Super Retail Group presentation
Peter Birtles, CEO of Super Retail Group (SUL), presented to our network on 26 Feb 2014.
The core message from Super Retail Group is that the majority of issues experienced in the 1H (which were internal) have now been resolved. It is highly apparent that SUL has various earnings drivers in place, cash flow generation is accelerating and the significant business investment over the past two years has set the group up well to reduce costs and handle a much bigger operation in the future.
SUL has positioned itself very well to offset price deflation which they believe is inevitable across the domestic retail industry.
Watch a snippet of the presentation at our morning meeting below:
Peter Birtles, Super Retail Group (SUL)
SUL's 1H14 result was soft and represented the first earnings 'hiccup' in many years. We relish short-term fluctuations like this to accumulate quality companies. We maintain that SUL is indeed one of, if not the best, retailers to own in the market.
The first seven weeks of 2H14 started well with like-for-like sales across all divisions accelerating from the 1H (Auto up 2.5%, Leisure up 2% and Sports up 6%).
The market will take time to digest the weak 1H14 result from SUL, however we are prepared to be patient and cannot ignore the material benefits from recent investment to flow through from FY15.
If you are interested in finding out more about Super Retail Group (SUL), please contact your adviser or nearest Morgans office
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