Today’s news in brief-16/11/23
Mars has acquired Hotel Chocolat in a £534m deal, offering a 168% premium on the share price. Mars sees cultural alignment between the two companies, sharing values of quality, sustainability, and purpose. Hotel Chocolat’s directors deemed the deal “fair and reasonable.” Mars, with its international footprint and global supply chain, aims to support Hotel Chocolat’s growth. Stephen Alexander, chair of Hotel Chocolat, anticipates exciting opportunities for employees as part of Mars. Andrew Clarke, global president of Mars Snacking, highlights the complementary nature of the businesses, emphasising a shared passion for quality and sustainability.
Marks Electrical Group has announced a robust financial performance for H1 2024, with revenues surging by 24.8% to £53.9m compared to £43.1m in H1 2023. The growth was attributed to strong sales across all product lines, particularly in televisions (+71%), washer-dryers (+74%), and American fridge-freezers (+36%). Despite this positive trend, adjusted EBITDA decreased from £2.7m to £2.3m due to strategic decisions, including the introduction of an in-house installation service and inflationary pressures in distribution costs impacting margins.
Ije Nwokorie, previously a non-executive director at Dr. Martens and senior director at Apple Inc., will assume the role of chief brand officer at Dr.Martens from February 1, 2024. This newly created position will oversee global marketing, product, and strategy functions, reporting to CEO Kenny Wilson. Nwokorie’s extensive experience in brand consultancy and global retail aligns with Dr. Martens’ rebellious and authentic nature. The company anticipates Nwokorie’s leadership will set the stage for the brand’s next phase of growth, aiming to become a £2bn revenue brand.
Iceland has reported a full-year loss of £17.1m, citing an unprecedented surge in global energy costs, with a £93.6m rise attributed to the aftermath of Russia’s invasion of Ukraine. Despite the loss, sales increased by 7.2% to £3.86m, boosted by 24 new store openings. The supermarket achieved “record-breaking” Christmas sales and outperformed the market in its final quarter. Adjusted EBITDA fell to £105.8m, meeting expectations, but representing a decline from £127.1m. The company’s owners highlight strong progress, cost savings, and efficiency programs, expressing confidence in a financially robust future despite the challenges faced.
Burberry announced a potential dip in annual adjusted operating profits toward the lower end of the £552m to £668m range. Despite a 4% revenue increase to £1.396bn during H1 2023, adjusted operating profits declined by 6% to £223m. Increased store investment and inflation-related costs were cited as contributing factors. The luxury brand remains confident in its strategy and committed to achieving medium and long-term targets, even as global luxury demand slows. CEO Jonathan Ackroyd emphasised progress in executing strategic goals and building momentum around Burberry’s new creative vision.
