Latest / What the Flux / No more Down Down for Coles' profit | Bunnings' new retail play | Guzman y Gomez's spicy earnings update

Transcript

No more Down Down for Coles' profit | Bunnings' new retail play | Guzman y Gomez's spicy earnings update · What the Flux

• 0:05
  Speaker 1: This is wat them Flux.
• 0:06
  Speaker 2: I'm Brett and Justin As Wednesday, the twenty eighth of August.
• 0:09
  Speaker 1: Tolly Boy a win for the internet sleuths. Some sleuthing
• 0:13
  Speaker 1: Aussies uncovered an error in Quantus's booking system last week.
• 0:17
  Speaker 1: Now Quantus was accidentally selling return first class seats between
• 0:21
  Speaker 1: the US and Australia, but less than five grand. My friend,
• 0:25
  Speaker 1: that's around fifteen percent of regular price. Now, sadly Quantus
• 0:29
  Speaker 1: revoked the three hundred flights book but they have offered
• 0:31
  Speaker 1: business class seats as a gesture of goodwill.
• 0:34
  Speaker 2: Still not a bad result for those sleuthy Aussies. M hm,
• 0:37
  Speaker 2: mean man. I've been absolutely blown away over the last
• 0:40
  Speaker 2: week by the amount of new Flux users who have
• 0:42
  Speaker 2: come on board and used the subscription tracker. It is wild. Clearly,
• 0:46
  Speaker 2: thousands and thousands of oussies are struggling with tracking your subscriptions,
• 0:49
  Speaker 2: just like I was personally. And we've heard some great results,
• 0:52
  Speaker 2: people saying fifty dollars one hundred dollars forgetting about subscriptions
• 0:54
  Speaker 2: they didn't even know they had. So Flux am if
• 0:57
  Speaker 2: you want to track all your subscriptions in the one
• 0:58
  Speaker 2: place and have it automated for you. It's all in
• 1:01
  Speaker 2: the Flux budgeting tool.
• 1:02
  Speaker 1: Three salute worthy stories today. Juzzy boy, let's do it
• 1:05
  Speaker 1: for our first. Coles has seen its annual profit jumped
• 1:08
  Speaker 1: over one point one billion bukkaroonys coppying applause from its
• 1:12
  Speaker 1: shareholders and a heap of flak from customers and government.
• 1:15
  Speaker 2: Cole's got to be a bit sheepish about these results
• 1:17
  Speaker 2: during these times, So spill the beans here, b man, Well,
• 1:20
  Speaker 2: Duzzy boy Wino.
• 1:20
  Speaker 1: Coles as the big red supermarket that is numero doss
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  Speaker 1: in the supermarket game yep.
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  Speaker 2: Cole's currently has around twenty eight percent market share in Australia,
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  Speaker 2: behind the big dog Woolies and Coals.
• 1:30
  Speaker 1: And Woolies have been under a heck of a lot
• 1:32
  Speaker 1: of scrutiny in recent times. That's true.
• 1:34
  Speaker 2: They both face the Senate inquiry in May this year
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  Speaker 2: around price gouging customers and exploiting suppliers.
• 1:40
  Speaker 1: So when Cole's announced its annual results, it's fair to
• 1:42
  Speaker 1: say that many people were waiting to feast on the details.
• 1:46
  Speaker 2: And what a feast it was. Cole's announced an annual
• 1:48
  Speaker 2: profit of one point one billion Bukkaroonis, which was up
• 1:51
  Speaker 2: over two percent from last year. But interestingly, be Man Coles,
• 1:54
  Speaker 2: a CEO, was kind of downplaying these results.
• 1:57
  Speaker 1: So what is the key learning here?
• 1:58
  Speaker 2: Companies in essential sect is a constantly managing the tension
• 2:01
  Speaker 2: between corporate success and social responsibility.
• 2:04
  Speaker 1: And doesn't wait when times are tough. That balancing act
• 2:07
  Speaker 1: becomes a delicate soup flame.
• 2:09
  Speaker 2: On the one hand, Coles is trying to maximize shareholder
• 2:12
  Speaker 2: value by cooking up bigger revenue and tastier profit margins.
• 2:15
  Speaker 1: On the other hand, it needs to demonstrate to the
• 2:17
  Speaker 1: public and also to regulators and government that it's also
• 2:20
  Speaker 1: struggling with the cost of living. Ultimately, though, the main
• 2:23
  Speaker 1: issue comes down to the competition in the supermarket industry.
• 2:26
  Speaker 2: Get this, be Man Colson Willies hold about two thirds
• 2:28
  Speaker 2: of the market share of supermarkets in Australia and.
• 2:31
  Speaker 1: Less competitors means less competition on pricing.
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  Speaker 2: Yeah, Colson Willies both have achieved profit margins of over
• 2:36
  Speaker 2: five percent, whereas say, in the UK, things are a
• 2:39
  Speaker 2: whole lot tighter because of the competition over there. Yep,
• 2:41
  Speaker 2: Tesco has a profit margin of three point eight percent
• 2:43
  Speaker 2: and my personal favorite Sainsbury's profit margin is.
• 2:46
  Speaker 1: Just three percent.
• 2:46
  Speaker 2: Now Coals is trying to lay low with its growing
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  Speaker 2: profit margin. For our second story, Bunning's office works in
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  Speaker 2: price Line are all looking to build a new revenue stream.
• 2:55
  Speaker 2: And it's not physical products or snags.
• 2:58
  Speaker 1: I was actually thinking it was going to be the
• 2:59
  Speaker 1: juicy snail with a bit of cooked onion tomato sauce,
• 3:01
  Speaker 1: some of that mustard, piece of white bread wrapped in
• 3:04
  Speaker 1: a white serviette. Iconic stuff. Jzy boys, So tell me
• 3:07
  Speaker 1: what is going on here? Okay?
• 3:08
  Speaker 2: So if they catch you my drift, you'd know that
• 3:10
  Speaker 2: all three of these companies are owned by the retail
• 3:12
  Speaker 2: behemoth West Farmers. Yep, that enormous group that also owns
• 3:16
  Speaker 2: kmart target catch and they man, we know that Wessis
• 3:18
  Speaker 2: is always looking for a few ways to generate revenue.
• 3:21
