Month: May 2024

Categories
Brooks

Brooks Running Achieves Record Revenue in Q1 2024, Driven by Global Growth and Innovation

(BRK.A), (BRK.B)

Berkshire Hathaway’s Brooks Running, a leading performance running brand, has reported exceptional performance in the first quarter of 2024, marking a significant milestone in its history. With a remarkable 9% year-over-year increase in revenue, Brooks has achieved its highest quarterly results to date, propelled by its steadfast execution of a multichannel strategy and a robust pipeline of innovative products.

The brand’s global e-commerce segment has been a key driver of growth, surging by 22% compared to Q1 2023, with an impressive 38% year-over-year growth in March alone. This uptick underscores Brooks’ ability to meet the evolving demands of consumers in the digital space while maintaining healthy inventory levels.

In North America, Brooks has sustained its momentum with a 13% increase in sales relative to Q1 2023. Securing the No. 1 position in the adult performance running footwear market for the ninth consecutive quarter at U.S. national retail, Brooks has reaffirmed its dominance in the region. Additionally, the brand reclaimed the top spot in the U.S. specialty footwear segment during Q1, further solidifying its market position.

Brooks’ success extends beyond North America, with significant growth observed in key global markets. In the Asia-Pacific and Latin America region, revenue surged notably, with Australia and China witnessing impressive year-over-year increases of 38% and 180%, respectively. Despite ongoing retail uncertainties in Europe, the Middle East, and Africa, Brooks’ e-commerce business in the region grew by 10% year over year, showcasing resilience and adaptability.

Dan Sheridan, CEO of Brooks, attributed the brand’s success to its unwavering commitment to a “runner-first” strategy and meticulous execution on a global scale. He emphasized Brooks’ dedication to understanding and fulfilling the needs of runners and active individuals, regardless of their engagement channel, as a key differentiator for the brand.

As Brooks continues to innovate and expand its reach, its performance in Q1 2024 reflects not only financial success but also a deep connection with its customer base and a relentless pursuit of excellence in the world of running.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
BYD

Berkshire Hathaway-Backed BYD’s EV Sales Robust in April

(BRK.A), (BRK.B)

BYD, the Chinese automaker backed by Berkshire Hathaway, has had robust new-energy vehicle sales for the month of April. The company reported selling a total of 313,245 New Energy Vehicles, encompassing both plug-in electric vehicles (EVs) and battery EVs. This figure marks a significant 49% increase compared to the same period last year.

BYD’s top-sellers were the Dynasty and Ocean, which sold a combined 297,864 vehicles. The company also stated that it exported 40,011 passenger vehicles in April.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Financial Reports

Berkshire Hathaway’s Q1 2024 Operating Earnings Surge Compared to Q1 2023

(BRK.A), (BRK.B)

Berkshire Hathaway has reported impressive operating earnings for the first quarter of 2024, marking a significant increase compared to the same period in 2023. The company’s robust performance across various sectors underscores its resilience and strategic prowess.

In Q1 2024, Berkshire Hathaway’s operating earnings stood at $11.22 billion, a substantial rise from $8.065 billion recorded in Q1 2023. This growth can be attributed to solid performances in key segments:

1. Insurance-underwriting: The company saw a remarkable increase in earnings from insurance underwriting, with figures soaring from $911 million in Q1 2023 to $2.598 billion in Q1 2024.
2. Insurance-investment income: Another significant contributor to the earnings surge was insurance investment income, which rose to $2.598 billion from $1.969 billion in the previous year’s first quarter.
3. BNSF and Berkshire Hathaway Energy Company: Despite minor fluctuations, both BNSF and Berkshire Hathaway Energy Company contributed positively to the overall earnings, reflecting the company’s diversified portfolio.
4. Other controlled businesses: Earnings from other controlled businesses remained stable, totaling $3.088 billion in Q1 2024, compared to $3.065 billion in Q1 2023.
5. Non-controlled businesses: While there was a slight decrease in earnings from non-controlled businesses, Berkshire Hathaway’s overall performance remained strong, with earnings totaling $405 million in Q1 2024.
6. Other: The company reported positive earnings in the “Other” category, marking a notable turnaround from the previous year’s loss, with earnings reaching $673 million.

Berkshire Hathaway’s exceptional performance in the first quarter of 2024 reaffirms its position as a powerhouse in the corporate landscape. With solid growth across various sectors and a commitment to delivering value to shareholders, the company continues to thrive even in challenging economic environments. As investors look ahead, Berkshire Hathaway’s consistent track record of success positions it as a compelling choice for long-term investment.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Financial Reports

Berkshire Hathaway Share Repurchases Continued in Q1

(BRK.A), (BRK.B)

Berkshire Hathaway continued its stock buybacks in the first quarter of 2024. Berkshire Hathaway, the renowned conglomerate led by Warren Buffett, reaffirmed its commitment to stock buybacks with its latest move repurchases. The company allocated a substantial $2.6 billion towards repurchasing shares of both Class A and Class B common stock.

As of March 31, 2024, Berkshire Hathaway had successfully acquired shares equivalent to 1,437,251 Class A shares. This strategic decision reflects the company’s confidence in its own value and a belief that investing in its own shares presents an attractive opportunity.

This buyback initiative not only demonstrates Berkshire Hathaway’s financial strength but also underscores management’s confidence in the company’s long-term prospects. By repurchasing its own shares, Berkshire Hathaway signals to investors that it views them as undervalued and expects favorable returns in the future.

The company’s proactive approach to capital allocation highlights its commitment to enhancing shareholder value.

Berkshire’s stock buyback initiative allows the company to purchase its Class A and Class B shares whenever Warren Buffett, Berkshire’s Chairman and CEO, deems the repurchase price to be below the company’s conservatively estimated intrinsic value. These repurchases can occur through open market transactions or privately negotiated deals.

