"Thats about as ugly of an REA report as ive seen."
Not if you take the time to actually analyse the result in a bit of detail.
When the principal proxy for the volumes of a business declines by 9% , yet Revenue grows by 5%, that's quite something to behold, I think.
Added to that, when one looks at the nature of the variances on the Expenses side of the P&L, and what that means for the future of the business, then the conclusion is somewhat different to "as ugly a report" as has been seen.
[Hint: Normalise for some of the below items and see what the profit number might otherwose have been
1.) 14% increase in Marketing, 24% increase in tech.spend, $10m delta in Associates earnings, non-recurrence of gain in pcp
2.) "FY2023 represents peak losses in India"... CEO quote
Viewed another way, if they really wanted, they could have made the operating profits end up higher, rather than lower, than the previous corresponding period (which itself was a very strong base)
So, I'd say it is a highly resilient result; in fact, one of the most resilient results I've seen from the company.
Funny how different people interpret things differently.
That dispersion of opinion is what makes the market, I suppose.
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