Forum Archive Index - August 2001

["DR" <kat47@bigfoot.com>]

Kiwi category killer
Justin Doebele, Forbes Global, 08.20.01

New Zealand's answer to Sam Walton is getting ready to take on Australia.

Tucked inside New Zealand's $42 billion economy is a jewel of a company: Warehouse Group of Auckland. Although it boasts just $677 million in estimated 2001 sales, the Warehouse is easily one of the best retail operations in the entire world.

The hyperefficient Wal-Mart has 3.3% net margins and a 24.4% return on equity. The Warehouse Group has 6.6% margins and a 41.3% ROE, also considerably higher than other retailers in the U.S. and Australasia (see table, below).

Small but perfectly formed
Warehouse is a financial gem set against its larger rivals.
COMPANY NAME/COUNTRY	MKT CAP ($BIL)	SALES ($BIL)	NET INCOME ($MIL)	NET MARGIN	ROE (%)	P/E RATIO
Warehouse/New Zealand	0.7	0.5	29.6	6.6	41.3	16.2
Carrefour/France	37.8	54.9	913.5	1.7	16.7	31.6
Coles Myer/Australia	3.8	14.0	174.5	1.2	11.7	37.0
Costco/US	19.9	32.2	631.4	2.0	17.9	30.8
Wal-Mart/US	242.7	191.3	6,295.0	3.3	24.4	33.3
Woolworths/Australia	5.8	11.9	176.3	1.5	19.9	31.1

Source: Wright Investors Service; Dow Jones.

D.