1 00:00:05,120 --> 00:00:06,560 Speaker 1: This is what the Flux. 2 00:00:06,600 --> 00:00:09,200 Speaker 2: I'm Brettan, I'm justin and it's Monday, the eighteenth of 3 00:00:09,240 --> 00:00:10,080 Speaker 2: August Josey Boy. 4 00:00:10,119 --> 00:00:13,399 Speaker 1: According to the ABS, the average Australian full time worker 5 00:00:13,520 --> 00:00:15,720 Speaker 1: is now earning more than two thousand bucks a week 6 00:00:15,760 --> 00:00:17,439 Speaker 1: and that is for the first time in history. And 7 00:00:17,440 --> 00:00:20,560 Speaker 1: when broken down by states, the ACT recorded the highest 8 00:00:20,560 --> 00:00:24,079 Speaker 1: average full time weekly earnings, followed by WA But of 9 00:00:24,120 --> 00:00:27,400 Speaker 1: course this is the average, so some very big salaries 10 00:00:27,440 --> 00:00:29,440 Speaker 1: can blow this number out of the water. 11 00:00:29,520 --> 00:00:32,519 Speaker 2: Flex Ammer. We love talking about different companies and business 12 00:00:32,520 --> 00:00:34,640 Speaker 2: news every single week on the pod, but we have 13 00:00:34,760 --> 00:00:37,400 Speaker 2: an even deeper diet in the Fox Academy this month. 14 00:00:37,440 --> 00:00:39,880 Speaker 2: It's called Building a Business Brain and it helps cover 15 00:00:39,960 --> 00:00:41,880 Speaker 2: all the terms you need to know are working in 16 00:00:41,920 --> 00:00:44,600 Speaker 2: a business, from profits to margins to assets and this 17 00:00:44,760 --> 00:00:47,479 Speaker 2: is the ultimate guide how to assess companies and how 18 00:00:47,520 --> 00:00:49,560 Speaker 2: to invest in companies. May shure to download the Flux 19 00:00:49,600 --> 00:00:51,160 Speaker 2: app and check out the Academy this month. 20 00:00:51,200 --> 00:00:54,280 Speaker 1: Three revolutionary stories today jus Boy, Let's do it for 21 00:00:54,360 --> 00:00:57,920 Speaker 1: our first temple and Webster is writing the Home Improvement 22 00:00:58,000 --> 00:01:01,520 Speaker 1: Boom after it experienced a six times profit jump and 23 00:01:01,680 --> 00:01:03,960 Speaker 1: vestors reclined into the good news. 24 00:01:04,080 --> 00:01:05,880 Speaker 2: Sounds very impressive, be Man. But a little bit of 25 00:01:05,920 --> 00:01:08,440 Speaker 2: a spoiler. We're still not talking big profit numbers, so 26 00:01:08,520 --> 00:01:09,160 Speaker 2: tell me what so. 27 00:01:09,240 --> 00:01:11,840 Speaker 1: Temple and Webster was founded in twenty eleven and was 28 00:01:11,880 --> 00:01:15,760 Speaker 1: actually named after two Australians named William Temple and John Webster. 29 00:01:16,040 --> 00:01:18,600 Speaker 2: In eighteen twenty, these two blokes were commissioned by the 30 00:01:18,600 --> 00:01:22,400 Speaker 2: Australian Governor to make two large ornamental chairs. 31 00:01:22,160 --> 00:01:24,640 Speaker 1: And two hundred years later they have an ASX listed 32 00:01:24,680 --> 00:01:26,119 Speaker 1: company named after them and. 33 00:01:26,120 --> 00:01:29,000 Speaker 2: B Man, Temple and Webster's grown to become Australia's largest 34 00:01:29,080 --> 00:01:31,720 Speaker 2: online only furniture and a home wors retailer. 35 00:01:31,760 --> 00:01:34,240 Speaker 1: Well, Temple and Webster went through some testing times in 36 00:01:34,319 --> 00:01:36,840 Speaker 1: the mid twenty tens. They've had a major blow up 37 00:01:36,880 --> 00:01:38,200 Speaker 1: in the twenty twenties. 38 00:01:37,880 --> 00:01:40,600 Speaker 2: Yep, and it keeps going because it's revenue rose twenty 39 00:01:40,680 --> 00:01:43,120 Speaker 2: one percent to six hundred and one million dollars for 40 00:01:43,200 --> 00:01:44,640 Speaker 2: the year ending June thirty. 