Clothes, diamonds and stones
Zalando, Virbac, Argan, MBB, Thermador, Pullup, Rio Tinto, Richemont
Zalando (ZAL) Online fashion giant wraps up a strong year
Zalando delivered some exciting news for investors, sharing its preliminary results for 2024, and there’s a lot to like. The company reported gross merchandise volume (GMV) of €15.3 billion, up 4.5% from the previous year. Revenues followed suit, growing by 3.9% to €10.5 billion. These numbers slightly beat market expectations, showing that Zalando’s focus on attracting more customers and improving inventory sell-through really paid off.
What’s even more impressive is how Zalando managed to boost its profits. Adjusted EBIT for the year hit €510 million, smashing the company’s guidance of €440–480 million. Q4 alone saw a 19% year-over-year jump in adjusted EBIT to €217 million, with margins improving to 6.7%. A key driver here was a better-than-expected gross margin, which rose by more than 100 basis points. It’s proof that smart inventory management and a streamlined assortment can really make a difference. The final audited numbers will be released in March, but it’s clear 2024 was a winning year for the online fashion giant.
Zalando has some ambitious but achievable goals for 2025. The company expects GMV to grow by another 6% to €16.2 billion, with revenue hitting €11.2 billion. Profits are also forecasted to rise, with adjusted EBIT set to reach €561 million. That momentum seems to be carrying over from 2024, and analysts have already bumped up their expectations for next year.
With the fashion e-commerce market still expanding, and Zalando showing it can deliver for both customers and investors, the future looks bright for this European powerhouse.
Virbac (VIRP) Solid 2024, but 2025 could be a transition year
Virbac, a global leader in animal health, wrapped up 2024 with solid results, though it’s clear that 2025 might be more about stabilizing than soaring.
Full-year sales came in at €1.4 billion, up 12.1%, with organic growth of 7.5%. While Q4 sales grew 10.5% year-over-year to €355.4 million, organic growth slowed slightly to 4.1%, reflecting a tougher comparison to the previous year’s strong numbers.
The good news? Growth was balanced across regions, with the domestic animal segment leading the charge, thanks to improved vaccine production. On the flip side, livestock product sales lagged behind, particularly in Australia.
Virbac managed to maintain its operating margin at a solid 16%, slightly beating expectations. They also made great strides in improving cash flow, surpassing their initial target with a €100 million boost. That’s a big win, achieved through smarter stock management and deferring some capital expenditures. But as we turn to 2025, the company is signaling a more cautious outlook, forecasting 4–6% revenue growth and flat margins. Part of this is due to increased spending on R&D and a natural slowdown following a stellar 2024.
Adding to the mix is the upcoming transition in leadership. Virbac’s search for a new CEO is underway, but details remain scarce. The lack of clarity might make 2025 feel like a year of waiting and watching. Analysts have adjusted their forecasts slightly downward, but the company’s fundamentals remain strong. The domestic pet market, buoyed by specialty products like dental care and pet food, should continue to offer stability, even as livestock sales face headwinds.
While 2024 was a year of solid execution, 2025 looks like a period of transition. With growth expected to slow and big changes on the horizon, Virbac’s stock may not see much excitement in the short term. Let’s wait-and-see.
Argan (ARG) Strong results, a healthier balance sheet, and exciting investments
Logistics real estate specialist Argan has a lot to celebrate after 2024. The company delivered solid results across the board, with net recurring earnings climbing 9% to €137 million, just above its guidance. On a per-share basis, that’s €5.54, up 2% year-over-year, despite a capital increase earlier in the year.
Rental income was a bright spot, growing 8% to €198.3 million, while the cost of debt ticked down to 2.25%. Even more appealing for shareholders, the dividend was raised to €3.30 per share—a 48% increase—offering a juicy 5.6% yield.
Argan also made serious progress in cleaning up its balance sheet. Its EPRA Net Tangible Assets rose 8% to €85.5, beating market expectations. This was driven by strong value creation from property deliveries and a modest increase in portfolio value. At the same time, the company slashed its Loan-to-Value ratio to 43%, down from nearly 50% in 2023, with plans to drop below 40% by the end of 2025. The net debt-to-EBITDA ratio also improved significantly, showing the company’s commitment to financial discipline as it prepares to refinance a €500 million bond maturing in 2026.
