Medibank misses its target | 7-Eleven's $40b takeover | Breville brews record sales

This is what them flights.

I'm Brett and Justin and it's Friday, the twenty third of August.

Dozzy boy, we are facing a tale of two siblings. On the one hand, Quantus recorded its best on time performance in three years. That was in July. We're talking more than seventy four percent of flights departed on time. On the other hand, it's cheaper sibling, Jetstar, only saw sixty five percent of its flight slave on time and nearly four percent of flights were canceled.

Not the best rep for Jetstar at the moment. Man new aw Flex Mam. If you knew that Combank reported a nine point eight billion dollar and your cash profit last week, then you would have been on your way to winning fifty bucks in our weekly quiz Quick Sticks. And if you want to be in a chance to win fifty bucks this week, all you've got to do is download the Flux app and have your notifications turned on the chance to be the first to win the

All right, Well, Medibank was founded all the way back in nineteen seventy six, when.

More more more it was in the airways.

It was actually created by the Australian government as a not for profit private health insurer.

And after turning into a for profit entity in two thousand and nine, it listed on the ASX in twenty fourteen.

Now, Donzie boy, twenty twenty two was a year to forget for Medibank.

Who could forget the cyber hack that compromised the data of nine point eight million of.

Its customers, And last year Medibank vowed to recover from this debarcle by growing its resident policy growth by one point two to one point five percent.

But b man, here's the problem. Medibanks now come out and they've said their net resident policy holder growth was just zero point seven percent. But the good news is it's non resident policy growth jumped more than twenty five percent.

Did you say non resident policy growth.

I did. That's because more foreign students took up its private health cover.

Fascinating stuff, does it? Way? So what is the key learning here?

Not all policy holders are valued the same way for private health insurers.

Many private health insurers in Australia distinguished between resident policy holders and non resident policy holders in their reports, and.

This is because these groups generate different levels of revenue and stability for the companies.

Now, resident policy holders are considered to be a more stable and sustainable customer base.

For example, they're more likely to stay with the insurer for longer periods and provide steady revenue over time.

In fact, Jasiboyite Medibank Private has a retention rate of around seventy five percent of their policy holders a year one year, but.

Non resident policy holders, like international students or temporary workers, they generally only hold policies for short periods.

Of time, meaning they're less reliable for long term growth due to their visa situation. So while non resident policy holders growth of twenty five percent is good, investors are more focused on sustainability provided by resident policy holders, which is crucial for Medibank's long term success.

For our second story, the owner of the seven to eleven chain globally has been approached in a forty billion US dollar takeover from a Canadian convenience store.

Just when you thought grab a slurpy was the best thing to happen at seven to eleven. Here comes a forty billion dollar takeover bid. Juzzy Boy, tell me what's going on here?

Okay? So seven eleven is a pretty iconic business. It was first set up in Dallas, Texas, back in nineteen twenty eight, and back then he was called Totem Stores.

But by nineteen forty six, the convenience store was open seven days per week from seven am to eleven pm. Where is this going, Juzzy boy.

Hence the new name seven eleven.

Now fast forward a few decades and the Japanese conglomerate named seven and I Holdings. They gobbled up seven eleven in the US and spread its convenience store empire across fifteen countries.

Including Australia, which seven and I acquired seven eleven stores for one point seven billion dollars last year.

Now get this one, Josey Boy. In total, this company operates and franchises nearly eighty five thousand stores across nineteen countries.

But now be Man, a Canadian convenience store giant with a name that is a serious tongue twister, has made a take of a bid for seven and I. Their name is Alimentation Cuchet Hard the owners of convenience stores Circle K, which is a little bit easier pronounce. And then Man. If this takeover goes ahead, it would be the biggest ever foreign buyout of a Japanese company.

And it would be a major test for Japan's brands banking new takeover rules yep, So what is the key learning here? One small step for seven to eleven, one giant leap for Japanese takeovers.

You see the man. In the past, Japanese companies were known for prioritizing stability of a company over maximizing shareholder value. This meant that management teams could swat away takeover bids like in irritating Mosquito in your left ear, without ever going to the board or their shareholders does wait.

Last year, the Japanese government rewrote its guidelines for foreign takeover proposal.

With the hope that it could improve the chance of deals going through and stimulating their economy.

And as a result of these new guidelines, it's harder for Japanese companies to ignore takeover offers without at least considering the benefit to shareholders. For our third and final story, Brevel, the home appliances company, has brewed up record high sales and it's got its coffee machines to say thank you for.

It would not have ex did Brevel to be the high flyer in's economy. B Man, So what is going on here?

Well, Brevel Juzzy Boy is the Aussie company that's been around since nineteen thirty two, almost a century.

We're talking manufacturing a bunch of kitchen items like toasters, kettles, grills, and of course the coffee machine.

Now Brevell has announced record sales of one point five to three billion dollars.

And a seven and a half percent jump in its net profit.

Now, this juicy news sent Brevel's share price up over eight percent.

If you don't mind and be man, the hero behind this caffeinated success story, Well, that'd have to be Brevel's coffee machines, which hit double digit revenue growth, particularly.

In the US YEP. And this one was off the back of Brevel acquiring Italian coffee machine supplier Lelite in twenty twenty two and.

Introducing its premium coffee machines into US target.

Looks like America's finally waking up and smelling the espresso.

So what is the key learning here?

Premiumization is when a large chunk of a market moves towards more expensive premium versions of a product.

You see a man. As a market matures, consumers become more knowledgeable and familiar with the product and its intimate features, and they start to demand more features or higher quality or both aka higher end versions of the product.

Now, an amateur coffee enthusiast would probably up for a simple machine like a Mocker pot or a pod machine.

Don't forget trust the old Nest Cafe Blend forty.

Three, absolutely, Johnzy Boy, I'd be happy with Nest Cafe Blend forty two at this rate.

But as they evolve into coffee pros, consumers are starting and more keen to invest in more premium machine.

Which is where Brevel is capitalizing, especially in the US. In fact, the US coffee machine industry is expected to reach three point seven billion bucks by the end of this year.

Which will be the largest in the world and grow at two point three five percent until twenty twenty eight. Cop out Starbucks, what's sam If you want to check up the weekend on a high with fifty bucks in your front left pocket? There is only one simple way. It's being the fastest and the smartest in our weekly quiz Quick Sticks, so they sure to download the Flux app and have your notifications turned on.

Thanks for listening and we'll see you on Monday.