Category: Stock Market

Investing in ASX-listed buy now, pay later (BNPL) shares has been quite rewarding for investors over the last few years.

For example, Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) have delivered returns of 677% and 539% respectively. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has climbed a relatively paltry 23.5% (before dividends) in comparison.

What was once a downtrodden niche payment option has fast become a rapidly growing payment megatrend used by merchants around the world. As the market opportunity has ballooned, many more BNPL competitors have entered the fray, each putting their own spin on the new payment method.

This leaves investors wondering what the future of ASX BNPL shares could look like? Is the market now saturated with options? Is there any growth left in the sector and will the banks be challenged?

In addressing some of these questions, we take a look at the recently released Capgemini World Payments Report for 2021.

Where lies the future?

It has been 18 months of unprecedented events which have vastly changed the payment landscape in various ways. As a side effect, merchants of all sorts were pushed towards digital options in a bid to survive the challenging environment.

This is supported by the substantial merchant uptake in Afterpay’s services during FY21. During the financial year, Afterpay experienced a 77% increase in active merchants, reaching 98,200.

According to the World Payments Report, similar growth could still be ahead for these new payment companies. Additionally, the report notes there is growing consumer demand for convenient payments.

On the merchant side, retailers require instant payment confirmation, seamless cross-border transactions, and smooth reconciliations.

However, how much growth could still be in front of companies operating in the BNPL industry? Well, BNPL adoption is expected to grow at 28% CAGR [compounded annual growth rate] over the next five years.

This possibly explains why the market has become inundated with newcomers. Australian fintech startups must now compete on the world stage with the likes of Affirm Holdings Inc (NASDAQ: AFRM) and whatever BNPL product Apple Inc (NASDAQ: APPL) cooks up with Goldman Sachs.

Furthermore, the World Payments Report highlights that the COVID-19 pandemic has accelerated the adoption of next-gen payment options. Despite this, next-gen retail non-cash transactions still hold a relatively small share of all payments. As such, Capgemini expects a large runway of adoption ahead for BNPL.

Could ASX BNPL shares disrupt the banks?

Following Square‘s (NASDAQ: SQ) proposed acquisition of Afterpay, many investors have been wondering whether the traditional banks could be disrupted by these large fintechs.

Leading Australian banks — Australian and New Zealand Banking Group Ltd (ASX: ANZ), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Westpac Banking Corp (ASX: WBC) — took in $1.7 billion in revenue from payments and credit cards in FY21. It is estimated that up to 45% of this income is under threat from BNPL disruptors and tech behemoths.

Adding to this, around 75% of consumers aged 30 years or younger use credit cards less than 20 times a year, but are interested in using BNPL offerings. This demonstrates an evolving shift in consumer habits which leans towards the benefit of ASX BNPL shares.

Likewise, merchants are attracted to the BNPL proposition, as data indicates improved sales metrics upon implementation. A focus group showed merchants witnessed a 20% to 30% rise in conversion and a 50% to 80% increase in order value using BNPL.

However, the rise in BNPL may not be a stake to the heart of banking incumbents either. Global head of cash management at Standard Chartered Bank Philip Panaino states:

As the payment ecosystem expands, banks must foster symbiotic relationships with market players. Opportunities around co-creation, co-innovation, and value creation are enormous. But finding the sweet spot matters most. When non-banks develop value-added payment capabilities, incumbents should focus on expediting innovation, shortening development timeframes, and connecting the dots.

Perhaps the future entails a swathe of complementing products and services between BNPL companies and banks.

The post Own ASX BNPL shares? World Payments Report delivers insights into future of sector appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO, Apple, and Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Affirm Holdings, Inc., Apple, Square, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Apple. 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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There is a group of ASX shares that have been rated as buys by multiple brokers.

These brokers are always on the lookout for new opportunities that could be good value. Share prices change all the time, so it can change whether a business is possibly a buy or not.

If many brokers all like the same stock then it could be an opportunity to consider. However, it is possible that all of those brokers are simultaneously wrong.

With that in mind, here are two ideas:

Newcrest Mining Limited (ASX: NCM)

Newcrest is one of the world’s biggest gold miners. It is currently rated as a buy by at least five brokers.

