1. Food fights…
Australians ate 3.9% less food in FY23 versus the prior period according to the ABS, and the second lowest amount since FY19. The cost-of-living crisis saw shoppers swap milk, vegetables, and fruit for confectionary and snacks! And over the past 5 years consumers have increased consumption of confectionary by 42% and decreased vegetables and fruit consumption by 39% and 27%, respectively.
Source: Australian Bureau of Statistics (April 2024)
2. Long flights…
International travel has finally surpassed pre-Covid levels. Overseas departures increased to 103% of pre-Covid levels in February, above the previous peak of 99% in December.
The continued recovery in international travel is good for Flight Centre, a recent addition to the High Conviction Fund, as it supports continued growth in leisure total transaction value. It is also a positive for margins, as Flight Centre typically earns higher commission rates on international trips. It is also good news for Booking which we hold in the S3 Global Opportunities Fund.
Source: Jefferies (April 2024)
Companies mentioned are illustrative only and not a recommendation to buy or sell any particular security.
3. US might…
The US continues to surge ahead of everyone else on GDP forecasts. Largely driven by their super consumption.
Source: Bloomberg (April 2024)
Source: Bloomberg (April 2024)