Here are 5 ASX Consumer stocks defying the Cost of living crisis

Here are 5 ASX Consumer stocks defying the Cost of living crisis!

Cash Converters (ASX:CCV)

OK, there is an argument to be made that Cash Converters shouldn’t be on this list of consumer stocks doing well right now. This is because CCV is not the case of a company defying the cost of living crisis, given part of its business is buying second-hand goods and selling them. That is just what cash-strapped consumers would do in a cost of living crisis.

This being said, Cash Converters runs a lending segment too and its loan book has continued to grow, while its net loss rate has continued to decline. It has declined from 11% to 8% in 12 months. Not exactly what you would expect in tough times, defying investor fears towards many consumer lending stocks. In FY24, CCV delivered a 26% jump in revenue and a $17.3m profit, up from a $97.1m loss in the prior year.

Temple & Webster (ASX:TPW)

Temple and Webster is one of several furniture stocks on the ASX. It boasts itself on having a big online presence, having its own collection of home furnishings and décor which aim to reflect customers’ personal style, its sustainability and ethical production and AI-powered tools such as The Studio that helps customers visualise how products would look in their own home using augmented reality technology.

It closed FY24 with record revenue, $498m which was up 26% year on year, and $13.1m EBITDA (the top end of its guidance). Its recent trading update revealed a 21% jump in revenue from the first 4 months of FY25. Investors were told to expect a 1-3% EBITDA margin for FY23, and for $1bn in revenue within 3-5 years.

Guzman y Gomez (ASX:GYG)

Yes, an obvious pick, we know. If it wasn’t so good for this Mexican fast food franchise, it would never have listed – let alone done so well. Since listing in June, it released FY24 results. It made $959.7m in network sales and $342.2m in revenue, both figures only 0.6-0.7% ahead of prospectus but over 25% ahead of the prospectus. It made $27.3m in EBITDA, down 7.9% but 7.2% ahead of prospectus. Its profit was $13.7m in negative territory but 15.1% ahead of its prospectus.

Debate will rage on and on about whether or not it is overvalued, but it is difficult to see a correction unless momentum suddenly and substantially slows down.

Wesfarmers (ASX:WES)

Wesfarmers is a $75bn conglomerate that has interests in industrials, chemicals, fertilisers and retail. The company’s most famous holdings include Bunnings, Officeworks, Kmart and Target – the latter two being ideal to have in a cost of living crisis being discount retailers.

But don’t take our word for it – Kmart increased its profit by 25% in FY24 and its revenues by 4.4%, in both instances the highest growth amongst all segments. The broader group had a modest 3.7% rise in profit, to $2.6bn. The company’s revenue increased 1.5% to $44.2bn.

Collins Foods (ASX:CKF)

Back to fast-food franchises here…Collins Foods is a more longer tenured ASX-company, listing in 2011 and actually having a tough debut, only to recover and become a terrific long-term investment.

CKF owns KFC franchises in Australia and Europe, as well as Taco Bell outlets in Australia. The company recorded a 10% increase in revenue (to $1.49bn) as well as a 16% jump in underlying profit to $60m. In its most recent trading update, the company told investors sales were subdued amidst the cost of living crisis, but still up 1.5%. Although, margins were expected to come under pressure, we don’t expect the company to collapse like Dominos (ASX:DMP) because CKF has always had more subdued growth ambitions, and still expects to deliver what it has promised.

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