Walmart’s obtains marginal income and focuses on e-commerce

Sam's Club store. (Photo Credit: Caldorwards4)

UNITED STATES
Monday, August 18, 2014, 01:30 (GMT + 9)
The operating income of the world's largest retailer Walmart declined by a 2.4 per cent in US during the fiscal second quarter while online sales increased.
This fall has been the result of the sluggish sales, higher-than-expected health care costs and the need to invest more in its e-commerce operations, The Associated Press reported.
The company reported a net income of USD 4.09 billion in the second quarter ending on 31 July, up 0.6 per cent from a year ago and adjusted earnings per share of USD 1.21, matching Wall Street estimates.
For his part, Doug McMillon, Walmart's president and chief executive, said the discount retailer had clocked up encouraging performances in its international business, its new small-format "Neighborhood Market" stores in the US and in e-commerce.
"We wanted to see stronger comps in Walmart US and Sam's Club, but both reported flat comp sales. Stronger sales in the US businesses would've also helped our profit performance," McMillon said in a statement.
Walmart US head since early August Greg Foran pointed out that the most notable operating headwind in the second quarter came from health-care costs, which increased USD 180 million from a year ago, "well above our initial estimates."
Foran, who is in charge of more than 4,000 Walmart stores and 1.3 million employees, said that health-care costs were expected to grow more than USD 500 million for the fiscal year ending 31 January.
On the other hand, global e-commerce sales grew about 24 per cent in the quarter. The company said its 4 most important markets – the US, Britain, China, and Brazil – saw double-digit growth.
"We remain focused on price investment across all our markets and expect to continue driving improved comp performance," said David Cheesewright, Walmart International president and CEO.
And he added: "I am pleased with the trends in many of our markets, which were driven by a continued focus on being the lowest cost operator."
In this regard, McMillon explained their investments in e-commerce and mobile are very important, as the lines between digital and physical retail continue to blur and that their customers expect a seamless experience, and so they are working to deliver that for them around the world.
To lure more customers to its websites and better compete with online retail giant Amazon, Walmart recently snapped up companies specialized in data analysis and online marketing, and has begun rolling out a global technology platform.
The company just launched an online price-comparison app, Savings Catcher, to allow customers to get back the difference they paid when they find a local competitor offers a lower advertised price.
 

China Fishery Group achieved profit increase in Q3

China Fishery Group trawler. (Photo Credit: CFO)

SINGAPORE
Tuesday, August 12, 2014, 03:30 (GMT + 9)
China Fishery Group Limited reported revenue amounting to USD 155 million and a net profit of USD 19.6 million for the April-June quarter, figures that account for year-on-year increases of 1.7 per cent and 26.6 per cent, respectively.
And for the nine months that ended in June this year, the firm reported an inter-annual increase in gross profit of 30.9 per cent.
“We have been transforming the Group so that it is strongly positioned to meet the increasing demand for fishmeal and fish oil from the growing aquaculture and animal farming sectors,” pointed out Ng Joo Siang, Group Managing Director.
And he added: “We are pleased with our performance for the quarter which reflects our commitment to this strategy. Looking ahead to the next quarter, the Group will maintain its focus on consolidating the enlarged Peruvian Fishmeal Operations, realising maximum value from the synergies and efficiencies generated and focusing on cash conversion and net debt reduction.”
The Group highlighted the revenue from the Peruvian Fishmeal Operations in Peru, accounting for 67.6 per cent of the total, represented an increase by 2.9 times from USD 83.3 million to USD 324.6 million, and reflected increased contribution from the enlarged Peruvian Fishmeal Operations incorporating Copeinca AS.
Furthermore, the revenue from the Contract Supply Business accounted for 27.1 per cent of total revenue, a decrease by 59.5 per cent from USD 320.8 million to USD 130.1 million, due primarily to the termination and non-renewal of the Long Term Supply Agreements.
Besides, the revenue from the CF Fleet operations accounted for 5.3 per cent of total revenue, an increase by 33 per cent, from USD 19.1 million to USD 25.4 million, mainly as a result of higher catch and sales volume recorded from the fishing operations in Namibia.
Despite a 57 per cent increase in overall sales volume, cost of sales and vessel operating costs increased by only 6 per cent, changing from USD 296.2 million to USD 313.8 million, which was mainly attributable to the increase in productivity and broader economies of scale achieved in the enlarged Peruvian Fishmeal Operations.
The firm revealed a gross profit increased by 30.9 per cent, changing from USD 127 million to USD 166.2 million, and a gross profit margin that improved from 30 per cent to 34.6 per cent.
The EBITDA increased by 16.7 per cent, changing from USD 182.9 million to USD 213.4 million, while EBITDA margin increased slightly from 43.2 per cent to 44.5 per cent.
China Fishery also stressed that, all in all, the net profit decreased by 24.7 per cent, changing from USD 70.2 million to USD 52.9 million, due primarily to higher finance costs and income tax expenses in Peru.
As to the fourth quarter this year, despite the Group’s lower catch volume in Peru largely due to El Niño effect, the Group is confident that the higher average selling prices of fishmeal and fish oil will be able to partially compensate for the reduction in sales volume.

Business and Travel in Liaoning Province

If you travel to northeastern China you will find the fascinating province of Liaoning. Not only does the Liaoning province enjoy good trade opportunities, but it is filled with fascinating attractions that make it a prime tourist destination. Liaoning in China can be loosely divided into three geographical regions: the western highlands, the middle plains and the eastern hills. The province also enjoys coastal connections which give it added benefits. The provincial capital is Shenyang and other noteworthy cities are Dilian, Anshan, Liaoyang, Fushun, Dandong, Jinzhou and Yingkou.
Liaoning enjoys a massive agricultural yield and has a good reputation for its fruit. Its main agricultural products are maize, soybeans and sorghum, but it also produces apples, golden peaches, pears, white pears, apricots, plums and cotton. The Dalian area is actually so productive that it produces three-quarters of all the apples and peaches which are exported from China. Liaoning also has the greatest iron, magnesite, boron and diamond deposits in China. Other natural resources from Liaoning include petroleum and natural gas. The province is also a massive source of quality seafoods, such as sea cucumbers, scallops, prawns, sea urchins, crabs and abalones. Jellyfish from Yingkou, fish from Dandong and clams from Panjin are exported internationally and domestically and are renowned for their excellent taste. Salt is also produced along the coast. Those interested in trade in Liaoning will find that both Dalian and Yingkou are massive major ports, which provide excellent economic gateways to the rest of northeast China.
Tourism is also really enjoyable in Liaoning Province, since there are a number of excellent attractions here – some of which have been included on the UNESCO World Heritage Site list. The top attraction is that of Mukden palace which was used by the emperors of the Quin Dynasty. While not as famous as its counterpart, ‘the Forbidden City' in Beijing, the Mukden palace is a beautiful attraction. It is a UNESCO World Hertiage Site because of its clear representation of architecture of that era and the Chongzheng Hall inside the palace is probably the most popular part of the attraction. You will also find three imperial tombs from the Qing Dynasty in the area, and the Anshan Jade Buddha – the largest jade Buddha statue in the world. Wunu Mountain City is also a treat, while the Benxi boat ride through a stalagmite filled cave is an otherworldly delight. The city of Dalian is filled with great attractions and is a great place to spend time if you are traveling with children. Why not discover all this and more by visiting Liaoyang Province? You’ll find it to be an excellent travel and business destination!