Tag: Australian Market
Woolworths’ divestment of Endeavour separated the ESG risk of alcohol retailing and gaming machine operation from the broader supermarkets business and provided investors with the ability to tailor their risk exposures to each business. The impetus for divestment had risen in the years leading up to the separation of Endeavour as a standalone company along with the emergence of social oriented investment.
Endeavour’s business is divided into two segments. Its retail segment is Australia’s leading vertically integrated omnichannel liquor retailer, while Endeavour’s hotels segment provides hospitality services and gambling operations.
Company’s Future Outlook
We expect consumer demand for alcohol to be relatively steady through the economic cycle, exhibiting attributes of consumer defensives. For instance, like in food, liquor spending grew at around or above the 30-year average growth rate of 7% in fiscal years 2008 and 2009, respectively. However, data stretching back to the last Australian recession suggests liquor demand isn’t always recession-proof. According to the Australian Bureau of Statistics, Australian consumers significantly cut back on drinking in fiscal 1991 and liquor retailing took over two years to recover to its fiscal 1990 levels.
We estimate the Australian hotels market will predominantly be driven by the same factors as the off premises retail liquor market, namely population growth and inflation. We estimate a total market size at AUD 15 billion in fiscal 2020 and anticipate this to grow at a CAGR of 6% from lockdown-affected calendar 2020 to AUD 27 billion by fiscal 2030
Bulls Say
– Endeavour’s dominant retail market share of 47% is multiples of its closest competitors and provides a source of long-term sustainable cost advantage.
– Endeavour’s partnership agreements with Woolworths allow the business to leverage the scale and capabilities of Australia’s largest supermarket.
– Endeavour’s wide economic moat, strong competitive positioning and strong balance sheet will underpin a sustainable and steadily growing dividend.
Company Profile
Endeavour Group Ltd is an Australian drinks retailer of products such as liquor and operator of various licensed hospitality venues. Its portfolio of brands include Dan Murphy’s, BWS, Pinnacle Drinks, ALH Hotels, Jimmy Brings, Langton’s, among others.
(Source: Morningstar)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
The corporation is likely to outperform its FY21 prospectus prediction. In its brochure, Aussie Broadband indicated that its standardised EBITDA for FY21 would be $12.3 million. The costs associated with the company’s first public offering are excluded from normalised EBITDA (IPO).
Aussie Broadband now estimates standardised EBITDA for the entire year to be between $17 million and $20 million, following two upgrades — one in the half-year report and the other in late May. This might put you 63 percent ahead of the prospectus.
Significantly higher rates of growth in the retail and business areas, as well as good cost control and marketing rebates, are credited with the improvements. One potential flaw in that estimate is that it only thinks Victoria’s May snap lockout will last one week, when it was later extended for a second week. Due to increased broadband consumption, Aussie Broadband’s costs tend to rise during certain times. It’s unclear how much of an impact this will have on the company’s full-year EBITDA.
About Aussie Broadband
Aussie Broadband Ltd is a telecommunications company. It provides NBN subscription plans and bundles to residential homes, small businesses, not-for-profits, corporate/enterprise and managed service providers. The company services all states and territories in Australia.
Source: MSN
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
Categories
ASX welcomed three new IPOs
“With a total identifiable 1.1 million ounce JORC Mineral Wealth platform and 100% ownership of the area’s only gold mill, our goals are to illustrate the actual capabilities of this property package and maximise lengthy business value,” stated managing director Alexander Scanlon.
Wilson Asset Management Strategic Value (ASX:WAR)
This is the eighth LIC handled by Wilson and the second to list since COVID-19, following Salter Brothers’ listing earlier this month. It will, according to Wilson, benefit from the ability that the market has mispriced.
WAM Strategic Value seeks to produce exceptional risk-adjusted returns from a portfolio predominantly comprised of discounted asset opportunities identified utilising the established market-driven investment process we have created over the last two decades,” the company said in a statement to shareholders on Friday.
Camplify (ASX:CHL)
Campervan and motorhome renting community focused on the Australia and UK markets, completed the trio of new ASX IPOs that debuted today. Camplify went public after raising $11.5 million and reporting that its initial public offering (IPO) was almost four times oversubscribed, with customers being urged to acquire shares in the IPO and strongly supporting it. It is also supported by Apollo Tourism and Leisure (ASX:ATL), one of the ASX’s few other caravan specialists, who invested in the company in 2017 and now has a 17.8% share.
Source: MSN
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
