WOW 0.35% $34.50 woolworths group limited

does any company benefit more?

  1. DSD
    15,757 Posts.
    Does any other ASX200 compny benefit more than WOW from a high AUD? On the face of it all importers into Oz increase profits when AUD rises. But lets look at a few examples.

    1) JBH doesn't gain much as the forex gains mainly go to the intermediatory wholesaler with whom they buy from.
    2) Some sellers of software lose-out as aussie consumers buy direct using internet.
    3) Clothing and shoes retailers certainly gain... but overall high AUD is poor for general economy as sectors such as tourism ,manufacture, and labour intensive sectors (eg. call centres) suffer considerable profit squeeze. Clothing is semi-descretionary and people keep wearing current gear. Apparently some people importer sports shoes etc themselves via the net! Look how Colorado folded!
    4) DJS will benefit as rich seem to keep buying no matter what and i doubt DJS sell anything made in Oz.
    5) Cars. Intense competition has seen car price rises remain subdued.... but importers from Korea/Thailand etc will get cheaper cars. But do any list in ASX200? In addition people keep cars longer in economic uncertainty.
    6) HVN. Harvey def benefits from cheaper furniture imports along with electrical goods. But he has intense competition in latter and sales of lounge suites etc unlikely (imo) to regain momentum. As an aside look how pitifully cheap 2nd hand furniture is at auctions, tender centres and the like. HVN also faces competition from internet buyers.
    7)Importers of fuel and fertilizer should gain... but price of both has leapt.
    8) So that leaves everyday consumerbles such as food, laundry products, hygeine products (eg baby diapers), cosmetics,and booze. All meat and most fruit is locally sourced so not a beneficary. But many everyday products are imported. Look at shelves of tinned and bottled goods,small everyday acessories such as dish towels, clothes pegs, oven gloves, small plastic toys, light bulbs, etc. Crockery/cutlery, bed linen, batteries,pool chemicals are not everyday consumerbles but most are imported and WOW sells them. Aside from Bundy Rum we largely import our spirits which ARE an everyday item for some folk. We even have imported beer and wine!

    Population growth doesn't seem to be benefitting current housing mkt. But growing pop consumes mass quantities of food, booze and petrol daily. Yes, Dick Smith also loses to internet buyers and who would ever buy clothes at Big W!!?? But each cent's rise in AUD provides incresed margin to Woolworths. In addition their dominanant buying power ensures they squeeze the importer to sell at lowest possible price.

    So my query is: Does any ASX200 company benefit more than WOW from a rise in AUD?
 
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