Latest / What the Flux / Rebel Sport's regional expansion | SpaceX breaks IPO history | Aussies lean into Cadbury choccy

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Rebel Sport's regional expansion | SpaceX breaks IPO history | Aussies lean into Cadbury choccy · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm Brett and I'm justin and it's Monday, the fifteenth
• 0:09
  Speaker 2: of June.
• 0:09
  Speaker 1: Does the boy. The FIFA World Cup, which kicked off
• 0:11
  Speaker 1: last Friday morning Australian time, is officially the most lucrative
• 0:14
  Speaker 1: sporting event in history. Get this one. FIFA is expected
• 0:17
  Speaker 1: to generate over eight point nine billion US dollars from
• 0:20
  Speaker 1: the tournament alone, with the main revenue coming from selling
• 0:23
  Speaker 1: off the broadcast rights and ticket sales for over one
• 0:26
  Speaker 1: hundred matches.
• 0:26
  Speaker 2: Ginormous and gets figure every single tournament. Fox Sam. If
• 0:29
  Speaker 2: you've been wondering where your money's going for the beginning
• 0:31
  Speaker 2: of June, well, the Flux Budgeting Tool is your place
• 0:34
  Speaker 2: to track. It takes thirty seconds to connect your account
• 0:36
  Speaker 2: and identifies all your spending into one place, categorize it
• 0:39
  Speaker 2: and shows you where you're saving as well. So if
• 0:41
  Speaker 2: you want to make sure you're on top of your money,
• 0:43
  Speaker 2: make sure it. Download the Flux app and check out
• 0:44
  Speaker 2: the Budgeting tool.
• 0:45
  Speaker 1: Three huge stories today, Dozy Boy, Let's do it for
• 0:48
  Speaker 1: our first. Super Retail Group has announced a five year
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  Speaker 1: plan for its brands like Rebel Sport to own Regional
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  Speaker 1: Australia before competitors get there.
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  Speaker 2: And here I was thinking retail is dead, So tell
• 0:59
  Speaker 2: me all.
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  Speaker 1: So Retail Group is one of Australia's biggest specialty retail
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  Speaker 1: groups which owns a broad range of Ozzie retailer. You've
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  Speaker 1: got your rebel sport, the sportswear and sporting goods. You've
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  Speaker 1: got your super cheap auto for Revhead.
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  Speaker 2: Not to forget BCF for the outdoorsy crew.
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  Speaker 1: And Macpak for the people always shivering man Across these brands,
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  Speaker 1: they currently own seven hundred and ninety stores in nationwide.
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  Speaker 1: And get this one, Juzzy Boy, the group is targeting
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  Speaker 1: a slice of a sixty five billion dollar market and
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  Speaker 1: they reckon they're only getting started.
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  Speaker 2: They announced plans to grow their store for Print to
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  Speaker 2: more than nine hundred stores in the next five years.
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  Speaker 1: Okay, so where are they going to open these new stores?
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  Speaker 2: Apparently in the underserved regional markets and Josey Boy.
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  Speaker 1: While this is an aggressive growth strategy, it's also a
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  Speaker 1: defensive move. In their view, Super Retail Group is trying
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  Speaker 1: to plant the flag before rebels competitors like Sports direct
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  Speaker 1: Or to Catlin and get there first, because being the
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  Speaker 1: first mover in a small region often means there ain't
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  Speaker 1: no room for a competitor as well.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: First move advantage is when a company enters a market
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  Speaker 1: early enough to build some barriers that make it genuinely
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  Speaker 1: hard for competitors to follow.
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  Speaker 2: Think about it this way. There are only so many
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  Speaker 2: good retail sites in the regional town of.
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  Speaker 1: Bathurst, so if Rebel locks up the best corner on
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  Speaker 1: the main strip with a lease and local brand recognition,
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  Speaker 1: then sports Direct is left fighting for second best.
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  Speaker 2: And that's clearly the super retail groups strategy. Get into
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  Speaker 2: the regional towns, get known, get sticky before anyone else
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  Speaker 2: even gets the planning permit yep.
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  Speaker 1: And a classic case study here is Bunnings.
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  Speaker 2: Yeah. By the time Masses launched in twenty eleven, Bunnings
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  Speaker 2: had already claimed every major trade area in Australia.
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  Speaker 1: Mass has spent over three billion dollars getting up and running,
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  Speaker 1: and then folded completely in about five years time. Yeah.
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  Speaker 2: And while first movies don't always win, the second mover
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  Speaker 2: needs to be much better or much cheaper to dislodge them.
• 2:42
  Speaker 1: For our second story, SpaceX has just completed the biggest
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  Speaker 1: IPO in history. Raising seventy five billion US dollars and
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  Speaker 1: turning Elon Musk into the world's first trillionaire.
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  Speaker 2: Is there one week where Elon Musk isn't making a
• 2:55
  Speaker 2: lot of noise until we was going on here, all right?
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  Speaker 2: So Space Exploration Technology is called or SpaceX is Elon
• 3:01
  Speaker 2: Musk's rocket, satellite and now AI company, and late last
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  Speaker 2: week it listed on the Nasdaq for a whoppin at
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  Speaker 2: one point seventy seven trillion US dollars and.
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  Speaker 1: As part of the listing, the IPO raised seventy five
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  Speaker 1: billion US dollars.
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  Speaker 2: And this is more than double the previous record raised
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  Speaker 2: in an IPO, which was Saudi Ramco's near thirty billion
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  Speaker 2: US dollars back in twenty nineteen.
