Category: Stock Market

It was a devastating day for the S&P/ASX 200 Index (ASX: XJO) yesterday, posting its worst fall in roughly 17 months. Much of this was attributed to Russia’s invasion of Ukraine. However, the news of construction giant Probuild going into administration had its own impact on the ASX.

A perfect storm created by COVID-19 and associated supply chain issues resulted in the company haemorrhaging money. Costs reportedly blew out to nearly $120 million at a luxury apartment construction site in Brisbane at 443 Queen Street.

The scenario begs the question: Will Probuild’s collapse have any ramifications for ASX shares?

How might Probuild’s downfall impact ASX shares?

At the moment, it is early in the piece for Probuild. The company entered voluntary administration yesterday. The restructuring team at Deloitte has taken charge in attempting to turn around the disrupted builder.

As the auditor picks apart the business, more details will likely come forward. However, we already know about a few ASX shares exposed to Probuild.

Downer EDI Limited (ASX: DOW) is currently the clearest example of an ASX share at risk. The integrated services company announced yesterday that it had carried out mechanical and electrical services for the Victoria Police building in Melbourne.

While Downer has completed the works, around $30 million in defect liability claims still sit with Probuild. As such, there is the possibility that those funds will not be recoverable. Shares in Downer sold off 3.3% yesterday on the news.

The unfolding situation may also impact CSL Limited (ASX: CSL). Unfortunately, the biotechnology giant could face delays in the completion of its new headquarters and research and development facility.

CSL has engaged Probuild to fit out the office spaces and labs of the $1 billion project in Parkville, Melbourne. Previously, CSL had indicated the facility was on track for completion in early 2023.

Could there be more consolidation to come?

Ironically, the news of Probuild going into administration was shortly followed by Cimic Group Ltd (ASX: CIM) revealing it had received a takeover offer from majority shareholder, Hochtief Australia.

The much larger construction group has had its own challenges in recent years. For example, Cimic wrote off $1.8 billion in 2020 after failing to recover debts in the Middle East.

Nicola Grayson, the CEO of the engineering industry lobby group, Consult Australia, says she fundamentally believes the system is broken. Cut-throat competition and poor risk distribution in the commercial building industry are making it increasingly difficult for construction companies to make money.

The post Which ASX shares might be impacted by Probuild’s collapse? appeared first on The Motley Fool Australia.

More reading

• Which new investments are predicted to help the AFIC (ASX:AFI) share price and dividends?
• Here’s why CSL (ASX:CSL) could be an ASX 200 share to buy now
• ASX 200 shares stage comeback amid Russia optimism
• Own CSL shares? Boss reveals why biotech is ‘not fussed’ about exiting COVID vaccine race
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. 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 Bruce Jackson.

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

The Kogan.com Ltd (ASX: KGN) share price has been paused on Friday morning following the release of the ecommerce company’s half year results.

After briefly rising 1% to $5.67, the Kogan share price has been paused pending the release of another announcement.

What this impending announcement relates to is unclear. Some shareholders may be hoping it’s a takeover offer, though it could simply be an ASX Query relating to its results.

Speaking of which, Kogan had a tough first half. Here’s what happened:

Kogan share price on watch after swinging to loss

• Gross sales up 9.4% over the prior corresponding period to $698 million
• Revenue up 1.3% to $419.5 million
• com revenue down 17%
• Adjusted EBITDA down 66% to $17.4 million
• Adjusted net profit after tax down 87% to $4.8 million
• Reported loss after tax of $11.9 million
• Active customers up 9.4% year on year or 2.5% since August to 4,071,000
• Total inventories reduced from $225.3 million to $196.8 million

What happened during the first half?

For the six months ended 31 December, Kogan reported a 9.4% increase in gross sales to $698 million but only a 1.3% lift in revenue to $419.5 million.

The latter reflects a full six-month contribution for the Mighty Ape business (acquired in December 2020) which offset a 17.3% decline in Kogan.com revenue to $325.7 million. Kogan.com’s revenue decline was driven by an 11.2% decline in Exclusive Brands revenue and a 33.5% drop in Third-Party Brands revenue.

