Tag: Motley Fool

Brokers remain divided on what’s next for the battered A2 Milk Company Ltd (ASX: A2M) share price. And for once, it almost feels as though there is no right or wrong answer. 

On one hand, A2 Milk has emerged as an iconic brand with a unique product in the dairy industry. Its shares held an Afterpay Ltd (ASX: APT) like status, driven by its outstanding growth and capital returns. This has led some brokers to highlight the potential medium-to-long term value in the company once sales channels stabilise.

But a large part of the company’s growth story has been associated with China and Chinese-related sales channels. As the infant formula industry continues to rapidly evolve in China and with daigou channels on hold, it didn’t take long for some brokers to say it’s time to move on. 

Another downgrade for the A2 Milk share price 

COVID-19 may have accelerated the global phenomenon of an aging population and declining birth rates. 

Credit Suisse has called out that the aggregate number of babies of infant formula age could be 30% lower in 2025. That is compared to 2018. 

The broker believes that the theme of declining birth rates could see the fall of the infant formula industry contract in China. It also says that this trend could undermine the growth from increased usage of milk formula. 

A2 Milk revenues are expected to recover in the medium-to-long term. However, the broker cites that its FY25 net profit will approach but not surpass the peak of FY20. 

As a result, the broker rated the A2 Milk share price as underperforming with a $7.15 target price. 

Share price snapshot 

On a monthly chart, the A2 Milk share price has closed lower every single month since August 2020, with the exception of November 2020. November was likely propped up by the sheer strength of the broader market, with the ASX 200 rallying 10% from 5,900 to over 6,500. This perhaps reiterates why investors should avoid trying to catch a falling knife.

More reading

• Leading brokers name 3 ASX shares to sell today
• This major US bank has bought 6% of Zip (ASX:Z1P) shares
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• 5 things to watch on the ASX 200 on Tuesday
• Up 25% this month, is the Afterpay (ASX:APT) share price a buy?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Altium Limited (ASX: ALU) share price has come under pressure on Tuesday.

In morning trade, the electronic design software company’s shares are down 4% to $28.78.

This compares to a 0.4% decline by the S&P/ASX 200 Index (ASX: XJO) today.

Why is the Altium share price tumbling lower?

Today’s decline appears to have been driven by the release of a broker note out of Citi this morning.

Although the broker has held firm with its buy rating and $33.50 price target, some of its comments appear to have spooked investors and are weighing on the Altium share price.

What did Citi say?

According to the note, the broker points out that Altium has been discounting its platform, which it feels could be an indication of weak trading conditions. As a result, it fears there could be some level of pressure on its second half earnings.

One positive, though, is that Citi’s research shows that website traffic data for its Octopart business have been solid. It also notes a positive shift in preference to its Altium 365 platform.

Nevertheless, despite its aforementioned concerns, the broker remains positive on the company due to its belief that Altium’s downgrade cycle is nearing an end.

Is the Altium share price in the buy zone?

Based on the current Altium share price, Citi’s price target implies potential upside of 16.5% over the next 12 months.

Citi isn’t alone with its buy rating. UBS currently has a buy rating and $34.00 price target on its shares and Credit Suisse has an outperform rating and $35.00 price target.

And even more bullish are the analysts at Morgan Stanley. They currently have an overweight rating and lofty $37.00 price target on its shares.

All four price targets suggest the Altium share price could generate market-beating returns for investors between now and this time next year. Which certainly is food for thought for investors.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Altium. The Motley Fool Australia owns shares of Altium. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Apple (NASDAQ: AAPL) recently gave itself a pat on the back when it wrote a letter to recording artists noting it pays a penny per stream on its Apple Music service. That’s about twice the rate of Spotify (NYSE: SPOT), the world’s largest streaming service.

And while it’s leading in its payout rate on a per stream basis, it only pays out 52% of revenue to record labels. By comparison, Spotify pays out about two-thirds of its revenue to labels.

