’ FINANCE & MARKETS: Sterling higher at $1.2541 and €1.1692. Oil lower at $88.67. UK 10 year gilt yield down 4bps at 4.32%. Worlds markets better on Friday & London set to open up around 41 points as at 6.30am. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out. |
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