And while Kogan’s active customers rose 9.4% to 4,071,000, its revenue per user metric is falling. This is despite its focus on growing the Kogan First loyalty program. That program grew 176% year on year to over 274,000 subscribers.

Growing Kogan First has also weighed heavily on its margins. Combined with high variable costs, the company’s adjusted EBITDA was down 66% to $17.4 million and adjusted net profit after tax dropped 87% to $4.8 million. On a statutory basis, Kogan recorded a loss after tax of $11.9 million.

Unsurprisingly, Kogan has not declared an interim dividend.

Management commentary

Kogan’s under fire Founder and CEO, Ruslan Kogan, remains upbeat despite the company’s disappointing half.

He said: “Over the last six months we have invested heavily on expanding product choice, value and speed of delivery for our over four million Aussie and Kiwi shoppers to delight them each and every step of the way. I am extremely proud of our team’s achievements, and even through the COVID situation — which has continued to bring operational disruption to all industries around the country and the world — our team has continued to focus on innovative ways to further enhance the Kogan.com and Mighty Ape customer experience.”

“We have been delighting our loyal customers for over 15 years and we look forward to continuing our obsession in delighting our customers by making the most in demand products and services more affordable and accessible. This is a team that thinks very long term. What you’re seeing right now is the building blocks for an even bigger and greater business, as we invest in building the best place for Aussie and Kiwi customers to get what they need. There’s a reason more than 4 million customers are shopping at the Kogan Group, and we’re working hard to help millions more,” he added.

Outlook

No guidance has been given for the full year, but management has provided an update on its performance during January.

It revealed that in January its gross sales grew 11.9% over the prior corresponding period. No details were given on what this means for revenue or earnings.

Kogan intends to provide regular business updates during the year.

The post Kogan (ASX:KGN) share price in limbo amid $11.9m first half loss appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Is the Kogan (ASX:KGN) share price a bargain buying opportunity?
• Why Shopify’s latest update could raise red flags for e-commerce shares like Kogan (ASX:KGN)
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

The GQG Partners Inc (ASX: GQG) share price is having a positive finish to the week.

In morning trade, the fund manager’s shares are up 5% to $1.47 following the release of its full year results.

GQG share price up amid strong FY 2021 growth

• Average funds under management (FUM) up 77% to US$80.5 billion
• Closing FUM of US$91.2 billion
• Net revenue up 74.9% to US$397.9 million
• Net income after tax up 81.6% to US$304.9 million
• Dividends per share of 1.54 US cents

Management commentary

GQG’s CEO, Tim Carver, was pleased with the company’s performance during the first half. He put its strong growth down to the positive results of its investment strategies.

Mr Carver commented: “We are pleased to announce our financial results for the 2021 financial year. During the year GQG saw 36.1% growth in funds under management to US$91.2 billion. This represents net FUM flow of US$17.1 billion for 2021, bolstered by strong absolute performance across our strategies. This, combined with FUM growth in prior periods, led to Net Revenue growth of 74.9% to US$397.9 million. Net income after tax increased 81.6% to US$304.9 million from US$167.9 million in 2020, reflecting the increase in average funds under management and cost efficiencies.”

“Our financial result is driven in large part by our investment performance over the long term. As at the end of the year our strategies continued to provide solid long-term performance as compared to their benchmarks, which we believe provides the underpinnings for continued business success.”

Outlook

While no guidance has been given for FY 2022, management appears optimistic on the future.

It notes that it continues to see strong business momentum in a variety of geographies and channels and highlights that its fees are very attractive relative to its competition.

Positively, management also revealed that although markets have experienced significant volatility since the beginning of 2022, its funds under management have remained broadly stable with FUM of US$93.8 billion as at 18 February 2022.

The post GQG (ASX:GQG) share price up 5% amid strong FY21 profit growth appeared first on The Motley Fool Australia.