Argan has ambitious investment plans for 2025 and 2026, budgeting €170 million for new developments and acquisitions. These projects are expected to deliver attractive yields and strengthen the portfolio. The company is also expanding its land reserves, positioning itself for future growth.
All in all, Argan is in a great position to navigate a challenging economic environment. With a high dividend yield and strong financial footing, the stock looks attractive.
Whether it’s through continued deleveraging or smart investments, the company seems ready to build on its 2024 success and keep delivering value.
MBB (MBB) Record-breaking profits and a solid cash position set the stage for the future
MBB had a banner year in 2024, delivering results that exceeded both its guidance and market expectations. Revenues climbed 11% year-over-year to approximately €1.06 billion, while the adjusted EBITDA margin soared to over 13%, a huge leap from 8.4% in 2023. This performance beat the company’s own targets of €1 billion in revenue and a 12% EBITDA margin. The standout contributor to these stellar results was Friedrich Vorwerk, which smashed its revenue guidance by bringing in over €495 million and achieved an impressive 16% EBITDA margin, well above expectations.
On top of this strong performance, MBB is also seeing some big changes at the top.
CEO Dr. Mang and COO Dr. Ammer, who have played key roles in the company’s success, will be stepping down in mid-2025 after years of impactful leadership. Their contributions include milestones like the IPOs of Aumann and Friedrich Vorwerk.
Moving forward, founding shareholder Dr. Christof Nesemeier and CFO Torben Teichler will jointly lead the company, focusing on strategy, M&A, and financial growth. With such a capable team at the helm, MBB looks well-prepared for the future.
Another big highlight? MBB’s liquidity is stronger than ever. Despite investing over €58 million into its subsidiaries, the company ended the year with record net cash of €550 million, €75 million higher than in 2023. This robust cash position provides a solid foundation for future growth, acquisitions, and development.
Thermador Groupe (THEP) Struggles, but hope for a turnaround
2024 was a tough year for Thermador, with sales falling by 13.3% to €503.9 million. This missed the mark compared to forecasts of €511 million. The decline carried through Q4, where sales dropped 10.6%, mirroring the struggles faced throughout the year.
The company cited weak demand in key areas like new housing, energy renovations, and home improvement projects. Political uncertainty in France, where Thermador generates 85% of its sales, compounded these challenges, particularly with fluctuating policies around subsidies for energy renovations.
Despite these headwinds, Thermador showed resilience. Its gross margins held up, thanks to successful commercial negotiations, and the company managed operating costs effectively, including lowering transport expenses and adjusting variable wages. Cash flow also remained positive, with a strong net cash position at year-end. Additionally, the group stayed active on the M&A front, with two acquisitions in progress, including C2AI, expected to close in mid-2025.
2025 may bring a slow recovery. Thermador anticipates modest growth of 1.5%, including 1% organic growth and a slight scope effect.
While the immediate momentum remains challenging, management is focused on staying ready for a market rebound. Long-term opportunities in energy renovations and housing recovery could start to show in the second half of 2025 and into 2026.
Thermador has some solid fundamentals and potential, but there’s clear near term uncertainty in our opinion.
Pullup (ALPUL) Big wins in Q3 powered by Space Marine 2
Pullup is on a roll, with its Q3 2024-25 sales reaching €101 million—more than double the figure from the same period last year and well above expectations of €84 million. The standout performer was Space Marine 2, which launched in September and has already sold over 6 million units, making it one of the top games of the year. Catalogue sales drove 68% of Q3 revenue, surging nearly eightfold, while the back-catalogue held steady, growing 5% year-over-year despite tough comparisons.
The momentum didn’t stop there. Over the first nine months of the fiscal year, Pullups sales hit €335 million, more than doubling year-over-year. The company’s guidance remains strong, with EBITA for the full year expected to land between €55–60 million. While higher royalties for the Space Marine 2 license holder and increased physical sales costs might limit profit upgrades, the overall trajectory is undeniably positive. PulluP also confirmed a significant reduction in net debt by year-end, putting the company in a stronger financial position heading into 2025.
