The United Malt Group Ltd (ASX: UMG) share price was the second-best performer in the S&P/ASX 200 Index (ASX: XJO) today.

United Malt shares hit a high of $3.75 today, up 5.6% amid investors reacting positively to news delivered at the annual general meeting (AGM).

The commercial maltster finished the session on Friday at $3.72, a gain of 4.79%.

The ASX 200 benchmark itself finished down 0.8% to 7,433.7 points.

So, what did the chair of United Malt Group tell shareholders today?

Dividends are back!

United Malt Group chair Graham Bradley AM told shareholders the company expected to recommence paying dividends in FY23.

The ASX 200 share did not pay a final dividend in FY22 due to the company’s poor financial performance.

Bradley said:

Looking ahead, your Board expects a progressive recovery in earnings during FY23 and we expect
to resume dividend payments …

While certain challenges remain, several of these headwinds are expected to abate as FY23 progresses.

FY22 net profit after tax (NPAT) came in at $11.6 million, which was 20% down on FY21.

The company blamed resurgent COVID-19 impacts, a severe drought affecting the Canadian barley crop, significant disruption to ocean and rail supply chains, and increased freight and energy costs.

United Malt paid an interim dividend of 1.5 cents per share in FY22. This was equivalent to 40% of the full-year underlying NPAT.

This is well short of the company’s dividend payout ratio of approximately 60%.

What is United Malt doing to improve its financial performance?

Bradley said the company was progressing with several initiatives to streamline operations and rejig contracts after “a challenging year” in FY22.

United Malt is progressively re-negotiating prices and improving commercial terms with its largest customers.

Bradley explained that this “will reduce our risk exposure to barley supply, quality and prices and to additional energy costs and freight surcharges”.

He said the new pricing terms had been coming into effect since 1 January.

The impact “will flow through to our results from the second, third and fourth quarters of FY23”.

He added:

Our first half FY23 results (which we will report in May) will, therefore, reflect a half year when we combine two very different quarters and we will seek to highlight the improvement in the second quarter.

What’s the outlook for this ASX 200 share?

Bradley said the company expected “a further step-up in earnings in FY24”.

He said the North American crops were good, and the company did not expect to see the same supply or quality problems it experienced in FY22.

He said sea freight and container rates and availability were better, and gas prices were moderating.

The company confirmed earlier guidance of underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) (before SaaS costs) of $140 million to $160 million.

This compares with an FY22 EBITDA (before SaaS costs) of $105.9 million, down 23% on FY21.

A potential headwind in FY23 is the possibility of reduced beer demand due to inflation and fears of a recession. Bradley said the company is “carefully monitoring” this aspect.

The post Why this ASX 200 share smashed the market with a 5% rally today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Could an Aussie house price crash destroy the ASX 200 in 2023?
• The CBA share price is trading near all-time highs. Should you cash in?
• Guess which ASX 200 healthcare share is surging 5% on a new US patent?

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/PRXoS3g

Are you wanting some more ASX 200 blue chip shares for your portfolio? Then read on!

Listed below are two blue chip shares that have been rated as buys by brokers. Here’s what they are saying about them right now:

National Australia Bank Ltd (ASX: NAB)

The first ASX 200 share to buy is NAB, which is of course one of Australia’s big four banks.

Goldman Sachs is tipping the banking giant as a buy due largely to its exposure to commercial lending.

In addition, along with Westpac Banking Corp (ASX: WBC), the broker believes that NAB is well-placed to deliver double digit returns for investors over the coming years. It recently commented:

The major Australian banks have been in the midst of an EPS upgrade cycle, with 12-month forward EPS having increased by an average of 21% p.a. over the last two years. However, the outlook is now less optimistic, with 12-month forward EPS now only representing a c. 4% p.a. tailwind to share prices over the next three years. Despite this, the outlook for our two Buy stocks, WBC (on CL) and NAB, is better, and we highlight why we think double digit total shareholder returns remains achievable over the next three years.

Goldman Sachs has a buy rating and $35.60 price target on its shares. It also expects a $1.78 per share fully franked dividend in FY 2023, which equates to a generous 5.6% yield.

ResMed Inc (ASX: RMD)

Another blue chip ASX 200 share that could be a buy is ResMed. It is a medical device company with a focus on sleep disorder treatments.

While it has had a bumpy time during the pandemic, trading conditions appear to be returning to normal now for its core sleep treatment business. Combined with growth in the digital business, the team at Morgans is tipping ResMed for big things in the future. It commented:

While we expect the next few quarters to be volatile as COVID-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

Morgans has an add rating and $37.00 price target on ResMed’s shares.

The post Buy NAB and this ASX 200 blue chip share: brokers appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Macquarie has these ASX 200 dividend shares in its income portfolio
• NAB shares: A top tip for passive income?
• Buy NAB and this ASX 200 dividend share now: brokers
• Here’s why analysts rate these blue chip ASX 200 shares as buys
• 3 ASX dividend shares I’m backing to outperform in 2023

Motley Fool contributor James Mickleboro has positions in Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/uTjcP7a

The S&P/ASX 200 Index (ASX: XJO) ended the week just the way it started it – in the red. The index closed Friday’s session 0.76% lower at 7,433.7 points, marking a 1.65% week-on-week fall.

