Europe Movers: Antofagasta, Richemont, Renault, Rio Tinto, Stellantis, Whitbread

Inga Muller
16 Jan, 2025
Frankfurt

Benchmark indexes in Paris soared, driven by a surge in luxury stocks after Richemont SA reported a strong increase in quarterly sales. 

Italy's trade surplus in November after imports fell at a faster pace than exports.   

The DAX index increased by 0.2% to 20,612.99; the CAC-40 index rose by 2.2% to 7,623.41; and the FTSE 100 index inched higher by 0.7% to 8,365.77.

The yield on 10-year German bonds edged lower to 2.55%, French bonds fell to 3.36%, the UK gilts decreased to 4.71%, and Italian bonds edged lower to 3.70%.

Richemont SA soared 16.6% to CHF 162.15 after the parent company of Cartier reported a 10% increase in sales in the December quarter. 

Quarterly sales grew 10% year-on-year to €6.15 billion, following a 1% drop in the previous quarter.    

Improvements in the first half of the year came with the acceleration of sales in jewelery by 14% and fashion & accessories by 7%.

Sales in the Americas surged 22%, in Europe advanced 19%, in the Middle East by 20% and in Japan by 19%. 

However, sales in Asia Pacific, which includes mainland China, declined 7% from a year ago. 

The company reported a net cash position of €7.9 billion.    

Nine-month sales increased 4% to €16.2 billion, and 3% at actual exchange rates.

Luxury peers advanced sharply in Paris and Milan after the company's sales update. 

Hermes International SCA jumped 5.9% to €2,504.0, LVMH advanced 9.5% to €697.70, and Kering SA soared 9.2% to €243.75. 

Rio Tinto plc gained 1.7% to 5,017.0 pence after the UK-based mining company reported strong production results in the December quarter. 

On a consolidated basis, mined copper in the fourth quarter was 202,000 tons, or 26% higher than a year ago. Meanwhile, bauxite production increased 2% to 15.4 million tons.

For fiscal year 2024, consolidated annual mined copper production advanced 13% to 697,000 tons, while aluminum production saw a slight 1% increase to 3.3 million tons.

Antofagasta plc rose 3.5% to 1,756.0 pence, despite the UK-based mining company operating in Chile reporting flat production of copper in 2024. 

Renault SA advanced 3.9% to €49.33 after the French automaker reported a 1.3% increase in unit sales in 2024, and the sales increase was driven in part by a faster adoption of electric vehicles. 

Sales growth, however, slowed sharply from a rise of 9% in 2023 amid inflation concerns and surplus production in China.

Renault will report 2024 financial results on February 20.

Stellantis NV increased 1% to €12.46, despite the Italian automaker reporting a 9% decline in global shipments of vehicles in the fourth quarter. 

Sales in the period dropped 5% although the company conducted successful inventory reductions in the U.S. market.

Consolidated shipments for the three months ending December 31, 2024, were an estimated 1.4 million units.

Whitbread plc declined 2.2% to 2,903.0 pence after the hotel and restaurant company reported a decline in sales.

The hotel and restaurant company said latest quarterly sales were down 2% to to £763 million.

The company is “making excellent progress in Germany” and reiterated its profitability in fiscal year 2026.

Whitbread expects gross UK cost inflation to be between 5% and 6% on a £1.7 billion cost base. However, with efficiencies of £50 million, net UK cost inflation is seen between 2% and 3%. 

Revenue in the fiscal third quarter ending in December declined 2%, driven by a 1% fall in comparable sales. 

UK comparable accommodation sales decreased 3%, and food and beverage sales decreased 1%, and total UK sales dropped 3%. 

However, comparable sales in Germany soared 20% in the third quarter. 

Zalando jumped 14.6% to €33.44 after the online retailer of fashion and lifestyle products said its adjusted EBIT is expected to reach around €510 million, above the company's current guidance of €440 million to €480 million.

On December 11, 2024, Zalando announced its intention to acquire up to 100% of ABOUT YOU Holding SE's share capital.

In the financial year 2024, revenue grew by 3.9% from a year ago to €10.5 billion, and gross merchandise volume rose by 4.5% to €15.3 billion.

Swiss-based SGS SA tanked nearly 6.5% on Wednesday after it confirmed that it is in merger talks with French peer Bureau Veritas. 

The two firms specialize in testing and certifying products, ingredients and processes.

Combined, the two companies would have a market value of nearly $35 billion or CHF31.9 billion.

Any potential deal would require the backing of French investing company Wendel SE, the largest shareholder of Bureau Veritas with a 26.5% stake.

The agreement would also likely need approval from the French and Swiss governments.