- According to WHO, certifying good and consistently applied WASH (water, sanitation, hygiene), and waste management practices will help to avert the human-to-human spread of the COVID-19 virus
- With a diverse portfolio of iconic Australian brands, Pental Limited is adaptive to changing operating environments
- It has seen an astronomical increase in demand of few products, that can aid customers to tackle the novel coronavirus
The World Health Organization (WHO) states that the provision of safe water, sanitation and hygienic conditions is crucial to safeguarding human health amid infectious disease outbreaks, including the recent novel coronavirus (COVID-19) outbreak. UNICEF seconds WHO and states that from doing laundry to preparing meals, cleanliness and hygiene will keep the COVID-19 virus out of homes and ensure that families and the broader community are well-protected.
Australian Government Department of Health opines that everyone role in building a COVID Safe Australia as restrictions ease is most important, and for that, everyone must always continue to practise good hygiene to prevent the virus spreading.
In this backdrop, we introduce Australia and New Zealand’s consumer powerhouse, a brand that resonates with quality and hygiene and has been trusted by families for generations- Pental Limited (ASX:PTL). So much so, an Australian home without at least one Pental product is an odd sight.
The Company is one of the industry leaders with strong revenue growth (15.1 % Australia, 10.81 % New Zealand), with a 5 % EBITDA growth and no debt.
Pental- The Quality & Hygiene Pioneer
Pental produces and distributes several home and personal care products across Australia as well as New Zealand. The Company dates back to 1954 and has undergone various facelifts as a brand. Pental products/ Pental’s ‘house of brands’ are highly recognised and trusted, and ~90 % are manufactured in its Shepparaton plant that offers regional employment opportunities. They are distributed via major grocery, pharmacy, discount channels along with wholesalers, online and foodservice.
PTL Brands (Source: PTL’s Investor Presentation)
These products have been created to make everyday life more comfortable and simpler. Offering “something for everyone”, the Pental tradition is to present customers with products of superior quality, coupled with constant product innovation and improvements.
COVID-19 Impact on Pental
Health experts call on Australians to frequently wash their hands and keep household surfaces clean to limit the spread of the virus. Consequently, changing consumer cleaning habits since the outbreak of COVID-19 have seen an astronomical increase in demand for few Pental products.
The Company reported elevated levels of consumer demand for its White King disinfectant cleaning products and new Country Life anti-bacterial soaps along with Pears soaps as well as battery products. Subsequently, sales revenue increased over March and April, and the Company is anticipating underlying EBIT increase of between the range of 25 % and 35 % in FY20, relative to FY19.
It should be noted that long-term sustained impact of COVID 19 on demand is still unclear, though early indications favour sustained levels of demand for strong germ-killing, cleaning and soap products in the long run- a good sign for the Company.
Which Pental Products Can Be Your COVID-19 Rescue?
The Company’s household products are efficient and quality-tested that can help families live better, especially in the wake of a pandemic. Though Australia and New Zealand have been successful in their route of flattening the curve and the economies have been slowly reopening (New Zealand is even been declared COVID-19 free!), prevention will remain to be better than cure as the virus remains a global invisible enemy.
To fight the virus better, Australians and New Zealanders can use the following Pental products-
- Country Life Soap, which is enriched with natural moisturisers and oils
- Janola bleach, an extensive range that encompasses toilet cleaning products and a laundry range that uses the power of oxygen to remove the toughest of stains
- Lux Flakes, suitable for top load washing machines and hand washing.
- Martha's Country Homestead Wool Mix for knitwear
- Pears soap that contains high quality ingredients like glycerine and natural oils
- Softly laundry care products
- Sunlight, the laundry soap that has been a true Australian cleaning staple
- Velvet soap and beauty bars
With Australians paying attention to expert cleanliness, hygiene advisories and the Company’s capability to cater for the extra demand intact, Pental to be on a growth trajectory, well placed to serve customers during this challenging time.
The market awaits more insight into the Company’s stance in its FY20 results, due in August 2020. Meanwhile, PTL quoted $ 0.35 on 16 June 2020 and has a YTD return of 6.06%.
(Note: All currency in AUD unless otherwise specified)