Latest / What the Flux / Woolworths' profit plunge | Qantas profits are sky-high | Lego fights Netflix for attention

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Woolworths' profit plunge | Qantas profits are sky-high | Lego fights Netflix for attention · 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 Friday, the twenty.
• 0:08
  Speaker 1: Ninth of Augo Josie Boye. We know that there are
• 0:10
  Speaker 1: more and more electric vehicles on the road than ever before.
• 0:13
  Speaker 1: The problem is getting them repaired. Get this one. Eb
• 0:16
  Speaker 1: brands like Bad Seeker, X Beings and others have not
• 0:19
  Speaker 1: disclosed or provided sufficient technical info on how mechanics can
• 0:23
  Speaker 1: repair these car. That means because you've got one of
• 0:26
  Speaker 1: these cars and need repairs, can't necessarily go anywhere but
• 0:29
  Speaker 1: the provider join.
• 0:30
  Speaker 2: The queue months delays. Did you know Australia's facing an
• 0:34
  Speaker 2: aging population because our current fertility rate is below the
• 0:37
  Speaker 2: recommended replacement rate and that means a whole lot of
• 0:40
  Speaker 2: things to the Australian economy. We break it down step
• 0:43
  Speaker 2: by step in the Flux up today, what the impact
• 0:45
  Speaker 2: is and how we can repair the economy.
• 0:47
  Speaker 1: Wow, Josie boy three marvelous stories today. Let's do it
• 0:50
  Speaker 1: for our first. Woolworths has copped investor backlash as it's
• 0:54
  Speaker 1: profit fall seventeen percent and Coles keeps catching up.
• 0:57
  Speaker 2: They can't even blame the economy when Coles is beaming
• 0:59
  Speaker 2: being out so tell me more so.
• 1:01
  Speaker 1: Woolies is Australia's biggest supermarket chain, with more than eleven
• 1:04
  Speaker 1: hundred stores across the nation.
• 1:05
  Speaker 2: It also owns Big W, which has been more of
• 1:07
  Speaker 2: a financial headache than a bargain bin lately.
• 1:10
  Speaker 1: But now Woolies has worn that its underlying profits dropped
• 1:13
  Speaker 1: seventeen percent to one point three eight billion dollars for
• 1:16
  Speaker 1: the last financial year, and.
• 1:17
  Speaker 2: Big W slid to a three and a half million
• 1:19
  Speaker 2: dollar last.
• 1:19
  Speaker 1: Now, juzzy boy. After Coles's glowing results earlier this week,
• 1:23
  Speaker 1: it's fair to say that investors were shocked and or
• 1:25
  Speaker 1: appalled and horrified.
• 1:27
  Speaker 2: Woolly's share price fell fifteen percent after this news.
• 1:30
  Speaker 1: And now Wooly's CEO has promised to rebuild price trust
• 1:34
  Speaker 1: with customers.
• 1:35
  Speaker 2: Yeah, the problem is that Woolies didn't have a clear
• 1:37
  Speaker 2: explanation for why its profit was down so much when
• 1:40
  Speaker 2: Coles managed to grow its earning.
• 1:41
  Speaker 1: Interesting call, juzzy boy. So what is the key learning here?
• 1:44
  Speaker 2: There's no where to hide when your competitor is thriving.
• 1:47
  Speaker 1: It's one thing to deliver bad results. When the whole
• 1:49
  Speaker 1: industry is struggling.
• 1:50
  Speaker 2: You can point to inflation or weak demand or supply
• 1:53
  Speaker 2: chain chaos.
• 1:53
  Speaker 1: And then you can say, hey, it's not just us, mate.
• 1:58
  Speaker 2: But when your direct competitor is reporting growth, the spotlight
• 2:01
  Speaker 2: shines even harsher.
• 2:02
  Speaker 1: Hey, let's talk numbers. Juzzy Boy Coal's supermarket ebit increased
• 2:06
  Speaker 1: four and a half percent, while Wool's dropped ten and
• 2:09
  Speaker 1: a half percent.
• 2:09
  Speaker 2: And be man, it's not just these results because the
• 2:11
  Speaker 2: wheels began falling off the Wool's wagon over the past
• 2:14
  Speaker 2: two years.
