ConsumerDaily Briefs

Consumer: LG Energy Solution, Barbeque Nation Hospitality, ITC Ltd, Westlife Development and more

In today’s briefing:

  • FTSE All-World/​All-Cap Index Rebalance: Inclusions, Deletions & Other Changes
  • 4QFY22 Results Update – Barbeque Nation Hospitality
  • 4QFY22 Results Update – ITC
  • 4QFY22 Results Update – Westlife Development
  • Westlife Development – Strong Consecutive Beat Boosts Confidence

FTSE All-World/​All-Cap Index Rebalance: Inclusions, Deletions & Other Changes

By Brian Freitas

  • For Asia Pacific, there are 8 inclusions each to the All-World Index and the All-Cap Index at the June QIR. Quite a few have over 3 days ADV to buy.
  • There are also changes to the NOS and investability weights that will require passive funds to buy/sell a lot of stocks. Some have a reasonably large impact/flow.
  • A lot of the IPOs are trading below their offering prices and investors could be looking to sell into any rallies that take the stocks close to their IPO prices.

4QFY22 Results Update – Barbeque Nation Hospitality

By Motilal Oswal

  • Omicron-led disruptions hurt sales and impair profitability – BARBEQUE’s dine-in focused business (as opposed to QSRs) meant that higher-than-expected Omicron impact for the sector adversely affected the company more.
  • Sales miss leads to lower operating leverage – Sales grew 10.9% YoY to INR2.5b. (est. INR2.7b), with SSSG of 5.5% (est.13%).
  • Highlights from the management commentary – BARBEQUE took an effective 5% cumulative price hike in Apr-May’22 put together, which along with other cost saving efforts will be able to revive its gross margin to earlier levels.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


4QFY22 Results Update – ITC

By Motilal Oswal

EBITDA and PAT in line; cigarette volumes resilient – ITC’s 4QFY22 EBITDA and PAT growth came in line with our estimates.

Sales beat led by Agri business and Paperboards – ITC’s revenue grew 16.8% YoY to INR155.3b (est. INR138.4b) in 4QFY22.

Valuation and view – ITC’s re-rating would depend on sustained earnings growth going back to the high-teens levels witnessed in the first half of the last decade (at 18% CAGR) which had slowed down to 6.6% CAGR over the latter half of the decade.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


4QFY22 Results Update – Westlife Development

By Motilal Oswal

  • In line result, fair valuations limit the upside – All operating parameters for WLDL – SSSG, sales, gross margin, and EBITDA – were in line
  • Operating performance in line – Sales grew 27.3% YoY to INR4.5b (inline). SSSG stood at 23% YoY (inline).
  • Key takeaways from the management commentary – The management has raised prices in 1QFY23. Along with the mix and efficiency, it said it can manage margin.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


Westlife Development – Strong Consecutive Beat Boosts Confidence

By Emkay

  • Strong performance with best-ever Q4 revenue/PAT: WLDL reported ~27% growth in revenues, led by 23% SSG and new store additions (up 7% to 326 stores).
  • Consistent delivery should boost Street confidence: Pre-IndAS EBITDA margins improved 260bps to 11.8% (vs. ~9% in FY20), despite a RM spike, which affected gross margin by ~150bps.
  • Attractive valuations vs. peers; maintain Buy: We forecast healthy sales/EBITDA CAGRs of 13%/24% in FY20-25E.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


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