AUS
NZ
UK
CA
USA
IND
Summary
- Pental is dedicated to delivering the highest quality and value in all its consumer products that have been an essential part of Australian and New Zealand families for generations.
- Innovation, production efficiencies and quality are Pental’s core focus as it continues to make its manufacturing sustainably successful.
- In HY20, Pental saw robust and stable growth owing to increased sales, strong exports, and retail expansions.
- Elevated product demand amid COVID-19 and recent special dividend declaration is a sign of Pental’s strong performance in recent times.
Whenever one goes in an Australian home, it is unusual not to spot at least one Pental Limited’s (ASX:PTL) product. Such is the demand and trust for this consumer powerhouse that families have trusted it for generations.
PTL Product Portfolio (Source: PTL’s Presentation)
On 24 July 2020, Pental’s stock seemed to have fetched ample investor attention and was trading up by ~ 4.7% at $0.382 (AEST 03:00 pm) whereas the trading session on 4 August ended at $0.380 per share. A possible driver of this upside was the Company’s recent announcement of a generous additional special dividend for shareholders.
Pental’s One-Off Special Dividend
The Company has announced a one-off special dividend of 0.7 cents per share, which is likely to be paid on 7 August 2020 and has a record date of 31 July 2020. The 100 % franked special dividend, announced at a time when much of the market is under pressure, and COVID-19 uncertainty continues to persist, is a sign of strong performance of Pental’s portfolio of iconic brands.
It is not the first time the Company has shown resilience this year. In March 2020, as part of the Company’s FY20 half year results, Pental had announced an interim fully franked dividend, at 0.70 cents per ordinary share that ware paid to shareholders on 25 March 2020. That was a period when Pental’s performance was strengthened by positive Australian and New Zealand sales figures despite a tough retail environment in Australia.
What Propelled Pental’s Special Dividend Declaration?
The Company is active in developing new products to grow market share and building strong, ongoing relationships with customers and suppliers. Following various drivers could have possibly propelled the Company to offer a generous additional dividend to shareholders-
Kalkine Image (Source: PTL Report)
Sales Growth
FY20 has seen sales growth in all of the Company’s Australian sales channels. This growth is majorly catalysed by White King branded products ranging for the first time in Aldi supermarkets and Bunnings Warehouse stores.
Exports Markets
The Company affirms that export markets, including New Zealand and China, also experienced solid growth in FY20. In China, the Company’s new partnership with The Export Group, coupled with heightened demand for disinfectant and bleach products owing to COVID-19 seemed favourable for Pental.
COVID-19 Product Demand
In the peak of the novel coronavirus mayhem in June quarter, Pental experienced elevated levels of consumer demand for its White King disinfectant cleaning products and new Country Life anti-bacterial soaps. Demand has also increased for Pears soaps as well as battery products. As reported in April, this demand has seen sales revenue increase majorly over March and April 2020.
ALSO READ: Pental Limited Experiences Elevated Product Demand, Sales Likely to Soar Amid COVID 19
Australian Made and Australian Owned Positioning
According to Pental, the rejuvenation and range extension of Country Life brand witnessed 37 % growth over the previous year. This growth is supportive of the Company’s long-term strategy of investing in its trusted brands. Moreover, the apt Australian Made and Australian Owned positioning made sure that Pental meets consumer needs during the peak of the COVID-19 demand.
Subsequently, increased marketing funds behind Australian owned and made brands propelled additional distribution and consumer demand.
Evidently, Pental’s proven strategy seems to be suggesting strong growth which has possibly enabled the consumer powerhouse to offer a special dividend to shareholders in such uncertain times.
PTL intimated that it would release its FY20 results in late August 2020 wherein it will also confirm its full year final dividend.
(Note: All currency in AUD unless otherwise specified)