• 2:15
  Speaker 1: Get this, Woolworth's market cap has dropped fourteen billion dollars
• 2:18
  Speaker 1: since mid twenty twenty three and now it's around thirty
• 2:21
  Speaker 1: five billion. On the other hand, Cole's market cap has
• 2:23
  Speaker 1: grown six billion dollars to a thirty one bill a
• 2:26
  Speaker 1: twenty billion dollar turnaround.
• 2:28
  Speaker 2: So be man, when the competitor is outperforming. So so clearly,
• 2:32
  Speaker 2: investors just don't buy excuses.
• 2:34
  Speaker 1: For our second story, Quantus has flown to a near
• 2:37
  Speaker 1: record profit thanks to the growing profitability of jet Star
• 2:41
  Speaker 1: and Quantus's loyalty program.
• 2:43
  Speaker 2: The big red on a big turnaround plan. Be man,
• 2:45
  Speaker 2: So what is going on here?
• 2:46
  Speaker 1: Well, Quantus has really been working on a big turnaround
• 2:49
  Speaker 1: over the last few years. Juzzy Boy moving away from
• 2:51
  Speaker 1: its ghost flights, although those were very popular, moving away
• 2:54
  Speaker 1: from its former CEO and moving towards customer service, more
• 2:58
  Speaker 1: on time flights, a little bit more th rust and
• 3:00
  Speaker 1: the man.
• 3:00
  Speaker 2: So far, so good for Quantas because their underlying profit
• 3:03
  Speaker 2: before tax rose fifteen percent to nearly two point four
• 3:06
  Speaker 2: billion dollars over the last financial year, and this is
• 3:08
  Speaker 2: the second best profit result ever behind FI twenty three.
• 3:12
  Speaker 2: Oh yes, the year when it wrongfully dismissed nearly twelve
• 3:14
  Speaker 2: hundred staff.
• 3:15
  Speaker 1: And without two sy profit. Quantus will be investing big
• 3:18
  Speaker 1: into new planes for both Quantus and jet Start. But
• 3:21
  Speaker 1: not only that, they've announced they'll pay out four hundred
• 3:23
  Speaker 1: million dollars in dividends to investors. This is the first
• 3:26
  Speaker 1: financial year that it's issued a dividend to investors since COVID.
• 3:29
  Speaker 2: Next Minute, Quantus' shares jumped five percent and nearly eighty
• 3:33
  Speaker 2: percent in the past twelve months.
• 3:34
  Speaker 1: Investors are liking that dividend again.
• 3:37
  Speaker 2: So what is the key leaning here?
• 3:39
  Speaker 1: Dividend stocks live and die by consistency, so once the
• 3:42
  Speaker 1: payout stop, investors need a little bit of convincing that
• 3:45
  Speaker 1: they'll ever flow again.
• 3:46
  Speaker 2: You see a man. Many investors investing companies based on
• 3:49
  Speaker 2: the type of stock.
• 3:50
  Speaker 1: There's growth stocks, there's income stocks, value stocks, defensive stocks,
• 3:54
  Speaker 1: and more.
• 3:54
  Speaker 2: Now, pre Covid, Quantus offered investors a predictable stream of income.
• 3:58
  Speaker 1: It was semi annual payouts to in vests, and.
• 4:00
  Speaker 2: Quantus was considered an income producing.
• 4:02
  Speaker 1: Stock, a bit like Telstra who's been dishing out half
• 4:05
  Speaker 1: yearly dividends to investors since nineteen ninety eight. But be man,
• 4:09
  Speaker 1: when Covid struck, everything changed for the big C stick
• 4:11
  Speaker 1: quantas yep. Quantus needed to preserve cash to survive, so
• 4:14
  Speaker 1: its dividends were suspended and that man, it stopped being
• 4:17
  Speaker 1: an income stock in the eyes of investors and Juzzy Boy.
• 4:20
  Speaker 1: While Quantus has restarted dividend payouts in twenty twenty five,
• 4:23
  Speaker 1: it's not calling it a regular dividend.
• 4:25
  Speaker 2: Nope, it's a base and special dividend after it's very
• 4:28
  Speaker 2: profitable results.
• 4:29
  Speaker 1: Either way, investors clearly liked what they saw.
