Today’s news in brief-15/11/24
The UK economy stagnated in Q3 2024, with GDP rising just 0.1%, a sharp slowdown from 0.5% growth in Q2. The services and construction sectors saw modest gains, but production shrank. Nominal GDP increased by 0.8%, driven by rising employee compensation. Economic uncertainty, partly due to the upcoming budget, hindered decision-making, with businesses expressing concerns over rising costs. The Confederation of British Industry (CBI) noted the strain of National Insurance hikes and other policy shifts, warning these could stifle growth. The government was urged to enhance industrial strategy and business incentives to bolster investment and economic stability.
The British Retail Consortium (BRC) criticised the Autumn Budget, citing its potential to inflate prices and trigger job losses. Retailers face £2.3bn in added taxes from National Insurance changes and £2.7bn from the National Living Wage uplift, alongside increased business rates and compliance costs. The cumulative financial burden, including new regulations on recycling and employment, risks exacerbating challenges for the sector.
B&M reported a 3.7% revenue increase to £2.6bn in the first half of 2024, driven by a 6% sales growth in Q2. The company opened 39 new stores, with UK revenues reaching £2.1bn. Despite rising adjusted EBITDA to £274m, operating profits dipped slightly to £258m, and statutory pre-tax profit fell to £169m. Post-tax free cash flow dropped to £73m.
LVMH reshuffled its leadership team, appointing Cécile Cabanis as chief financial officer and Jean-Jacques Guiony as CEO of the Wines and Spirits division, Moët Hennessy, effective early 2025. Maud Alvarez-Pereyre will become EVP of Human Resources, while Guillaume Motte joins the executive committee as Sephora’s CEO. These changes follow consultations on sustainability and governance, positioning the company for future growth. Departing executives, including Moët Hennessy’s Philippe Schaus, will aid in the transition. The appointments highlight LVMH’s commitment to innovation and operational excellence.
Textile firm Circulose appointed former H&M CEO Helena Helmersson as chair and Jonatan Janmark as CEO, effective December 2024. Helmersson’s expertise in sustainable fashion aligns with Circulose’s mission to lead the industry’s shift to circular practices. Janmark, previously with McKinsey, emphasised the need to overcome systemic challenges in transforming the textile sector. The appointments reflect a strategic focus on scalability and innovation, with backing from investor Altor.