41 00:01:44,400 --> 00:01:47,480 Speaker 1: And even better, it's net profit jumped sixfold, from one 42 00:01:47,480 --> 00:01:49,720 Speaker 1: point eight mil to eleven point three mil. 43 00:01:49,880 --> 00:01:53,080 Speaker 2: Be Man. The standout was the home improvement category. 44 00:01:53,120 --> 00:01:57,360 Speaker 1: I'd be thinking ceiling fans, tapware, vanities. 45 00:01:56,880 --> 00:01:59,960 Speaker 2: Because apparently when consumer sentiment picks up, people start up 46 00:02:00,120 --> 00:02:01,120 Speaker 2: creating tap mixes. 47 00:02:01,200 --> 00:02:05,360 Speaker 1: Because Temple and Webster reckons that consumer sentiment has turned 48 00:02:05,480 --> 00:02:06,320 Speaker 1: the tide, and. 49 00:02:06,280 --> 00:02:09,240 Speaker 2: After those cash rate cuts, Australians a feeling flush enough 50 00:02:09,360 --> 00:02:10,720 Speaker 2: to shush up their homes. 51 00:02:10,880 --> 00:02:12,160 Speaker 1: So what is the key learning here? 52 00:02:12,240 --> 00:02:14,880 Speaker 2: The wealth effect is the idea that when people feel wealthier, 53 00:02:14,919 --> 00:02:16,120 Speaker 2: they splash. 54 00:02:15,760 --> 00:02:19,720 Speaker 1: More cash, whether from rising property values, share portfolios, or 55 00:02:19,760 --> 00:02:20,960 Speaker 1: even lower interest rates. 56 00:02:20,960 --> 00:02:23,280 Speaker 2: In fact, be Man in Australia about eighty percent of 57 00:02:23,320 --> 00:02:25,880 Speaker 2: mortgages are on variable rates. Do that means when the 58 00:02:25,960 --> 00:02:29,279 Speaker 2: RBA cuts the cash rate, many Aussies are feeling richer. 59 00:02:29,040 --> 00:02:33,760 Speaker 1: Which can often filter into discretionary spending like homewares and furniture. 60 00:02:33,480 --> 00:02:35,440 Speaker 2: Or a new rug that you'll probably trip over in 61 00:02:35,440 --> 00:02:35,959 Speaker 2: the first week. 62 00:02:36,160 --> 00:02:39,200 Speaker 1: In fact, Jazzy Boy, a Reserve Bank of Australia, study 63 00:02:39,280 --> 00:02:41,839 Speaker 1: found that a ten percent increase in household wealth leads 64 00:02:41,880 --> 00:02:45,359 Speaker 1: to about a one point six percent rise in household consumption, 65 00:02:45,600 --> 00:02:48,120 Speaker 1: and a ten percent increase in stock market wealth boosts 66 00:02:48,120 --> 00:02:50,519 Speaker 1: consumption by around one point two percent, so be Man. 67 00:02:50,600 --> 00:02:53,400 Speaker 1: For retailers like Templar Webster, a period of lower rates 68 00:02:53,440 --> 00:02:55,800 Speaker 1: can create huge demand, which is what we're seeing right 69 00:02:55,840 --> 00:02:59,200 Speaker 1: now For our second story, am Pole, the petrol retailer, 70 00:02:59,240 --> 00:03:02,800 Speaker 1: has acquired Egg Petrol for one point one billion dollars 71 00:03:02,840 --> 00:03:06,680 Speaker 1: to pump up its petrol station empire, the great Australian 72 00:03:06,800 --> 00:03:09,799 Speaker 1: servo land crab. It's what everyone's talking about, So tell 73 00:03:09,800 --> 00:03:10,600 Speaker 1: me more, Jazzy boy. 74 00:03:10,639 --> 00:03:13,519 Speaker 2: Okay. So, Ampole, which is formerly called Caltex Australia, is 75 00:03:13,560 --> 00:03:16,520 Speaker 2: one of Australia's largest petrol and diesel retailers. 76 00:03:16,560 --> 00:03:20,280 Speaker 1: We're talking more than eighteen hundred Ampole branded service stations 77 00:03:20,320 --> 00:03:21,560 Speaker 1: across the nation, enough. 78 00:03:21,480 --> 00:03:24,560 Speaker 2: To keep almost half of Australia's sausage roll craving satisfied. 79 00:03:24,880 --> 00:03:28,040 Speaker 1: But now Ampole will acquire EG Group's five hundred strong 80 00:03:28,120 --> 00:03:31,799 Speaker 1: Australian service station portfolio for one point one billion dollars. 81 00:03:31,840 --> 00:03:34,400 Speaker 2: That'll be roughly eight hundred million cash and three hundred 82 00:03:34,440 --> 00:03:35,040 Speaker 2: million shares. 