How these ASX consumer stocks performed in September?

Highlights:

• Benchmark S&P/ASX 200 gained 1.74% to close at 6,815.70 points on Wednesday, 5 October 2022.
• Ten out of eleven significant sectors closed in green following the broader market.
• Consumer discretionary index closed 2.72% up at 2,772.90 points.

The Australian stock market benchmark index, S&P/ASX 200, closed 1.74% up at 6,815.70 points, surpassing its 20-day moving average. From the past five trading sessions, the index has increased 5.47%, and, in a year, it has lost 5.42%. On a year-to-date basis, the index has dropped 10.20%.

All ordinaries index closed 1.82% up while S&P/ASX 200 VIX was 2.75% down.

Out of eleven significant sectors, ten sectors closed sharply in green, following the broader ASX 200 index. The information technology sector led the gains with a rise of 3.85%. Consumer Discretionary sector followed the information technology sector with an increase of 2.72%.

The Consumer Discretionary sector recorded a fall of 7.81% in September. In the past one month, the index has dropped 1.30%, and in the last six months, it has fallen 9.74%.

In this article, Kalkine Media® has discussed the share price performance of the following ASX 50 consumer stocks in September - Wesfarmers Limited, Coles Group Limited, Woolworths Group Limited, APA Group, and Amcor Plc.

Wesfarmers Limited (ASX:WES)

Shares of Wesfarmers were quoted at AU$46.69 per share on 1 September 2022, and on 30 September, it closed at AU$42.72 apiece. In September, Wesfarmers’ share price recorded a fall of almost 8%.

Reportedly, the company shared no price-sensitive news during the month. However, back in August 2022, the company shared its full-year results for the financial year 2022 (FY22). During the year, the revenue (excluding significant items) increased by 8.5% and earnings before interest and tax has declined 3.8%. Net profit after tax, including significant items, fell by 1.2%, and operating cash flows dropped 32%. According to the release, Covid-19 had a material impact on FY22 results.

The company announced full-year dividend of AU$1.80 per share, 1.1% up from the previous year. 

Coles Group Limited (ASX:COL)

Image source: © Tktktk | Megapixl.com

As of 1 September 2022, Coles’ share price was AU$17.77 apiece. By the end of the month, the shares were quoted at AU$16.43 per share. In September, Coles share price shed nearly 7.5%.

On 21 September 2022, the company shared via ASX announcement that it has inked a binding agreement with Viva Energy Group Limited (ASX:VEA) to sell its convenience and retail business to Viva. Under the deal, Viva would operate 710 Coles Express sites. 

With the execution of the acquisition, the current fuel and convenience alliance between the parties would terminate. It was due to end in 2029. Coles said that under the agreement, customers of Coles would continue to get loyalty benefits. The company expects to close the transaction by the second half of FY23.    

As per the media release, Coles would receive sale proceeds of AU$300 million and would assign leases related to Coles express to Viva on the completion of a transaction. The company expects a small gain after the sale of the business.

Woolworths Group Limited (ASX:WOW)

Woolworths’ share price was quoted at AU$36.42 per share as of 1 September 2022. By 30 September 2022, the share price had dropped to AU$33.95. Within a month, the share price recorded a fall of 6.78%. 

The previous month, Woolworths provided a few updates regarding the acquisition of circa 80% of share capital MyDeal.com.au Limited (ASX:MYD) for consideration of AU$1.05 per share. MyDeal.com.au is an online marketplace in Australia that offers more than six million products. 

The acquisition is expected to increase the Woolworths marketplace capabilities in the category of bulky goods and homewares. 

On 6 September, MyDeal shared that shareholders have voted in favour of the scheme. On 13 September, MyDeal updated that approval had been received from the Supreme Court of New South Wales, and the next day, the company said that the scheme had become officially effective.

APA Group (ASX:APA)

As of 1 September 2022, APA shares were quoted at AU$10.78 per share, and by the end of the month, it fell to AU$9.59 per share. In a month, the share price has tumbled 11.03%.

The company shared on 7 September 2022 that it has been selected as the preferred bidder for acquiring Basslink. Rest no price-sensitive news was shared by the company in September.

APA released its financial results for 2022 in August. The company reported a 3.9% increase in the full-year underlying EBITDA and 19.8% growth in free cash flow. Cash and undrawn debt facilities grew by 15.1%.

While sharing the full-year results, the company announced a final dividend of 28 cents per share, taking the full-year dividend to 53 cents per share. In comparison to FY21, the full-year dividend increased by 3.9%.

Amcor Plc (ASX:AMC)

Image source: © Viewimage | Megapixl.com

At the beginning of September, Amcor’s share price was AU$17.50 per share. At the end of September, the share price was AU$16.64 per share. In a month, the share price has dropped nearly 5%.

The previous month, the company had not shared any price-sensitive news that could drive the share price movement. 

In August, Amcor shared its yearly results for FY22. In the fiscal year 2022, net sales grew by 13% and adjusted EPS increased by 11%. Reportedly, adjusted EPS met the top end of the guidance. In 2022, adjusted free cash flow was in line with the company’s guidance.

While releasing the financial results, the directors of Amcor determined to pay a quarterly dividend of 12 cents per share. With this, the full-year dividend reached 48 cents per share.