• 4:31
  Speaker 2: Hey. For our third and final story, Lego has hit
• 4:35
  Speaker 2: record sales and revenue growth in the first half of
• 4:38
  Speaker 2: twenty twenty five. Because parents are fearing from the social
• 4:41
  Speaker 2: media addiction of their children.
• 4:42
  Speaker 1: MMMM, Lego's revenue stacking up quickly here, juzzy boy, tell
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  Speaker 1: me more.
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  Speaker 2: Okay. So Lego is, obviously the global toy company was
• 4:49
  Speaker 2: founded by a Danish carpenter back in nineteen thirty two.
• 4:52
  Speaker 1: The name Lego is actually an abbreviation of the two
• 4:56
  Speaker 1: Danish words leg gott, meaning play well.
• 4:59
  Speaker 2: And of course we I know that millions of people
• 5:01
  Speaker 2: have been playing very well with Lego's miniature brick versions
• 5:04
  Speaker 2: of everything.
• 5:04
  Speaker 1: We're talking little yellow humans, cars, animal spaceships, buildings, and
• 5:09
  Speaker 1: even flower bouquet.
• 5:10
  Speaker 2: Fun fact, there's approximately four hundred billion Lego bricks in
• 5:14
  Speaker 2: the world, which is about fifty bricks per human on
• 5:16
  Speaker 2: the planet. And earlier this week, Lego reported twelve percent
• 5:19
  Speaker 2: growth in its revenue for the first half of twenty
• 5:21
  Speaker 2: twenty five to nearly five point four billion US dollars.
• 5:24
  Speaker 1: And jaziboy, that growth figure is well ahead of the
• 5:26
  Speaker 1: global toy market, where sales increase seven percent.
• 5:29
  Speaker 2: And what's the reason for Lego's growth.
• 5:30
  Speaker 1: Well, they've had strong sales from their botanicals and Formula
• 5:34
  Speaker 1: one Grand Prix range, which brought.
• 5:36
  Speaker 2: Adult kids back to their nostalgic childhood hobby.
• 5:38
  Speaker 1: But Lego revealed their strong growth is also because parents
• 5:41
  Speaker 1: are investing in non screen activities for their kids and
• 5:44
  Speaker 1: taking their attention away from the Netflixes and tiktoks of
• 5:48
  Speaker 1: this world. I love it, jazzyboy, So tell me what
• 5:50
  Speaker 1: is the key learning here?
• 5:51
  Speaker 2: The attention economy is the idea that people's attention is
• 5:53
  Speaker 2: a limited resource and companies and platforms are competing for
• 5:57
  Speaker 2: it every single minute.
• 5:58
  Speaker 1: Research shows that Ozzie spent about six hours a day
• 6:00
  Speaker 1: on their phone on average.
• 6:02
  Speaker 2: Yep, be Man. Brain rot wasn't Oxford's twenty twenty four
• 6:05
  Speaker 2: Word of the Year for no reason. But now we're
• 6:07
  Speaker 2: starting to see parents try to shift the attention of
• 6:09
  Speaker 2: their kids away from brain rotting devices, and it's why
• 6:13
  Speaker 2: companies like Lego are serious competitors for children's time and attention.
• 6:17
  Speaker 1: As more and more people become aware of the negative
• 6:19
  Speaker 1: effects of doom scrolling and excessive screen time, they're consciously
• 6:23
  Speaker 1: cutting back on their screen usage.
• 6:24
  Speaker 2: In fact, be Man, from twenty twenty three to twenty
• 6:26
  Speaker 2: twenty four, Australians actually spent ten percent less time on
• 6:29
  Speaker 2: social media and online entertainment.
• 6:31
  Speaker 1: And companies like Lego are benefiting from this huge cultural shift.
• 6:35
  Speaker 2: Flux am, did you know in twenty twenty four, Australia's
• 6:37
  Speaker 2: total fertility rate was one point five to one, and
• 6:40
  Speaker 2: that is well below the recommended replacement rate needed for
• 6:43
  Speaker 2: a thriving economy. We break it all down step by
• 6:46
  Speaker 2: step in the Flux app Today, make sure to download
• 6:48
  Speaker 2: the Flux app and check it out.
• 6:49
  Speaker 1: Thanks for listening, and we'll see you on Monday