Daily Brief Consumer: Mondelez International, Starbucks Corp, Archer Daniels Midland Co, elf Beauty Inc, Lifevantage , Stellantis NV and more

• Mondelez International had robust Q1 2024 with solid top line results, strong earnings, and free cash flow generation.
• The performance was buoyed by momentum in emerging markets where consumer confidence is high and categories are resilient.
• The company faced challenges such as disruption with European clients and boycott of Western products in the Middle East and Southeast Asia.

• Starbucks’ second quarter fiscal year 2024 results reflect the challenges and opportunities the company faces in a changing marketplace.
• While global comparable store sales declined by 4% year-over-year and the company’s total revenue dipped by 1% to $8.6 billion, a decline in foot traffic in North America and a hefty decline of 11% in China being a few of the contributing factors.
• The company was also affected by severe weather conditions, causing a nearly 3% impact on both US and total company comp during the quarter.

• ADM’s stock has dropped by 22% due to an investigation into its Nutrition segment’s accounting practices
• Executives may have had incentives to inflate the segment’s profitability, potentially leading to a scandal
• While the situation presents a buying opportunity, the issue is unlikely to be as pervasive as Enron’s scandal and the underlying business is expected to survive.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We are reiterating our Buy rating, projections and $0.25 price target for Starco Brands with the company reporting 1Q24 (March) results after the close on Wednesday.
• We believe 1Q saw continued progress on multiple levels, with Whipshots rolling out new flavors and now in almost all 50 states, Soylent expanding their protein offerings, Art of Sport beginning its soft launch on Amazon and Skylar expanding new product categories and fragrances.
• As such, and with management remaining focused on driving cost savings and leveraging their relationship and knowledge of the aerosol-driven manufacturing segment, we remain focused on both top line and margin opportunities at STCB. We reiterate our Buy rating and $0.25 price target.

• 3QFY24 EPS was $0.21 versus a depressed $0.08 in 3QFY23 and above our $0.16 estimate.
• 3QFY24 EBITDA of $5.1 million beat our $4.6 million estimate and was up sharply from $3.3 million a year ago.
• EBITDA margin of 10.5% exceeded our 8.7% estimate, driven primarily by lower commissions and incentives as a percentage of sales than we expected (210 bps), as well as lower SG&A (70 bps).

• Stellantis has reported strong results in its Full Year 2023 Results, demonstrating the company’s high resilience even amid challenges.
• Stellantis’ CEO, Carlos Tavares reflected on the record net revenues, net profit, and free cash flow for the year, showing an increase of 6%, 11%, and 19% respectively.
• The CEO noted that Stellantis’ strategy is all about profitable growth.