More reading

• Opportunity? 5 ASX 200 shares that traded at 52-week lows today
• ‘You can’t wait til the music stops’: Why is the GQG share price leaping 6% today?
• Got money to invest for dividends? Here are 2 ASX shares that could be buys
• 2 ASX dividend shares now offering big yields
• Is the GQG (ASX:GQG) share price a buy in this volatility?

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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

The Charter Hall Group (ASX: CHC) share price took off this morning after the company released its earnings for the first half of financial year 2022.

At the time of writing, the Charter Hall share price is $16.35, 2.32% higher than its previous close.

However, that’s a far cry from the stock’s intra-day high of $17.10 – representing a 7% gain.

Charter Hall share price surges as profits almost triple

• Revenue of $566.1 million – a 127% increase on that of the first half of financial year 2021
• Statutory profit after tax of $517.8 million – 198% more than the prior period’s $173.2 million profit
• Operating earnings of $263.9 million – a 104% increase
• Operating earnings per share (EPS) of 56.6 cents
• As previously announced, the company will pay an interim dividend and distribution totalling 19.66 cents per share on 28 February

As of the end of the first half, Charter Hall boasted $79.5 billion of funds under management, with $61.3 billion of property funds under management.

That represents $27.2 billion – or 52% – funds under management growth for the period.

Additionally, the company’s property investments grew by 18% ­– or $432 million – to $2.85 billion, delivering a 25.5% return.

Its portfolio occupancy ended the period at 97.4% and its weighted average lease expiry was 8.6 years.

Meanwhile, the Charter Hall Property Trust Group brought in $18.4 million of revenue – up from $3.3 million – and a statutory profit after tax of $307.5 million – up from 104.7 million.

During the half, Charter Hall underwent $6.8 billion of transaction activity, made up of more than 60 transactions with 18 active funds and partnerships. It also completed more than $11 billion of sale and leaseback transitions.

What else happened in the half?

Charter Hall’s development pipeline grew 50% to $13.2 billion over the last 6 months. Over the last 12 months, its development completions totalled $1.2 billion.

It completed $1.3 billion of sustainable finance transitions last half and is on track to power all operations with 100% renewable energy by 2025.

It also created a new partnership with Paradice Investment Management, investing in 50% of the entity’s shares.

The company’s managing director and CEO, David Harrison noted the partnership boasts good growth opportunities.

What did management say?

Harrison commented on the company’s earnings for the half, saying:

The current period has seen us experience strong inflows across our strategies, with $2.8 billion of gross equity allotted. We’ve also successfully deployed $5.4 billion in acquisitions across 18 funds and partnerships, a record 6-month period.

Importantly, our development pipeline continues to grow and now stands at $13.2 billion, providing valuable opportunities to deploy our investment capacity into new product.

With investment capacity of $6.7 billion across the platform, continued strong demand from capital partners to deploy equity, a growing development pipeline and significant retained earnings, we continue to see a strong pathway of growth for the group.

What’s next?

Charter Hall updated its financial year 2022 guidance today.

Previously, it aimed to provide post-tax operating EPS growth of at least 105 cents.

Today, it changed that outlook to post-tax EPS of no less than 112 cents.

Its distribution per share guidance of 6% growth has remained the same.

Charter Hall share price snapshot

2022 has proven rough on the Charter Hall share price.

It is currently 21% lower than it was at the start of this year. Though, it’s still 34% higher than it was this time last year.

The post ‘Record 6-month period’: Charter Hall (ASX:CHC) share price launches 7% on half-year results appeared first on The Motley Fool Australia.

More reading

• ASX 200 shares offer 12% upside after sell-off: JP Morgan
• Irongate (ASX:IAP) share price rallies 17% on Charter Hall takeover proposal

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 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/A4uJIkb

Shares in PointsBet Holdings Ltd (ASX: PBH) are on the move today after the company released its financial results for the half-year ended 31 December 2021.