83 00:03:35,200 --> 00:03:38,120 Speaker 1: Interestingly, Juzy boy, many of these EG service stations are 84 00:03:38,200 --> 00:03:42,320 Speaker 1: already called EG Ampole because Ampole is the exclusive fuel 85 00:03:42,320 --> 00:03:44,240 Speaker 1: supplier for EG in Australia. 86 00:03:44,360 --> 00:03:47,080 Speaker 2: But now instead of just being their petrol buddy, Ampole 87 00:03:47,200 --> 00:03:48,840 Speaker 2: is becoming the proud owner. 88 00:03:49,000 --> 00:03:52,040 Speaker 1: And here is l twist. Am Pole tried to buy 89 00:03:52,040 --> 00:03:55,000 Speaker 1: the same network of service stations Back in twenty nineteen 90 00:03:55,120 --> 00:03:56,760 Speaker 1: when Woolworths owned it. 91 00:03:56,680 --> 00:03:58,760 Speaker 2: Will he sold it to EG for one point seventy 92 00:03:58,760 --> 00:04:01,240 Speaker 2: two five billion dollars and Ampole lost out. 93 00:04:01,360 --> 00:04:03,520 Speaker 1: Fast forward to twenty twenty five, and thanks to the 94 00:04:03,600 --> 00:04:05,880 Speaker 1: changing nature of the petrol industry, it's now getting it 95 00:04:05,920 --> 00:04:07,360 Speaker 1: for one point one bill. 96 00:04:07,320 --> 00:04:09,520 Speaker 2: Or six hundred and twenty five million, less that it 97 00:04:09,560 --> 00:04:10,520 Speaker 2: was sold for previously. 98 00:04:10,600 --> 00:04:12,160 Speaker 1: Talk about a discount at the pump. 99 00:04:12,640 --> 00:04:14,040 Speaker 2: So what is the key learning here? 100 00:04:14,160 --> 00:04:17,000 Speaker 1: Service stations are still valuable, but they're no longer valued 101 00:04:17,080 --> 00:04:18,479 Speaker 1: solely for petrol sales. 102 00:04:18,520 --> 00:04:21,799 Speaker 2: There about pies and coffees and impulse buys. You didn't 103 00:04:21,800 --> 00:04:22,280 Speaker 2: know you need it? 104 00:04:22,400 --> 00:04:24,320 Speaker 1: Yes, see Jazzi boy. With the adoption of more and 105 00:04:24,320 --> 00:04:26,960 Speaker 1: more electric vehicles and hybrids, it has started to chip 106 00:04:27,000 --> 00:04:28,359 Speaker 1: away at traditional fuel demand. 107 00:04:28,480 --> 00:04:31,520 Speaker 2: In Australia, electric vehicles made up twelve percent of all 108 00:04:31,560 --> 00:04:34,000 Speaker 2: new car sales in the first half of twenty twenty five, 109 00:04:34,080 --> 00:04:36,240 Speaker 2: according to the Electric Vehicle Council. 110 00:04:35,960 --> 00:04:38,000 Speaker 1: And that means there's a growing number of cars that 111 00:04:38,080 --> 00:04:41,080 Speaker 1: will need less petrol or no petrol at all. 112 00:04:41,200 --> 00:04:44,039 Speaker 2: So be man. Ampole's acquisition isn't just about owning more 113 00:04:44,080 --> 00:04:47,400 Speaker 2: pumps nop. It's about owning more high traffic locations that 114 00:04:47,440 --> 00:04:50,800 Speaker 2: can evolve with the changing transport and food habits. For 115 00:04:50,920 --> 00:04:54,560 Speaker 2: our third and final story, Guild and Activewear has snapped 116 00:04:54,640 --> 00:04:57,279 Speaker 2: up Haines Brands, the owner of Bonds and Sheridan, but 117 00:04:57,360 --> 00:04:59,600 Speaker 2: two point two billion US dollars. 118 00:04:59,400 --> 00:05:02,599 Speaker 1: The undies market is getting stitched together. Juzzy boy, tell 119 00:05:02,600 --> 00:05:02,880 Speaker 1: me more. 120 00:05:02,880 --> 00:05:05,800 Speaker 2: Okay, So, Guild and Activewear is the Canadian clothing giant. 121 00:05:05,800 --> 00:05:08,560 Speaker 2: It's best known for churning out basics like T shirts 122 00:05:08,560 --> 00:05:09,960 Speaker 2: and socks and sportswear. 123 00:05:10,040 --> 00:05:12,520 Speaker 1: In fact, the brand started in Montreal in nineteen eighty 124 00:05:12,560 --> 00:05:14,560 Speaker 1: four making children's clothes. 