Author: Consultant

Elon Musk expected to serve as temporary Twitter CEO after deal closes

https://www.cnbc.com/2022/05/05/elon-musk-expected-to-serve-as-temporary-twitter-ceo-after-deal-closes.html

Barrick Gold Corporation (GOLD) Q1 2022 Earnings Call Transcript

https://www.barchart.com/story/news/8222355/barrick-gold-corporation-gold-q1-2022-earnings-call-transcript

Spin Master Raises 2022 Guidance After Q1 Sales Increase 34 Per Cent, Profits Surge

The Canadian Press – Canadian Press – Wed May 4, 5:02PM CDT
TORONTO — Toymaker Spin Master Inc. is increasing its revenue guidance for 2022 after sales increased 34 per cent in its latest quarter, causing profits to surge more than tenfold.

The Toronto-based company, which reports in U.S. dollars, says it earned US$45.6 million or 43 cents per diluted share in the first quarter, up from US$3.2 million or three cents per share a year earlier.

Adjusted profits were US$57.5 million or 55 cents per share, up from US$8.4 million or eight cents per share in the first quarter of 2021.

Revenues for the three months ended March 31 were US$424.2 million, up from US$316.6 million in the prior-year quarter.

Toy revenues increased 37 per cent to US$350.9 million, digital games was up 49 per cent to US$51.1 million, while entertainment dropped 17 per cent to US$22.2 million.

Spin Master was expected to post 17 cents per share in adjusted earnings on US$368.6 million in revenues, according to financial data firm Refinitiv.

“Following our very strong performance in 2021, we are extremely pleased with the positive momentum we saw across all three of our creative centres in the first quarter of 2022,” stated CEO Max Rangel in a news release.

Spin Master now expects 2022 revenue to increase low double digits from 2021 excluding “PAW Patrol: The Movie,” up from its Feb. 28 forecast of mid- to high single digits.

This report by The Canadian Press was first published May 4, 2022.

Loblaw Reports Q1 Profit Up Nearly 40 Per Cent From Year Ago, Raises Dividend

BRAMPTON, Ont. — Loblaw Companies Ltd. raised its quarterly dividend as it reported its first-quarter profit rose nearly 40 per cent compared with a year ago.

The grocery and drug store retailer says it will now pay a quarterly dividend of 40.5 cents per share, up from 36.5 cents per share.

The increased payment to shareholders came as the company reported its profit available to common shareholders totalled $437 million or $1.30 per diluted share for the 12-week period ending March 26 compared with $313 million or 90 cents per diluted share a year earlier.

Revenue for the quarter totalled $12.26 billion, up from $11.87 billion in the same quarter last year.

Food retail same-store sales rose 2.1 per cent, while drug retail same-store sales grew 5.2 per cent, with pharmacy same-store sales up 6.8 per cent and front store same-store sales up 3.6 per cent.

On an adjusted basis, Loblaw says it earned $1.36 per diluted share, up from an adjusted profit of $1.13 per diluted share a year ago.

This report by The Canadian Press was first published May 4, 2022.

Canadian Natural Resources First-Quarter Profit More Than Doubles

CALGARY — Canadian Natural Resources Ltd. saw its first-quarter profit more than double compared with a year ago, helped by higher oil and natural gas prices.

The company said it earned $3.1 billion or $2.63 per diluted share for the quarter ended March 31, up from $1.38 billion or $1.16 per diluted share in the same quarter last year.

Product sales in the quarter totalled $12.13 billion, up from $7.02 billion in the first quarter of 2021.

Daily production, before royalties, averaged 1,280,180 barrels of oil equivalent per day in the quarter, up from 1,245,703 in the same quarter last year.

Adjusted net earnings from operations amounted to $2.86 per diluted share, up from $1.03 per diluted share in the first three months of 2021.

Analysts on average had expected an adjusted profit of $2.54 per share, according to financial markets data firm Refinitiv.

This report by The Canadian Press was first published May 5, 2022.

BCE Reports First-Quarter Profit Up More Than 30 Per Cent From Year Ago

TORONTO — BCE Inc. reported its first-quarter profit rose more than 30 per cent compared with a year ago as its revenue also moved higher.

BCE CEO Mirko Bibic said it was the first quarter since the start of the pandemic in which the company’s consolidated financial results surpassed pre-COVID levels.

The company said its profit attributable to common shareholders totalled $877 million or 96 cents per share for the quarter ended March 31, up from $642 million or 71 cents per share a year earlier.

Operating revenue totalled $5.85 billion, up from $5.71 billion in the first three months of 2021.