At the time of writing, the PointsBet share price is 3.37% higher at $3.68 apiece. It initially spiked to $3.85 and then retraced its steps immediately towards yesterday’s close of $3.56.

PointsBet share price up despite EBITDA loss, as group net wins flourish

Key takeouts from the company’s earnings results today include:

• Net revenue for the period of $97.6 million, signifying 27% growth over the prior corresponding period (pcp)
• Statutory EBITDA loss of $130.6 million, a poorer result than the EBITDA loss of $71.3 million in the pcp
• Group net win of $146.7 million, representing 77% growth on the pcp
• Australian trading business had 232,875 Cash Active Clients, a 63% increase compared to the pcp
• US business had 211,113 Cash Active Clients, a 210% increase on the pcp
• Australian trading business recorded a net win of $107.9 million, representing 27% year on year growth
• US business recorded a sports betting net win of $31.3 million compared to a $2 million net loss in the pcp
• US business recorded an iGaming net win of $7.6 million
• Blended US online handle sports betting market share for Q2FY22 was 4.2%.

What else happened this period for PointsBet?

PointsBet surmounted several milestones in its growth narrative during this half, underscored by collaborations with the National Football League (NFL) in America and Major League Soccer (MLS).

Specifically, it has been selected by the NFL as an Approved Sportsbook Operator, starting with the 2021 season, and is also Austin FC’s exclusive sportsbook partner as of September last year.

PointsBet also became the new major partner of the Manly Sea Eagles NRL team here in Australia last year.

“The new exclusive multi-year sponsorship deal will see PointsBet take over the main front position on the Sea Eagles NRL jerseys for at least the next four years,” the company says.

In Australia, the company recognised revenue of $97 million after growth of 27% at the top. On this result, and others, the group recorded a net win of around $147 million for the period, a mammoth 77% leap from last year.

However, as a result of “significant investment into the US business”, PointsBet recorded a statutory EBITDA loss of $131 million this half – a stack behind last year’s loss of $71 million.

In other news, customer interest appears to have piqued for the company’s technology platforms. The company said “for Q2FY22, app download volumes grew by 121% versus Q2FY21” backed by its “improved product offering, user experience and brand equity”.

Management commentary

PointsBet noted that the business is focused on widening its footprint in the US after investing big here. The report said:

The Company continued to capitalise on its expanding US presence by scaling its operations through key hires across all departments, as well as rolling out sports betting and iGaming operations in to new states as well as preparing for future sports betting and iGaming operation launches.

Regarding one key partnership with the NFL, it said:

On 8 July 2021, PointsBet announced that NFL all-time great Drew Brees officially joined the PointsBet team. Brees, who this season is transitioning to a broadcasting career with NBC Sports (PointsBet’s official sports betting partner) will deepen the NBC Sports and PointsBet relationship as the Company continues to expand and realise the growing North American online sports betting and iGaming opportunity in 2021 and beyond. Brees will star in and help develop original content for PointsBet, provide sports betting education and commentary, host events, and steer marketing and promotional concepts, among other areas.

What’s next for PointsBet?

The company also says it has garnered “positive momentum” by reducing its expenditure. As such, it anticipates marketing expenses to reduce down to roughly $16 million for H2FY22.

As a result, it expects the Australian trading business to be EBITDA positive for FY22. PointsBet also expects iGaming launches in Pennsylvania and Ontario during H2FY22.

PointsBet share price snapshot

In the last 12 months, the PointsBet share price has collapsed by 76%. It is down 48% this year to date, and is thus trailing the S&P/ASX All Ordinaries Index (ASX: XAO), which is down 8%.

The post PointsBet (ASX:PBH) share price rising despite $131 million EBITDA loss appeared first on The Motley Fool Australia.

More reading

• Why Altium, PointsBet, Tyro, and Zip shares are sinking today
• Why is the PointsBet (ASX:PBH) share price crashing 11% today?
• 3 buy-rated ASX tech shares with at least 60% upside potential
• Is the ASX value shares party just getting started?
• 3 excellent ASX tech shares Goldman Sachs rates as buys

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/I7jqYWy

The Block Inc CDI (ASX: SQ2) share price is heading skywards, up 39% in early trade.

