Strong results from Generali, Deutsche Bank, and Deliveroo dominated European financial headlines Thursday, while Hugo Boss faced declining profits.
Generali Group Posts Record Profits
Italy’s leading insurer, Generali, reported impressive figures for 2024, with a record operating profit of €7.3 billion, marking an 8.2% increase from the previous year. The asset & wealth management division performed strongly, and the adjusted net result rose by 5.4% to €3.8 billion. This performance highlights the company’s solid position in the market.
Philippe Donnet, Generali’s CEO, attributed the record results to the company’s dedicated workforce and robust distribution networks. The company also reported a 14.9% increase in gross written premiums, amounting to €95.2 billion. Despite these strong results, Generali’s shares showed little movement after the earnings report.
The insurer’s upcoming annual general meeting on April 23-24 will be pivotal, especially as Donnet’s reappointment as CEO will be decided. This follows an attempt by major shareholder Francesco Gaetano Caltagirone to replace Donnet three years ago.
Deutsche Bank Boosts Trader Bonuses
In its latest annual report, Deutsche Bank revealed a significant 25% rise in its bonus pool for traders, bringing it to €2.5 billion, the highest since 2014. The Frankfurt-based bank confirmed its strong performance in 2024, marking a solid year for the institution.
Deliveroo’s First-Ever Profit
UK-based Deliveroo made waves in the online food delivery sector, reporting its first-ever profit in 2024. The company saw a 3% increase in revenue, totaling £2 billion (€2.47 billion), with a net profit of £2.9 million (€3.5 million), compared to a loss of £32 million in 2023.
Despite its growth, Deliveroo’s stock fell nearly 7% as investors grew concerned about weak consumer sentiment. The company also announced its exit from Hong Kong due to increasing competition and sluggish sales.
Vienna Insurance Group Reports Strong Performance
Austria’s Vienna Insurance Group posted an impressive 14.1% rise in profits, reaching €881.8 million in 2024. The insurer’s revenue increased by 11%, primarily driven by the property and casualty insurance sector. The company also raised its dividend by 10.7%, and its shares gained 1.3% in early European trading.
Hugo Boss Faces Declining Profits
Despite recording record sales in 2024, German fashion company Hugo Boss struggled with declining profits. The company’s operating profit fell 12% to €361 million, while net income dropped by 17% to €224 million, largely attributed to macroeconomic uncertainties and weak consumer demand.
Conclusion:
The market landscape is shaped by these varied results, with strong performances from insurers like Generali and Vienna Insurance Group, alongside challenges faced by fashion brands like Hugo Boss and delivery services like Deliveroo. While some companies saw growth, investor sentiment remains mixed, influencing stock movements across the European markets.