There are a number of factors that enable Apple to pay more per stream to artists while keeping more of its revenue for itself. Here’s what investors should consider.

The big difference between Spotify and Apple Music

Spotify offers a free ad-supported tier for listeners, but Apple Music is subscription only. That difference in strategy has a big effect on the rates each service pays to artists and the percentage of revenue those royalties account for.

Spotify has long held up its free ad-supported tier as an important driver of paid subscriptions in the long run. In fact, Spotify contends that offering a free tier prevents listeners from seeking “non-revenue-generating alternatives,” which you might just call “piracy.”

But there’s a drawback to offering a free tier — less revenue per listener. As of the end of 2020, Spotify had 199 million free listeners and 155 million paid subscribers. But ad-supported revenue in the seasonally strong fourth quarter totaled just 281 million euros versus 1.89 billion euros for the paid subscribers.

Importantly, when Spotify pays a royalty for a listener on its ad-supported tier, it pays it out of the ad-supported revenue. And with 199 million listeners, even if they’re less engaged on average than paid listeners, that’s going to drag down its average payout per stream.

On the other hand, Spotify’s contracts with record labels typically include guaranteed minimums, which means it may have to pay additional royalties if it doesn’t generate enough engagement with the service. That could push the percentage of revenue it pays higher on average than its paid tier, where revenue is much more predictable.

Apple doesn’t need a free tier

Apple’s biggest advantage over Spotify is that it owns the distribution platform. While it’s possible to use Apple Music on devices not made by Apple, it’s much more common among iPhone owners. And every iPhone comes with Apple Music pre-installed. It’s the default music app. Even if you want to listen to music you’ve already downloaded, you’ll use the Apple Music app by default on an iPhone.

That presents a big opportunity for Apple to onboard new subscribers. No need to tempt them with a free ad-supported service. No free tier means Apple’s average revenue per user is higher than Spotify’s.

What’s more, Apple’s paid users may not be as engaged as Spotify’s paid users. If a Spotify user doesn’t use the service as much, they may not mind the occasional ad while listening. As a result, Apple generates more revenue per stream, and it pays out more per stream.

What it all means for investors

For Apple investors, the important number to pay attention to isn’t that it pays more per stream than Spotify. It’s that it manages to pay out only half of the revenue as royalties. A lower cost of sales, combined with Apple’s position as a platform owner, allows it to bundle Apple Music without using it as a loss leader.

Indeed, Apple Music is at the core of Apple’s Apple One bundle, which includes all the various subscription services the company introduced over the last half decade or so. That allows Apple to profitably bolster its other services while increasing customer engagement with its services and retaining them as iPhone and Mac users year after year.

For Spotify investors, Apple’s relatively low royalty rate is also important. It indicates there’s a lot of room for improvement in the company’s premium gross margin, which came in at 28.9% in the fourth quarter. There’s a big gap between that and the 48% Apple keeps after paying royalties, which accounts for the bulk of cost of sales. Spotify keeps its contracts with record labels short, so it frequently has an opportunity to renegotiate and improve its margins.

Meanwhile, Spotify’s investing heavily in podcasts, both as a means to attract new users and to improve its margin for its ad-supported business. If Spotify can bring its ad-supported tier to break-even and raise the margin on its premium tier, it could become tremendously profitable given the scale the tech company’s already achieved.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Adam Levy owns shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and Spotify Technology and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Stockland Ltd (ASX: SGP) share price was up in early trade after the Aussie real estate investment trust’s (REIT’s) latest quarterly results. This came as Stockland provided a market update on its performance for the quarter ended 31 March 2021 (Q3 2021). However, at the time of writing, the Stockland share price has retreated to $4.59, down 0.76%. 

What did Stockland report?

The diversified REIT said the quarter began strongly thanks to momentum carried through from the first half of the financial year. 