Block closed yesterday trading for $116.05 per share and is currently trading for $161.67.

Below we look at the highlights from the global payment services company’s Q4 and full year financial results for the period ending 31 December (FY21).

Block share price rockets on soaring profits

• Gross FY21 profit of $4.42 billion, up 62% year-on-year year
• Total net revenue – including Bitcoin (CRYPTO: BTC) – of $17.66 billion, up 86% from FY20
• Adjusted earning before interest, taxes, depreciation and amortisation (EBITDA) increased 114% year-on-year to $1.01 billion
• Net FY21 income of $166 million

What else happened during the year?

The strong full year results propelling the Block share price skywards today were helped by a 47% year-on-year boost in Q4 profits, which reached $1.18 billion.

That came despite a 63% year-on-year lift in operating expenses in Q4, which climbed to $1.24 billion.

Block also reported that its transaction-based revenue in Q4 came in at $1.31 billion, up 41% from the prior corresponding period. Subscription and services-based revenue leapt to $772 million in Q4, up 72% year-on-year.

Block is also an active investor in Bitcoin. In Q4 of 2020 and Q1 of 2021, the company invested $220 million into the cryptocurrency. As at 31 December it said the fair value of that investment was $371 million.

As at 31 December, Block had $7.4 billion in available liquidity.

What did management say?

Authoring the report, Block CEO Jack Dorsey noted:

On January 31, we completed our acquisition of Afterpay, a global buy now, pay later (BNPL) platform. We believe this acquisition will further Block’s strategic priorities for Square and Cash App by strengthening the connections between our ecosystems as we deliver compelling financial products and services for consumers and merchants.

What’s next?

Looking ahead to what could impact the Block share price next, the company said it remains focused on its international strategy of “achieving product parity globally, investing further into brand awareness, and launching in new markets”. In January, Block entered into Spain, its fourth European country.

Afterpay will be included in Block’s Q1 results for February and March 2022.

Block share price snapshot

Block began trading on the ASX in January following its acquisition of Afterpay.

Since 20 January, the Block share price is down 9%. By comparison, the S&P/ASX 200 Index (ASX: XJO) has lost 8% over that same time.

The post Block (ASX:SQ2) share price rockets 39% today as profits soar appeared first on The Motley Fool Australia.

More reading

• ASX tech shares have been smashed today as market hits 3-week low
• ASX 200 tech shares take a hammering as Ukraine fears escalate
• What’s going so wrong for ASX BNPL shares this week?
• Why Block, Domain, Telstra, and Wesfarmers shares are dropping
• How did ASX tech shares perform today?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Block, Inc. The Motley Fool Australia owns and has recommended Bitcoin and Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/MV1x8FI

The market is bidding the Playside Studios Ltd (ASX: PLY) share price higher after the company released its half-year earnings.

At the time of writing, the Playside share price is 93 cents — a 5.68% gain on Thursday’s closing price.

Playside share price takes off as losses recover

Highlights of the video game developer’s results for the first half of financial year 2022 include:

• Revenue of $9.4 million – an 87% increase on that of the first half of financial year 2021
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a loss of around $150,000 – up from the prior corresponding period’s loss of $1.6 million
• Posted an after-tax loss of $444,000 – an improvement on the prior period’s $2.05 million loss
• Earnings per share (EPS) came to a loss of 12 cents – a better result than the previous loss of 74 cents

Over the first half of financial year 2022, Playside’s revenue split leaned further towards its original intellectual property (IP) segment.

Some 64% – around $6 million – of the company’s revenue was generated through its own IP, up from 59% in the prior comparable period.

The increase was mainly due to its Age of Darkness: Final Stand, Battle Simulator, and Animal Warfare titles.

The remaining 36% – or $3.4 million – was generated through work for hire business.

