ASX 200 rises, Harvey Norman falls, Mesoblast sinks

The S&P/ASX 200 Index (ASX: XJO) went up by 0.4% today to 7,535 points.

Here are some of the highlights from the ASX:

Harvey Norman Holdings Limited (ASX: HVN)

Harvey Norman reported its FY21 result today. It said that total aggregated company operated and franchisee sales revenue increased by 15.3% to $9.5 billion.

The earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 54.2% to $1.46 billion. Reported profit before tax rose 78.8% to $1.18 billion, though excluding net property revaluations it increased 66.4% to $1.04 billion.

Reported net profit increased 75.1% to $841 million and excluding net property revaluations it increased 63% to $743.1 million.

Harvey Norman decided to pay an annual dividend of 35 cents per share, which was a 45.8% increase over FY20.

In the first few weeks of FY22, the ASX 200 share has seen growth across almost all countries (except Malaysia) compared to FY19. However, the Australian franchisees, New Zealand, Northern Ireland and Malaysia have seen aggregated sales decline in local currency terms compared to FY20.

Harvey Norman also said that subsequent to the year end, in August 2021, all of the wages support and assistance received in Australia totalling $6.02 million was repaid to the federal government via the ATO.  

Webjet Limited (ASX: WEB)

The Webjet share price increased by 3.5% after the ASX 200 travel share gave a trading update.

It announced that it’s going to be cashflow positive for the first half of FY22 (excluding investing and debt repayments) and that the WebBeds business has been profitable since July 2021.

Webjet managing director John Guscic explained further:

We have seen strong demand as travel restrictions ease in North America and Europe, suggesting significant upside as more international markets reopen.

Webjet OTA (online travel agency) was profitable for April to July but has been subsequently impacted by the current lockdowns in Australia and New Zealand. Online Republic was profitable in April and May, but like the Webjet OTA, has been impacted by lockdowns. However, we are confident that both businesses will return to profitability as soon as the domestic Australia and New Zealand markets reopen.

The company believes it has the potential to grow market share by expanding into new market segments and benefiting from the shift to online purchasing of travel. Webjet believes it will have greater profitability once conditions normalise.

Mesoblast Limited (ASX: MSB)

The Mesoblast share price dropped around 16% after the business released its FY21 result. It was the worst performer in the ASX 200.

In terms of financial highlights, the company said it had US$136.9 million of cash on hand at 30 June 2021.

Revenue from TEMCELL royalties increased by 10% to US$7.2 million.

It made a loss after tax for FY21 of US$98.8 million, compared to US$77.9 million last year.

Mesoblast also said that it met with the US FDA, which told Mesoblast that an additional clinical study in COVID acute respiratory distress syndrome would be required for remestemcel-L which could provide a dataset in conjunction with the recently completed 222 patient clinical study that might be sufficient to support an emergency use authorisation.

It also continues to be in discussion with the FDA about remestemcel-L for the treatment of steroid-refractory acute graft versus host disease in children. This may include a resubmission with a six month review.

The post ASX 200 rises, Harvey Norman falls, Mesoblast sinks appeared first on The Motley Fool Australia.

More reading

• 2 excellent ASX 200 shares named as buys for September
• ASX reporting wrap-up: Harvey Norman, Cettire, PointsBet
• These 3 ASX 200 shares are the most traded this Tuesday
• Here are the top 10 ASX 200 shares on Tuesday
• Mesoblast (ASX:MSB) share price crashes 16% to 52-week low on cash concerns

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 no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Harvey Norman Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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