  Speaker 2: But boy, you don't just revenue growth from Wessey's products,
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  Speaker 2: Oh no, no, no. West Farmers is now looking to
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  Speaker 2: turn their stores into prime advertising real estate retail media
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  Speaker 2: as they like to call it. That's where they use
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  Speaker 2: their data to target shoppers in store with ads. Who
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  Speaker 2: is buying this retail media you speak of?
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  Speaker 1: Well, jaesy boy, generally it's suppliers who are looking for
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  Speaker 1: a bigger marketing presence and.
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  Speaker 2: Bunning's already generates around one hundred and fifty million bucks
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  Speaker 2: per year from retail media.
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  Speaker 1: But now West Farmers wants office Works and price Line
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  Speaker 1: to join the party as well. So what is the
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  Speaker 1: key learning here? Retail media is the latest shiny new
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  Speaker 1: tool in the retail shed and it's becoming a serious
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  Speaker 1: revenue stream.
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  Speaker 2: It's all about using data to target shoppers right when
• 4:02
  Speaker 2: they shot and Bman Chemists Warehouse already nails the retail
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  Speaker 2: media game.
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  Speaker 1: It generates more than six hundred million bucks a year
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  Speaker 1: through its retail media, which is around twenty percent of
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  Speaker 1: its total revenue. So now West Farmers is thinking it's
• 4:13
  Speaker 1: time to start tapping into retail media for office Works
• 4:16
  Speaker 1: and Priceline as well. And Josey Boy, this is just
• 4:19
  Speaker 1: the beginning for retail media in Australia. In fact, it's
• 4:21
  Speaker 1: currently worth around one point six billion dollars per year,
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  Speaker 1: but it's expected to grow to two point eight billion, Baker,
• 4:26
  Speaker 1: and He's by twenty twenty seven. That's according to your
• 4:28
  Speaker 1: friends at Morgan Stanley.
• 4:30
  Speaker 2: So be man, it's time to grab your safety goggles
• 4:32
  Speaker 2: because this market is about to blow up.
• 4:34
  Speaker 1: For our third and final story, Guzman Egomez has smashed
• 4:38
  Speaker 1: profit forecast in its first earnings update since it's IPO.
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  Speaker 2: Geewajays the gift that keeps on giving for shareholders Beman.
• 4:44
  Speaker 2: So what is sizzling on this GYG grill?
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  Speaker 1: Well, Josee Way Guzman Egomez or Gyg's the Mexican fast
• 4:51
  Speaker 1: food chain that started in Sydney in two thousand and six.
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  Speaker 2: And since then it's expanded two hundred and twenty stores
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  Speaker 2: across Australia, Japan, Singapore and now the US as well.
• 4:58
  Speaker 1: Now, back in June, DUIG listed on the AX and
• 5:01
  Speaker 1: it shares popped like a fresh tortilla chip, up thirty
• 5:04
  Speaker 1: six percent on day one, and.
• 5:05
  Speaker 2: This took GAG's marketing cap to over three billion baccaridis.
• 5:09
  Speaker 1: And now dozy boy. GYG has just announced its first
• 5:11
  Speaker 1: earnings update since it's IPO, and it is one hot
• 5:14
  Speaker 1: burrito yep.
• 5:15
  Speaker 2: GIG reported a net profit of five point seven million bucks,
• 5:19
  Speaker 2: which is up a sizzling ninety four percent from last year.
• 5:22
  Speaker 1: And about seventy one percent above the forecast that amount and.
• 5:24
  Speaker 2: They mean most of the strong results came from its
• 5:26
  Speaker 2: operations in Australia.
• 5:28
  Speaker 1: And interestingly enough, Dozi Boy a lot of it was
• 5:30
  Speaker 1: thanks to its growing Brecky sale.
• 5:32
  Speaker 2: So they man Gag must be majorly relieved because there's
• 5:35
  Speaker 2: always a lot riding on its first earnings update since
• 5:38
  Speaker 2: its typo.
• 5:38
  Speaker 1: So what is the key learning here?
• 5:40
  Speaker 2: As they say, you never get a second chance to
• 5:42
  Speaker 2: make a first impression.
• 5:44
  Speaker 1: When a company goes public. Its first performance against forecasts
• 5:47
  Speaker 1: is like the first bite of that juicy hot burrito
• 5:50
  Speaker 1: I've been talking about. Go on, Well, it's either deliciously
• 5:52
  Speaker 1: satisfying or it leaves a bad taste in investor's mouth.
• 5:56
  Speaker 2: You see a man A company's forecast shows what it
• 5:58
  Speaker 2: expects for its future financial performance. Now, if the company
• 6:02
  Speaker 2: can meet its expectations, then investors get some confidence in
• 6:05
  Speaker 2: the company's management and its strategy. But if a company
• 6:07
  Speaker 2: bombs against its forecast, investors are less likely to trust
• 6:10
  Speaker 2: that company with their money in the future. So Goog
• 6:13
  Speaker 2: has proved itself to investors now, but it'll have to
• 6:15
  Speaker 2: show that its earnings isn't just a one off floxam.
• 6:18
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  Speaker 1: Thanks for listening and we'll see you on Flash Friday