It came as the Reserve Bank of Australia issued its latest Statement on Monetary Policy. The central bank “expects that further increases in interest rates will be needed” in its battle against inflation.

Of course, that was seemingly bad news for the rate-sensitive S&P/ASX 200 Information Technology Index (ASX: XIJ), which dropped 2% today.

The S&P/ASX 200 Energy Index (ASX: XEJ) also struggled, falling 1.7% after energy commodities slumped overnight.

One sector rose above the chaos, however. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) lifted 0.9%, driven by the United Malt Group Ltd (ASX: UMG) share price. It gained 4.8% amid the company’s annual general meeting.

But it was outperformed by one of its ASX 200 peers. Let’s take a look at the stock posting the index’s biggest gain on Friday.

Top 10 ASX 200 shares countdown

The Imugene Limited (ASX: IMU) share price took out the ASX 200’s top spot today, rising 7.4% to close at 14.5 cents.

Its gains came on the announcement of a new United States patent.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Imugene Limited (ASX: IMU)	$0.145	7.41%
United Malt Group Ltd (ASX: UMG)	$3.72	4.79%
Johns Lyng Group Ltd (ASX: JLG)	$5.58	3.53%
Arena REIT No 1 (ASX: ARF)	$3.85	2.94%
Endeavour Group Ltd (ASX: EDV)	$6.82	2.4%
Sayona Mining Ltd (ASX: SYA)	$0.24	2.13%
Treasury Wine Estates Ltd (ASX: TWE)	$14.38	1.63%
Insurance Australia Group Ltd (ASX: IAG)	$4.71	1.29%
Metcash Limited (ASX: MTS)	$4.03	1.26%
Computershare Limited (ASX: CPU)	$24.73	0.94%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why Appen, Endeavour, Imugene, and Treasury Wine shares are pushing higher
• Treasury Wine share price climbs on China tariff hopes
• Guess which ASX 200 healthcare share is surging 5% on a new US patent?
• Here are the 3 most heavily traded ASX 200 shares on Thursday

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group. The Motley Fool Australia has recommended Johns Lyng Group, Metcash, and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/i3mrxsZ

A number of S&P/ASX 300 Index (ASX: XKO) shares are facing weakening share prices again. Especially as inflation and rising interest rates throw up some more volatility.

When compelling businesses hit 52-week lows, that could be a good signal for investors to take advantage of lower prices.

This year could lead to a difficult economic situation for some businesses, but that doesn’t mean it’s going to last forever.

There could be an opportunity with these ASX 300 shares that could have been oversold by the market.

Dicker Data Ltd (ASX: DDR)

Earlier today, the Dicker Data share price hit a 52-week low. Over the past year, it has fallen around 40%.

For readers that haven’t heard of this business, it acts as a distributor of a wide range of products including Cisco Systems, Dell, HP, Microsoft and many more. It’s also expanding in other areas such as cybersecurity.

The ASX 300 share recently reported its result for the 12 months to December 2022. It said that revenue was up 25% to $3.1 billion, earnings before interest, tax, depreciation and amortisation (EBITDA) went up 9.3%, operating profit before tax increased 0.8% to $106.9 million and net profit after tax (NPAT) declined 0.3% to $73.4 million.

Management said that the company suffered from higher costs, particularly higher wages and finance costs. Higher costs were incurred as the acquired businesses Exceed and Hills were integrated. It’s yet to achieve significant cost synergies with these acquisitions.

Earnings are expected to rise noticeably to FY24. Commsec numbers suggest that earnings per share (EPS) could be 52.4 cents, putting the Dicker Data share price at 17 times FY24’s estimated earnings. In that year it could pay an annual dividend per share of around 50 cents per share, translating into a grossed-up dividend yield of 8%.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is a leading global pathology business with a presence in a number of countries including Australia, the UK, the USA, Germany and so on.

It played an important part during COVID-19 by carrying out millions of tests. In October 2022 it generated $57.7 million of COVID-19-related revenue, so FY23 will also include earnings from testing.

While the ASX 200 share’s profit is likely to be lower than in FY22 because of the significantly reduced COVID-19 testing in FY23, there are still positive signs. In the four months to October 2022, base (non-COVID) revenue had increased from $2.29 billion to $2.45 billion, up 6.7%.

EBITDA in the four months to October 2022 was $621 million, up 32.7% compared to the four months to October 2019 – pre-COVID times.

I think that healthcare treatments delayed because of the pandemic will now flow through Sonic Healthcare’s financials. Despite that, the Sonic Healthcare share price is down almost 40% since the start of 2022.

According to estimates on Commsec, the Sonic Healthcare share price is valued at under 19 times FY23’s estimated earnings. It has a trailing grossed-up dividend yield of around 5%.

The post 2 quality ASX 300 shares trading at bargain-basement prices today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These 2 ASX All Ords shares will trade ex-dividend next week
• Dicker Data share price tumbles to multi-year low. Is it too cheap to miss?
• Why AGL, Dicker Data, Megaport, and Suncorp shares are dropping
• Bargain alert? 3 high-quality ASX shares that just hit 52-week lows
• Why did ASX 300 healthcare stock Polynovo tumble 12% today?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/8uQHPgD