The COL result was fine, albeit with some mild slippage in cost and capex.

For example, the Witron and Ocado projects will require more opex, which drags on EBIT.

We don’t normally provide the “detailed” chart pack analysis with COL, the drivers (supermarkets, population growth) are well understood, as are the recent cost impacts (COVID, absenteeism).

The key will be the automated distribution centre fulfilment strategies through Witron and Ocado (two different businesses but with the same goal of “double the volume, half the footprint” through autonomous robots that pack and prepare orders for van delivery in gigantic climate-controlled solar-enabled warehouses).

The videos are fun to watch, but the projects themselves take years to build, and the targeted timeframes are 2 and 3 years out.

In general, COL gives us low beta exposure (defensive, high quality revenue streams) and is our primary staples exposure outside of TWE.

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This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.

Please note that past performance is not a reliable indicator of future performance.

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