Margin Improvement

TT Electronics has committed to driving group margin improvement, aiming to reach 10% and beyond. Progress has been demonstrated with a 140-basis point improvement, indicating effective operational management and profitability enhancement efforts.

The company plans to improve profit margins in H1 2024, building upon cost-removal efforts and offsetting the impact of inflation through pricing measures. Margin improvements will be pursued despite adverse movements in FX and certain market uncertainties.

One of SIG's priorities is improving its profit margins, which involves strategic development actions like product mix enhancement and category management, aiming for higher-margin product sales. The company is also establishing and upgrading branch networks and integrating new branches strategically to capture growth.

The company has shown a considerable improvement in their gross margin by 190 basis points to 73.3% in the first half of 2023. They intend to maintain or improve this new margin level by leveraging their scalable operating model and revenue growth synergies. Continuous margin improvement is a key focus for the bottom line.

The company targets improving operating margins with plans to return to their peak performance of 17.5% and grow beyond it. The confidence is underpinned by a proven strategy that involves tools, processes, performance span, and a disciplined portfolio strategy, emphasizing sustainability as a central component.

A central goal for Solutions 30 SE is to achieve further improvement in margins, moving closer to its medium-term objective of double-digit EBITDA margins in every country by 2024. This will be made possible by consolidating processes to boost productivity, diversifying activities, and executing an improved operational strategy.

discoverIE aims to improve its underlying operating margin. The target has been increased to 15% over around five years, reflecting the company's ambition to build a higher quality business. This margin enhancement is expected to be achieved through efficient operational execution and strategic acquisitions.

Enhancing profitability is a pivotal aim, with expectations of further improvement in margins for 2024. Stable CapEx and beneficial IFRS effects are predicted to contribute to over-proportionate growth in EBIT and cash flow, which will reflect improved operational efficiency.

Improving the underlying operating margin is a key objective for Volex, showcasing their commitment to not only increasing revenues but also enhancing profitability through careful management of inflation and cost control.

The company targets an underlying operating margin of 13.5% by FY 2024/25. This goal is part of a broader ambition to further elevate the margin to 15% over the medium term, approximately five years. The strategy includes driving efficiency gains and achieving operating leverage through robust sales growth.

SThree anticipates a short-term tempering of margins in FY24 due to continued investment and operational expenses. However, this strategy is poised to enhance productivity and improve margins in FY25, reflecting a calculated approach to balance immediate costs with long-term profitability.

Target EBITDA improvements and tight cash management, expecting further cost efficiencies in H2 2023 as part of an organization-wide margin improvement program initiated in Q2 2022.

Warpaint London is concentrating efforts on improving gross profit margins through various strategies such as cost-effective sourcing from new production facilities, leveraging natural currency hedges, and benefiting from declining freight rates, while aiming to avoid inflationary price increases for customers.

A core strategic intention is to enhance EBITDA margins and reduce leverage. The company plans to deliver a notable improvement in EBITDA margins, reduce net debt to EBITDA ratio, and continue to invest in the expansion of Wagamama.

Science in Sport is continuing its focus on margin enhancement which began in the first half of 2022. This organization-wide program looks to enhance margins by optimizing operations and reducing costs. It aims to improve adjusted EBITDA and increase trading contribution margins via strategic initiatives like the in-house manufacturing of bars and reviewing marketing efficiencies.

Margin improvements have been attributed to operational enhancements. Any failure to sustain or advance these enhancements could adversely affect profit margins.

The company focuses on improving its margins to exceed the 2025 targets. Operational excellence and efficient cost management are key strategies Eaton will employ to boost profit margins. Strong demand and effective execution are expected to contribute positively to achieving this goal.

The company targets to sustain and improve the value of new business margin between 2% and 3%. Achieving this margin indicates efficiency in acquiring new business and maintaining profitability. It's an important metric that reflects the company's effectiveness in strategic product pricing and cost management.

The company intends to improve its adjusted operating margin while maintaining stable growth. This will be realized through a combination of operational efficiencies and leveraging positive market conditions at constant exchange rates.

Science in Sport has rolled out an organization-wide margin enhancement program starting in the first half of 2022 and continuing through 2023. This includes reorganizing their Digital operations and the US business to reduce costs while still striving to improve revenue contributions from these channels.