Highlights included elevated residential business enquiries boosted net sales by 69% on Q3 2020 to 1,891 lots. Additionally, Stockland is forecasting residential settlements of 6,300 lots for the full year. That’s largely thanks to “low interest rates, government incentives, and credit availability” boosting demand.

Stockland also reported a total of 33,000 sales enquiries in its residential business — 40% above the long-term average. That comes as the Aussie housing market continues to heat up on the back of favourable macroeconomic conditions.

Stockland said it can meet current demand levels in the current upcycle. The group has an 81,000-strong lot landbank which is ~70% activated. The Stockland share price will be worth watching in early trade after the bullish update and forecast.

The Stockland share price will be on to watch this morning as investors react to the latest figures and forecasts. Stockland is seeing improvements in retail trading conditions as coronavirus restrictions continue to ease in Australia. The Aussie REIT is seeing sales levels and store openings increasing to around pre-COVID levels.

Stockland reported comparable Q3 2021 total retail sales growth of 3.2% with speciality growth of 9.4%. Importantly, the group also reported low levels of “unresolved arrangements with retail tenants” helping to improve outstanding debt balances.

Stockland said strong capital management has allowed it to restock its Communities business. The Aussie REIT has acquired 10,100 lots within the portfolio in the financial year to date. Retirement Living sales were up 16.5% on Q3 2020 figures to 190 units during the quarter.

FY2021 guidance

The Stockland share price is up 7.9% in 2021, outperforming the S&P/ASX 200 Index (ASX: XJO). It will be worth watching after today’s update that included a note on FY2021 guidance provided on 25 February.

While guidance levels remain unchanged, Stockland said it expects full-year distributions at the low end of its 75% to 85% target payout ratio of funds from operations (FFO). Recent rent collections trends are expected to continue for commercial properties. Stockland is also forecasting 6,300 residential settlements for the full year per today’s release.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Little Green Pharma Ltd (ASX: LGP) shares are on the rise this morning following the company’s announcement of a new European distribution deal. The Australian medicinal cannabis manufacturer has signed an agreement that will see its products sold in Denmark. At the time of writing, the Little Green Pharma share price is trading 1.31% higher at 77.5 cents.

Let’s look closer at the company’s latest news.

Distribution in Denmark

Little Green Pharma has signed a 5-year, non-exclusive distribution agreement with Balancial Danmark ApS.

The agreement will see Balancial distributing Little Green Pharma-branded cannabis oil and flower medicines in the Scandinavian nation.

According to the company’s release, the deal is another step in its plan to grow its market share in key European medicinal cannabis markets.

It has already nabbed entry points into Germany, France, and the United Kingdom.

The agreement comes with certain terms and conditions. One being that Balancial cannot market or manufacture any other cannabis oil or flower products in Denmark until it has ordered 20,000 units from the Australian company.

 Another is that the Danish company must order at least 2,000 units per shipment, on a continuous basis.

Denmark is currently more than 3 years into a 4-year trial period for the use of medicinal cannabis products. Within the trial, medicinal cannabis prescriptions are 50% reimbursed (up to US$1,500 per year) by the state, and fully reimbursed for terminally ill patients.

Little Green Pharma states, since the trial’s introduction, medicinal cannabis patient count and prescription volumes have been growing quickly. As of February 2020, the market was expected to be worth 500 million euros and represent 2% of the population by maturity.

Commentary from management

Little Green Pharma’s managing director Fleta Solomon commented on the agreement:

LGP is pleased to announce another agreement for the distribution of LGP products into a prospective EU medicinal cannabis marketplace, and looks forward to collaborating with Balancial to help service our future Danish customers.

Little Green Pharma share price snapshot

The Little Green Pharma share price has been performing well on the ASX lately.

Currently, the company’s share price is up by around 38% year to date. It’s also up by around 158% over the last 12 months.

The company has a market capitalisation of around $101 million, with approximately 187 million shares outstanding.

