NCK +0.13%: A choppy session today for NCK though cool heads prevailed by the close, shares finishing around par.
- Underlying Net Profit After Tax (NPAT) of $82.1 million was inline with consensus
- The final dividend of 33cps FF was ahead of expectations.
Weakness early in the share price was due to two factors; the pace of the store rollout (a key driver of future growth) is running below expectations, while it also looks like July sales have been on the weaker side (they combined them with June to say the combined 2 months were down 1.2%). A bit strange to do that, not sure we’ve seen it before, while they also spoke to tax cuts not yet helping demand.
- Solid result in difficult conditions, a quality retailer and todays result supports our positive view of the stock.
MM is long & bullish NCK
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