Why To Put 6 NZX Consumer Sector Stocks On Your Watchlist This Good Friday?

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Consumer sector comprises of the companies involved with producing, buying, and selling of the essential goods like food, drinks, and personal hygiene items, which one cannot do away with even during the difficult period like COVID-19 pandemic.

As per the latest update from ANZ-Roy Morgan NZ consumer confidence slipped steeply by 16 points during March to stand at 106.  The survey is based during the lockdown period until the nation moved to alert level-2 phase.

With public holidays which began on Good Friday and will go on till Easter, people are expected to shop both online and at physical stores, which could boost the consumer sector, which would further contribute to rebalance the staggering NZ economy. 

On 1 April 2021, the benchmark index S&P/NZX50 last traded at 12,488.310 basis points, down by 0.58%. The indices S&P/NZX All Consumer Discretionary and S&P/NZX All Consumer ended the trading session lower by 0.31% and 1.54%, respectively.

Against the given backdrop, let’s take a peek at 6 NZX listed consumer sector stocks and go through their latest updates.

Foley Wines Limited

Foley Wines Limited (NZX:FWL) reported a decrease of 8.7% in its operating earnings of $3,564,000 during the half-year period ended 31 December 2020. This was due to the closure of restaurants, hotels and airlines owing to COVID-19 and the restrictions imposed thereafter. Both reported PAT and operating EBITDA decreased to $2,566,000 and $7,131,000 during the said period.

However, its case sales were up 8% to $92,000. In order to develop the Martinborough brand as a household name, the Company also announced the construction of a wine barrel facility, distillery, tasting room and restaurant in Martinborough.

On 1 April, Foley Wines ended the day’s trading session, down by 1.10% at $1.800.

Restaurant Brands New Zealand Limited

Restaurant Brands New Zealand Limited (NZX:RBD) has published its annual report for the period ended 31 December 2021. The Company recorded NPAT of $30.9 million, up 2.8% on pcp following the successful acquisition of 69 stores, including KFC and Taco Bell across California during the said period. Its total brand sales increased to $892.4 million and $147.3 million was reported as combined store EBITDA, up 27% on pcp.

RBD is focused on new product development and channel enhancements by making operational improvements and is aiming towards enhancing its brand presence across NZ and Australia by launching at least 10 stores by December 2021.

On 1 April, Restaurant Brands New Zealand ended the day’s trading session, down by 1.35% at $13.120. 

Sanford Limited

Sanford Limited (NZX:SAN) has provided a market update amid the testing and challenging economic conditions owing to COVID-19. Andre Gargiulo, SAN's Acting CEO, stated that the food businesses have had borne the brunt of the pandemic, with the closure of restaurants and other services. The Company is trying to build its retail in fresh salmon and whitefish.

Further, actions are taken to minimise the inventories and prices are considerably reduced.

However, the Company’s balance sheets remain resilient, with support and backing from its lenders. SAN has sold off two of its non-core property assets in Christchurch and Tauranga, thereby raising $24 million. With systematic cost-reduction and improvised business operations, the Company aims to achieve short term benefits and expand once the market comes back to normal.

On 1 April, Sanford ended the day’s trading session, down by 1.07% at $4.640. 

T&G Global Limited

T&G Global Limited (NZX:TGG) published an impressive annual report for 2020 wherein its operating profit was recorded at $32.4 million, up $15.9 million on pcp. Moreover, both its revenue as well as NPBT increased to $1.4 billion and $22 million, respectively, during the period. PAT jumped to $16.6 million, up $10 million on pcp.

TGG acquired Freshmax New Zealand and integrated it into T&G Fresh. The Company had declared an interim dividend of 6.0 cps during the said period. Even during the testing times of pandemic, the Company was resilient and continue to focus on its customer-centric values.

On 1 April, T&G Global ended the day’s trading session, up by 0.34% at $2.950.

Me Today Limited

Me Today Limited (NZX:MEE) recently announced an agreement that took place between its Me Today brand in Ireland and Uniphar Wholesale Limited with more than 280 pharmacies. It has also revealed its partnership with Adore Beauty Group Limited, Australia’s No.1 online beauty retailer.

Despite facing Covid related challenges, the Company continues to grow with gross revenue of about $1.4 million for FY21. Also, with new partnerships in place, MEE anticipates its annual gross revenue to be a minimum $3 million for the financial year ending 31 March 2022.

On 1 April, Me Today ended the day’s trading session, down by 3.61% at $0.080.

Cooks Global Foods Limited

Cooks Global Foods Limited (NZX:CGF) disclosed its half-year results for the period ended 30 September 2020. The ongoing pandemic affected the group sales that were reduced to $1.9 million from $3.8 million. Further, the Company experienced a slight decrease in its overall loss from continuing operations i.e. ($1,041)k in FY21 as compared to ($1,432)k in the previous year.

The Company is focused at undertaking restructuring initiatives during FY21. With the support of Government aided programme and its own cost reduction initiatives, CGF aims to enhance its business operations and deliver solid performance in FY22.

On 1 April, Cooks Global Foods ended the day’s trading session, flat at $0.037.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

 


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