Sectors: Consumer Goods
Endeavour Group Ltd is an Australia-based company, which is engaged in the retail drinks and hotels business. The Company’s segments include Retail and Hotels. The Retail segment is engaged in procurement and manufacture of drinks for sale to customers in Australia. Its Hotels segment is engaged in provision of goods and services, including food and drinks, accommodation, entertainment, and gaming in Australia. Its brands include Dan Murphy’s, BWS, Pinnacle drinks, ALH Hotels, Jimmy Brings, Langtons, Cellar Masters and Shorty’s Liquor. Dan Murphy’s operates approximately 251 liquor stores and has an integrated online offering. BWS offers a wide range of products across beer, cider, wine, premix and spirits. Pinnacle Drinks creates, builds and manages a portfolio of drinks brands. ALH operates and manages a portfolio of approximately 339 hotels in capital cities and urban and regional centers. Cellar Masters is offering a direct-to-consumer wine subscription service.
JBH $5.42%: Reported 1H22 earnings this morning that were down 2% on last year but very much inline with market expectations – not surprising given the result was pre-released, however what was a surprise was a $250m off market share buy-back while they also talked up sales strength in January. While no guidance was given due to COVID (this was expected), a good start…
BAP -7.93%: 1H result for the auto parts business today, a tough first test for the new CEO Noel Meehan the day after he was appointed. Revenue was slightly higher to $900m, but EBITDA (-6%, $137m) and NPAT (-14%, $61m) both fell. Costs were on the rise, particularly warehousing and transit costs, eating into margins. They maintained full…
JBH +6.86%: a strong day out for the retailer today with 2Q sales figures coming in better than feared. JB Hi-Fi said that sales for their Australian business was up 1.2% on the 2nd quarter of last year, The Good Guys adding 2.8% while the New Zealand business fell -3.4% largely due to lockdowns. The 1H looks to have come in better than the market…
JBH has traded nowhere for almost 1.5 years and on balance we can see a test of $40 before $50. Into current weakness the stocks yield is edging towards 7% fully franked which again is hard to ignore with the next dividend due at the end of February.
Gerry Harveys HVN was a major beneficiary through the pandemic as Australians focused their spending on the home as opposed to travel and entertainment. However as we slowly move back to normality (hopefully!) this tailwind has gone and chasing HVN around $5 is not exciting although for the yield hungry a 7% forecasted fully franked yield is clearly attractive.
This is the most recent portfolio addition following a near 30% pullback in the share price after the departure of the long standing CEO Darryl Abotomey, sooner and under a larger cloud than what had been originally planned. That presents an opportunity in MM’s view to pick up a quality stock hit by an announcement that may actually prove to be…
National Tyre & Wheel (NTD) wholesales automobile products. The Company offers tyre and wheel that fit passenger cars, light commercial vehicles, caravans, and trailers. National Tyre & Wheel serves customers in Australia, New Zealand, and South Africa.
Brunswick Corporation (BC US) manufactures consumer products serving the outdoor and indoor active recreation markets. The Company’s products include sterndrives, outboard, and inboard marine engines, fitness, billiards, and bowling equipment. Brunswick also manufactures pleasure, fishing, and high performance boats.
Shriro Holdings (SHM) provides kitchen appliances and consumer products. The Company offers kitchen appliances such as ovens, cooktops, rangehoods, microwaves, dishwashers, ironing systems, laundry tubes, waste disposal, and ducting solutions. Shriro Holdings also serves consumer products such as watches, calculators, electronic musical instruments, projectors, and cameras.
