Kalkine Media - Summary
- The S&P/TSX Capped Consumer Staples Index rose by 3.48 basis points on August 16, 2023.
- Primo Water (TSX:PRMW) Corporation, a water solutions provider, reported a revenue of US$593.3 million in Q2 2023.
- Unisync Corp ., a garment design and manufacturing business, reported a 3% increase in its revenue to CA$25.4 million.
Statistics Canada released the Consumer Price Index (CPI) data for July 2023, which showcased a 3.3% increase in the index year-over-year.
After the release of CPI data, the S&P/TSX Composite Index fell by 0.72 basis points on August 16, 2023.
Meanwhile, the S&P/TSX Capped Consumer Staples Index rose by 3.48 basis points on August 16, 2023. Stocks prices in the consumer staples category have been in the green for the past one week.
Additionally, consumer staple stocks are expected to remain stable even during inflationary times. The companies issuing these stocks do not see drastic movements in revenue as they sell products that fulfil daily consumption needs.
With that, let us examine two TSX-listed consumer non-durable stocks that can be examined by investors in this earnings season:
Primo Water Corporation (TSX: PRMW)
Primo Water offers a water solutions ecosystem, which includes an assortment of water dispensers and its water direct business. The company derives maximum sales from North America, with remaining sales coming from Europe and Israel.
On August 10, 2023, Primo Water released its Q2 2023 results, which showcased a revenue of US$593.3 million, as against US$571.4 million in Q2 2022. Meanwhile, the company’s net income was higher by 43.8% in Q2 2023 at US$21.3 million.
Primo Water’s net income during Q2 2023 was US$0.13 million and its adjusted EBITDA for the quarter was US$121.6 million.
Based on Wednesday’s closing price of CA$15.4, it has a P/E ratio of 28.58x and a dividend yield of 2.08%. As at the close of trade on August 16, 2023, PRMW rose 12.57% monthly and 0.85% on an intraday basis.
Unisync Corp (TSX:UNI)
Unisync is garment design and manufacturing business in Canada. The company manufactures harsh weather garments for the military and other government agencies, alongside other regular wear clothes.
For Q3 2023, Unisync reported a revenue of CA$25.4 million, which was 3% higher than that in Q3 2022. The company’s gross profit was CA$1.9 million in Q3 2023, which was CA$2.6 million lower than that in Q3 2022.
Unisync reported that its new product orders are at an all-time high as indicated by the increase in deferred revenue to US$21.3 million on June 30, 2023, as compared to US$16.7 million as of September 30, 2021.
Based on Wednesday’s closing price of CA$1.60, UNI stock price grew 1.91% on an intraday basis. For the one-month period ending on August 16, 2023, UNI stock price was higher by 6.67%.