More reading

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Credit Suisse, its analysts have resumed coverage on this infant formula and fresh milk company’s shares with an underperform rating and $7.15 price target. The broker notes that Chinese birth rates are falling, which it fears could soon lead to a contraction in the infant formula industry in the lucrative market. It believes this could weigh on a2 Milk’s profit growth in the future. The a2 Milk share price is fetching $8.04 on Tuesday.

Mayne Pharma Group Ltd (ASX: MYX)

A note out of Macquarie reveals that its analysts have downgraded this pharmaceutical company’s shares to an underperform rating with an improved price target of 38 cents. The broker made the move partly on valuation grounds after some strong recent gains. And while Macquarie sees positives in the approval of its combined oral contraceptive Nextstellis in the United States, it isn’t enough to become more positive. Particularly given its belief that near term trading conditions will remain subdued. The Mayne Pharma share price is trading at 46.5 cents this morning.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Another note out of Credit Suisse reveals that its analysts have retained their underperform rating but lifted their price target on this airport operator’s shares to $5.30. According to the note, the broker has increased its estimates to reflect the positive impact of the ANZ travel bubble on passenger volumes. It notes that this particular route accounted for 7% of passengers prior to the pandemic. However, even after making these adjustments, it still feels its shares are expensive at the current level. Especially given the risk associated with the roll out of COVID-19 vaccines. The Sydney Airport is currently fetching $6.06.

More reading

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• Is the worst over for the A2 Milk (ASX:A2M) share price?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Lynas Rare Earths Ltd (ASX: LYC) shares are retreating on Tuesday after the company provided what it called a strong March quarterly update. At the time of writing, the Lynas share price is trading 6.9% lower at $5.94.

Let’s take a look at what the company reported.

Lynas share price slumps despite robust demand 

The Lynas share price is on the slide today despite the company reporting that heightened levels of demand for renewable technologies and electric vehicles saw it deliver another robust quarter.

Total rare earth oxide production for Lynas was 4,463 tonnes and total NdPr (Neodymium and Praseodymium) production was 1,359 tonnes for the quarter. This compares to a respective 3,410 tonnes and 1,367 tonnes produced in the second quarter of FY21 (2Q21). 

The company achieved sales revenue of $110 million for the quarter, in part due to the delay in cash collection from revenue generated in the December quarter. Invoiced revenue has continued to face delays due to the impact of COVID-19 on global trade and the blockage of the Suez Canal in March. 

Rare earth spot prices continue to gain momentum with 3Q21 sales averaging $35.5/kg compared to $29.5/kg in 2Q21 and $19.8/kg in 3Q20.  

In further news that could be dragging on the Lynas share price, the company reports that its Malaysia processing facility is operating at approximately 75% of original nameplate production. Its current focus is on improving cost performance and rare earth recoveries. According to the company, its production rate at this point in time remains sufficient to meet key customer demand while maintaining strict COVID-related health and safety protocols. 

Lynas 2025 foundation projects pushing ahead 

Lynas 2025 represents the company’s ambitious growth targets in driving production, diversifying its industrial footprint and becoming the supplier of choice to non-Chinese customers. 

During the quarter, Lynas continued to progress its 2025 foundation projects. 

These include its agreement with the United States Government to jointly fund the construction and development of a commercial Light Rare Earths separation plant in the US. Once operational, the project will secure a critical domestic source of high quality separated rare earth materials. The company is currently working through detailed engineering and design work for the heavy rare earths facility which is expected to be lodged with the US Government in the June Quarter. 

Lynas aims to drive production capability with the expansion of a new processing facility in Kalgoorlie, Western Australia. Today’s quarterly update highlighted an approval for the commencement of limited preliminary construction works from WA Government agencies. 

The company also announced that Prime Minister Scott Morrison publicly stated the construction of the Kalgoorlie facility is a “…gold standard example of the cooperation on critical supply chains between Australia and the US.”  

