EBG

About EBG

Eumundi Group Limited (EBG) is involved in hotel operations through Ashmore Tavern and Aspley Central Tavern; and in Investment Property operations, properties include The Plough inn, Court House Hote and Aspley Shopping centres.

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What does Eumundi Group (EBG) do and how does it earn money?

Places where you want to be, and places that you want to lease.

Eumundi Group operates in hotel management and retail property investment. The company was founded in 1989 and is currently headquartered in Ashmore, Queensland.

Hotel Operations is the business segment that owns and operates public hotels with bar, bistro, and gaming facilities. It also conducts commercial and retail alcohol sales through leased and owned locations. These locations include Ashmore Tavern, Aspley Central Tavern and Quench Liquor.

Eumundi also earns revenue through the Investment Property segment, which owns and rents out its investment properties to retail tenants. These properties include Aspley Shopping Centre, Aspley Arcade Shopping Villages and the Plough Inn.

Is Eumundi Group a profitable company?

Yes, Eumundi Group is currently profitable. However, the company’s net income has been inconsistent from year to year.

In FY2018, the company brought in A$3.9m but in FY2019, net income dropped to A$1.97m. In FY2020, net income was negative $1.02m but climbed back 517% by the end of FY2021 to A$4.26m.

Eumundi Group’s current net debt outweighs its earnings at A$27.06m.

Is EBG stock a buy?

Eumundi Group’s financial performance was badly hurt by the emergence of COVID-19 at the beginning of 2020. The company endured government-mandated hotel closures; having to provide emergency rent relief to investment property tenants; devaluation of land and building assets; and social distancing restrictions that slowed traffic through their properties.

However, with COVID-19 restrictions lifting and widespread vaccinations, some investors are now feeling more confident in the business and in turn, the stock. This confidence has been reinforced by the company’s 517% leap in net income from FY2020 to FY2021.

Some investors continue to hold a bearish stance, fearful of a resurgence of COVID-19 or a mutated strain of the virus and the possibility of further lockdowns.

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Does EBG stock pay out a dividend?

Historically, Eumundi Group has paid dividends each year in March and September, but due to COVID-19 impacts and a desire to preserve cash, the company decided not to pay any dividends during FY2021. In February 2022, Eumundi Group announced the recommencement of dividends and paid out A$0.035 per share in March.

Who owns EBG stock?

Individual investors own most of EBG stock, holding 65% of the total company float. 

Some of these individuals include Non-executive Chairman Joseph Ganim (25.86%), Non-executive Director Gilbert De Luca (17%), Steven Shoobridge (9.33%) and Tracy Fraser (8.74%).

EBG stock is also substantially held by smaller investment firms including Phoenix Portfolios (8.62%), Wilhelm Super Fund Account (4.69%) and Ruminator Pty Ltd (2.05%).