That was boosted by contracts with 2K Games, Meta Platforms Inc (NASDAQ: FB), and Shiba Inu Games (CRYPTO: SHIB).

The company ended the period with $33 million in cash and equivalents.

What else happened in the half?

The last half was a busy one for Playside and its share price.

The company announced its acquisition of the Dumb Ways to Die franchise for $2.25 million. Since then, it’s undergone an NFT project, BEANS, under the franchise’s name, which brought in $8.38 million in January.

It also underwent a capital raise, whereby it raised $25 million in a private placement and another $3 million through a share purchase plan.

It offered its shares for 75 cents apiece within the raises.

The Playside share price gained 323% between 30 June and 31 December 2021.

What’s next?

Playside is currently developing several games to be launched during the second half and beyond.

Its Legally Blonde game will launch in the final quarter of this financial year, while its Age of Darkness: Final Stand will launch in the first quarter of financial year 2023.

The Godfather and World Boss will undergo soft launches in the third and fourth quarter of this financial year respectively.

Additionally, the company is in talks with multiple Hollywood movie studios for the rights to other licences.

It’s also developing 3 new titles under the Dumb Ways to Die franchise and is in discussions with streaming providers and toy manufacturers to expand the brand.

Playside share price snapshot

Today’s gains haven’t been enough to boost the Playside share price back into the year-to-date green.

It is currently still 23% lower than it was at the start of this year. Though, it’s 110% higher than it was this time last year.

The post Playside (ASX:PLY) share price launches 6% on surging half-year revenue appeared first on The Motley Fool Australia.

More reading

• Why is the PlaySide (ASX:PLY) share price rocketing 18% to a new record high?
• Playside (ASX:PLY) share price tanks 10% on BEANS project update
• Which ASX shares have exposure to NFTs?
• 3 highly rated small cap shares with heaps of potential
• Playside Studios (ASX:PLY) share price soars 21% amid NFT gold mine

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. 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. owns and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

The Lynas Rare Earths Ltd (ASX: LYC) share price is rallying this morning after the ASX miner posted a sharp rise in revenue and profit for the six months ending December 2021.

Shares in Australia’s largest rare earths miner are 3.58% higher at $9.27 in early trade following the release of the results.

Lynas share price bolstered by record first half profit

Highlights from Lynas’ first-half FY22 results include:

• Net profit after tax (NPAT): A$156.9m (1H 21: A$40.6m)
• Revenue: A$314.8m (1H 21: A$202.5m)
• EBIT: A$161.9m (1H 21: A$46.1m)
• EBITDA: A$189.8m (1H 21: A$80.6m)
• Cost of sales: A$140.3m (1H 21: A$150.8m)
• Closing cash and short term deposits: A$674.2m (1H 21: A$512.6m).

Part of the green metals boom

Lynas is benefitting from the global electric vehicle revolution that is powering our lithium miners like Allkem Ltd (ASX: AKE) and Pilbara Minerals Ltd (ASX: PLS).

One of the commodities Lynas produces is Neodymium-Praseodymium (NdPr), or magnets used in motors.

As with the skyrocketing price of lithium, NdPr prices are also booming and have jumped to over US$100/kg. This is its highest in 11 years.

Another factor that may be bolstering the Lynas share price today is its cost control. Most miners, including Rio Tinto Limited (ASX: RIO), are complaining about inflationary pressure. But attentive investors will be pleased that Lynas’ cost of sales fell during the period versus 1H 21.

Growth projects

Lynas continues to invest in building the business under its Lynas 2025 Strategy. Its Mt Weld resource is part of its growth plan and it is expecting to accelerate investment in this project.

The miner said that Mining Campaign 4-1 commenced and the resource extension drilling program was completed towards the end of 2021.

Lynas is also making progress on the Kalgoorlie Rare Earths Processing Facility. All necessary approvals have been secured for the processing facility and Lynas is stepping up construction activities.

Another pleasing development is the environmental approval for its Malaysian plant in December 2021. This has been a key risk factor that was hanging over the Lynas share price for a while.

