L’Oreal, Pepsi surpass estimates
• L’Oreal SA’s sales growth surpassed expectations in the fourth quarter despite weakness in China due to the recent Covid flareup that weighed on cosmetics demand. Sales rose 8.1 percent on a comparable basis in the last three months of 2022, the French beauty company said in a statement Thursday. Analysts expected 6.8 percent expansion. The growth rate has slowed for three consecutive quarters as inflation and disruptions in China limit demand for cosmetics. Estée Lauder shares are down about 8.5 percent since it posted earnings on Feb. 2.
• PepsiCo reported betterthan-expected sales in the fourth quarter after hiking prices for its drinks and snacks, but it warned that consumers may be less willing to accept those increases as this year progresses. The New York-based company said its net revenue rose more than 10 percent to $28 billion. That was better than the $26.8 billion Wall Street had forecast. Pepsi CEO Ramon Laguarta says consumers have been resilient despite higher prices, and continue to gravitate toward familiar brands like Cheetos. But the company says that could change if the U.S. or other developed markets see a mild recession later this year.
• Pilgrim’s Pride shares surged as much as 9 percent on Thursday, as sharply falling chicken prices boost poultry demand from inflation-weary consumers at a challenging moment for the rival beef industry, according to Pilgrim’s Pride. The gains came even as a glut in supplies pinched Pilgrim’s fourth-quarter earnings, released late Wednesday. While chicken supplies expanded more than sales in late 2022, resulting in an “unprecedented decline” in prices, the industry is positioned to benefited from a shrinking U.S. cattle herd. That will likely make steaks and hamburgers more expensive in the next few years.
• Credit Suisse has reported a pre-tax loss of more than 1.3 billion Swiss francs, or about $1.4 billion, in the fourth quarter of last year. The results Thursday come as new managers vie to right the top-drawer Swiss bank that has faced a string of setbacks in recent years and is trying again to restructure. The bank also announced the $175 million purchase of the investment banking business of U.S.-based M. Klein & Co. and plans to roll those operations into the revived CS First Boston investment bank. The Zurichbased company said net revenue sank 20 percent compared with a year ago, coming in at 3 billion francs for the fourth quarter.
• Nissan has reported a 55 percent jump in its OctoberDecember profit, as the Japanese automaker gears up for a less bumpy journey with its French alliance partner Renault. Profit for the quarter at Nissan totaled 50.6 billion yen, or $386 million. Its quarterly sales surged 29 percent, as a shortage of computer chips that has bedeviled the world’s automakers gradually eased. The crunch was caused by pandemic-related disruptions that also hindered Nissan’s ability to deliver its vehicles to customers. Nissan, Renault and smaller Japanese carmaker Mitsubishi Motors, recently agreed to equalize the stake each automaker holds in the other to 15 percent to better balance the alliance.