Lynas observes that critical mineral supply chains were discussed during the recent ‘Quad’ leaders meeting between Australia, the US, Japan and India. The company believes this reiterates the importance of its development plans and industry-leading role as the largest rare earth producer outside China. 

Despite a reasonably strong financial and operational update, the Lynas share price is slumping following the release of the update. Notwithstanding today’s weakness, the Lynas share price has still surged some 40% year to date and is within 14% of its 52-week high seen early last month. 

Based on the current Lynas share price, the company commands a market capitalisation of around $5.7 billion.

More reading

• These top 2 ASX 200 shares have thumped the index’s 2021 returns
• ASX stock of the day: The Greenland Minerals (ASX:GGG) share price is up 18% today
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• These were the best performing ASX 200 shares last week

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Australian Primary Hemp Ltd (ASX: APH) share price is on the rise following the announcement of a new distribution deal.

At the time of writing, the company’s shares are swapping hands for 39 cents, up 5.41%.

What did Australian Primary Hemp announce?

Investors are sending Australian Primary Hemp shares higher after digesting the company’s latest positive update.

According to this morning’s release, Australian Primary Hemp secured its largest retail distribution agreement with Coles Group Ltd (ASX: COL).

Under the deal, the supermarket giant will range 5 additional Mt. Elephant products from Australian Primary Hemp. It is expected that the new inclusions will be available for purchase in stores from July 2021.

Australian Primary Hemp estimates that the agreement will generate roughly $3 million in revenue per year.

The latest news follows the successful relationship between both parties. In early March, Australian Primary Hemp signed its first retail distribution agreement with Coles to stock its Mt. Elephant ‘mylk’ hemp and oat milk range.

Australian Primary Hemp managing director and CEO Neal Joseph commented:

APH’s Mt. Elephant brand was developed to focus on capturing the demand for high-quality, plant-based ‘superfood’ products – with Australian-farmed hemp used in all our products.

This latest agreement with Coles represents APH’s largest retail distribution agreement with any retail partner, and we are proud to see Coles recognise the Mt. Elephant product range. We look forward to further potential agreements in the future as we further our Company’s development in becoming a producer, manufacturer, and distributor of premium hemp-based products.

Australian Primary Hemp share price snapshot

Over the last 12 months, the Australian Primary Hemp share price has gained around 190%, with year-to-date up 17%. The company’s shares reached a multi-year high of 62 cents earlier this year, before treading lower.

On valuation grounds, Australian Primary Hemp commands a market capitalisation of approximately $27 million, with 75 million shares outstanding.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The market tumbled into the red this morning, but that didn’t stop these brokers from putting these ASX shares on their “buy” list.

The S&P/ASX 200 Index (Index:^AXJO) fell 0.5% in early trade no thanks to a weak lead from Wall Street overnight.

But many experts are still expecting ASX shares to deliver decent gains this year. If they are right, any pullback will be a buying opportunity.

Broker picks this ASX share to buy after its battering

If you are hunting for bargains, Morgans reckons you should put the Origin Energy Ltd (ASX: ORG) share price on your list.

This is even after Origin share price crashed on the back of a profit downgrade late last week.

The energy company cut its FY21 Energy Markets earnings before interest, tax, depreciation and amortisation (EBITDA) to between $940 million and $1.02 billion. That’s down from its earlier forecast of $1 billion to $1.04 billion.

Overlooking the short-term pain

“There is no doubt that the next 12 – 18 months will be challenging for ORG,” said Morgans.

“However, the company is expecting to offset weaker revenue with cost reductions and its LNG business will reap more of the benefits of higher oil prices in FY22.

“While we expect near term challenges, we see upside potential in the medium term and maintain our ADD rating with a $5.79 price target.”

Opportunity to add during the cap raise

Another tumbling ASX share to watch is the Seven Group Holdings Ltd (ASX: SVW) share price. Shares in the mining equipment conglomerate fell 4% to $22.50 after it emerged from its trading halt.

