AUS
NZ
UK
CA
USA
IND
Highlights
- The demand for consumer staples is unlikely to be affected by economic cycles, making these companies a hedge against economic uncertainties.
- Since 2017, the eCommerce sales of Woolworth’s Group have demonstrated a Compound Annual Growth Rate (CAGR) of 42%.
- Coles Group reported a 41% surge in supermarket eCommerce sales during FY22.
Consumer staples refer to the products and services which are essentially used by consumers. It includes things like food, beverages, household goods, and hygiene products. The demand for consumer staples is unlikely to be affected by economic cycles making these companies a hedge against economic uncertainties.
On that note, we at Kalkine Media® will discuss the top five stocks from ASX consumer staples based on market capitalisation.
Woolworths Group Ltd (ASX:WOW)
Woolworths Group deals in the procurement and distribution of food and related products. Recently, the company made an announcement regarding the approval received for acquiring 80.2% of the issued shares in MyDeal. MyDeal, an online retail marketplace, deals with home and lifestyle goods.
Despite adverse situation due to team absenteeism and disruption in the supply chain, the company had a record year for eCommerce in FY22. Since 2017, the eCommerce sales have demonstrated a Compound Annual Growth Rate (CAGR) of 42%.
Coles Group Ltd (ASX:COL)
Coles Group specialises in retail industry business. The company offers products from farmers and suppliers to its customers. Following are the highlights of the company for FY22:
- 41% surge in supermarket eCommerce sales
- Total sales revenue of AU$39.4 billion
- Earnings before Interest and Tax (EBIT) of AU$1.9 billion
- 3% growth in net profit after tax
Endeavour Group Ltd (ASX:EDV)
Endeavour Group specialises in the retail drinks and hotels business. During FY22, the company expedited investment in digital platforms and standalone technology. Further, it carried out renewals and acquisitions of retail and hotels. Other highlights of the group are as follows:
- Sales of AU$11.6 billion
- EBIT of AU$924 million, reflecting a growth of 2.8%
- Profit after tax of AU$495 million, reflecting growth of +11.2%
- Earnings per share of 27.6¢, demonstrating growth of 11.3%
Treasury Wine Estates Ltd (ASX:TWE)
Treasury Wine specialises in the production and distribution of wine from grapes. Following are the FY22 highlights of Treasury Wine:
- 6% growth in EBITS to AU$523.7 million
- EBITs margin of 21.1%
- 2% surge in Net Profit after Tax (NPAT) to AU$322.6 million
- The company increased its full-year dividend by 10.7% to 31.0cps
Metcash Ltd (ASX:MTS)
Metcash specialises in the distribution and marketing of food, liquor, and hardware. The ASX-listed firm has a wide distribution network in Australia. The company reported a group revenue of AU$17.4 billion in FY22, implying a surge of 6.4%. Below is the performance of different business segments of the company during the reporting period:
