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Exact(19)
Free cash-flow increases and mild operating margin improvements can't overshadow middling organic revenue growth for much longer especially in an improving global economy.
This looks pricey relative to postal peers, even though Royal Mail has good scope for margin improvements.
Such second-guessing aside, Meijer's merchandisers relied on the pricing system enough over a year-long testing period to glean 10percentt in gross margin improvements.
It pointed to "innovative new products and dynamic promotions" and said the margin improvements seen earlier in 2012 were continuing to flow through.
Gross margin improvements and cost savings have mitigated the top-line weakness thus far, but with first half profits down 24%, we fear that 'self help' may no longer be enough to sustain the chain's recovery.
The bank said: We believe Royal Mail should benefit from margin improvements, as the restructuring gathers pace, and from the potential disposal of the London real estate (which we value at 80p a share).
Similar(40)
In the first half Smiths' management delivered margin improvement in every division with group operating margin improving 190 basis points year on year.
Rolls Royce remains well positioned with a diversified business model, global customer base, earnings visibility and potential for margin improvement.
We forecast network modernisation (parcel automation and logistics optimisation) to drive productivity improvements and facilitate headcount reduction, delivering further margin improvement.
In a hold note Stifel said: At first glance this looks like a good set of interim numbers with good organic growth and operating margin improvement.
Wolseley is experiencing a slowdown in the markets outside the US, while consensus expectations on the potential for further margin improvement appear excessive.
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CEO of Professional Science Editing for Scientists @ prosciediting.com