| |
| Hello Insiders!! Tuesday’s business newsletter covers: - GE profits soar on aviation boom
- Analysis of where Americans are moving in need of cheaper homes
- Unilever: Inflation peaked, sales surging
Have thoughts about the newsletter? We want to hear them!
If you find this newsletter helpful, please share it with your friends and colleagues. Shriram
p/Shriram | |
| 1 | | General Electric Co. (GE) increased its expectation for full-year profits following the publication of better-than-anticipated quarterly earnings, driven by robust demand for jet engine spare parts and services amid a boom in air travel. The firm upped its estimate for free cash flow to between $4.1B and $4.6B and amended its profit per share expectation for 2023 to between $2.10 and $2.30. More: - GE's aerospace division, which manufactures Boeing and Airbus engines, recorded double-digit orders, revenue, and operating profit increases.
- The joint venture's LEAP engine deliveries with France's Safran also increased.
- In Q2, compared to a year ago, the aerospace unit's services revenue climbed by 31%, making up 70% of its total revenue in the previous year.
- The Boston-based company's shares were up roughly 4% in pre-market trading.
- The operational profit for its aerospace sector is anticipated to increase from the previous projection of $5.3B to $5.7B in the range of $5.6B to $5.9B for the entire year.
|     | |
| 2 | | 
What the numbers say: Migration to climate-risk areas surged in the past two years, with flood-prone counties experiencing a 103% increase in population (400,000 people), high wildfire-risk counties seeing a 51% increase (446,000 people), and counties with high heat risk witnessing a 17% uptick (629,000 people). Relevance: Americans continue to choose to relocate there despite the climatic risks, with affordability being their top priority. Many Americans moved to the Sun Belt states for warm weather and low taxes during the COVID-19 pandemic due to remote employment opportunities and low mortgage rates. Other factors: The dangers of climate-related calamities like wildfires and droughts are also higher in places like Florida and Arizona, which are well-known for having inexpensive land and less strict building regulations. This has resulted in population declines in hurricane-prone Louisiana and fire-prone Paradise, indicating that there may come a time when the potential environmental threats outweigh all other considerations. | | | |
| A message from our sponsor, Nutrafol. |  | | Results-driven hair growth that’s doctor-approved. Nutrafol is the #1 dermatologist-recommended hair growth supplement brand for a good reason. When it comes to improving hair growth, we are dedicated to getting every step in the process right—from the formulation of our Hair Growth Nutraceuticals to consumer results. It all starts with our physician-formulated, multi-targeted approach that promotes visibly thicker, fuller hair and scalp coverage from within. Our patented technology harnesses the power of drug-free ingredients to address hormones, stress, lifestyle factors, and other root causes that can affect hair health. From there, our formulas go through rigorous clinical testing to ensure they deliver science-backed results. With a consistent supplement routine, you can begin to see thicker, fuller, stronger hair in 3-6 months. In a clinical study, 84% of men experienced improved hair quality and 72% of men saw improvements in scalp coverage after 6 months on Nutrafol Men. Start growing at Nutrafol.com | |
|
| 3 | | Unilever saw growth in the second quarter due to price increases of 8.2% and 7.9% underlying sales growth. The first half of the year's improved gross margins resulted from this price increase, cost reductions, and more sales of premium goods. More: - Unilever's finance chief stated that they believe inflation has reached its highest point and is now declining, while consumers in North America remain hesitant, and store brands increasingly challenge Unilever's sales in ice cream and salad dressings.
- In the quarter, ice cream and nutrition prices increased by 12.1% and 11.8%, respectively, while volumes for ice cream and nutrition decreased by 5.8% and 2.6%, and volumes for home care fell by 2.1%.
- Still, the beauty and well-being business experienced volume growth of 4.9% despite price hikes.
- China's first-half sales increased, but the country's consumers are still wary because of the high unemployment rate and low level of consumer confidence.
- Unilever's market share in Europe decreased as high inflation led shoppers to buy less and opt for store brands, resulting in overall sales of $17.39B in Q2.
| | | |
| 4 | | David Risher, the newly appointed CEO of Lyft, is looking into strategic options for the company's bike segment, including selling the fleet or collaborating with an investor. Since becoming CEO, Risher has implemented considerable reforms, including job cuts and new features for drivers and passengers. More: - He said, "The bike division was acquired in 2018, and despite being well-liked, maintaining the fleet is expensive and takes attention away from the company's primary operations."
- Wall Street is now anticipating Risher to set long-term goals and forecast when the business will profit.
- Employees have had varying opinions of Risher's strategy, with some dissatisfied with the cancellation of remote-work policies and other adjustments.
