In the 26 weeks to December 25, turnover increased by 15%, headline earnings per share (Heps) increased by 75.1% and interim dividends per share nearly doubled (+96.9%).
The decision to part ways with straggler David Jones and instead focus on favorite Australian child Country Road has been met with cheer by the market and an increase in confidence from management.
The high payout to dividend ratio is a good sign for the group, indicating that the balance sheet concerns associated with the David Jones acquisition are well and truly behind Woolworths.
Free cash flow per share was up 29.3%, a strong result but not as impressive as the increase in profitability, as some cash was sucked into the business.
The market also expressed some nervousness about the cost of practically maintaining not just a cold chain, but an ice chain. The rolling blackout may not be an easy thing to navigate for a retailer whose claim to fame in the food business is the quality of its cold chain.
Sky’s the Limit for Multichoice
DStv dishes are becoming more uncommon in high-income households in South Africa. As these customers tap into the world of uncapped broadband internet, streaming is the clear favorite.
As great as the SuperSport is, the MultiChoice needs to adapt to survive in the long run, as DStv heads towards a future of living only on the rooftops of low-income households.
Showmax has been incubated as a streaming channel showcasing the same content as DSTV, the full extent of the plan has been unveiled. Through a partnership with Nasdaq-listed Comcast, MultiChoice will use NBCUniversal’s Peacock technology to deliver a tailored streaming offering on the African continent under the ShowMax brand.
With access to live English Premier League games and loads of other content, Multichoice will retain 70% in a streaming platform that has every chance of being successful.
Still, at a buyout that accounts for roughly 14% of the fund’s market cap, perhaps the winds of change will finally blow.
cachebuild is in a world of pain
Riots, a pandemic and months of relentless consumer pressure – it must really look like the apocalypse is unfolding to those inside the boardroom at CashBuild HQ.
With the share price down more than 30% in the past year and the interim dividend cut by 32%, it seems only an outbreak of locusts can make things worse.
Not only are there no signs of improvement in macroeconomic conditions, but things appear to be getting worse: after a 4% drop in revenue in the six months to December, the first six weeks of the 2023 calendar year saw an 8% drop in revenue Went.
Maybe it’s time for CashSolr instead? It seems to be the only DIY or construction project most consumers are doing at the moment.
Client: Dubey’s Dividend
Well, well, well, if it isn’t the star of the infomercials of the day! Customers is one of those companies that investors tend to ignore, despite the best efforts of brand ambassador Desmond Dube. And in this case it’s a shame.
Trading at a trailing dividend yield of approximately 11.5%, the client offers a dividend yield that is significantly higher than most asset companies.
Remember, dividends from a real estate investment trust are taxed at your full tax rate, while dividends received from clients are taxed at a much lower dividend withholding tax rate. In other words, the customers’ produce is especially juicy.
That doesn’t necessarily make the clients a winner for investors, as the share price has yet to return to pre-pandemic levels. The company is also dealing with higher-than-expected policyholder withdrawals as low-income consumers face economic pressure.
But with Heaps’ 14% gain in six months and that gorgeous trailing dividend yield, it might be worth a look. DM168
By The Finance Ghost After years in investment banking, his mother’s dire prediction comes true: he becomes a ghost.
Credit – Taken from – https://biz.crast.net/the-finance-ghost-woolworths-goes-back-to-basics/
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