Future has started a two-year investment programme amounting to £25m-£30m with a goal to realize an adjusted operating margin in the range of 28-30%. This programme demonstrates the company's forward-looking approach to sustainable profitability.

Senior is focused on leveraging healthy market demand, as indicated by a robust book-to-bill ratio, to achieve margin improvements. The company is taking strategic steps to mitigate supply chain issues and aim for normal margin levels by 2025, aligning with financial sustainability and growth prospects.

The company is focusing on expanding its operating margins over the next few years. This plan includes leveraging the Spectris Business System (SBS) for continuous improvement culture, process simplification, and efficiency enhancements to improve productivity and contribute to increased operating margins.

Huron is focused on executing on its margin improvement levers to achieve enhanced profitability, including driving improved utilization, pricing, and SG&A leverage as it scales its robust global platform.

TRG is actively executing its medium-term margin accretion plan, targeting an Adjusted EBITDA margin improvement of 250bps to 350bps over three years. Alongside this strategy, TRG aims to achieve a net debt/Adjusted EBITDA ratio below 1.5x by the end of FY25, while supporting the accelerated investment in Wagamama openings.

Warpaint London continues to manage supply side inflation effectively, leading to an increase in gross profit margin and maintaining this profitability through strategic currency options and cost-effective production measures.

Covestro is intensely focused on improving margins by better understanding and meeting customer needs, adjusting its sales approach, and implementing pricing strategies to capture the full value of its products.

The company is focused on expanding operating margins and improving operating leverage across its business units by addressing supply chain challenges, driving productivity improvements, and optimizing program mix and execution.

Inchcape faces the risk of margin pressure due to changing routes to market and incentives, which could impact its profitability. The company has identified this as a Tier 1 strategic risk.

Infosys has launched a comprehensive margin expansion program called Project Maximus, which focuses on 5 key areas - pyramid efficiency, automation and AI improvements, optimizing critical portfolios, reducing indirect costs, and driving value across the portfolio. This program aims to improve operating margins in the medium term.

The company plans to improve its profit margins by y% by the end of 2025 through operational efficiency and cost management strategies. By streamlining processes and investing in technology, DE intends to reduce production costs and overhead, improving the bottom line.

The company seeks to deliver growth coupled with margin expansion to enhance profitability. This involves sustained strong price progression across all regions and improving customer retention. The maintenance of an Adjusted Operating Margin increase, particularly in North America (up 250bps to 18.5%) and in part through the delivery of synergies from Terminix, underpins this objective.

THG is focused on rebuilding margins across its Beauty, Nutrition and Ingenuity divisions, targeting a medium-term Group adjusted EBITDA margin of around 9%.

The company aims for a modest improvement in underlying operating margin, which will result from expansion in gross margin driven by an uptick in productivity. Furthermore, the net material inflation is anticipated to stabilize at more normal levels, enabling margin improvements through cost management and pricing strategies.

The company focuses on enhancing profitability as evidenced by an adjusted EBITDA increase and a margin improvement of approximately 2.6 percentage points. These improvements are part of a concerted effort to strengthen the financial performance, despite challenging market conditions.

For FY 2024, the company expects to expand its adjusted EBIT margin to be above FY23 levels but not to exceed 9.0%. Margin improvement is anticipated to come from ongoing optimization efforts, offsetting the reduced pension income, thereby enhancing profitability.

This reflects the risks of contracts being renegotiated at lower margins, or planned cost savings not being delivered. This could impact the company's profitability.

The company anticipates further margin expansion into 2024, building upon improvements realized from an adjusted operating margin increase to 14.5% in H1 2023. Strategies include operational efficiency, supply chain optimization, and leveraging the Spectris Business System to achieve their medium-term target operating margin of over 20%.

The company is focused on improving profit margins and Return on Capital Employed (ROCE). This will be achieved by optimizing top-line growth, cost management, and making selective capital investments. Specific goals include maintaining an upward trajectory in profit before tax and adjusted EBIT.

The company retains the ability to enhance returns for selected loan investments. This could involve the economic transfer of the most senior portions of these investments, expected to generate a positive net interest rate spread and subsequently increase returns for the company.

The company is focused on managing a decrease in adjusted gross margin, which has seen a 170 bps decrease to 23.3% in the first half of the financial year. This involves adjusting the cost base to match market activity.