The group is undertaking a $550 million capital raising and the Seven Group share price is right bang on the new share offer price.

UBS reckons investors should buy the dip even as the dilution from the cap raise prompted it to lower its 12-month price target to $27.35 from $27.50 a share.

The broker has a bullish outlook on two of Seven Group’s main businesses, Coats Hire and WesTrac. These businesses are leveraged to the booming mining sector and the large pipeline of infrastructure construction projects.

ASX share to buy ahead of its results

Meanwhile, Citigroup reiterated its “buy” recommendation on the Resmed CDI (ASX: RMD) share price ahead of its results.

The sleep disorder treatment company will release its quarterly earnings on 30 April. Citi expects it to post an earnings per share of US$1.34, which is ahead of consensus expectations of US$1.31.

Don’t need an another COVID booster shot

While ResMed’s results won’t be bolstered by extra demand for its equipment from COVID-19, Citi believes its organic business is tipped to grow by 9%.

“At constant currency, we forecast revenue growth of 5% and an FX benefit of ~4% due to the lower USD,” explained Citi.

“We believe that the company has performed very well operationally throughout the pandemic, growing market share.”

The broker’s 12-month price target on the ResMed share price is $29 a share.

More reading

• Why the Seven (ASX:SVW) share price is on watch
• ASX miners in focus as the copper price looks poised to crack above 10-year highs
• 5 things to watch on the ASX 200 on Tuesday
• Why is the Seven Group (ASX:SVW) share price frozen?
• Top broker picks ASX shares next in line for a profit upgrade

Motley Fool contributor Brendon Lau owns shares of Seven Group Holdings Limited. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Woolworths Group Ltd (ASX: WOW) share price is trading lower on Tuesday despite the release of an announcement.

At the time of writing, the retail conglomerate’s shares are down 0.5% to $41.81.

What did Woolworths announce?

This morning Woolworths announced that it is investing $223 million to increase its stake in Quantium from 47% to 75%.

Woolworths describes Quantium as a world-class data science and advanced analytics business.

Woolworths originally acquired 50% of Quantium in 2013 for a lowly $20 million. That acquisition led to the two parties entering into a long-term partnership that has enabled Woolworths and its supplier partners to make customer-first decisions across pricing, ranging, and promotions.

Since then, Quantium has experienced exponential growth both in Australia and internationally. This led to a significant increase in its valuation since its orginal investment.

Woolworths’ Chairman, Gordon Cairns said: “We have long admired the Quantium business. We have enjoyed a successful partnership with them over the last eight years by jointly developing products and services that provide critical insights to both Woolworths Group and our suppliers, helping us put our customers first in our decision making.”

This sentiment was echoed by Woolworths’ CEO, Brad Banducci.

He commented: “Advanced analytics is key to improving the experiences, ranges and services we provide to our customers and the support we provide to our teams and suppliers. The way we gather data, interpret it, and protect it, is becoming ever more important.”

“Through this transaction, we aspire to bring together Quantium’s advanced analytics capability and Woolworths Group’s retail capabilities to unlock value across our entire retail ecosystem. By working better together, we aim to transform the rapidly evolving retail sector, helping us better service our customers and support our team and supplier partners,” Mr Banducci added.

What now?

Following the completion of the transaction, Quantium will form part of Woolworths Group, and a new business unit called Q-Retail will be established.

Q-Retail will bring together Quantium and Woolworths Group’s collective data science and advanced analytics capabilities with a focus on delivering against the company’s advanced analytics aspirations.

Leading Q-Retail will be Amitabh Mall as Managing Director. He will also serve as Woolworths Group’s Chief Analytics Officer. Mr Mall joins the company after 20 years at the Boston Consulting Group where he most recently led their Consumer and Retail practice in Asia-Pacific.

More reading

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Woolworths (ASX:WOW) share price lower despite announcing $223m investment appeared first on The Motley Fool Australia.

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