Commentary from management

Speaking on the results driving the Lynas share price today, Managing Director, Amanda Lacaze, commented:

Our team remains highly focused on delivering results, whilst managing the ongoing challenges of the pandemic.

Pleasingly, a number of Lynas 2025 growth project milestones were achieved during the half year and subsequently which will provide a strong foundation to meet accelerating demand growth.

Our customers expect demand will grow strongly as we move further into FY22, and we are positioning the business to meet accelerating demand through our Lynas 2025 growth projects.

Lynas share price snapshot

The Lynas share price has surged by 64% over the past 12 months. However, it’s lost around 16% since the start of the calendar year.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has only managed to gain a modest 2.6% over the past year.

The post Lynas (ASX:LYC) share price jumps amid record interim net profit appeared first on The Motley Fool Australia.

More reading

• The ASX share that the whole world is relying on
• Here’s how rich Lynas Rare Earths (ASX:LYC) shares have made ASX 200 investors over the past 2 years
• What even are rare earths and why are ASX shares with exposure always in the spotlight?
• Do Lynas Rare Earths (ASX:LYC) shares pay dividends?
• Lynas (ASX:LYC) share price jumps on government green light

Motley Fool contributor Brendon Lau owns Lynas Corporation Limited, Allkem Ltd, and Rio Tinto Ltd. 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/SV0Zlaw

Shares in BWX Ltd (ASX: BWX) are on deep in the red today after the company released its interim report and financial results for the half-year ended 31 December 2021.

At the time of writing, the BWX share price is trading down 25.82% at $2.50 apiece after releasing its earnings.

BWX share price plunges amid revenue growth, profit slide

Key takeouts from the company’s earnings results today include:

• Strong Group underlying revenue growth of 26.5% and EBITDA growth of 26.2% year on year (YoY)
• Statutory revenue of $103.4 million and Statutory net loss after tax (NLAT) of $2.3 million
• Completion of Flora & Fauna acquisition in 1Q22 and Go-To Skincare in 2Q22
• Integration and synergies on target; three-year growth strategy established for Go-To Skincare
• Core brand margin improved 334 basis points YoY to 58.5%
• Group gross margin up 206 basis points YoY to 55.7%
• Global points of distribution at 1.6 million and on track to achieve 2 million target by end FY22
• Clayton Facility supporting a step change in operational and financial performance, targeting 300 basis point margin accretion from FY23
• Solid balance sheet supporting reinvestment for longer-term growth
• Strong underlying revenue and EBITDA expected for FY22

What else happened this half for BWX?

The company’s results were hallmarked by YoY growth in underlying revenue and EBITDA during its first half. BWX says this was driven by “core brand and acquisition-led growth across Australia/International and USA segments”.

Specifically, underlying revenue came in at $107 million, a 26.5% increase on the same time last year. This result was underlined by “three- and six-month contributions from the acquisitions of Go-To Skincare (Go-To) and Flora & Fauna respectively”.

Underlying NPAT was $4.7 million, up 22.1% on the prior period. However, including all assessable income, the company actually recorded a net loss after tax of $2.3 million.

BWX says the drop in after tax profit was attributable to one-off items that aren’t likely to be seen in its P&L again.

“The decline was driven by the one-off impact of a $5.8 million benefit in 1H21 from settlement of the Egide Compensation Plan to the sellers of the Andalou Naturals business, and costs in 1H22 including one-off acquisition charges of $3.0 million and $3.5 million Chemist Warehouse cost of equity-linked strategic partnership expense”, it noted.

Nevertheless, the group’s core margins lifted by over 300 basis points to 58.5% which thrust gross margins 200 basis points higher to 55.7%. The result stemmed from efficiency gains in procurement and sourcing, BWX claims.

