Ann: ADH Trading Update, page-5

From ADH's annoucement:

• Sales actually look pretty alright IMO. $242m sales vs $240.5m consensus forecast. We all know that sales will recycle last year's massive number, so no surprise here.
• COVID related & store closures cost ADH $30m - $36m in sales and $14m - $18m in EBIT.
• EBIT looks low, margin impacted. We know the impact to EBIT was $14m - $18m. So if we normalise it, margin seems in line with last year.
• Online sales is now 43% of the group sales.
• ADH shares have actually held on pretty ok in recent market turbulence. Being a cheap & high yield stock, I think it will probably outperform the market. I don't think the market sell off has finished yet unfortunately, so big PE names will be under the guillotine first.

Seethroughs from DSK's annoucement since they are both run by Catalyst:

• DSK sales improved post lockdown (due to Xmas gifting season) but in store sales were actually down, I reckon it is due to Omicron, which deter people from going to shopping centres => ADH probably faces the same issue.
• DSK's inventories look alright. Sales/inventories = 4 times. ADH also said their inventories level is ok => I found some comfort here.