Accent Group reported 1H26 EBIT of $57m, down 30%. Underlying gross margin of 54.3% was down 130bp. The trading update for the first eight weeks was flat. We have rebased our forecasts for FY27e on the proforma earnings base of FY26e which strips out the exit of Glue Store and OzSale. We lower our sales forecasts on closures and lift our gross margin and cost of doing business forecasts. A Strategy Day will be held in May 2026 to provide an update on growth priorities.

Noumi’s 1H26 result included highlights such as MilkLab sales growth of 8.0% and Dairy & Nutritionals EBITDA margin expansion of 249bp to 5.2%. Overhanging the result is the maturity of the convertible note in May 2027. Work is in progress though no decisions have been finalised.

Viva reported FY25 EBITDA down 6%, but 2H25 EBITDA up 33%. The turnaround in fortunes in Convenience is encouraging, albeit higher fuel margins in 2H25 may not be sustained. Cost savings from FY25 and improving shop gross margins help lift our FY26e Convenience EBITDA to $246 million. We can see a path to $336 million by FY28e, or 71% higher than FY25. However, executing on a supply chain transition and OTR store conversions will be necessary. We see asset sales of $150-200 million as sufficient to bring down leverage from 3.0x in FY25 to 2.0x in FY27e.

Ampol reported a good FY25 result, once again characterised by higher margins on lower fuel volumes. The company’s focus is subtly shifting towards more volume. Near-term, Ampol faces a headwind from lower refinery margins. Ampol has a few key catalysts in the next six months with potential change to government support on its refinery and ACCC approval of the EG acquisition. While there are these positives, weaker refinery margins and higher net interest keep us somewhat cautious.

GyG reported network sales up 18% and EBITDA 30% higher for 1H26. While comparable sales momentum has slowed, EBITDA margin improvement was strong, helped by modest overhead cost growth. GyG’s comparable sales growth is more likely to settle near 4%-5% going forward. Operating leverage in 1H26e is likely to soften in 2H26e as overhead cost growth follows store growth more closely.  We expect US losses of $11-$16 million to persist for at least the next three years, which may frustrate some investors.

Inghams reported 1H26 EBITDA of $81 million, close to guidance.  Even though earnings were near guidance, the company has downgraded its FY26e outlook. The reasons cited appear mostly temporary but there are structural challenges around supply chain costs serving its customers. Inghams volume and price outlook are more encouraging and margins should recover. However, with such volatility in earnings over the past 18 months and high gearing, it will take time to rebuild investor trust.

Wesfarmers reported EBIT growth of 8% in 1H26. There was solid growth in its retail business and an outsized earnings improvement in lithium and associate income. The shape of the result raises debate about the likely operating leverage in Bunnings and Kmart, which we expect to be modest, especially as depreciation expenses normalise. We are also likely to see slowing sales trends on a 12-month horizon given weaker household income growth and fading price inflation.

Lovisa reported 1H26 EBIT on an underlying basis (ex-Jewells) of $109 million, up 20%. Underlying gross margin improved 50bp to 82.9% and store growth of 64 stores took the store count to 1,095 stores. Total sales in the first six weeks of 2H26e grew 21.5%. Our sales forecasts lift on store count. We lift gross margin expectation but also increase both operating costs and depreciation. The result was impacted by losses in Jewells, Lovisa’s new brand. Jewells may develop into a long-term opportunity but could distract management from course correcting Australian division performance and managing the global Lovisa rollout.

A2 Milk reported a strong improvement in underlying earnings. On a continuing business basis, revenue rose 19% and EBITDA was up 18%. The Pokeno acquisition was a loss-making contribution in the half pointing to even stronger performance in 1H26. The sales result was helped by acquisitions and currency, which will fade into 2H26e. While China infant formula growth was good, more meaningful market share gains would be more encouraging. The company lifted its guidance metrics for FY26e and should meet its $2 billion revenue target this year. We would prefer a little more margin for safety in the valuation given its reliance on China infant formula growth.

Treasury Wines 1H26 EBITS had been pre-announced. The new news included a suspension of dividend payments given high gearing and clarity on its volume performance. The actions from new CEO Sam Fischer highlight a need to fix the supply-demand balance across its key markets and reduce debt. Depletions growth in Penfolds still looks encouraging. However, destocking over the next two years will result in a lack of any apparent earnings recovery.  The future growth of Penfolds is not appropriately reflected in the share price and long-term earnings upside exists once the destocking is complete.