Australia’s supermarkets, convenience stores and even fast-food chains like Domino’s all sang from the same songbook this week, blaming price hikes on rising inflation. As spending tightens, consumer brands are having to adapt to the times while miners continue to ride a resources boom. These are the big stories from the week that was.
1. Food for thought
The $5 pizza might be an endangered species as Domino’s bows to inflation, hiking food and delivery prices.
It comes as Domino’s takes over from Pizza Hut as the world’s predominant pizza purveyor.
Coles however reports that its $1 range of pasta is flying off the shelf, showing that there are opportunities for bargain brands.
2. Bargain bin
Kogan argues that, as a discount ecommerce retailer, it will thrive in a tough economic climate.
Yet it also admitted it stuffed up its transition to a post-COVID world. Rather than anticipate falling sales, it stocked up and paid the price.
Kogan posted a $35 million loss after it held onto excessive inventory and had to house it somewhere. Shares fell over 7% this week.
3. Profit time
Pilbara Minerals has posted its first ever profit as the lithium miner rides the resource boom to the tune of $561 million.
Revenues jumped sevenfold during an “incredible year” but rejected the idea of paying a dividend.
With almost $600 million cash on its books, PLS says it wants to expand into the fast-growing lithium market.
4. New wheel
Remember Peloton, the pandemic darling that flew too close to the sun? Well the bike company is now patching up its wings (tyres?).
A new deal with Amazon briefly pumped its share price 20% higher early this week but its new CEO is struggling to convince investors to be patient while he transforms the fitness company.
The plan to pivot? Refocus on software (app subscriptions) over hardware (expensive bikes) using rental equipment to grow users.
5. ASX wrap up
Wesfarmers increased its dividend by more than 10% even as profits faltered, with Bunnings growth again dragged down by Kmart.
Wisetech is defying the tech downturn. The Aussie software company is on a hiring blitz after growing 31% a year since 2016.
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