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  Speaker 1: And what's the appeal of SpaceX, Juzzi Boy, Well, there's
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  Speaker 1: been lots of talk about rockets and starlink Internet, but
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  Speaker 1: its biggest deals have landed actually earlier this year. Yep,
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  Speaker 1: SpaceX locked in deals providing compute to Anthropic and Google
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  Speaker 1: worth over two billion US dollars a month, SpaceX's biggest
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  Speaker 1: source of revenue, and Jazi Boy, retail investors won't be
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  Speaker 1: the only investors jumping on the SpaceX train soon.
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  Speaker 2: Nope, major indexes will be forced to buy the stock very,
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  Speaker 2: very quickly.
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  Speaker 1: So what's the key learning?
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  Speaker 2: When a company lists on a stock exchange, it doesn't
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  Speaker 2: automatically join the major indexes like the Nasdaq one hundred
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  Speaker 2: or the S and P five hundred.
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  Speaker 1: It has to qualify and Joe Boy. One of the
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  Speaker 1: key qualification rules is called seasoning.
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  Speaker 2: Yeah, it's the mandatory waiting period after an IPO before
• 4:00
  Speaker 2: stock is even eligible for index inclusion.
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  Speaker 1: The concept makes sense. Let the stock trade for a
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  Speaker 1: few months and let the price find its feet.
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  Speaker 2: And let the market figure out what the company's actually were.
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  Speaker 1: Before this year, the Nasdaq one hundred seasoning period was
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  Speaker 1: roughly three months. You listen, you wait, then you're considered it.
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  Speaker 2: As of May one this year, NASDAK introduced a vast
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  Speaker 2: entry rule.
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  Speaker 1: That meant that megacap stocks can join the Nasdaq one
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  Speaker 1: hundred just fifteen trading days after their IPO.
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  Speaker 2: And why is it such a big deal?
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  Speaker 1: Well, because it means that every ETF an index fund
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  Speaker 1: that tracks the Nasdaq one hundred benchmark must buy the stock, and.
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  Speaker 2: The Nasdaq one hundred alone is tracked by more than
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  Speaker 2: two hundred investment.
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  Speaker 1: Products with over six hundred billion dollars in assets under
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  Speaker 1: management globally, so it will be interesting to see how
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  Speaker 1: this impacts the short and long term market value of SpaceX.
• 4:43
  Speaker 2: For our third and final story, Cadbury Australia has posted
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  Speaker 2: double digit growth as we turned to chocolate during the
• 4:50
  Speaker 2: cost of living crisis.
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  Speaker 1: Nothing like stress eating yourself through a cost of living crisis.
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  Speaker 1: Tell me more about this. Dazzi Voi so Mandalez is
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  Speaker 1: the global snacking giant behind Cadbury, and many are the chocolate,
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  Speaker 1: biscuit and confectionery brands. We're talking Oreo, which comes included
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  Speaker 1: free now Ritz, Toblerne, sour Patch, Kid.
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  Speaker 2: Five, bacb Man, A large chunk of the Cadbury chocolates
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  Speaker 2: are actually made in a Hobart factory and now be
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  Speaker 2: man Mondaleue Australia has just announced two point three billion
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  Speaker 2: dollars in revenue for twenty twenty five, up nearly seven
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  Speaker 2: percent from the year before.
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  Speaker 1: And profit also up eight percent to nearly nine to
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  Speaker 1: nine mil So where are the wind's coming from? Well,
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  Speaker 1: the Cadbury collab with Biscoff was one of its biggest
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  Speaker 1: product launchers in nearly a decade.
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  Speaker 2: We're talking at one million blocks sold in the first
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  Speaker 2: three weeks.
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  Speaker 1: Alow and about five million in total, meaning twenty million
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  Speaker 1: retail sales.
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  Speaker 2: Wow, the be man. Here's the funny part. The Cadbury
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  Speaker 2: boss says that people are buying Cadbury instead of going out.
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  Speaker 1: Feels like a bit of a stretch to me. Yeah.
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  Speaker 2: But alongside this growth in revenue is also a rapid
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  Speaker 2: rise in Cadbury's costs.
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  Speaker 1: And the Cadbury Boss says is pretty worried about Australia's productivity.
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  Speaker 2: So what is the key learning here.
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  Speaker 1: Australia's getting less efficient and making things and it's starting
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  Speaker 1: to shop in your grocery bill. Yeah.
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  Speaker 2: Labour productivity, which which is the output per our work,
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  Speaker 2: is currently sitting around the same levels as they were
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  Speaker 2: in twenty sixteen, meaning we're working the same hours and
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  Speaker 2: producing roughly the same output as ten years ago.
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  Speaker 1: And at the same time, over the past ten years,
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  Speaker 1: wages have increased, logistics have become more expensive, energy bills
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  Speaker 1: have also increased.
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  Speaker 2: And there are no efficiency gains to upset it.
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  Speaker 1: In fact, Jozy Boy, the RBA and Treasury of both
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  Speaker 1: flag this is a structural risk to the Australian economy.
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  Speaker 2: Australia's productivity growth averages one point one percent growth annually
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  Speaker 2: in the decade to twenty twenty three.
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  Speaker 1: Compared to nearly three percent in the late ninety nineties.
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  Speaker 2: So when you see shrink flation on your bisc off Cadbrey,
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  Speaker 2: that's not just Cadbury squeezing your profits.
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  Speaker 1: Now, it's also the fact that Australia's productivity just ain't
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  Speaker 1: keeping up Fox Sam.
• 6:41
  Speaker 2: If you're wondering where all your money is going every
• 6:43
  Speaker 2: single month, well, the Flux app can tell you exactly
• 6:46
  Speaker 2: where it goes without budgeting tool, so you'll never wonder
• 6:48
  Speaker 2: where your money goes again. Make sure to download the
• 6:50
  Speaker 2: Flex app and check out the budgeting tool.
• 6:51
  Speaker 1: Thanks for listening and we'll see you on Wednesday.