Melrose is targeting 17-18% operating margins for the Aerospace division by 2025, with a clear path to achieve this through growth initiatives, business improvements, and restructuring.

The company is working towards enhancing its operating margin, which serves as a key indicator of management efficiency and overall profitability. The target is to reach an operating margin of approximately 40% by the fiscal year 2025.

The company is working towards a modest improvement in its Benchmark EBIT margin. By enhancing operational efficiency and maintaining cost control, Experian expects to strengthen its profitability. The performance indicator for this objective will be the incremental growth in the Benchmark EBIT margin percentage, as the company pushes for optimal financial performance.

The company maintains a positive outlook for its midterm margin development and reiterates its guidance of achieving a 20% plus margin in the upcoming years. This will be bolstered by the firm's strong technology platform and economies of scale.

The company is focusing on improving operating margins as a strategic priority. This requires disciplined investment decisions and cost management to ensure profitability. Marks & Spencer will focus on streamlining operations and possibly leveraging technology to reach this goal.

Actively manage the balance sheet to optimize for risk-adjusted returns on capital, including through securitizations, forward flow agreements, and optimizing the capital stack.

Due to a change in management and progress with the Equity Offering process, RENK implemented a new steering key performance indicator, adjusted EBIT, to enhance the accuracy and relevance of management reporting and segment performance tracking.

In pursuit of improved profitability, Smiths Group anticipates continued margin expansion in FY2024. The strategy involves advancing the Smiths Excellence System (SES), which emphasizes operational efficiency and scale, and reinvesting in areas that bolster future sustainable growth.

Management aims to better trading gross margins by focusing on strong sell-through for key merchandise categories and maintaining robust stock discipline. Efforts in H2 FY23 to control markdowns have shown improvements in gross margin, a trend they plan to continue.

Utilization of leverage in investment strategies can amplify losses as well as gains. BH Macro Limited's use of borrowing could therefore increase volatility and risk of loss.

Bankinter plans to maintain a resilient client margin in 2024 and 2025 by shortening the duration of new deposit production and reducing front book deposit pricing below back book levels. This will help offset any potential pressure on deposit costs. The key metric will be the net interest margin.

In a small quarter, any deal slippage or miss can have a more pronounced impact on Temenos' financial results, especially after a very strong prior quarter. This is an operational risk for Temenos.

The company intends to expand its adjusted operating margin over the long term, leveraging restructuring savings and ongoing cost discipline. This will involve optimizing operational processes and strategically investing in growth initiatives.

CURO targets improving its net interest margin, excluding recourse interest expense, to 26-28% by 2024. This will be achieved through a continued focus on higher-yielding secured lending products, reducing net charge-offs, and optimizing its funding sources. Key metrics include net interest margin post charge-offs, direct lending net interest margin, and Canada POS net interest margin.

The company is working on expanding its operating margin by improving the mix of profitability across categories, achieving stronger pricing, and driving increased productivity to offset cost of goods sold (COGS) inflation.

FIS plans to expand its adjusted EBITDA margins by 20-40 basis points in 2024 and 40-60 basis points annually in 2025/2026. This will be achieved through operational efficiency, cost savings from the Future Forward program, and operating leverage. Key metrics include adjusted EBITDA margin and cost savings.

Fevertree Drinks aims to improve their margins significantly by 2024, leveraging the stabilization of inflationary pressures and the cost-cutting measures taken in 2023. The company is confident in delivering significant margin improvements which will facilitate strong, sustainable and profitable growth. They expect a robust EBITDA margin of approximately 15%, surpassing current market expectations.

Glanbia plans to enhance EBITA margins across its divisions, with expectations for GPN's EBITA margins to be between 14.0% and 14.5%, and Glanbia Nutritionals (GN) Nutritional Solutions to improve to between 12% and 13%. These improvements are anticipated from pricing actions, operational performance, and supply chain optimizations.

The company intends to improve its adjusted EBITDA margin, with forecasts for the financial year indicating a strengthening performance in this area. Management plans to exceed a 10% margin in the medium term, demonstrating a commitment to enhancing profitability through economies of scale and careful cost management.

Marlowe relies on continuous operational improvement for margin growth. There is a risk that inefficiencies, increased costs, or failure in cost control measures could affect profitability.