Management commentary

Speaking on the group’s result, current BWX CEO and Managing Director, Dave Fenlon said:

During 1H22, the Group delivered strong underlying growth despite a heavily impacted first quarter which saw approximately 7% of our total distribution points forced to close in line with Government responses to COVID outbreaks across key regions. The second quarter reflected stronger sales momentum which is continuing to accelerate and – coupled with a strong performance in our USA segment – demonstrates a broader retail-led recovery as consumers return to socialising and instore shopping.

What’s next for BWX?

According to the release, BWX anticipates “strong underlying revenue and EBITDA growth in FY22” with the bolus of upside to be realised at the back end of FY22.

“This outlook is supported by sales momentum in 2Q22, which is continuing into 3Q22”, it says, although no formal numbers were given.

Finalising the group’s remarks, incoming BWX CEO and Managing Director, Rory Gration concluded:

January retail performance has maintained the strong momentum seen in the second quarter, which is encouraging. While the environment remains uncertain, our strategic priorities are simple and we will continue to execute through the unlocking of acquisition-led and organic brand growth and increasing our points of distribution.

BWX share price snapshot

In the last 12 months, the BWX share price has collapsed into the red by 38% and is down a further 43% this year to date.

More pain in the last month has meant BWX has shot down by 31% after collapsing around 28% this week.

The post BWX (ASX:BWX) share price plunges 26% after posting after-tax loss in 1H FY22 appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares this expert rates as a buy
• 2 ASX shares that this top fund manager rates as a buy
• Brokers rate these 2 top ASX shares as buys in February 2022

Motley Fool contributor Zach Bristow 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 recommended BWX Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

The Lovisa Holdings Ltd (ASX: LOV) share price is climbing again this morning after rocketing on Thursday. Yesterday’s surge came on the back of the company’s impressive FY22 first-half results, in which it also declared a monster dividend for shareholders.

The fashion jewellery retailer’s shares surged to an intraday high of $21.25 on Thursday, before settling back to $18.50, up 11.78% at market close. This morning, its shares are up 6.05% to $19.62 at the time of writing.

Late last year, the Lovisa share price hit an all-time high of $23.07 after the company received a positive broker upgrade.

Below we take a look at Lovisa’s latest financial performance and its huge interim dividend for investors.

What’s the deal with the Lovisa dividend?

In the half-year report for the 2022 financial year, Lovisa reported double-digit growth across key metrics.

In summary, revenue increased by 48.3% to $217.8 million over the previous corresponding period. 

Despite being impacted during the first quarter by temporary store closures across a number of markets, comparable store sales momentum continued. This resulted in equivalent store sales up 21.5% on H1 FY21, with 42 new stores opened during the period.

Overall, net profit after tax (NPAT) rose to $36.7 million, a lift of 70.3% compared to $21.5 million in the prior year.

Based on Lovisa’s robust performance, the board declared a 30% franked interim dividend of 37 cents per share. This represents an 85% increase from the 20 cents declared in the prior comparable period.

Management noted that the latest dividend reflects the strong cash outcome and balance sheet position for the first half.

Lovisa ended the calendar year with $52.7 million of net cash and no debt.

When can Lovisa shareholders expect payment?

While it’s a number of weeks away, Lovisa will pay the interim dividend to eligible shareholders on 21 April.

However, to be eligible, you’ll need to own Lovisa shares before the ex-dividend date which falls on Tuesday 8 March. This means if you want to secure the dividend, you will need to purchase Lovisa shares by Monday 7 March at the latest.

It is worth noting that on the ex-dividend day, the share price traditionally falls in proportion to the dividend amount.

And, in case you are wondering, the company is not offering a dividend reinvestment plan (DRP) to shareholders.

The post The Lovisa (ASX:LOV) dividend jumped 85%. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• Why Cimic, Lovisa, NextDC, and Nine shares are charging higher
• All that glitters: Lovisa (ASX:LOV) share price skyrockets 20% on high-profit earnings
• 3 buy-rated ASX growth shares
• 2 compelling ASX growth shares that are now great value: brokers

Motley Fool contributor Aaron Teboneras 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 recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/h1oUH4e