Get smarter than your boss in 5 minutes with today's business news.
💸 Officeworks buys stake in World's Biggest Garage Sale
🍼 Baby Bunting profits soar (and so do dividends)
📱 YouTube launches new creator tools (hint hint: NFTs)
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Here's everything you need to know today - in under 3 minutes.
💸 Officeworks buys stake in World's Biggest Garage Sale
🍼 Baby Bunting profits soar (and so do dividends)
📱 YouTube launches new creator tools (hint hint: NFTs)
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Background: Officeworks is the Aussie office supplies company that's owned by Wesfarmers. It launched back in 1994...and has been saving school-kids and WFH-ers ever since.
What happened: World's Biggest Garage Sale are tackling the issue of waste by trying to create a circular economy. Their mission is to repair, repurpose and re-sell goods to help the environment.
What else: Officeworks just bought a 21% stake in the profit-for-purpose company with plans to help it grow.
💡 The circular economy is an alternative to the standard linear model we know well. So, instead of the:
We've got the:
💡 The linear model works well, but as the price of raw materials increases...the cost of producing items also increases.
💡So, if companies get their used products back...they can recycle and remanufacture them. It's better for the environment and it reduces their dependency on raw materials. Good for the planet...for business...and for Officeworks.
Background: Baby Bunting is Australia's largest baby goods store. It sells prams, bouncers, booster seats...you name it. In 2015, the company went public.
What happened: The baby lords have had a stellar start to the 2022 financial year. Total sales for the first 6 months reached $239.1 million (up 10% on the same time the previous year).
What else: With net profits after tax also up 12.2%, Baby Bunting's shareholders are set to receive a juicy...chunky...fully-franked dividend of 6.6 cents per share for the first half 🤤🤤.
💡There are two main ways a company can pay a dividend: a fully-franked dividend...and an unfranked dividend.
💡Let's break it down:
💡However, when your dividend is fully-franked (like Baby Bunting's) it comes with a franking credit. This offsets the tax the shareholder would pay (because the business has already paid it) and reduces your taxable income.
Background: TikTok is the social media app known for the Telephone re-make - and it's fair to say it has attracted a tonne of creators and influencers from other channels (ahem Insta and Youtube).
What happened: YouTube is looking at including a whole new set of features (mainly involving NFTs) to help level the playing field and (re)attract creators.
What else: Youtube wants to see NFTs used as a way to manage communities...to help people crowdfund...or to help creator's mint and sell their own work.
💡The creator economy and user-generated content is where the action and 💰💰💰 is at. And TikTok - being a hotspot for user-generated vids - already has this down pat.
💡So, if brands want to be get in with Gen Z, they need user-generated content - and they'll pay big bucks to get it.
💡 YouTube has always been a bit behind the 8 ball in this respect, so by introducing new features, they might get back on the front foot.
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