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Speaker 1: This is what the flux.

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Speaker 2: I'm Brett and I'm Justin and it's Friday, the twenty.

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Speaker 1: Ninth of Augo Josie Boye. We know that there are

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Speaker 1: more and more electric vehicles on the road than ever before.

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Speaker 1: The problem is getting them repaired. Get this one. Eb

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Speaker 1: brands like Bad Seeker, X Beings and others have not

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Speaker 1: disclosed or provided sufficient technical info on how mechanics can

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Speaker 1: repair these car. That means because you've got one of

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Speaker 1: these cars and need repairs, can't necessarily go anywhere but

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Speaker 1: the provider join.

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Speaker 2: The queue months delays. Did you know Australia's facing an

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Speaker 2: aging population because our current fertility rate is below the

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Speaker 2: recommended replacement rate and that means a whole lot of

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Speaker 2: things to the Australian economy. We break it down step

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Speaker 2: by step in the Flux up today, what the impact

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Speaker 2: is and how we can repair the economy.

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Speaker 1: Wow, Josie boy three marvelous stories today. Let's do it

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Speaker 1: for our first. Woolworths has copped investor backlash as it's

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Speaker 1: profit fall seventeen percent and Coles keeps catching up.

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Speaker 2: They can't even blame the economy when Coles is beaming

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Speaker 2: being out so tell me more so.

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Speaker 1: Woolies is Australia's biggest supermarket chain, with more than eleven

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Speaker 1: hundred stores across the nation.

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Speaker 2: It also owns Big W, which has been more of

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Speaker 2: a financial headache than a bargain bin lately.

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Speaker 1: But now Woolies has worn that its underlying profits dropped

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Speaker 1: seventeen percent to one point three eight billion dollars for

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Speaker 1: the last financial year, and.

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Speaker 2: Big W slid to a three and a half million

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Speaker 2: dollar last.

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Speaker 1: Now, juzzy boy. After Coles's glowing results earlier this week,

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Speaker 1: it's fair to say that investors were shocked and or

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Speaker 1: appalled and horrified.

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Speaker 2: Woolly's share price fell fifteen percent after this news.

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Speaker 1: And now Wooly's CEO has promised to rebuild price trust

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Speaker 1: with customers.

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Speaker 2: Yeah, the problem is that Woolies didn't have a clear

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Speaker 2: explanation for why its profit was down so much when

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Speaker 2: Coles managed to grow its earning.

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Speaker 1: Interesting call, juzzy boy. So what is the key learning here?

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Speaker 2: There's no where to hide when your competitor is thriving.

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Speaker 1: It's one thing to deliver bad results. When the whole

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Speaker 1: industry is struggling.

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Speaker 2: You can point to inflation or weak demand or supply

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Speaker 2: chain chaos.

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Speaker 1: And then you can say, hey, it's not just us, mate.

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Speaker 2: But when your direct competitor is reporting growth, the spotlight

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Speaker 2: shines even harsher.

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Speaker 1: Hey, let's talk numbers. Juzzy Boy Coal's supermarket ebit increased

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Speaker 1: four and a half percent, while Wool's dropped ten and

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Speaker 1: a half percent.

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Speaker 2: And be man, it's not just these results because the

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Speaker 2: wheels began falling off the Wool's wagon over the past

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Speaker 2: two years.

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Speaker 1: Get this, Woolworth's market cap has dropped fourteen billion dollars

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Speaker 1: since mid twenty twenty three and now it's around thirty

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Speaker 1: five billion. On the other hand, Cole's market cap has

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Speaker 1: grown six billion dollars to a thirty one bill a

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Speaker 1: twenty billion dollar turnaround.

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Speaker 2: So be man, when the competitor is outperforming. So so clearly,

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Speaker 2: investors just don't buy excuses.

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Speaker 1: For our second story, Quantus has flown to a near

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Speaker 1: record profit thanks to the growing profitability of jet Star

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Speaker 1: and Quantus's loyalty program.

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Speaker 2: The big red on a big turnaround plan. Be man,

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Speaker 2: So what is going on here?

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Speaker 1: Well, Quantus has really been working on a big turnaround

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Speaker 1: over the last few years. Juzzy Boy moving away from

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Speaker 1: its ghost flights, although those were very popular, moving away

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Speaker 1: from its former CEO and moving towards customer service, more

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Speaker 1: on time flights, a little bit more th rust and

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Speaker 1: the man.

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Speaker 2: So far, so good for Quantas because their underlying profit

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Speaker 2: before tax rose fifteen percent to nearly two point four

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Speaker 2: billion dollars over the last financial year, and this is

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Speaker 2: the second best profit result ever behind FI twenty three.

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Speaker 2: Oh yes, the year when it wrongfully dismissed nearly twelve

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Speaker 2: hundred staff.

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Speaker 1: And without two sy profit. Quantus will be investing big

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Speaker 1: into new planes for both Quantus and jet Start. But

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Speaker 1: not only that, they've announced they'll pay out four hundred

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Speaker 1: million dollars in dividends to investors. This is the first

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Speaker 1: financial year that it's issued a dividend to investors since COVID.

