Latest / What the Flux / Penfold's new Chinese strategy | Revolut's pre-IPO raise | Kathmandu's freezing cold performance

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Penfold's new Chinese strategy | Revolut's pre-IPO raise | Kathmandu's freezing cold performance · What the Flux

• 0:05
  Speaker 1: This is what the Flux I'm brand, I'm justin and
• 0:08
  Speaker 1: it's mandated twenty fourth of June.
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  Speaker 2: Doze. Wait, we know that the computer chip maker in
• 0:11
  Speaker 2: Vidia is one of the hottest stocks in the world
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  Speaker 2: right now, trading on a price to earnings ratio of
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  Speaker 2: seventy eight if you don't mind but a tear. What's
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  Speaker 2: even hot at GUZMANI gomes Way actually trading on a
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  Speaker 2: price to earnings of five hundred according to ig market analysts.
• 0:24
  Speaker 2: And you got to wonder how sustainable is that.
• 0:26
  Speaker 1: Blucks Man. As we get closer to the end of
• 0:28
  Speaker 1: the financial year, time is nigh to make any last
• 0:31
  Speaker 1: minute tax deductions. In the fluxs app, we've broken down
• 0:34
  Speaker 1: some of the best ways to maximize your tax return.
• 0:36
  Speaker 1: To make sure to download the app and make your
• 0:38
  Speaker 1: money go further.
• 0:39
  Speaker 2: Three informative stories today, let's do it For our first.
• 0:42
  Speaker 2: Penfolds is planning to re enter the Chinese market with
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  Speaker 2: a bang after monster tariffs have been removed from Ossie
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  Speaker 2: wine makers.
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  Speaker 1: Penfolds had a very rough rind in China, bee Man,
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  Speaker 1: so tell me more so.
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  Speaker 2: Penfolds is one of the many brands under the Treasury
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  Speaker 2: Wine Estates portfolio.
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  Speaker 1: We're talking brands like nineteen Crimes, wolf Glass, Squilling Pig,
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  Speaker 1: and of course they're hero wine at Penfolds.
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  Speaker 2: Yeah, this is the brand that sells wines over one
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  Speaker 2: thousand dollars a bottle, not like my eight ninety nine
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  Speaker 2: Pino Noirs and does it what You may remember that
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  Speaker 2: Penfold's revenue took a major hit over the past few years.
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  Speaker 1: That's because in twenty twenty, the Chinese government plays a
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  Speaker 1: tariff of up to two hundred and twelve percent on
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  Speaker 1: Australian wine. But now those tariffs have been lifted and
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  Speaker 1: Penfolds is focusing on rebuilding their premium wine brand in China.
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  Speaker 2: They're jacking up prices and selling different levels of Penfolds
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  Speaker 2: wines to different types of consumers. You've got the heartland
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  Speaker 2: customers that's your rusted on wine drinkers.
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  Speaker 1: As the luxuriance drinkers.
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  Speaker 2: Yeah, they would be younger people who want a bit
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  Speaker 2: of a luxury brand experience.
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  Speaker 1: And of course the classic connoisseurs.
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  Speaker 2: People who enjoy the theater of tastings.
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  Speaker 1: And be man With this customer segmentation, the goal is
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  Speaker 1: to grow pen Folds profit by fifteen percent over the
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  Speaker 1: next three years.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: Breaking down a customer base can be a game changer
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  Speaker 1: for companies looking to sell the right products and boosting sales.
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  Speaker 1: Does it Not all products within a company are suitable
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  Speaker 1: for all people, and that's that's why companies spends so
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  Speaker 1: much time understanding the different buyer personas within their customer base.
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  Speaker 1: These buyer personas help shape a company's product and their
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  Speaker 1: marketing decisions. Ye For example, one of Nike's primary personas
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  Speaker 1: is the competitive athletes.
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  Speaker 2: That's the person who is highly driven and constantly seeking
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  Speaker 2: to improve their performance.
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  Speaker 1: But then they've also got the fashion forward fitness.
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  Speaker 2: Enthusiasm that is, the person who values style and functionality
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  Speaker 2: in their workout apparel, the ath leisure vibes.
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  Speaker 1: So by understanding and catering to these different personas, companies
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  Speaker 1: like Penfolds can better meet the needs or desires of
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  Speaker 1: their customer base.
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  Speaker 2: And ultimately drive more people to drink more red wine.
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  Speaker 1: For our second story, Revolute, the UK based neobank, is
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  Speaker 1: looking to sell five hundred million US dollars of shares
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  Speaker 1: as it prepares for one of the biggest IPOs of
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  Speaker 1: twenty twenty four.
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  Speaker 2: One of the few winners in this space so far.
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  Speaker 2: Josey Boy, go on, go On.
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  Speaker 1: Okay. So, Revolute is one of the early fintech companies
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  Speaker 1: that attempted to take on the big, the old, the
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  Speaker 1: ugly banks with an app only alternative.
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  Speaker 2: I e. What we call neo banks.
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  Speaker 1: Was founded in twenty fifteen and since then it's grown
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  Speaker 1: to over forty million customers globally.
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  Speaker 2: And while its main businesses in the UK, it is
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  Speaker 2: also in Australia and the US and Japan and Brazil.
