TOP NEWS
* Pernod Ricard SA saw an 8.7% year over year increase in profit from recurring operations to €2.58 billion for fiscal 2019, its best performance on that basis in seven years, and announced a share buyback of up to €1 billion over the next two years. The French spirits-maker also has agreed to acquire New York-based liquor-maker Castle Brands Inc. for $223 million. Pernod proposed appointing Philippe Petitcolin, CEO of aerospace and defense company Safran, and Esther Berrozpe Galindo, former Whirlpool EMEA president, as independent directors.
* Brown-Forman Corp. reported a 7% year-over-year decrease in net income to $186 million for the first fiscal quarter of 2020, but the figure beat the S&P Global Market Intelligence mean consensus estimate for net income excluding exceptions of $177.8 million. The Jack Daniel's distiller's diluted EPS for the period came in at 39 cents, marking a 6% decrease from the same period a year ago. The Market Intelligence mean consensus estimate for normalized EPS was 37 cents.
FOOD RETAIL & DISTRIBUTION
* Australian retail conglomerate Woolworths Group Ltd. saw net profit climb 9.2% for the fiscal year ended June 30, exceeding market expectations. For the 53-week period, net income, excluding one-off items, came in at A$1.75 billion compared to last year's A$1.61 billion, beating the S&P Global Market Intelligence consensus net income estimate of A$1.70 billion. Diluted EPS from continuing operations before significant items also rose 8.4% year over year to A$1.33 from A$1.23 and surpassed the Market Intelligence normalized EPS estimate of A$1.31.
* Food distributor HFM FoodService, a Sysco Corp. unit, will be renamed to Sysco Hawaiʻi.
* S&P Global Ratings affirmed the ratings of Loblaw Cos. Ltd. and its parent company, George Weston Ltd., citing Loblaw's expected steady profitability over the next two years.
BEVERAGES
* Coca-Cola European Partners PLC appointed José Antonio Echeverría as its chief customer service and supply chain officer, replacing Ron Lewis. Echeverría previously worked at The Procter & Gamble Co. and Danone SA.
* Corona beer-maker Constellation Brands Inc. said it acquired a minority stake in craft gin producer Durham Distillery LLC for an undisclosed amount.
AGRICULTURAL PRODUCTS
* Agricultural products producer Cargill Inc. said it invested an additional $75 million in Puris, Beyond Meat Inc.'s pea protein supplier, following its $25 million investment in 2018.
* Norway's Mowi ASA is likely to stop sourcing feed for its fish farms from Brazil unless the South American country controls the deforestation of the Amazon, said Catarina Martins, the salmon producer's chief sustainability officer.
PACKAGED FOODS
* Campbell Soup Co. said it named Mick Beekhuizen CFO and senior vice president, effective Sept. 30. Beekhuizen, most recently CFO of dairy processor Chobani LLC, succeeds Anthony DiSilvestro, who will leave the company Oct. 15.
* Nestlé SA said it is set to close its canned milk production factory in Victoria, Australia, resulting in the loss of 106 jobs. The company, which plans to move the production overseas in the next 12 to 18 months, will close the factory between late 2020 and mid-2021.
* Nestlé is reviewing its meat and cocoa purchases from Brazil, amid rising concerns over the fires in the Amazon rainforest, MarketWatch reported. A company spokeswoman said Nestlé is using a "combination of tools, including supply-chain mapping," to ensure its suppliers are following the company's standards.
* Colorado-based Pilgrim's Pride Corp. said it agreed to acquire pork producer Tulip Ltd. from Danish Crown AmbA for £290 million in cash.
* The U.S. Department of Agriculture is set to investigate beef pricing margins following a fire at a Tyson Foods Inc. facility in Kansas, which sent margins to record highs, Reuters reported.
* Brazil's JBS SA is using satellite technology to monitor an area of 450,000 square kilometers in the country to ensure it is not buying cattle from deforested areas, Reuters reported, citing CEO Gilberto Tomazoni.
* BRF SA CEO Lorival Luz warned that the outbreak of African swine fever will drive the growth of the food processor's pork production in Brazil, Reuters reported. Luz added that any initiative to boost output must be carefully evaluated since the supply imbalance caused by the outbreak will be gradually corrected.
RESTAURANTS
* TFI TAB Gida Yatirimlari AS, better known as TAB Food Investments, has tapped Citigroup to help offload a minority stake in its China and Turkey businesses, Reuters reported, citing two sources familiar with the matter. The deal is likely to fetch at least $200 million. TFI CFO Burcu Bati said the company, Burger King's China franchisee, is "always open to evaluate strategic options that would be in the best interest of the company."
* McDonald's Corp.'s U.S. unit and the National Franchisee Leadership Alliance, which represents more than 2,000 of the chain's franchisees, jointly rolled out a new training initiative for about 850,000 of its staff across the country. The training, which starts in October, will focus on supporting a "professional, safe and respective workplace," the company said.
* McDonald's said it is expanding its restaurant delivery service with partner DoorDash Inc. across the U.S., following a pilot at 200 locations in Houston, the Chicago Business Journal reported. The service will now be available in more than 10,000 restaurants in 50 states.
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The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Hang Seng rose 0.34% to 25,703.50, and the Nikkei 225 fell 0.09% to 20,460.93.
In Europe, around midday, the FTSE 100 was up 1.07% to 7,190.97, and the Euronext 100 rose 1.47% to 1,057.66.
On the macro front
The GDP report, the international trade in goods report, the jobless claims report, the corporate profits report, the retail inventories [Advance], the wholesale inventories [Advance], the Pending home sales index, the EIA natural gas report, the Fed balance sheet and the money supply report are due out today.
Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.
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