Nick Scali has provided a Christmas trading update that guides for ANZ sales to grow 10% to 12% in 1H26e. Group net profit after tax guidance has also been upgraded to between $37 and $39 million. The better sales performance in ANZ has driven the upgrade. We lift our revenue forecasts and gross margin expectations, reflecting the supportive backdrop domestically which we expect to slow post FY26e.

We transfer coverage of Viva Energy from Scott Hudson to Craig Woolford. In this report, we address the outlook for its convenience strategy and balance sheet position. We are positive on the refining margin outlook but expect the OTR conversions to be slower and more costly to complete.