MNI BRIEF: China Passenger Car Sales Up In November Y/Y

MNI China Daily Summary: Monday, December 9

MNI BRIEF: China To Strengthen Policy Easing In 2025: Poliburo

MNI BRIEF: Mexico Inflation Down To 4.55% In November

MNI BRIEF: China Nov CPI Slows To 5-Month Low Of 0.2% Y/Y

MNI: PBOC Sets Yuan Parity Higher At 7.1870 Mon; -1.39% Y/Y

EZ/UK Bond Supply Calendar: Austria, UK Auction on Tuesday

MNI JAPAN Q3 GDP REV +0.3% Q/Q; PRELIM +0.2%; MEDIAN +0.2%

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Wesfarmers 1H24 results in line but prefer staple WOW 28's that trade wide - both SLB's

CONSUMER STAPLES

Aussie retailer conglomerate, Wesfarmers, posted a slight beat on 1H earnings with EBITDA at AUD $3.075b (c$3.01b). Kmart stores (staple clothing & basic goods retailer) driving a strong beat (+7.5% vs. c+4.25%).

Operating cash flows at $2.9b/+47% yoy also beat c$2.14b - management pointing to favourable working capital movements & Kmart earnings -it drove a fall in net debt from $4.7b to $3.9b & pushed leverage down from 2.1* to 1.8*. Interim dividend still held at $0.91 (c$0.89) - i.e. BS healthy & leaves headroom against ratings.

Wesfarmers has exposure to commodity prices through its chemicals, energy & fertiliser unit (~8% of rev's) - we prefer Aussie staple retailer Woolworths (Aus. grocery ~75% of rev's, NZ grocery ~10%) with strong BS.

WOWAU28's trade well wide for its rating (& offers larger discount vs. WES)- b/a is only 6 wide & don't see compression to FV struggling on broader spread sell-off's (historically vs. JDE Peets, Tesco on spread sell-off's).

WOW reports 1H results on Wednesday (Aus. session) - consensus (*5) looking for +4.3% headline sales growth.

Credit BulletsBulletHomepagemarkets-real-timeCredit
Credit BulletsBulletHomepagemarkets-real-timeCredit

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.