Daily Brief Consumer: Bukalapak.com PT Tbk, Honasa Consumer , Lalatech Holdings Co Ltd, Chipotle Mexican Grill, Park Lawn , General Motors, Kimberly Clark, Betterware de Mexico Sab de CV, Autozone Inc and more

• Bukalapak released its 1Q2024 results this week with some palpable relief as it booked its first adjusted EBITDA but underlying revenue growth remains strong, especially for its O2O business. 
• The company saw take rates improve for both its Mitra O2O business and its marketplace businesses, helping to drive revenue growth. Costs were also reduced allowing for positive contribution margins. 
• Bukalapak is expected to see sustainable profitability accompanied by revenue growth, with the marketplace recovering with improving product mix. BUKA’S “orphan” cash pile remains an issue but valuations are attractive.

• Honasa Consumer (HONASA IN) raised about US$200m in its India IPO. Its pre-IPO investors will be released from its IPO linked lockup soon.
• HC’s product portfolio includes products in the baby care, face care, body care, hair care, color cosmetics and fragrances segments.
• In this note, we talk about the upcoming lock-up expiry and possible deal dynamics.

• Lalatech Holdings Co Ltd (LALA HK) , a technology driven logistics transportation platform has refiled for IPO in April and this insight focuses on data points from the latest filing.
• The company has disclosed full-year 2023 results which shows significant improvement to the company’s financials, particularly Lalatech’s profitability.
• Lalatech has continued to cutdown its operating costs, which has helped reach profits, and the company has managed to maintain growth despite spending cuts on incentives and promotions.

• The first quarter 2024 financial results of Chipotle Mexican Grill showed positive growth with a rising momentum.
• The company reported a 7% comp sales growth driven by over 5% transaction growth.
• Fueled by the company’s focus on improving throughput and successful marketing campaigns, sales rose by 14% to reach $2.7 billion.

• Park Lawn Corporation (PLC) operates funeral homes and cemeteries primarily in the US
• Recent shift in strategy towards focusing on margins and operations under new management
• Consensus estimates may undervalue the company due to overlooking recent margin improvements and potential value creation through M&A, with PLC aiming for 70% of growth through acquisitions

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• The General Motors Company posted solid results in its first quarter 2024 earnings, reflecting a resilient, consistent growth trend underpinned by focus on profitability and disciplined capital allocation strategy.
• The company’s total revenue grew 8% year over year to $43 billion, a commendable performance driven by higher wholesale volumes in North America.
• A compelling aspect was its emphasis on a strategic go-to-market approach which prioritizes profitability and margins.

• Kimberly-Clark Corporation showed an optimistic performance in its first quarter for 2024, which was driven by its strategy to elevate its categories with breakthrough innovation and expand its markets.
• This strategy helps the company to navigate effectively through the ever-changing external dynamics of today’s new normal.
• There were noted improvements in volume, and the company expressed confidence about the underlying volume momentum in the business.

• We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the May Betterware catalog.
• While the YoY comparisons in SKUs become more difficult, Betterware continues to roll in new items and upgrades to key favorites to remain fresh and vital to their core customer base.
• Further, May saw the first round of the fruits of their recent sponsorship of Mexico’s Summer Olympics team and continued expansion of key licensed characters.

• Autozone is an underappreciated franchise with compelling risk-adjusted return potential
• Largest auto parts retailer by revenue with over 6,300 stores in the U.S. and international presence
• Strong growth through focus on higher margin private label sales and automotive diagnostic software, resilient business model, and impressive track record of shareholder value creation

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.