125 00:05:14,200 --> 00:05:16,800 Speaker 2: And now it makes more than seven hundred million garments 126 00:05:16,839 --> 00:05:17,400 Speaker 2: per year. 127 00:05:17,520 --> 00:05:20,360 Speaker 1: Now, last week, Gilden agreed to buy the US apparel 128 00:05:20,360 --> 00:05:23,039 Speaker 1: brand Haines Brands in a two point two billion dollar deal. 129 00:05:22,839 --> 00:05:24,680 Speaker 2: And the Man This cash and stock deal was at 130 00:05:24,680 --> 00:05:27,920 Speaker 2: a twenty four percent premium to Haines Brand's closing price 131 00:05:28,040 --> 00:05:28,560 Speaker 2: pre offer. 132 00:05:28,600 --> 00:05:31,240 Speaker 1: All right, now, tell me who is Haines Brands again. 133 00:05:31,240 --> 00:05:33,480 Speaker 2: Well, they're one of the global leaders in basics like socks, 134 00:05:33,480 --> 00:05:35,680 Speaker 2: in activewear and underwear. 135 00:05:35,240 --> 00:05:38,320 Speaker 1: And also owned the Champion brand until late last year. 136 00:05:38,360 --> 00:05:40,760 Speaker 2: And then Man might remind you that in Australia, Haines 137 00:05:40,800 --> 00:05:43,839 Speaker 2: Brands is also the owner of Bonds and Sheridan Burley 138 00:05:44,160 --> 00:05:45,040 Speaker 2: Bras and things. 139 00:05:45,240 --> 00:05:48,240 Speaker 1: Yep, the same bonds that had Robert Irwin in his jocks. 140 00:05:48,400 --> 00:05:50,200 Speaker 2: But Ben Man, as part of this deal Guild and 141 00:05:50,240 --> 00:05:53,599 Speaker 2: CEO said the Australian portfolio could end in a quote 142 00:05:53,640 --> 00:05:55,200 Speaker 2: sale or other transaction. 143 00:05:55,360 --> 00:05:56,880 Speaker 1: And I don't know about you, but that doesn't give 144 00:05:56,920 --> 00:05:59,560 Speaker 1: me great hope that will remain in the broader guilden 145 00:05:59,600 --> 00:06:00,719 Speaker 1: PORTFOLI in the future. 146 00:06:00,880 --> 00:06:02,880 Speaker 2: No, no, So tell me what is the key learning here? 147 00:06:02,920 --> 00:06:05,920 Speaker 1: When multi billion dollar merges happen, there are often ripple 148 00:06:05,920 --> 00:06:09,239 Speaker 1: effects felt thousands of kilometers away. When new owners takeover, 149 00:06:09,440 --> 00:06:13,000 Speaker 1: they reassess every single asset and this often means offloading 150 00:06:13,040 --> 00:06:14,760 Speaker 1: or shutting down underperforming our sets. 151 00:06:14,760 --> 00:06:16,760 Speaker 2: So be man. When the deal closes late this year 152 00:06:16,920 --> 00:06:19,120 Speaker 2: or early next year, you can bet that the Aussie 153 00:06:19,160 --> 00:06:21,440 Speaker 2: assets will be in the firing line. And this ate 154 00:06:21,480 --> 00:06:23,839 Speaker 2: the first group of companies to be in limbo following 155 00:06:23,920 --> 00:06:25,400 Speaker 2: a major global acquisition. 156 00:06:25,480 --> 00:06:28,240 Speaker 1: Well, how about your favorite network ten Ah, Yes. 157 00:06:28,200 --> 00:06:31,400 Speaker 2: It's owned by Paramount, which recently merged with Skydance. 158 00:06:31,480 --> 00:06:34,440 Speaker 1: They've been struggling so much that last year Paramount valued 159 00:06:34,480 --> 00:06:37,359 Speaker 1: their TV license at a big fat zero dollars, So 160 00:06:37,440 --> 00:06:37,760 Speaker 1: be man. 161 00:06:37,800 --> 00:06:41,000 Speaker 2: It's a reminder that global corporate decisions can often have 162 00:06:41,320 --> 00:06:44,240 Speaker 2: very real consequences at the local level. Blucks An, If 163 00:06:44,240 --> 00:06:46,200 Speaker 2: you want to build your business brain so you can 164 00:06:46,240 --> 00:06:48,960 Speaker 2: talk margins and cogs, there is only one place to 165 00:06:49,040 --> 00:06:51,320 Speaker 2: do it in bite sized chunks. It's in the Flux 166 00:06:51,360 --> 00:06:53,960 Speaker 2: app in our academy this month called build your Business Brain. 167 00:06:54,080 --> 00:06:56,640 Speaker 1: Thanks for listening and we'll see you on Wednesday.