Australia's biggest companies have a poor track record when it comes to expanding overseas.
National Australia Bank Ltd (ASX: NAB) and QBE Insurance Group Ltd (ASX: QBE) are just two of the well-known companies who've bitten off more than they could chew in foreign lands.
However, for those who can peel off just a slither of their purported international growth potential, the rewards can be immense.
Here are are three Australian companies looking to strike it rich abroad.
- Australia and New Zealand Banking Group (ASX: ANZ)
Although in coming ANZ CEO, Shayne Elliot, has identified the New South Wales mortgage market as a key growth area, ANZ has long held the mantle of Australia's premier 'Super Regional' bank. Since current CEO, Mike Smith, launched the strategy in 2007, the bank has grown into emerging markets such as Hong Kong, China and Indonesia. 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 the Americas markets by 2017.
- Retail Food Group Limited (ASX: RFG)
Retail Food Group shares were being heavily discounted by the market until about two weeks ago. While fears over a slowing economy linger, the market is offering savvy long-term investors an excellent opportunity into a quality retail business that has achieved an average compound return of 19% per year over the past five years. Given its international coffee expansion has only just got underway, investors would be wise not to turn their nose up at Retail Food Group shares. At today's prices, it is forecast to pay a 5.6% fully franked dividend!
- Yowie Group Ltd (ASX: YOW)
The $175 million Yowie Group is currently tapping into the world's largest consumer market, the USA, by rolling out its chocolate through a range of distributors. It has exclusive rights to distribute the Yowie collection of chocolates and toys and is currently ramping up manufacturing after inking a meaningful distribution agreement with Walmart – the world's largest retailer.
Buy, Hold or Sell?
At today's prices, each of these businesses is worthy of a spot on savvy investors' watch lists. However, if I had to pick one to buy today, it'd be Retail Food Group because it looks exceptionally cheap, pays a good dividend and has long-term growth potential.