BIC is working towards an approximately 150 basis points (bps) improvement from the 2022 level of 14.0% in its adjusted EBIT margin by 2025. This financial metric illustrates the company's focus on profitability and operational efficiency to drive sustainable, profitable growth.

The company seeks to improve profitability through various strategic measures, including cost reduction, cash conservation, and optimizing operations. Enhancing profitability remains a cornerstone, despite short-term challenges such as weaker market demands and shipment deferrals.

Axos Financial aims to maintain its net interest margin in the range of 4.25% to 4.35% over the next few quarters. This target reflects the company's ability to reprice loans higher and manage its deposit costs, while also assuming a relatively stable deposit base from its Axos Advisory Services business. Maintaining a strong net interest margin will be a key driver of Axos' profitability and earnings growth.

By managing cash effectively and prioritizing productivity investments, the company intends to continue its trend of reducing debt and improving its leverage ratios.

The bank aims to free up €15 to 20 billion in risk weighted assets from reductions in certain low return lending and mortgage portfolios, greater utilization of securitization, and hedging optimization. These measures are expected to have minimal revenue impact but will enable the group to increase returns and support capital distributions.

General Dynamics faces risks of margin pressure due to the mix of its business, with the IT services side typically having lower margins than the hardware side. The company has seen margin contraction as new start programs with lower margins replace legacy higher margin contracts.

Headlam is working on initiatives that will leverage high operational gearing to improve profits in the medium term. Despite current market headwinds, the company expects volumes to significantly improve over the coming years, with these strategic initiatives maturing to expand market presence and increase revenue streams.

JTC prioritizes return on capital and is focused on enhancing its EBITDA margin through disciplined investments. They underscore the importance of capital allocation to support client relationships and improve margins as key to the company's long-term financial health.

Levi Strauss aims to enhance gross margin by capitalizing on lower product costs and adjusting its operations. The company anticipates an improvement in its gross margin percentage, aspiring to reach a target of 60% by progressing on this path.

Mears is highly selective and disciplined when securing new work opportunities and continues to target an operating margin (pre-IFRS 16) of 5% over the medium term. They anticipate the business will continue to deliver strong free cash flows, providing the Board flexibility when considering its capital allocation priorities.

Melrose Industries is exposed to finance cost risk as the interest rates on its debt are variable and subject to market fluctuations. The company uses financial derivatives to fix a portion of its interest rate exposure to manage this risk.

Mitsubishi UFJ Financial Group aims to improve the profitability of its balance sheet by optimizing its balance sheet, growing its institutional finance business, and increasing underwriting and sales fees in project finance. It also plans to grow its cross-selling of foreign exchange and derivatives products.

Expand operating margins by balancing investment in growth initiatives with disciplined cost management, while maintaining a healthy balance sheet and returning excess cash to shareholders.

For FY24, the company has set a goal to maintain its adjusted EBIT margin percentage in line with the previous year. This will involve managing headwinds from interest-free credit and product mix while driving sales and operational leverage in an inflationary environment.

The expectation is to witness a modest improvement in the adjusted operating profit margin, primarily in the latter half of the year. Investments made will likely drive this increase, enhancing profitability through improved operational efficiency and cost management.

Alignment Healthcare is focused on improving its Medical Benefits Ratio (MBR) in 2025 through continued clinical and operational initiatives to manage medical costs. The company expects to benefit from tailwinds in star ratings and risk adjustment that will allow it to maintain or increase product richness while improving profitability. Alignment aims to leverage its scale and operating leverage to drive MBR improvement.

Risks related to product launch delays and meeting gross margin targets are critical. These include the ability to deliver new models like the Valkyrie Spyder and DBR22, which are expected to contribute positively to gross margins, particularly in Q4.

Maintaining adequate liquidity to meet investment obligations and capitalize on new investment opportunities as they arise is another strategic priority set out by the board and CEO of BH Macro Limited.

BH Macro Limited is dedicated to strengthening its risk management framework. By 2024, it aims to implement advanced analytical tools and processes to mitigate potential risks, thereby protecting investors' capital and optimizing the risk-reward profile of its investment portfolio.

In addition to growing operating income, Biogen expects to expand its operating margins by mid-single digit percentage points in 2024 compared to 2023. This margin expansion is expected to be driven by the same factors as the operating income growth, including improved cost of sales and lower operating expenses.