Berkshire’s cash reserves has continued to grow, reaching just under $190 billion.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Minority Stock Positions

Berkshire Hathaway Enters Strategic Agreement with DaVita to Maintain Ownership Balance

(BRK.A), (BRK.B)

Berkshire Hathaway has solidified its relationship with DaVita, a prominent global healthcare company specializing in kidney care. With Berkshire holding just under 40 percent ownership in DaVita, a strategic stock buyback agreement has been established to prevent Berkshire from attaining a majority stake in the company.

The Share Repurchase Agreement outlines the terms for maintaining ownership balance. Should Berkshire’s ownership reach at least 45.0% of DaVita’s common stock, the company will engage in quarterly repurchases to adjust Berkshire’s stake back to 45.0%. These repurchases will be executed at the volume-weighted average per share price paid by DaVita during the applicable period. Additionally, if Berkshire’s ownership surpasses 49.5%, immediate share repurchases will be triggered.

Furthermore, Berkshire has agreed to vote shares exceeding 40% in accordance with DaVita’s Board of Directors’ recommendations. This agreement supplements the existing standstill letter agreement between the two parties, ensuring alignment with DaVita’s governance structure.

DaVita’s presence extends across the United States and ten other countries, bolstering its stature in the healthcare sector. Berkshire’s substantial investment in DaVita, holding over 36 million shares as of December 31, 2023, underscores its confidence in the company’s growth prospects.

The investment has proven lucrative for Berkshire, as evidenced by DaVita’s recent stock surge to an all-time high. DaVita’s share buyback program has contributed to this success, allowing Berkshire to increase its stake without additional investment.

This strategic agreement highlights the collaborative approach between Berkshire Hathaway and DaVita, ensuring mutual benefit while maintaining a balanced ownership structure.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Jazwares

Berkshire Hathaway Subsidiaries Join Forces for Sweet Collaboration

(BRK.A), (BRK.B)

Two beloved companies under the Berkshire Hathaway umbrella, Jazwares and See’s Candies, have teamed up for an exciting promotion set to debut this coming October. Jazwares, renowned for its innovative toys, and See’s Candies, an iconic Californian confectionery brand, are merging their expertise to offer fans a delightful gift set.

The collaboration features a charming ensemble inspired by Squishmallows, the immensely popular plush toy line. Fans can look forward to an eight-inch cuddly rendition of Emily the Bat, a beloved Squishmallows character. This adorable plush will be accompanied by a co-branded custom box of chocolates and candies, all elegantly packaged in a one-of-a-kind tote bag. This exclusive set promises to be a treat for both toy enthusiasts and confectionery aficionados alike.

“Partnering with See’s Candies is the perfect way to further introduce Squishmallows into the consumables space,” remarked Gerhard Runken, Executive Vice President of Brand & Marketing at Jazwares. “This will be the perfect Halloween treat for fans of both brands, and we’re eager to add this unique collaboration to our robust lineup of iconic Squishmallows products!”

Pat Egan, President & CEO of See’s Candies, echoed the sentiment, emphasizing the joy this collaboration will bring to fans. “At See’s, we’re in the business of bringing joy, and that is exactly what this collaboration with Jazwares will do for fans of both brands. The ever-popular Squishmallows combined with our iconic, delicious chocolates will be the perfect treat this October.”

Squishmallows has established itself as a leading toy property in the U.S., with over 400 million plush sold worldwide and a devoted multi-generational fanbase. Its immense popularity extends to social media, particularly among Gen Z users, with billions of video views on platforms like TikTok and Instagram. The brand’s expansion into various lifestyle categories, including beauty, games, and apparel, underscores its status as a cultural phenomenon.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized

Categories
Dairy Queen

Jane Friedrich Joins International Dairy Queen as EVP of Research and Development

(BRK.A), (BRK.B)

International Dairy Queen, Inc. (IDQ), a subsidiary of Berkshire Hathaway, made a significant announcement today with the appointment of Jane Friedrich as the Executive Vice President of Research and Development.

In her new role, Friedrich will report directly to the President and CEO, tasked with shaping the strategic direction and spearheading a team dedicated to crafting ingredients and menu offerings that captivate customers. Moreover, she will oversee the critical domains of food safety, quality assurance, and regulatory compliance.

The scope of Friedrich’s responsibilities extends globally, covering more than 7,500 Dairy Queen (DQ) restaurants across 20 countries. This move underlines IDQ’s commitment to continuous innovation and delivering unparalleled culinary experiences to its diverse customer base.

Troy Bader, President and CEO of International Dairy Queen, expressed confidence in Friedrich’s ability to drive the company’s growth trajectory. He emphasized the pivotal role of research and development in fostering customer engagement and sustaining brand loyalty. Bader commended Friedrich’s extensive experience in the field, highlighting her proven track record in product innovation and commitment to upholding the highest standards of food safety and quality.

In response to her appointment, Jane Friedrich conveyed her enthusiasm for joining IDQ during this pivotal phase of expansion. With a focus on delivering tangible business outcomes and fostering high-performing teams, Friedrich expressed her dedication to pushing the boundaries of product innovation. She emphasized the importance of catering to evolving consumer preferences by delivering flavors that resonate with global tastes.

Before joining IDQ, Friedrich accumulated over two decades of invaluable experience at Cargill, where she held various leadership roles spanning research, development, and innovation across multiple food categories. Her academic credentials include doctoral and master’s degrees in food science from Cornell University, along with a bachelor’s degree in chemistry from the University of St. Thomas. Friedrich’s commitment to excellence is further reflected in her publication record, patent portfolio, and her role as the executive chair of the Food Fortification Initiative executive management team.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.