Looking ahead, Pullup’s 2025-26 pipeline is shaping up nicely. While catalogue sales are expected to normalize after the Space Marine 2 launch, the back-catalogue is expected to grow by 15%, supported by strong demand for titles like Toxic Commando and Memories in Orbit.
With its share buyback program underway and M&A opportunities on the table, Pullup is keeping all options open for growth. Attractive valuation compared to peers.
Rio Tinto (RIO) Preliminary talks go nowhere as Rio sticks to its no-big-M&A stance
In what could’ve been a seismic shift for the mining world, preliminary talks between Rio Tinto and Glencore about a potential merger have reportedly come to nothing. According to Bloomberg, the discussions happened late last year but quickly fell apart, with Reuters confirming they proved inconclusive. This isn’t the first time these two mining giants have flirted with the idea of joining forces—Glencore CEO Ivan Glasenberg explored a merger with Rio back in 2014—but once again, it looks like the deal was dead on arrival.
It’s not hard to see why. Rio Tinto’s CEO, Jakob Stausholm, has consistently avoided big acquisitions, sticking to a strategy of disciplined growth. The company’s painful experience with the $38 billion Alcan acquisition in 2007—a deal that stretched its balance sheet and left it licking its wounds for years—is still fresh in corporate memory. Even more recently, Rio took a measured approach with the $7 billion acquisition of Arcadium, a US lithium specialist, steering clear of bidding wars like BHP’s attempt to buy Anglo American.
The appeal of Glencore, though, would’ve been its copper assets. Combining Rio’s and Glencore’s copper portfolios could have made the new entity the world’s largest copper producer, with significant stakes in top mines like Collahuasi in Chile and Antamina in Peru. But outside of copper, there’s little synergy between the two. Rio dominates in iron ore, aluminum, and lithium, while Glencore is a heavy player in coal, chrome, and cobalt. Their trading operations, which Glencore excels at, would’ve introduced a layer of complexity to Rio’s simpler structure.
Financially, Rio has the flexibility to pull off a deal of this scale—its leverage is low, and it could theoretically finance half of Glencore’s valuation in cash. But the risks were high. A merger would create one of the most complicated commodity portfolios in the industry and open the door to overpaying, especially with BHP potentially entering the fray. For now, Rio’s focus remains on executing its long-term strategy in copper, aluminum, high-grade iron ore, and lithium.
At c. 6x EBITDA for 2025, Rio remains an attractive investment, and the company’s disciplined approach is likely to keep it on steady ground.
Richemont (CFR) Jewellery division delivers standout growth amid luxury headwinds
Richemont closed out its third quarter of fiscal 2025 with impressive results, thanks largely to its Jewellery Maisons division. Group revenues reached €6.15 billion, up 10% year-over-year, beating expectations by 9%. The Jewellery Maisons segment stole the spotlight, posting 14% growth on a constant-currency basis, while Specialist Watchmakers continued to struggle with an 8% decline. The standout performance in jewellery came as a surprise, especially after the group posted negative growth in Q2.
The year-end holiday season brought particularly strong demand for Richemont’s jewellery in the US and Europe. In the US, consumer confidence rebounded after the elections, while Europe benefited from increased tourism, particularly from the Middle East.
Collections like Van Cleef’s iconic Alhambra line and new additions to Cartier’s permanent offerings proved to be big hits during the gift-giving season. Growth in other regions, such as Japan and the Middle East, also remained robust, with both markets posting double-digit increases.
Thanks to this strong finish, Richemont upgraded its forecasts for the Jewellery Maisons division, expecting higher growth and improved EBIT margins for fiscal 2025 and beyond. The group’s EBIT margin for the jewellery division is now forecasted to reach 31.6%, up from 31.1%, with further improvements expected in fiscal 2026. Richemont also raised its overall EBIT forecast for the year by 9%, reflecting the strength of its jewellery segment amid broader luxury market challenges.
Richemont’s strategic focus on jewellery, which continues to outperform other luxury categories, sets it apart from competitors. With its premium jewellery offering driving growth even in a tough macroeconomic environment, Richemont remains a compelling play in the luxury sector.
If you appreciate this post, feel free to share and subscribe below!