A select few major Australian companies seem to have created a poor track record for our ambitious firms looking to venture overseas.
Insurance Australia Group Limited (ASX: IAG), National Australia Bank Ltd (ASX: NAB) and QBE Insurance Group Ltd (ASX: QBE) are just some of the companies whose international strategies have failed to impress.
However, if a business can make it aboard the rewards can be enormous.
Here're five super-growth Australian companies making waves internationally.
- Australia and New Zealand Banking Group (ASX: ANZ)
ANZ has held its 'Super Regional' strategy in high regard since it was launched by CEO Mike Smith in 2008. While the risks of expansion into Asia cannot be underestimated, especially with growing regulation, the bank has a goal of generating of 25% to 30% of profits from Asia Pacific, Europe and America's markets by 2017. So far, so good.
- XERO FPO NZ (ASX: XRO)
Xero develops seriously beautiful accounting software that is accessed by business owners and accountants in the cloud. Despite not yet being profitable, Xero has achieved significant subscriber growth in both Australia and New Zealand and has begun an ambitious strategy in the USA and UK.
- Bellamy's Australia Ltd (ASX: BAL)
Bellamy's is an infant formula producer that takes pride in its growing range of organic products. It's this passion for quality and transparency with consumers that is seeing Bellamy's fly off shelves throughout Australia and Asia quicker than it can manufacture. Bellamy's is a company for all long-term investors to watch closely.
- Yowie Group Ltd (ASX: YOW)
The only thing kids like more than milk is chocolate. Yowie Group is currently tapping into the primal desire of children (young and old!) throughout the world's largest consumer market, the USA. It has exclusive right to distribute the Yowie collection of chocolates and toys to the US and is currently gearing up manufacturing after it recently inked a meaningful distribution agreement with Walmart.
- Netcomm Wireless Ltd (ASX: NTC)
Netcomm is a modem developer cum machine-to-machine (M2M) communications business. In addition to benefitting from the rollout of the National Broadband Network in rural areas, Netcomm is signing M2M and broadband agreements with global partners.
Buy, Hold or Sell
ANZ and Xero shares have come under intense selling pressure in recent months, with the latter a sound buying opportunity for investors focused on the long-term in my opinion. Conversely, Bellamy's, Yowie and Netcomm have each rallied more than 100% since the beginning of 2015, yet could present compelling long-term investments for the right type of shareholder (i.e. one who can handle volatility) at today's prices. However, if I had to pick one for new money today, it'd be Yowie Group.
