Today’s news in brief-25/4/24

Getir is set to exit the UK and Europe as investors inject additional funds into the company, according to Sky News. The funding, expected to be in the tens of millions of pounds, will support the closure of operations in the UK, Germany, and the Netherlands. The move follows restructuring talks and asset sale considerations, including FreshDirect and BiTaksi. Leading investors such as Mubadala, Sequoia Capital, and Tiger Global are reportedly involved. Getir, already well-funded with over $2bn raised, aims to focus on its Turkish business post-exit, with an announcement expected soon.

Sainsbury’s forecasts a profit surge to £1bn, driven by strategies like matching Aldi’s prices through its Nectar card scheme. The company reported a pre-tax profit of £701m, with expectations of an underlying profit of £1.06bn for the upcoming fiscal year. Retail sales, excluding fuel, rose by 6.8%, mainly attributed to a 9.4% increase in grocery sales.

Asda celebrates an upgraded credit rating by Moody’s to B1 from B2 following a robust financial performance in FY23. With full-year profits soaring by 24% to £1.078bn, driven by a 5.4% like-for-like sales growth and strategic acquisitions, Moody’s highlighted Asda’s reduced leverage and increased free cash flow. Asda’s CFO emphasised the company’s dedication to customer value, community welfare, and long-term success.

WH Smith reports an 8% rise in revenues during the first half of the financial year, propelled by a 13% growth in its travel division. Despite a slight dip in high street trading profits, travel profits increased from £47m to £50m. The company plans to open over 80 new stores, with a majority in North America, aiming for roughly 110 store openings in the fiscal year. WH Smith’s CEO expressed confidence in the company’s progress and outlook for continued growth.

Following Matchesfashion’s collapse, creditors, including luxury brands Burberry, Gucci, and Prada, are owed £36m. Administrators suggest that creditors may receive a very low amount, with 11 offers received for the business since administration. While over 500 creditors are affected, efforts are underway to maximise outcomes for stakeholders, though job cuts have already been implemented.