Wireless revenue rose to $2.21 billion compared with $2.1 billion a year ago, while wireline revenue slipped to $3.01 billion from $3.08 billion. Bell Media revenue totalled $825 million, up from $713 million in the same quarter last year.

On an adjusted basis, BCE said it earned 89 cents per share in its latest quarter, up from an adjusted profit of 78 cents per share a year earlier.

This report by The Canadian Press was first published May 5, 2022.

Companies in this story: (TSX:BCE)

British pound plummets as Bank of England warns of recession risk

• Sterling hit a low of 1.2393 against the dollar early Thursday afternoon London time, its lowest level since Jul. 1, 2020.
• It comes after Bank of England policymakers voted for a fourth consecutive rate hike since December at a time when millions of U.K. households are grappling with skyrocketing living costs.
• But policymakers warned that GDP growth is expected to slow sharply and inflation could peak at 10% this year.

The British pound on Thursday was set for its largest daily drop since the onset of the coronavirus pandemic, after the Bank of England warned of a sharp growth slowdown in the U.K. economy.

Sterling hit a low of 1.2393 against the dollar early Thursday afternoon London time, its lowest level since Jul. 1, 2020.

In a widely expected move, policymakers at the Bank of England voted for a fourth consecutive rate hike since December. But policymakers also warned that GDP growth is expected to slow sharply and inflation could peak at 10% later this year.

“We are walking this very narrow path now. The proximate reason for raising bank rate at this point is, it’s not only the current profile of inflation, what is to come and of course what that could mean for inflation expectations to come, but the risks as well,” BOE Governor Andrew Bailey said Thursday at a press conference.

In its updated forecasts, the Bank said it now expects GDP to slump in the final three months of this year. Bailey said the U.K. was set for a “very sharp slowdown” but added that it might not meet the criteria for a technical recession — two straight quarters of contraction.

10-year gilt yields, the country’s sovereign benchmark, were near a session low of 1.85%, and the FTSE 100 stock market was up 1.6% — on pace for its best day since March 14.

“We are witnessing a clear depreciation of sterling during 2022 which is placing it as the third-worst performing major currency,” Jesús Cabra Guisasola, a senior associate for global capital markets at Validus Risk Management, said in a flash research note.

“It looks like MPC members are now more concerned about the prospect for the British economy which is signaling a clear path to stagnation.”

The Bank’s Monetary Policy Committee approved a 25-basis point increase by a majority of 6-3, taking the base interest rate up to 1%. The Bank said the members in the minority preferred to increase interest rates by 0.5 percentage points to 1.25%.

Like many central banks around the world, the BOE is tasked with steering the economy through an inflation surge that has been exacerbated by Russia’s unprovoked onslaught in Ukraine.

Loblaw profit jumps nearly 40 per cent even as inflation drives up costs for retailers

Loblaw Cos. Ltd. L-T -1.18%decrease saw its profits jump by nearly 40 per cent in the first quarter, even as inflationary pressures have increased costs for retailers and their product suppliers.

Loblaw reported on Wednesday that internal price increases at its grocery stores have tracked slightly higher than the consumer price index. And while the company is seeing shoppers become more price-sensitive – with more propensity to visit discount stores and to resist products at higher price points – the shift has not been dramatic.

“We’re not yet seeing that expected shift that comes when you have plus-6-per-cent inflation for month after month,” chairman and president Galen Weston said. “We think that’s an indication of the consumer having more money in their wallets, still, than they would have had pre-COVID levels. But we’re watching it very carefully, because prices are continuing to grow, consumer behaviour is shifting.”

Canadian Tire, Loblaw pay executives millions in bonuses after pandemic successes

Loblaw, Frito-Lay resolve high-profile pricing dispute that pulled chips from store shelves

As Canadians have been pinched by the rising price of food, Loblaw has seen a shift to its discount stores, such as No Frills and Maxi, which account for roughly 60 per cent of the company’s grocery sales. This change in shopping behaviour has affected sales at its more conventional stores – which include its namesake banner as well as others such as Provigo, Zehrs and Your Independent Grocer – but those outlets still performed well relative to competitors, according to the company.

Shoppers have also been buying more private-label products: Sales of Loblaw’s No Name brand have reached all-time highs, Mr. Weston said. The boost in private-label items is good news for grocers, who make higher profit margins on such products.

Pricing has been a sensitive topic of late, as Loblaw recently made headlines for a high-profile dispute with PepsiCo-owned Frito-Lay. The snack giant stopped shipments to Loblaw-owned stores for two months as negotiations over price increases stalled. That dispute was resolved in April. Many product vendors have been approaching retailers to request increases to the wholesale price they are paid, as costs for labour, transportation, packaging and raw materials have been rising.

