HLG - Hallenstein Glasson

[sb9]

Sold $21.7m more than pcp - say gross margin up $13.0m

But npat up $5.6m. This implies expenses are up about $8m (+11%) in spite of $4.5m of Australian corporate welfare and an undisclosed amount of rent relief.

Something don't really stack up but we'll have to wait until the financials come out to try to work it out.

Once again I've got it all wrong


But at least the Balance Shet remains strong

You should probably adhere to your sign off line...which says something like earning do not matter under current environment....

[LaserEyeKiwi]

The part that is confusing for me is 4.5 million in wage subsidies and rent relief from the Australian Business. This in theory makes up 23 percent of the profit.

Therefore I'm looking at a 13 percent increase in revenue with no corresponding increase in profit. Suddenly doesn't look so amazing.

I bought in to HGL for the yield and good yield is very hard to find at the moment. This update reassures me divedends will continue to be paid, but doesn't inspire me there is massive earnings growth coming.

The $4.5 million in wage subsidy went to cover staffing costs during lockdowns - those same staff were generating no revenue or profits during that time. One way to think about it is that Glassons could have instead not received the wage subsidy and instead laid off all their staff during lockdowns and avoided much of that expense - in that scenario profits would have been somewhat similar as the $4.5 million not received from the wage subsidy would have been offset by the reduced operational costs (in that hypothetical of course it would have been much more disruptive in terms of having to restaff again and also layoff costs).

[Balance]

Sold $21.7m more than pcp - say gross margin up $13.0m

But npat up $5.6m. This implies expenses are up about $8m (+11%) in spite of $4.5m of Australian corporate welfare and an undisclosed amount of rent relief.

Something don't really stack up but we'll have to wait until the financials come out to try to work it out.

Once again I've got it all wrong


But at least the Balance Shet remains strong

Sell sell sell

Not a stock you have been comfortable with, unlike me so time to exit, W69

[jimdog31]

Sell sell sell

Not a stock you have been comfortable with, unlike me so time to exit, W69

get in the queue Balance I was here first 😂

[winner69]

The $4.5 million in wage subsidy went to cover staffing costs during lockdowns - those same staff were generating no revenue or profits during that time. One way to think about it is that Glassons could have instead not received the wage subsidy and instead laid off all their staff during lockdowns and avoided much of that expense - in that scenario profits would have been somewhat similar as the $4.5 million not received from the wage subsidy would have been offset by the reduced operational costs (in that hypothetical of course it would have been much more disruptive in terms of having to restaff again and also layoff costs).

But most of sales not made through closed stores probably ended up as online sales .... so if you think about it the wage subsidy improves profitability.

[Beagle]

How so? theyve passed that money onto their staff, maintained profitabilty, grown sales.

If the stores had been open, profit would have more than likely exceeded the job keeper payments etc and so would be reporting an even higher profit.

Its a great result all things considered.

I think that sums it up. I was hoping for more but have probably underestimated supply chain air freight costs. The more I hear from companies the more I realise that freight costs at the moment are an issue. High exchange rate will provide excellent tailwinds for the current half. I am still confident of 50 cps in fully imputed dividends for FY21 = ~70 cps share gross and the next big dividend is due in April. 9.1% gross yield makes this a compelling hold.

[jimdog31]

But most of sales not made through closed stores probably ended up as online sales .... so if you think about it the wage subsidy improves profitability.

Margin on online isnt always as good, plus “free shipping” of those goods comes at a cost.

Its all relative , and i agree with laser had the stores been open we would be looking at a higher profit without the subsidies.

[winner69]

Sell sell sell

Not a stock you have been comfortable with, unlike me so time to exit, W69

Probably can't get any worse ...so might take chance to get some more on the cheap ..... maybe 650 if market disappointed

But then again with such big %ages it might be a star today and we be all happy

[Balance]

Probably can't get any worse ...so might take chance to get some more on the cheap ..... maybe 650 if market disappointed

But then again with such big %ages it might be a star today and we be all happy

Haha - love your sense of irony, W69.

What would we do without your thought provoking digs?

[Waltzing]

Report card, could have done better. Just joking.

Well who would have thought since every time i pass the local shop its empty and i have to report back to our private team its empty again...



very very happy Mr B as once again he "BE BEST..." SNL live .