ASX Consumer Stocks to Respond to Tailwinds

Optimism runs high among consumers about further lowering of rates, which, along with disposable income growth, invariably boosts the sector. The prominent stocks among these to buy now are

Collins Foods Limited (ASX: CKF)

posted FY25 revenue of around A$1.52 billion which is 2.1% higher than last year. The growth in Australia helped balance weaker results in Europe. Underlying NPAT dropped 14.8% to A$51.1 million and statutory NPAT went down to only A$8.8 million because of impairments and wage provision charges. Operating cash flow improved to A$181.4 million which supported a fully franked dividend of 26.0 cents per share. The company expanded its KFC network in Australia by opening 10 new stores and also remodeled 40 existing ones. Digital sales contribution increased too reaching 34.2% of total sales. The group decided to exit Taco Bell business after continuous losses. For FY26 the plan is to open 7–10 new KFC outlets and complete around 30 remodels. In the long run Collins is targeting 40–70 new restaurants in Germany backed by digital focus and operational upgrades.

Universal Store Holdings Limited (ASX: UNI)

had a solid FY25 with sales climbing 15.5% to about A$333.3 million and underlying NPAT going up 15.2% to A$34.8 million. Gross margin lifted 100 bps to 61.1% because of more private brand sales like Neovision and the Perfect Stranger format which is growing fast. Underlying EBIT was higher by 15.9% to A$54.6 million and operating cash flow jumped 23.3% to A$98.0 million but statutory NPAT came in lower at A$23.3 million since there was a goodwill impairment of A$13.6 million in the CTC wholesale channel. The balance sheet is still strong with A$17.2 million cash and no borrowings and the company paid a full year dividend of 38.5 cps which is 8.5% higher. Perfect Stranger alone made A$25.5 million in sales which was up 83% from last year and the rollout is going national with target of 60 plus stores.

Harvey Norman Holdings Limited (ASX: HVN)

had a strong FY25 with total system sales of around A$9.35 billion which is 5.6% higher than FY24. Consolidated revenue went up 8.6% to A$4.47 billion and profit after tax came in at A$518.0 million which is 47% more than last year. EBITDA also improved by 25.3% to A$1.13 billion mainly because of strong performance in franchising and property. On the other hand overseas retail PBT fell 7.2% to A$110.0 million because of mixed performance in different regions but the company added new stores in Malaysia, Ireland and UK which expanded its presence. Operating cash flow was A$694.3 million and net debt stood at A$671.1 million. Shareholders got fully franked dividends of 26.5 cps compared to 22.0 cps in the previous year. Going forward Harvey Norman is planning store refits in Australia, more stores in Malaysia and UK and also a new flagship store in Croatia by 2027. 

Wesfarmers Limited (ASX: WES)

posted a revenue of $45.7 billion in FY2025 which is 3.4% higher than last year. Net profit after tax also jumped 14.4% to $2.9 billion. The operating cash flow stayed flat at $4.6 billion but free cash flow went up 6.9% to $3.4 billion. The divisions performed well with Bunnings and Kmart Group leading the way because of better productivity, new formats and stronger online activity. WesCEF did well in fertilisers but chemical and lithium earnings were weaker due to lower pricing. It gave out a full franked dividend of $2.06 per share which is 4% higher than the last year. For FY2026 the company is focused on starting up the Covalent Lithium refinery, expanding Bunnings and also speeding up projects across the divisions to drive long term returns.

(Source: Company Announcements)