KMD, RBD, WHS- Needle on 3 NZX retailers after final supermarket report

Highlights

• The Commerce Commission has come up with a series of recommendations for the NZ grocery sector.
• The Warehouse Group expects NPAT for H1 FY22 to be over $40 million.
• Restaurant Brands will pay a dividend of 32cps on 22 April. 

The Commerce Commission has come up with a series of recommendations for the NZ grocery sector, but the competition watchdog did not take the tough measures that it had anticipated earlier.

Some of the changes recommended included ease in land availability for setting up new supermarkets, introducing a code of conduct to enhance relations between grocery suppliers and retailers and helping consumers in making more informed decisions.

David Clark, the Commerce and Consumer Affairs Minister, stated that Kiwis would gain from a much more competitive grocery sector after the Commerce Commission’s conclusions.

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Here is a look at how these 3 NZX retailers are performing after the findings.

The Warehouse Group Limited (NZX:WHS)

The biggest retailer operating in NZ, Warehouse Group, posted a drop of 5.7% in total sales to $1.4 billion for the 5 months ended 2 January 2022 in comparison to pcp in FY21. WHS improved sales in Q1 and battled the COVID-19 impact with strong shipping and stock controls.

DO READ: WHS, BGP & MHJ: 3 NZX retail stocks to watch ahead of ComCom’s report

WHS is due to declare its results on 22 March 2022 and expects NPAT for H1 FY22 to be over $40 million.

Shares of Warehouse declined 0.65% in trading on Tuesday to close at $3.04.

Kathmandu Holdings Limited (NZX:KMD; ASX:KMD)

Clothing and travel equipment provider KMD delivered strong results in Q2FY22, gaining from the global diversification approach. The Group expects its H1 FY22 EBITDA to be between $9 million and $11 million. KMD is due to release its half-year results for FY22 on 23 March 2022.

ALSO READ: KMD & 2 other retail stocks in focus as retail spending picks up

The Group will also change its name to KMD Brands Limited, which will be effective from 16 March 2022.

Shares of Kathmandu Holdings stayed flat in trading on Tuesday to close at $1.31.

Restaurant Brands NZ Limited (NZX: RBD) 

A multi-site branded food retail chain manager, RBD, delivered a 19.7% rise in revenue for 2021 on pcp, registering total sales of $1.06 billion in the period. RBD posted total sales of $284 million in Q4 FY21 and strong same store sales for 2021.

DO READ: MFB, BFG & CVT: 3 food stocks to watch on inflation concerns

The Group will pay a dividend of 32cps on 22 April. The firm did not provide any guidance for FY22.

Shares of Restaurant Brands declined 0.42% in trading on Tuesday to close at $14.34.

Bottom Line

Commerce Commission has recommended a review of the competition with the grocery sector after 3 years to assess the effectiveness of the measures taken by the watchdog.