While Financial markets seemed to have priced in a 25 basis point cut at the Fed’s policy meeting next week, optimism is so high that some investors not only see a rate cut next Wednesday as a sure thing, but even laying bets on a super-sized half-point reduction in the offing.
This could put a tailwind behind certain stocks which could benefit from the eased liquidity.
has delivered a solid FY25 results, with Funds From Operations (FFO) of $808m, up 2.8% on FY24, and FFO per security at 33.9c, up 2.7%. Last year, statutory profit increased from $305 million to $826 million. Given a 75% payout ratio, distribution per security increased to 25.2c. While gearing remained at 25.2%, Net Tangible Assets (NTA) per security rose to $4.22. The value of the investment portfolio reached $10.4 billion, with roughly 90,800 residential lots in the development pipeline and an end value of roughly $56 billion. The company outlook is still positive due to its strong operational momentum and disciplined strategy execution. Growth in data centres, logistics, and apartments, as well as increased funding flexibility and growing capital partnerships, will contribute to the company's significant production boost starting in FY26.
Collins Foods Limited (ASX: CKF)
has reported FY25 revenue of $1,519.5 million which is up 2.1% on FY24, driven by network growth to 393 restaurants. Profits were impacted by margin pressures due to which statutory NPAT fell to $8.8 million as a result of impairments, while underlying EBITDA fell 0.6% to $228.5 million and NPAT fell 14.8% to $51.1 million. The fully franked dividend of 26 cents was supported by a strong operating cash flow of $181.4 million. Collins Foods is aiming for low-to-mid teens growth in FY26 NPAT in order to position itself for consistent long-term earnings growth in line with its 2030 goals. The company's strategy places an intense focus on governance frameworks, productivity enhancements, sustainability initiatives, and regulated growth.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
has reported FY25 network sales of $4.15 billion, with flat same store sales growth. While franchisee EBITDA stayed constant at $95k per store, underlying EBIT was $198.1 million, down 4.6% year over year. Statutory NPAT disclosed a loss of $3.7 million as a result of one-time impacts, while underlying NPAT, after eliminating $162.3 million from non-recurring items, came in at $116.9 million. Regionally, Europe added $2.2 million (+3.1%) due to strong performance in Germany and the Benelux, while ANZ produced EBIT growth of $6.5 million (+5.2%). In terms of its approach, Domino's continues to focus on its Recipe for Growth plan, which seeks to increase overall unit economics by reducing customer friction points, improving franchisee profitability, increasing efficiencies, and implementing IT solutions.
Metcash Limited (ASX: MTS)
has posted a strong FY25 results, with group revenue rising 7.2% to $19.5bn (including charge-through sales) and 8.9% to $17.3bn excluding them. The Group EBITDA has increased 8.6% to $747.8m, while EBIT grew 2.3% to $507.8m, supported by the Food pillar which is partly offset by Liquor and Hardware. Higher financing and depreciation expenses caused the underlying profit to drop 2.4% to $275.5 million, while the reported profit after tax increased 10.1% to $283.3 million. Operating cash flow increased by 11.7% to $539 million, increasing the cash realisation forecast to 80 to 90%. A fully franked 18 cp dividend was declared. By the strategic mergers of Independent Hardware and Total Tools and Superior Foods and Campbells & Convenience, Metcash enhanced its competitiveness, resilience, and opportunities for long-term growth.
(Source: Company Announcement)
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