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  Speaker 1: And be Man. While many of the FinTechs and nabanks
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  Speaker 1: have come and gone, Revelute kind of seems to have started.
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  Speaker 2: In twenty twenty one, it raised money at evaluation thirty
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  Speaker 2: three billion US dollars and now it seems to be
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  Speaker 2: going one better.
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  Speaker 1: So now Revolute's looking to sell five hundred million US
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  Speaker 1: dollars of existing shares at a forty billion dollar valuation.
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  Speaker 2: And this is all before an eventual IPO, which keeps
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  Speaker 2: delaying until the public markets in Europe are a little
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  Speaker 2: bit rosier. So what is the key learning year when
• 3:34
  Speaker 2: a company decides to go public? Timing the IPO can
• 3:36
  Speaker 2: significantly impact its success and be man nobody wants.
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  Speaker 1: A lackluster IPO.
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  Speaker 2: Just ask Delivery, who shares dropped twenty six percent on
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  Speaker 2: their first day.
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  Speaker 1: Disaster and be man. A lackluster IPO can hurt a
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  Speaker 1: company's image.
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  Speaker 2: As well as making future fundraisers a little bit more challenging.
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  Speaker 1: And the fear of this lackluster IPO can cause companies
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  Speaker 1: to change plans rapidly.
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  Speaker 2: Just last week, two European companies postponed their IPO plans
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  Speaker 2: because of market conditions. Yeap, Golden Goose, the Italian luxury
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  Speaker 2: sneaky company, the ones that sell expensive dirty shoes, dapist Boned,
• 4:08
  Speaker 2: don't forget ten Damn the Spanish fashion retailer. They did
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  Speaker 2: as well, but forever loot.
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  Speaker 1: They will kick the IPO can down the road for
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  Speaker 1: a little bit longer and wait for the market to
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  Speaker 1: bounce back.
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  Speaker 2: For our third and final story, Catman Doo's owner KMD
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  Speaker 2: Brands has seen halfier sales drop by eight and a
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  Speaker 2: half percent and its winter sales are going to be
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  Speaker 2: worse than expected.
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  Speaker 1: He kind of feels like every retailer coming out with
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  Speaker 1: an announcement like this these days, So what is going
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  Speaker 1: on here?
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  Speaker 2: Well, jazy boy KMD is the outdoor and sports brand
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  Speaker 2: that was founded in nineteen eighty seven in New Zealand.
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  Speaker 1: And if you haven't heard of KMD brands, you've probably
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  Speaker 1: heard of some of their brands like Catman Do, like
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  Speaker 1: Rip Curl or possibly Oboz.
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  Speaker 2: Nothing says Ossie Winter like seeing all the Catman Do
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  Speaker 2: puffers out on the streets now me Man Catman Do
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  Speaker 2: has announced it sales across its brands were down eight
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  Speaker 2: point four percent in its half year results, probably from
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  Speaker 2: their eighty percent discounts all year round. Am I right?
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  Speaker 1: You're not wrong, But that's not all because they forecasting
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  Speaker 1: earning forty seven million bucks for this financial year.
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  Speaker 2: Which is less than half its earnings from the previous year.
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  Speaker 1: Next minute, kmd's share price dropped five percent.
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  Speaker 2: And it's not expecting things to get better anytime soon,
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  Speaker 2: especially with less consumer spending.
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  Speaker 1: So KMD is taking some early action and negotiating with
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  Speaker 1: its lenders to low art their fixed charge coverage ration.
• 5:20
  Speaker 2: What an interesting term, Juzzie boy, I'm wondering over here.
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  Speaker 2: What is the key learning?
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  Speaker 1: Fixed charge cover ratio measures the company's ability to cover
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  Speaker 1: its fixed expenses with its operating income.
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  Speaker 2: You see, juzzy boy fixed expenses like leases, equipment, higher
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  Speaker 2: or even interest expenses. They say the same no matter
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  Speaker 2: how many sales a company is making.
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  Speaker 1: So in order to be financially stable, a company needs
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  Speaker 1: to be able to cover those costs when times are
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  Speaker 1: tough like what KMD is facing right now, and then
• 5:45
  Speaker 1: man with the slowdown for retailers, you can bet your
• 5:48
  Speaker 1: bottom dollar that financial stability is a top priority.
• 5:51
  Speaker 2: Just in the last week we saw city Cheek announced
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  Speaker 2: it's expecting a thirty percent drop in sale.
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  Speaker 1: Don't forget Mosaic whose share price dropped twenty percent after
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  Speaker 1: announcing their forecasts.
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  Speaker 2: So it's no surprise that during this period of low
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  Speaker 2: consumer sentiment, KMB is making sure that its fixed charge
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  Speaker 2: cover ratio.
• 6:08
  Speaker 1: Is in checkful Flux and we are just six days
• 6:11
  Speaker 1: away from the end of the financial year, so that
• 6:13
  Speaker 1: means if you want to make any last minute tax deductions,
• 6:16
  Speaker 1: now is the time. We've broken down some of the
• 6:18
  Speaker 1: best ways to maximize your tax return in the Flux app,
• 6:20
  Speaker 1: so make sure to download it and make your money
• 6:22
  Speaker 1: go further.
• 6:23
  Speaker 2: Thanks for listening and we'll see you on a Wednesday.