HLG - Hallenstein Glasson

[winner69]

Announcement re half year any day now

Boomer of a result ...maybe $25m or more npat

Wage subsidy mitigated F2O result but the catch up has generated the huge increase in profit ...most of the increase could be seen as a one off.

Over the last 12 months (H220 and H121) HLG reported profits will be than they would have been without lockdowns ....covid has been good to them financially.

[sb9]

Announcement re half year any day now

Boomer of a result ...maybe $25m or more npat

Wage subsidy mitigated F2O result but the catch up has generated the huge increase in profit ...most of the increase could be seen as a one off.

Over the last 12 months (H220 and H121) HLG reported profits will be than they would have been without lockdowns ....covid has been good to them financially.

Last year, trading update was on 17th, so would say it’ll take about couple of weeks for them to figure out numbers, especially with two long weekends in a row for Akl.

[Snoopy]

clothing manufacturing practises labels haven't made it to NZ yet have they?

It will come..

Quite right Waltzingman. Glassons haven't been totally asleep at the wheel in this space. They score a B+ on the A to F scale of clothing suppliers on the Tearfund survey of sustainability practices. Or at least they did in 2019, before Covid-19 stopped the audit inspections.

https://www.glassons.com/sustainabil...responsibility

However, the standard of the code of conduct looks to have been set at a 'low bar' level.

"We expect suppliers to ensure this is communicated to all owned and contracting factories, sub-contractors, input suppliers; to respect and comply with our Code of Conduct."

'Expecting' a supplier to communicate to their sub-contractors is a long way from mandating such action and seeing it is followed through.

pollution by clothing manufactures world wide.

"Factories shall comply with all applicable environmental laws and regulations."

But in some countries there aren't any environmentally enforceable standards.

"we are working on the below policies

•Protection of our oceans policy"

So nothing has been done to address ocean pollution. HLG has turned a blind eye to the massive supply of microplastics washed from their fast disintegrating fast fashion products each time they are washed into the oceans where they will stay for tens of thousands of years.

I think there is a strong argument there that says Tim Glasson is New Zealand's least ethical CEO. What does that say about HLG shareholders?

SNOOPY

[Beagle]

I remain of the view that the trading update will be circa $24m, (up 50%) and that inclusion in the NZX50 is highly likely at some stage this year either through the removal of Infratil with a takeover or under its own steam. HLG put out a 60 page sustainability report and its available on their website to read for people who are into that sort of thing.

Frankly I think its anyone's guess to try and work out how much of the current periods anticipated strong growth is one-off customer restocking after the Covid lockdown and how much is ongoing strong growth of the Glassons brand, (especially in Australia), but for what its worth my guess is this is somewhere around a 50 / 50 split.

I see fair value one year hence in the $9-$10 range, towards the upper end of that on highly probably NZX50 inclusion, and am a very happy holder for the exceptional yield of circa 10% gross. (I am happy to take an extremely patient approach when getting that remarkable anticipated yield).

For what its worth, I topped up some more last week @ $7 to add my already large holding as I think at that price the shares are a compelling buy in an otherwise fairly fully priced market.

[LaserEyeKiwi]

Quite right Waltzingman. Glassons haven't been totally asleep at the wheel in this space. They score a B+ on the A to F scale of clothing suppliers on the Tearfund survey of sustainability practices. Or at least they did in 2019, before Covid-19 stopped the audit inspections.

https://www.glassons.com/sustainabil...responsibility

However, the standard of the code of conduct looks to have been set at a 'low bar' level.

"We expect suppliers to ensure this is communicated to all owned and contracting factories, sub-contractors, input suppliers; to respect and comply with our Code of Conduct."

'Expecting' a supplier to communicate to their sub-contractors is a long way from mandating such action and seeing it is followed through.



"Factories shall comply with all applicable environmental laws and regulations."

But in some countries there aren't any environmentally enforceable standards.

"we are working on the below policies

•Protection of our oceans policy"

So nothing has been done to address ocean pollution. HLG has turned a blind eye to the massive supply of microplastics washed from their fast disintegrating fast fashion products each time they are washed into the oceans where they will stay for tens of thousands of years.

I think there is a strong argument there that says Tim Glasson is New Zealand's least ethical CEO. What does that say about HLG shareholders?

SNOOPY

So are you saying every other clothes retailer in New Zealand isn't doing the same thing HLG is in this regard? Warehouse? Kmart? Farmers? Target? H&M?

[Snoopy]

So are you saying every other clothes retailer in New Zealand isn't doing the same thing HLG is in this regard? Warehouse? Kmart? Farmers? Target? H&M?

No, all that lot are guilty. Out of all those only the Warehouse is listed, although they deal with a whole range of less polluting products too. So of those seeking the listed limelight, if you regard Tim Glasson as 'totally unethical', then Nick Grayston of 'The Warehouse' fame, has an evil leg.

SNOOPY

[Waltzing]

Sorry for commenting on pollution. Chief Detective Inspector Snoop has reminded us about the plastic's in the oceans and really it's very depressing except for the health of the HLG balance sheet.

DISC: retails is never a hold for us and always a Trade.

[Beagle]

No, all that lot are guilty. Out of all those only the Warehouse is listed, although they deal with a whole range of less polluting products too. So of those seeking the listed limelight, if you regard Tim Glasson as 'totally unethical', then Nick Grayston of 'The Warehouse' fame, has an evil leg.

SNOOPY

You can read all about HLG's sustainability initiatives here Snoopy https://www.hallensteins.com/content...lty_Report.pdf

Page 40 is very cool. No animals will be harmed, EVER !!

[850man]

You can read all about HLG's sustainability initiatives here Snoopy https://www.hallensteins.com/content...lty_Report.pdf

Page 40 is very cool. No animals will be harmed, EVER !!

Especially not any Beagles.... nice to see you back in here 😀

[Snoopy]

You can read all about HLG's sustainability initiatives here Snoopy https://www.hallensteins.com/content...lty_Report.pdf

Page 40 is very cool. No animals will be harmed, EVER !!

Thanks for the reference.

Reads like a bit of Greenwash. Nothing like some good possum fur in a best coat. Oh and getting rid of leather to be replaced by 'vegan leather', (a petroleum based plastic product)? That isn't as 'environmentally friendly' as it first reads.

"Later this year, we will be launching compostable courier bags, currently in partnership with The Better Packaging Co. These will be certified to international standards and are designed to compost in both industrial and home compost facilities." (from p42)

That is a way of turning a macro pollution problem into a micro pollution problem. Are they bioengineering worms that can digest the microplastic at the same time?

"Encouraging best practice washing methods on our care labels – wash less,
wash cold, hang dry." (from p42)

Great. A product that falls apart does need to be washed less.

"Our goal for the next 12 months is to take our sustainable product offer to be minimum 20%." (from p36)

So currently 80% of product is not sustainable?

Democratically elected worker representatives (page 32)

"we prioritise factories that have democratically elected worker representatives, and functioning grievance mechanisms."

"In China independent unions are illegal....."

LOL. So why are you getting most of your clothes made in China then Mr Glasson?

(China: 48 Suppliers, 85 factories; India: 6 Suppliers, 12 factories; Bangladesh: 1 supplier, 4 factories) (page26)


From page 31:

"Overtime exceeds 36 hours month. (In China the working week is 40 hours and allowed overtime is 36 hours per month). The majority of workers work between 37 – 60 overtime hours a month. Again, this is a complicated issue with workers wanting those overtime hours."

So most clothing workers want to work about 55 hours per week. Could that be because a 40 hour week doesn't pay the bills?

I think perhaps I had better stop there......

SNOOPY