Continental faces margin pressure due to declining light vehicle production, particularly in Europe, as well as the phasing out of analog products faster than anticipated. This poses a business risk as the company needs to adapt its footprint and R&D to changing market conditions.

The company is undertaking mitigating actions to support margins and profit performance, which include renegotiating energy contracts, leveraging energy-efficient solutions like solar panel installations, and deploying dynamic route planning and transport centralization to reduce costs.

The group aspires to progress towards a 35% adjusted EBITDA margin over the medium term by driving efficiencies and acquiring higher-margin businesses, despite a short-term margin reduction following recent acquisitions.

Infineon has set a target segment result margin of 25% through the cycle. This reflects the company's ambition to increase profitability and create more value for its customers, shareholders, and society.

Kimberly-Clark plans to modernize its supply chain and implement an integrated margin management approach to generate over $3 billion in gross productivity savings over the next several years. This will be achieved through value stream simplification, network optimization, and digital automation. The company also expects to generate approximately $500 million in working capital savings. These initiatives are expected to help fund growth investments and drive consistent, durable margin expansion.

The management consistently works on strengthening the balance sheet through strategic debt reduction. Marston's aims to maintain a prudent level of leverage, which facilitates financial flexibility and enables sustained investment in business growth.

ModivCare is focused on centralizing, standardizing, and automating its operations to maintain adjusted EBITDA margin targets of 10-12% while continuing to invest in growth. This includes initiatives to drive efficiencies, align incentives, and strengthen core capabilities.

By capturing geographic expansion opportunities and leveraging successful product launches, BIC plans to continue improving their operational efficiencies. This strategy is intended to sustain and enhance margins and maximize free cash flow, reflecting a disciplined execution agenda.

Tenable plans to continue expanding its operating margins by leveraging its market leadership, large customer base, and broad exposure management platform. This will involve optimizing sales and marketing spend, driving efficiencies in cloud infrastructure costs, and scaling general and administrative expenses. Key metrics to track include non-GAAP operating income, non-GAAP operating margin, and sales and marketing expense as a percentage of revenue.

A. O. Smith aims to expand its Rest of World segment margins by approximately 400 basis points compared to the 2023 forecast of 10%. This margin expansion will be achieved through growth in higher-margin product categories, geographic expansion, and continued focus on operational efficiency.

Citizens is executing a BSO plan to further strengthen its capital and liquidity position, including running off a $14 billion non-core portfolio of indirect auto and purchased consumer loans, reducing wholesale funding, and focusing on low-cost consumer deposit growth. This will improve the bank's funding mix and drive higher returns.

Entain aims to drive margin expansion through scale and operational leverage. This includes improving its cost structure, leveraging its scalable business model and state-of-the-art technology, as well as integrating its platform to increase online profitability and reach its target of 30% online EBITDA margin by 2028.

The driver behind the long-term financial strategy is an improvement in adjusted EBITDA margin. The company confirms an expected increase to at least 27% in 2023, reflective of its robust business model and commitment to optimizing cost structures.

With aspirations to grow adjusted EBITDA from 3x to 5x, LendInvest is poised to enhance their earnings before interest, taxes, depreciation, and amortization adjusted for certain factors, thereby seeking to improve overall financial health and investment attractiveness.

Marlowe is committed to maintaining sufficient facilities and headroom to ensure capital is ready for deployment in alignment with strategic opportunities. They emphasize a disciplined approach to managing costs and leveraging positions, and they see selective execution upon acquisition opportunities as integral to their financial strategy.

Increase the share of low-cost, high-quality deposits and manage down the cost of deposits to support profitability and returns.

Nagarro has committed to pushing towards an 18% adjusted EBITDA margin by 2026. This involves managing costs, enhancing operational efficiencies, and scaling profitable segments of the business.

The company is implementing a margin improvement programme to enhance EBITDA. There are inherent risks in managing operational costs effectively while maintaining product quality and customer service standards during such margin improvement initiatives.

In the face of uncertain times, Berkeley has adopted a clear strategy focusing on realizing forward sales, matching supply to demand, enhancing value in existing landholdings and pipeline sites, protecting operating margins, and prioritizing cash generation over the income statement to ensure resilience and financial strength.