This is what the Flux I'm brand, I'm justin and it's mandated twenty fourth of June.
Doze. Wait, we know that the computer chip maker in Vidia is one of the hottest stocks in the world right now, trading on a price to earnings ratio of seventy eight if you don't mind but a tear. What's even hot at GUZMANI gomes Way actually trading on a price to earnings of five hundred according to ig market analysts. And you got to wonder how sustainable is that.
Blucks Man. As we get closer to the end of the financial year, time is nigh to make any last minute tax deductions. In the fluxs app, we've broken down some of the best ways to maximize your tax return. To make sure to download the app and make your money go further.
Three informative stories today, let's do it For our first. Penfolds is planning to re enter the Chinese market with a bang after monster tariffs have been removed from Ossie wine makers.
Penfolds had a very rough rind in China, bee Man, so tell me more so.
Penfolds is one of the many brands under the Treasury Wine Estates portfolio.
We're talking brands like nineteen Crimes, wolf Glass, Squilling Pig, and of course they're hero wine at Penfolds.
Yeah, this is the brand that sells wines over one thousand dollars a bottle, not like my eight ninety nine Pino Noirs and does it what You may remember that Penfold's revenue took a major hit over the past few years.
That's because in twenty twenty, the Chinese government plays a tariff of up to two hundred and twelve percent on Australian wine. But now those tariffs have been lifted and Penfolds is focusing on rebuilding their premium wine brand in China.
They're jacking up prices and selling different levels of Penfolds wines to different types of consumers. You've got the heartland customers that's your rusted on wine drinkers.
As the luxuriance drinkers.
Yeah, they would be younger people who want a bit of a luxury brand experience.
And of course the classic connoisseurs.
People who enjoy the theater of tastings.
And be man With this customer segmentation, the goal is to grow pen Folds profit by fifteen percent over the next three years.
So what is the key learning here?
Breaking down a customer base can be a game changer for companies looking to sell the right products and boosting sales. Does it Not all products within a company are suitable for all people, and that's that's why companies spends so much time understanding the different buyer personas within their customer base. These buyer personas help shape a company's product and their marketing decisions. Ye For example, one of Nike's primary personas is the competitive athletes.
That's the person who is highly driven and constantly seeking to improve their performance.
But then they've also got the fashion forward fitness.
Enthusiasm that is, the person who values style and functionality in their workout apparel, the ath leisure vibes.
So by understanding and catering to these different personas, companies like Penfolds can better meet the needs or desires of their customer base.
And ultimately drive more people to drink more red wine.
For our second story, Revolute, the UK based neobank, is looking to sell five hundred million US dollars of shares as it prepares for one of the biggest IPOs of twenty twenty four.
One of the few winners in this space so far. Josey Boy, go on, go On.
Okay. So, Revolute is one of the early fintech companies that attempted to take on the big, the old, the ugly banks with an app only alternative.
I e. What we call neo banks.
Was founded in twenty fifteen and since then it's grown to over forty million customers globally.
And while its main businesses in the UK, it is also in Australia and the US and Japan and Brazil.
And be Man. While many of the FinTechs and nabanks have come and gone, Revelute kind of seems to have started.
In twenty twenty one, it raised money at evaluation thirty three billion US dollars and now it seems to be going one better.
So now Revolute's looking to sell five hundred million US dollars of existing shares at a forty billion dollar valuation.
And this is all before an eventual IPO, which keeps delaying until the public markets in Europe are a little bit rosier. So what is the key learning year when a company decides to go public? Timing the IPO can significantly impact its success and be man nobody wants.
A lackluster IPO.
Just ask Delivery, who shares dropped twenty six percent on their first day.
Disaster and be man. A lackluster IPO can hurt a company's image.
As well as making future fundraisers a little bit more challenging.
And the fear of this lackluster IPO can cause companies to change plans rapidly.
Just last week, two European companies postponed their IPO plans because of market conditions. Yeap, Golden Goose, the Italian luxury sneaky company, the ones that sell expensive dirty shoes, dapist Boned, don't forget ten Damn the Spanish fashion retailer. They did as well, but forever loot.
They will kick the IPO can down the road for a little bit longer and wait for the market to bounce back.
For our third and final story, Catman Doo's owner KMD Brands has seen halfier sales drop by eight and a half percent and its winter sales are going to be worse than expected.
He kind of feels like every retailer coming out with an announcement like this these days, So what is going on here?
Well, jazy boy KMD is the outdoor and sports brand that was founded in nineteen eighty seven in New Zealand.
And if you haven't heard of KMD brands, you've probably heard of some of their brands like Catman Do, like Rip Curl or possibly Oboz.
Nothing says Ossie Winter like seeing all the Catman Do puffers out on the streets now me Man Catman Do has announced it sales across its brands were down eight point four percent in its half year results, probably from their eighty percent discounts all year round. Am I right?
You're not wrong, But that's not all because they forecasting earning forty seven million bucks for this financial year.
Which is less than half its earnings from the previous year.
Next minute, kmd's share price dropped five percent.
And it's not expecting things to get better anytime soon, especially with less consumer spending.
So KMD is taking some early action and negotiating with its lenders to low art their fixed charge coverage ration.
What an interesting term, Juzzie boy, I'm wondering over here. What is the key learning?
Fixed charge cover ratio measures the company's ability to cover its fixed expenses with its operating income.
You see, juzzy boy fixed expenses like leases, equipment, higher or even interest expenses. They say the same no matter how many sales a company is making.
So in order to be financially stable, a company needs to be able to cover those costs when times are tough like what KMD is facing right now, and then man with the slowdown for retailers, you can bet your bottom dollar that financial stability is a top priority.
Just in the last week we saw city Cheek announced it's expecting a thirty percent drop in sale.
Don't forget Mosaic whose share price dropped twenty percent after announcing their forecasts.
So it's no surprise that during this period of low consumer sentiment, KMB is making sure that its fixed charge cover ratio.
Is in checkful Flux and we are just six days away from the end of the financial year, so that means if you want to make any last minute tax deductions, now is the time. We've broken down some of the best ways to maximize your tax return in the Flux app, so make sure to download it and make your money go further.
Thanks for listening and we'll see you on a Wednesday.