Hardman Johnston Global Advisors, an investment management company, released its “Hardman Johnston Global Equity Strategy” investor letter for the fourth quarter of 2025. A copy of the letter can be downloaded here. Global equity markets delivered robust results in the quarter, backed by easing inflation trends and strong economic data. The Hardman Johnston Global Equity Strategy returned 2.91%, net of fees, compared to the MSCI AC World Net Index’s 3.29% gain. The Financials and Consumer Staples sectors c ...

Core Viewpoint - Uber Technologies, Inc is experiencing significant growth, with gross bookings increasing by 21% year-over-year, marking its fastest growth since 2023, driven by demand in Mobility and Delivery sectors [1][3]. Group 1: Financial Performance - Gross bookings rose 21% year-over-year on a constant-currency basis, with Delivery gross bookings increasing by 24% and Mobility rising by 19% [3]. - Adjusted EBITDA was near the high end of guidance but slightly below consensus, indicating a focus on reinvestment rather than margin expansion [4]. - Uber aims for mid-to-high-teens annual gross bookings growth, 30%-40% adjusted EBITDA growth, and over 90% free cash flow conversion through 2026 [6]. Group 2: Strategic Initiatives - The company is prioritizing long-term growth by investing in affordability programs, grocery and retail delivery, and autonomous vehicle development [1][5]. - Grocery and Retail gross bookings have reached a $12 billion annual run rate, growing faster than restaurant delivery [5]. - Uber is intentionally "disrupting itself" by reinvesting in major growth opportunities [5]. Group 3: Future Outlook - Moderate EBITDA margin expansion is expected by 2026 as Uber focuses on scaling new business lines [6]. - Early progress in autonomous vehicle operations is noted, with trip growth in cities like Austin and Atlanta exceeding the U.S. average [7]. - The partnership with NVIDIA suggests a preparation for an autonomous vehicle buildout, which may delay profitability for several years [7]. Group 4: Market Reaction - Uber's shares were down 1.48% at $93.31 at the time of publication [8].

Financial Data and Key Metrics Changes - The company reaffirmed its full year 2025 organic sales growth guidance of about 5% despite facing headwinds from U.S. retailer restocking and adverse weather conditions in Europe affecting chocolate demand [9][10] - For 2025, the company anticipates a reasonable top-line growth of 4% to 5% but expects a 10% decline in EPS, which is considered acceptable given the current cocoa circumstances [6][7] Business Line Data and Key Metrics Changes - Organic sales in North America declined approximately 3.5% year over year in the first half, attributed to retailer restocking and softer underlying trends [14][20] - The company is focusing on optimizing shopping trips and maximizing brand presence, particularly for Oreo, which has seen increased penetration but decreased purchase frequency [18][20] Market Data and Key Metrics Changes - In Europe, the company experienced higher elasticities than anticipated, with current levels around 0.6 to 0.7, compared to the expected 0.4 [28][29] - The cocoa supply situation is improving, with a 7% increase in cocoa pot counts in West Africa compared to the last five-year norm, suggesting potential price reductions in the future [31][32] Company Strategy and Development Direction - The long-term strategy established in 2018 remains valid, focusing on building presence in key categories and supporting brand growth [5][6] - The company is exploring collaborations with other brands, such as Coca-Cola and Biscoff, to enhance product offerings and market presence [21][26] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer spending has remained stagnant over the past 24 to 30 months, leading to cautious shopping behavior [15][16] - The outlook for North America is expected to remain challenging for the next 6 to 12 months, with consumers becoming increasingly careful in their spending [20] Other Important Information - The cakes and pastries category is projected to grow from $95 billion to approximately $125 billion by 2030, with the company aiming to enhance its position in this fragmented market [52][54] - The company is maintaining a disciplined approach to M&A, focusing on smaller assets that align with its strategic goals [48][50] Q&A Session Summary Question: What is the outlook for North America in the next 6 to 12 months? - Management expects continued challenges in North America, with consumers remaining cautious and spending levels stagnant [20] Question: How does the company view current cocoa levels and supply dynamics? - The company believes current cocoa prices are unsustainable and anticipates a surplus in the market, leading to potential price reductions [30][32] Question: What is the strategy regarding M&A and share buybacks? - The company remains disciplined in M&A, focusing on smaller strategic assets, while being pragmatic about share buybacks given current stock prices [46][50]