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Speaker 2: Next Minute, Quantus' shares jumped five percent and nearly eighty

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Speaker 2: percent in the past twelve months.

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Speaker 1: Investors are liking that dividend again.

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Speaker 2: So what is the key leaning here?

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Speaker 1: Dividend stocks live and die by consistency, so once the

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Speaker 1: payout stop, investors need a little bit of convincing that

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Speaker 1: they'll ever flow again.

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Speaker 2: You see a man. Many investors investing companies based on

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Speaker 2: the type of stock.

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Speaker 1: There's growth stocks, there's income stocks, value stocks, defensive stocks,

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Speaker 1: and more.

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Speaker 2: Now, pre Covid, Quantus offered investors a predictable stream of income.

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Speaker 1: It was semi annual payouts to in vests, and.

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Speaker 2: Quantus was considered an income producing.

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Speaker 1: Stock, a bit like Telstra who's been dishing out half

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Speaker 1: yearly dividends to investors since nineteen ninety eight. But be man,

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Speaker 1: when Covid struck, everything changed for the big C stick

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Speaker 1: quantas yep. Quantus needed to preserve cash to survive, so

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Speaker 1: its dividends were suspended and that man, it stopped being

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Speaker 1: an income stock in the eyes of investors and Juzzy Boy.

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Speaker 1: While Quantus has restarted dividend payouts in twenty twenty five,

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Speaker 1: it's not calling it a regular dividend.

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Speaker 2: Nope, it's a base and special dividend after it's very

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Speaker 2: profitable results.

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Speaker 1: Either way, investors clearly liked what they saw.

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Speaker 2: Hey. For our third and final story, Lego has hit

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Speaker 2: record sales and revenue growth in the first half of

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Speaker 2: twenty twenty five. Because parents are fearing from the social

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Speaker 2: media addiction of their children.

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Speaker 1: MMMM, Lego's revenue stacking up quickly here, juzzy boy, tell

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Speaker 1: me more.

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Speaker 2: Okay. So Lego is, obviously the global toy company was

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Speaker 2: founded by a Danish carpenter back in nineteen thirty two.

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Speaker 1: The name Lego is actually an abbreviation of the two

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Speaker 1: Danish words leg gott, meaning play well.

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Speaker 2: And of course we I know that millions of people

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Speaker 2: have been playing very well with Lego's miniature brick versions

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Speaker 2: of everything.

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Speaker 1: We're talking little yellow humans, cars, animal spaceships, buildings, and

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Speaker 1: even flower bouquet.

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Speaker 2: Fun fact, there's approximately four hundred billion Lego bricks in

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Speaker 2: the world, which is about fifty bricks per human on

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Speaker 2: the planet. And earlier this week, Lego reported twelve percent

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Speaker 2: growth in its revenue for the first half of twenty

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Speaker 2: twenty five to nearly five point four billion US dollars.

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Speaker 1: And jaziboy, that growth figure is well ahead of the

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Speaker 1: global toy market, where sales increase seven percent.

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Speaker 2: And what's the reason for Lego's growth.

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Speaker 1: Well, they've had strong sales from their botanicals and Formula

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Speaker 1: one Grand Prix range, which brought.

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Speaker 2: Adult kids back to their nostalgic childhood hobby.

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Speaker 1: But Lego revealed their strong growth is also because parents

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Speaker 1: are investing in non screen activities for their kids and

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Speaker 1: taking their attention away from the Netflixes and tiktoks of

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Speaker 1: this world. I love it, jazzyboy, So tell me what

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Speaker 1: is the key learning here?

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Speaker 2: The attention economy is the idea that people's attention is

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Speaker 2: a limited resource and companies and platforms are competing for

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Speaker 2: it every single minute.

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Speaker 1: Research shows that Ozzie spent about six hours a day

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Speaker 1: on their phone on average.

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Speaker 2: Yep, be Man. Brain rot wasn't Oxford's twenty twenty four

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Speaker 2: Word of the Year for no reason. But now we're

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Speaker 2: starting to see parents try to shift the attention of

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Speaker 2: their kids away from brain rotting devices, and it's why

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Speaker 2: companies like Lego are serious competitors for children's time and attention.

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Speaker 1: As more and more people become aware of the negative

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Speaker 1: effects of doom scrolling and excessive screen time, they're consciously

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Speaker 1: cutting back on their screen usage.

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Speaker 2: In fact, be Man, from twenty twenty three to twenty

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Speaker 2: twenty four, Australians actually spent ten percent less time on

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Speaker 2: social media and online entertainment.

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Speaker 1: And companies like Lego are benefiting from this huge cultural shift.

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Speaker 2: Flux am, did you know in twenty twenty four, Australia's

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Speaker 2: total fertility rate was one point five to one, and

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Speaker 2: that is well below the recommended replacement rate needed for

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Speaker 2: a thriving economy. We break it all down step by

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Speaker 2: step in the Flux app Today, make sure to download

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Speaker 2: the Flux app and check it out.

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Speaker 1: Thanks for listening, and we'll see you on Monday