One of the brokers that currently likes Newcrest Mining is Morgan Stanley, with a price target of $30. The broker likes the company’s recent announcement about its investing and growth plans.

The ASX share said there are attractive economics and significant value creation across its plans for Cadia and Havieron in Australia, Red Chris in Canada and Lihir in Papua New Guinea.

All four organic growth options have the ability to deliver internal rate of returns of at least 16%. It’s also projected to reduce the group all-in sustaining cost (AISC) by more than 50% from the current levels by FY30.

There is also “significant” upside potential with growth optionality beyond the stage 1 project parameters as well as “exploration upside”.

It’s expecting 37% growth in expected copper production by FY30, sourced exclusive from tier 1 jurisdictions, like Australia.

Morgan Stanley’s projection, puts the Newcrest share price at 24x FY22’s estimated earnings.

Telstra Corporation Ltd (ASX: TLS)

The telco giant is another ASX share that is highly rated by brokers at the moment. It’s currently rated as a buy by at least four brokers.

One of the brokers that likes Telstra is Morgan Stanley, which has a price target of $4.50 on the business.

Morgan Stanley points to the financial targets that Telstra has released some financial information about its T25 strategy.

It said that the 5G network coverage is going to be extended to 95% of the population, with regional coverage to be expanded with 100,000sq km of new 4G and 5G coverage.

To 2025, the ASX share is targeting a compound annual growth rate of mid-single digit underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and a high-teens growth rate for underlying earnings per share (EPS).

Telstra is also targeting another $500 million of net fixed cost reductions from FY23 to FY25.

The company also said that it’s looking to maximise the fully franked dividends for shareholders, whilst seeking to grow them over time.

Using Morgan Stanley’s earnings estimates, the Telstra share price is valued at 28x FY22’s estimated earnings.

The post 2 ASX shares rated as strong buys by brokers appeared first on The Motley Fool Australia.

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• Newcrest (ASX:NCM) share price lifts as upcoming projects valued at $3.2b
• What happened for the Telstra (ASX:TLS) share price in the FY22 first quarter?
• 3 reasons this broker thinks the Newcrest (ASX:NCM) share price is a buy
• When will the Telstra (ASX:TLS) dividend increase?

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 Telstra Corporation Limited. 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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ASX uranium shares are surging across the board on Wednesday following a bullish overnight session for uranium.

ASX uranium shares jump double-digits on open

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN) is currently up 18.4% to 87 cents. After ceasing operations at its “globally significant” Langer Heinrich mine in 2018, the company is looking to restart operations to take advantage of the improving uranium market.

Advanced uranium explorer Deep Yellow Limited (ASX: DYL) is up 16.2% to $1.05. The company has been carrying out exploration activities at it Tumas Project since 2016, and during that time, has expanded its resource by more than threefold. Deep Yellow is targeting the completion of its definitive feasibility study in the latter part of 2022.

On the speculative end of town, players such as Bannerman Energy Ltd (ASX: BMN), Lotus Resources Ltd (ASX: LOT), Vimy Resources Ltd (ASX: VMY) and Alligator Energy Ltd (ASX: AGE) are also joining in on the buying frenzy, surging between 15% and 25%.

What’s driving the uranium sector?

Overnight, the Global X Uranium Exchange Traded Fund (ETF) surged 11.65% to US$26.92. The ETF is now within an arms reach of its previous 7-year high of US$28.72.

This move comes off the back of its highest volume day since inception, with over 6.1 million shares traded.

To add some perspective, its 10-day average volume currently sits at around 2.2 million shares.

50% of the fund is allocated towards Canadian players, including the world’s largest listed uranium player Cameco.

The fund also has its fair share of exposure of ASX-listed players including Paladin Energy, Boss Energy Ltd (ASX: BOE), Bannerman Energy, Deep Yellow and more.

The strong capital inflows into the uranium ETF signal a renewed level of investor interest after its September peak.

Investors might want to keep an eye out for Sprott Asset Management and its Twitter for any updates about buying more uranium off the spot market.

The post Here’s why ASX uranium shares are booming double digits across the board on Wednesday appeared first on The Motley Fool Australia.

