The RBA reducing the cash rate by 25 basis points, to 3.60 per cent will help in lifting the consumer sentiment. The following stocks are likely to feel the impact
Woolworths Group (ASX: WOW)
has delivered a solid performance in Q3 FY25 with Group sales rising 3.2% to $17.3 billion. Australian Food sales grew 3.6%, supported by a 16.3% increase in eCommerce reflecting strong on-demand convenience despite weather disruptions. New Zealand Food achieved a 4.8% sales uplift with eCommerce sales surging 24.3%. BIG W sales were slightly down 1.5% impacted by Easter timing and ongoing clothing market challenges. The Group maintained stable customer satisfaction with an improved Voice of Customer Net Promoter Score (VOC NPS) of 44 signaling steady value perception even amid cost-of-living pressures.
Woolworths is consolidating its marketplace offering by closing the MyDeal customer website by September 30 and is now focusing growth on BIG W Market and Everyday Market which leverage MyDeal’s technology to drive marketplace GMV growth. The closure will reduce operating losses with associated cash costs of $90-$100 million expected. The Group continues to expand digital capabilities with enhanced app features and growing Everyday Rewards membership now exceeding 10 million in Australia and 2.1 million in New Zealand. Community support during adverse weather events and ongoing investments in store renewals and logistics underpin its commitment to resilient and customer-centric operations.
Eagers Automotive Limited (ASX: APE)
has reported a resilient 2024 performance with record full year revenue of $11.2 billion reflecting 13.6% growth or $1.3 billion over 2023. The company achieved this through a balanced mix of organic growth and acquisitions and was supported by disciplined cost management. Underlying Operating Profit Before Tax reached $371.2 million with statutory profit at $335.6 million. Earnings before interest, tax, depreciation, and amortization (EBITDAI) hit a record $550.4 million signifying strong underlying business health despite high interest rates. The company maintained its record dividend of 74.0 cents per share underscoring robust shareholder returns. Focus on culture, optimisation and growth continue to drive Eagers’ competitive advantage and is supported by a diverse portfolio and an expanding automotive ecosystem.
Eagers Automotive has formed an alliance with the Mitsubishi Corporation through a non-binding Memorandum of Understanding targeting growth in automotive and mobility sectors. The alliance aims to accelerate opportunities across new and used vehicle sales, financial services and fleet management. This collaboration positions Eagers to benefit from Mitsubishi’s broad geographic reach and market insights reinforcing its leadership in the Australian and New Zealand markets. The company remains confident in achieving over $1 billion in revenue growth for 2025.
Harvey Norman Holdings Limited (ASX: HVN)
has delivered a strong 1H25 result, with reported profit before tax rising 41.2% to $400.3 million. PBT was $310.5 million, up 2.2% on the prior period. Group consolidated revenue rose 6.6% to $2.29 billion supported by a $34.2 million lift in franchisee revenue and increased sales from overseas company-owned stores. The franchise operations segment posted a 26% rise in PBT to $180.3 million which was driven by a 5.5% uplift in aggregated franchisee sales to $3.34 billion and improved operating margins. A fully franked interim dividend of 12.0 cents per share was declared.
The Group’s integrated retail, franchise, property and digital model underpinned resilience amid challenging retail conditions. Property segment PBT surged to $165.8 million buoyed by an $88.4 million revaluation gain in the Australian freehold portfolio. Strategic expansion continued with new store openings in Malaysia, New Zealand and the UK alongside premium refits in Australia. A strong balance sheet, low net debt-to-equity ratio of 12.01% and solid cash conversion of 118.8% position Harvey Norman to pursue growth initiatives, leverage opportunities in the AI-PC market and expand its large-format retail footprint both domestically and internationally.
has reported a robust 1H25 results with underlying EBITDA increasing 9.1% to $1,015 million driven by strong asset performance, inflation-linked tariff escalations and disciplined cost management. Segment revenue rose 7.2% to $1,363 million supported by solid contributions from newly integrated assets like the Pilbara Energy System and higher demand for gas transmission capacity. The Group achieved a 3.6% increase in free cash flow to $552 million and declared an interim distribution of 27.0 cents per security which was up 1.9% on 1H24. APA sustained stable operational momentum and maintained a strong balance sheet with $3.2 billion in cash and undrawn facilities.
APA is advancing its $1.8 billion organic growth pipeline over FY25-FY27 and is focusing on gas transmission expansion, renewable energy projects and electricity transmission infrastructure. Key milestones include completing the Port Hedland Solar and Battery project, Kurri Kurri lateral pipeline commissioning and executing the Sturt Plateau Pipeline agreement to unlock Northern Territory gas supply from the Beetaloo Basin. The company is well-positioned to meet rising gas demand in Australia’s east coast through strategic expansions and operational excellence.
ReadyTech Holdings Limited (ASX: RDY)
reported 1H FY25 revenue of $58.3 million which was up 6.6% on the prior corresponding period with recurring revenue representing 85.6% of the total. Excluding the Government segment, revenue growth was 9%, driven by strong contributions from Education & Work Pathways (+7.1%), Workforce Solutions (+10.4%) and Justice (+13.0%). Underlying EBITDA grew 4.6% to $18.2 million delivering a 31.2% margin while underlying cash EBITDA margin improved to 14.7%. Net revenue retention was 102% supported by new enterprise wins including its largest Workforce Solutions deal to date and first entry into the university market. A $20.6 million goodwill impairment in the Government & Justice CGU impacted statutory results.
ReadyTech advanced its enterprise strategy and addressed a key Local Government growth inhibitor through the acquisition of CouncilWise enhancing product capability and accelerating cloud migration opportunities. The enterprise pipeline stands at $37.5 million with $13.5 million in shortlisted/preferred stage opportunities expected to close in 2H FY25. Continued investment in AI-driven product innovation including Talent IQ and Ask AI Policy Bot is delivering operational efficiencies and value for customers. Management expects high single digit revenue growth for FY25 and medium-term revenue of $160–$170 million by FY27 with EBITDA margin expansion above 20%.
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