Loblaw has a central procurement team that handles those negotiations and evaluates the impact of inflation on the cost of those goods, Mr. Weston said on Wednesday.

“It allows us to negotiate with our vendor base, we believe, with an elevated level of precision. We’ve talked about this before, about putting through real, justifiable cost increases but being very careful about accepting cost increases that are not truly justified.”

Although government-imposed restrictions related to COVID-19 have eased, Canadians continue to eat at home more often than they did before the pandemic. Loblaw executives expect that trend may taper off in the second half of this year.

Sales at the company’s Shoppers Drug Mart chain and other drugstores also increased, driven by pharmacy services such as COVID-19 vaccinations and testing, as well as stronger front-of-store sales. Cosmetics are selling well as people return to the office and have begun socializing more, and over-the-counter drug sales have grown as cold and flu cases have made a comeback.

Drug retail same-store sales – an important metric that tracks sales growth not tied to new store openings – grew by 5.2 per cent in the quarter. Food same-store sales increased by 2.1 per cent.

E-commerce purchases softened somewhat compared with a period of heightened demand in the prior year, when sales more than doubled. Online sales fell by 9.8 per cent in the first quarter.

Net earnings available to common shareholders grew to $437-million, or $1.30 per share in the 12 weeks ending March 26, compared with $313-million, or 90 cents per share in the same period last year.

Loblaw boosted its quarterly dividend to 40.5 cents per common share, up from 36.5 cents, its 11th consecutive annual increase.

The retailer, which is based in Brampton, Ont., reported on Wednesday that its first-quarter revenue grew by 3.3 per cent to $12.3-billion.

Activist investor vows to continue climate push after Enbridge shareholders reject proposal

An activist investor failed in its bid to get Enbridge Inc. ENB-T +2.18%increase to strengthen its climate promises on Wednesday, but will continue its push to hold Canadian energy companies and banks to account for their net-zero goals.

It was the latest attempt by activists to get shareholders to help press large corporations to improve their climate action. Earlier this year, for example, a group called Médac submitted proposals to Canada’s seven largest banks urging shareholders to back regular advisory votes on environmental policy and targets.

Wednesday’s proposal, tabled at the energy company’s annual general meeting, requested that Enbridge strengthen its decarbonization commitments by the end of the year and make those goals “consistent with a science-based, net-zero target.”

The proposal was tabled by DI Foundation – a small, B.C.-based charity that holds a handful of Enbridge shares.

The foundation was represented by Investors for Paris Compliance, a non-profit that wants to use shareholder pressure to improve accountability around Canadian public companies’ net-zero plans.

For now, it’s targeting the energy sector and banks. But corporate engagement director Duncan Kenyon told The Globe and Mail the team plans to expand to other parts of the Canadian economy. And it wants eventually to purchase stocks to get the ear of companies itself.

For now, it’s playing the long game by talking with shareholders, and getting its name in front of investors.

Mr. Kenyon acknowledged that Investors for Paris Compliance doesn’t have billions of dollars at stake in its relationship with the companies it’s targeting, unlike some shareholders, who hesitate to give up their opportunity for one-on-one conversations with a chief executive officer by “throwing a proposal on the table that really challenges their business model.”

“That being said, some of those same investors – while they may not want to be the front for this proposal – are very supportive of the proposal,” he said.

About a quarter of them voted in support of the proposal on Wednesday – a result Mr. Kenyon called “encouraging.”

That was even though the board urged shareholders to vote no, arguing in a March management circular that the net-zero framework for midstream oil and gas is still evolving, so “it would be imprudent” for Enbridge commit to future decarbonization guidelines until more work is done and can be assessed alongside the company’s current goals.

Adopting the proposal would amount to “immediate, radical change” that would destroy shareholder value, the board said, adding that Enbridge’s current net-zero strategies “and a deliberate and prudent approach to the energy transition is the best course of action.”

Mr. Kenyon acknowledged that Enbridge has net-zero goals, but said spending to meet those promises comprises only a small fraction of the company’s capital expenditures.

“It’s very consistent with the entire energy sector,” he said. “They don’t want to admit yet that the market for their product will need to be in sharp decline for us to not cook the planet.”

Enbridge spokesperson Jesse Semko told The Globe in an e-mail after the AGM that the company has engaged with various groups to help develop a framework for the midstream sector. Once that’s done, he said, Enbridge “will fully evaluate it and assess whether our current targets need amending.”

Mr. Semko added that the company evaluates all capital expenditures “in the context of the energy transition to ensure they align with our emission-reduction targets.”