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