3, Feb 2022
Online retailer Kogan.com’s shares dived on Thursday after its supply chain issues and higher costs shredded its profits.
The company’s underlying profit dropped 58 per cent in the half year ended December 31, due to the disruptions caused by the pandemic.
Its shares fell almost 11 per cent to $6.26 in late trade.
The supply chain issues are affecting almost all industries and are pushing up the prices of goods entering Australia.
Kogan said that the disruptions were affecting all retailers and despite this sales had reached a record.
The company’s interim profit before interest and tax fell to $21.7 million from $51.8 million a year ago.
First-half gross sales rose by almost 10 per cent to almost $700 million, while its profit fell 4.4 per cent.
RBC Capital Markets said that the company’s sales growth slowed in November and December. It cited higher marketing costs and a drop in profit as factors that affected the results.
It had high inventory levels earlier this year as it tried to manage its supply chain. This, however, proved ineffective as it affected how efficiently the company was running.
During the peak of the pandemic, demand for online purchases jumped in Melbourne and Sydney, but this caused delays in the delivery of orders to customers.
Last year, the company established an in-house delivery service to try and address the delays caused by Australia Post’s logjams.
The delivery service is called Last-mile and launched in November last year to address the delays caused by Australia Post’s logjams.
Kogan said that its new delivery service has already delivered more than 100,000 orders.
This service is the first time that Kogan.com has opted to deliver orders without Australia Post’s help.
In December, the company sold its domain name to Canada’s Bitbuy for about US1.5 million. It also agreed to provide marketing and advertising support to the group in Australia.
The company also sold the bitbuy.com domain name to First Ledger, which operates a cryptocurrency trading platform in Canada.
12, Nov 2021
Lion, which makes XXXX Gold and Tooheys in Australia, has been accelerating the expansion of craft beer in the country.
Bell’s Brewery is a craft beer maker located in Kalamazoo, Michigan. It is the seventh largest producer of beer in the US.
Lion, which is owned by Japanese company Kirin, has just received approval from Australia’s competition watchdog for its acquisition of Fermentum, which owns the Stone & Wood, Two Birds, and other brands.
Lion’s global craft beverages, said that Bell’s had a strong history and would be an important part of Lion’s US operations.
Lion Brewery’s acquisition of New Belgium shows that it values the community-first approach to running a successful craft beer business, said Paul Sturges, co-founder and CEO of the Brewers Association of America.
In 2019, the New Belgium’s flagship brand, Voodoo Ranger, became the top selling IPA in the US.
The ACCC stated that Lion’s brands do not compete with Fermentum’s products, as these are usually perceived as mainstream.
In an effort to counter the decline of its mainstream beer business, Australia’s Carlton & United Breweries has been on the acquisition trail of craft beer brands. It bought the Green Beacon brand from Asahi in 2019.
In June, Adelaide Hills-based company Mighty Craft bought Mismatch Brewing and the Adelaide Hills Distillery. Beer Cartel have a great range of beers as well. You can save at Beer Cartel with a Beer Cartel coupon.
11, Nov 2021
Sephora‘s losses widened in 2020 as it continues to rely on its parent company’s funding.
In 2014, Sephora opened in Australia and sells its own line of beauty products, as well as brands such as Marc Jacobs and Fenty.
The company’s bottom line loss widened to almost $7 million in the 12 months ended December 2020.
The beauty retailer is facing increasing competition from other retailers like Adore Beauty. Adore Beauty‘s sales have remained subdued since its IPO in 2020, while its bigger rival Sephora has gained momentum.
During the pandemic period, women flocked to the salons for beauty treatments, and the demand for products such as Adore grew.
Due to COVID-19, Sephora received $8.5 million in JobKeeper Support and more than $2 million in rent breaks.
The company also took steps to cut costs and slow down its expansion. This led to temporary closures and store closures in Australia.
In addition, the company secured financing from LVMH for at least the next 12 months. This provides the company with the necessary financial support to continue operating.
Sephora is facing increased competition from other retailers such as Mecca Brands and Adore.
6, Nov 2021
For him, it’s about building a long-term, profitable company that sells its products online.
Step One, which makes nutritional products, raised $81.3 million through its initial public offering (IPO) at a price of $1.53. The stock rose sharply in its first day of trading and ended the day at $2.75, up 79.7 per cent from its issue price.
Mr Taylor was a rower who represented Australia at the world championships in 1991. He came up with the idea for the bamboo-based underwear after suffering from the uncomfortable sensation of wearing cotton clothes.
Taylor had already fully owned the company before the listing. He now has a controlling stake in the company.
Taylor was captivated by the potential of Step One, and was glad that his parents could come to Sydney for the official listing ceremony.
Taylor said the company would not go over the top in celebrating its success. Instead, it planned a small dinner party.
David Gallop is the chairman of Step One. He used to be the head of the Football Federation Australia’s football operations.
About $12 million of the fund will be used for advertising and brand development for an entry into the US. Mr Taylor said the company was looking at a potential market of about $10 billion.
Revenue is expected to grow by 20 per cent to $73.9 million in 2022 from $61.8 million in the previous year. Net profit is also expected to climb to $10 million.
Repeat purchases by customers are Step One’s key revenue source. It has a 6 per cent market share in the men’s underwear market.
In his early days, Mr Taylor had to borrow money from friends and family to launch the company.