- To compete on quality rather than wage a pricing war, Risher wants Lyft to roll out new features to improve the rider and driver experience.
| | | |
| A message from our sponsor, NativePath. |  | | Unlock the Secrets of Healthy Aging with NativePath Collagen is essential for healthy skin, joints, and bones, but most collagen supplements on the market are made from animal byproducts and contain artificial ingredients. At NativePath, they believe in sourcing only the best ingredients for their products, and that’s why they offer a collagen powder that’s truly native—or as close to nature as humanly possible. By adding collagen powder to your daily routine, you can experience a range of benefits, including improved skin elasticity, joint health, and bone strength. With 18 grams of protein per serving, their collagen powder also supports muscle growth and maintenance, keeping you feeling energized and strong throughout the day. Discover the power of natural collagen supplementation. Take your first step towards healthy aging and try NativePath's collagen powder today. Try it today | |
|
| 5 | | Celebrities like Mark Wahlberg, Kendall Jenner, and Ryan Reynolds have launched high-end spirits companies to capitalize on the rising demand for premium spirits, which witnessed a 4% increase in sales last year. With names like George Clooney's Casamigos (19%) and Dwayne "The Rock" Johnson's Teremana acquiring sizable market share in the tequila sector on sites like Drizly, tequila appears to be a popular choice for celebrity-owned firms. More: - With a 9% market share on Drizly, actor Ryan Reynolds' Aviation Gin is the third most popular gin brand this year.
- With a 14% market share of the cognac category on Drizly, Jay-Z's D'USSÉ is the second most popular cognac brand.
- While some celebrity-owned businesses have been successful, others, like Sean "Diddy" Combs' collaboration with Diageo, have encountered challenges and ended because of claims of racial discrimination.
- A lucrative business opportunity for celebrities with money and star power, celebrity involvement has increased consumer interest and enthusiasm in the spirits market.
| | | |
| 6 | | The "Sightline" pricing plan, which offered varying prices for theater seats, has been abandoned by AMC Entertainment. The program was trialed at a few sites across three U.S. markets, with higher charges for preferred seats and lower prices for less desirable ones. More: - The Kansas-based chain stated, "Moviegoers showed little interest in front-row tickets at lower costs, preferring their preferred seats at higher prices."
- AMC will now concentrate on testing front-row seats with plusher recliners at a few U.S. sites later this year.
- In contrast to rival theater companies like Regal, AMC has decided to keep ticket prices competitive by refusing to raise costs for better seats.
- AMC Entertainment's stock slightly declined by less than 1% on Thursday and has only gained over 5% YTD, underperforming the overall market.
| | | |
| 7 | | Quick Hits: - Invest in Virtuix before they ship their VR treadmills to their waitlist, a $100M opportunity. This opportunity ends on 8/10.*
- TSMC, the world's biggest chip manufacturer, will invest $2.9B in constructing a high-tech chip facility in Taiwan to cater to the growing demand for AI products.
- U.S. national security officials are reviewing a $3B Abu Dhabi sovereign wealth fund acquisition of Fortress Investment Group over concerns about UAE's China ties.
- The Telegraph Media Group exceeded profit expectations for the year, with pre-tax profits of $49.9M driven by increased digital subscriptions and efficient cost management.
- Over 1,500 U.K. app developers have filed a $1B class action lawsuit against Apple, claiming that the company's App Store fees are unfair and restrictive.
- Discover how collagen helps reduce loose skin, deep wrinkles, and dark spots.*
*This is sponsored content. | | | |
| Upcoming Events | | JUL
25 | | Lacework hosts former CEO of Starbucks, Jim Donald, for a fireside chat on what CEOs need to know about cybersecurity.* | | | | | | | JUL
31 | | #TwoCents Discussion Community Challenge | | | | | | | AUG
2 | | Join Vanta and VioletX and find out how growing startups should navigate the complex compliance space.* | | | | | | | OCT
16 | | Meet Our Fund 5, Building and Investing in AI | | | | | | | NOV
7 | | Join us for Strategic Marketing 2023 and meet 300+ CMOs and senior marketing leaders from the world's biggest brands.* | | | | | | * This is a sponsored event | | | |
Term of the Day Assessed value: The assessed value is an official estimate of a property's worth that is used to determine the appropriate tax rate for the property. Question of the Week What's your stance on unpaid internships: valuable experience or exploitation? Join the conversation |
INSIDE BUSINESS LEADERBOARD (7 DAYS) |
 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Vibha Chapparike | |
| |
| |
|
| |
|
| |
Comments
Post a Comment