More reading

• Why the Paladin Energy (ASX:PDN) share price is up 8% today
• Why ASX uranium shares are bouncing back on Friday
• What’s going on with the Deep Yellow (ASX:DYL) share price today?
• Deep Yellow (ASX:DYL) share price slides 4% despite major ore reserve milestone
• Which ASX 300 shares are on the move for the start of the week?

Motley Fool contributor Kerry Sun 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.

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The A2 Milk Company Ltd (ASX: A2M) share price has been a very strong performer on Wednesday.

In morning trade, the infant formula company’s shares are up 8.5% to $6.30.

Why is the A2 Milk share price surging higher?

The catalyst for the rise in the A2 Milk share price on Wednesday has been the release of an update from one of its smaller rivals.

This morning Bubs Australia Ltd (ASX: BUB) surprised the market by releasing its first quarter update well ahead of its usual release date.

It appears as though the company could not wait to reveal just how much its performance has improved in FY 2021. After delivering a host of very disappointing quarterly updates over the last 12 months, Bubs has returned to form at last.

For the three months ended 30 September, Bubs reported a 96% year-on-year increase in gross revenue to $18.5 million. This was also an increase of 45% from the fourth quarter of FY 2020 and 30% from the first quarter of FY 2019.

Bubs Founder and CEO, Kristy Carr, commented: “Bubs has largely put the disruption and challenges of COVID-19 behind us, delivering a turnaround to high growth during the quarter as we revamped our business strategy in response to the rapidly changing market dynamics.”

What’s driving this growth?

A key driver of this growth was its China business. Sales across the Chinese Daigou, CBEC and General Trade channel increased 156% over the prior corresponding period to $9.8 million.

This has sparked hopes that the tough times are now behind the infant formula market, which goes some way to explaining why the A2 Milk share price is performing so positively today.

However, it is worth remembering that A2 Milk and Bubs are two very different companies. With quarterly sales of just $18.5 million, it doesn’t take much to move the needle for Bubs.

Though, investors won’t have to wait long to find out if A2 Milk’s sales are improving. In just a touch over a month the company is due to hold its annual general meeting. Management traditionally provides an update on its performance and outlook at these events.

No doubt all eyes will be on the A2 Milk share price that day.

The post Why the A2 Milk (ASX:A2M) share price is surging 8% higher today appeared first on The Motley Fool Australia.

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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 recommended A2 Milk and BUBS AUST FPO. 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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The Adriatic Metals Plc (ASX: ADT) share price is currently in a trading halt after the company requested the pause before the open today.

Adriatic requested the halt to announce a proposed project finance package regarding its Vares Silver project.

Yesterday, the Adriatic share price closed at $3.33 after gaining 4%.

Here’s what we know out of the base metals explorer’s camp today.

What was announced?

Adriatic advised it has proposed a project finance package to fund the construction of its flagship Vares Silver project.

The announcement comes after Adriatic completed a definitive feasibility study (DFS) on the site in August.

The package is comprised of an agreement between Adriatic and Orion Resource Partners LLP of the UK. The pair have signed a term sheet for US$142.5 million debt financing.

Specifically, this is made up of a US$120 million senior secured debt facility and, curiously, a “US$22.5 million copper stream”.

Aside from the debt financing, Adriatic also intends to complete a US$102 million equity raise. This will consist of a conditional placing to raise US$52 million and a “conditional equity subscription for US$50 million by Orion at the placing price”.

The placing price is proposed at 1.5174 pounds per new share, “representing a discount of approximately 10.7% to the 10-day volume weighted average price on the ASX to 12 October 2021”.

Combined, the company intends to raise gross US$244.5 million (A$332.9 million) to finance construction of its Vares site in Bosnia & Herzegovina. It expects to take a net US$97.8 million from the round.

In conjunction with the proposed capital raise, fellow ASX resources share Sandfire Resources Ltd (ASX: SFR) announced today that it intends to sell its entire Adriatic stake.

According to Sandfire, Adriatic has not put up any objections to its intended divestment.

Adriatic Metals share price snapshot

The Adriatic Metals share price has gained 42% this year to date, extending its gain over the past 12 months to 48%.

It’s rallied 11% in the last month and has climbed a further 10% into the green in the past week.

These gains have been propped up by strengths in the broader commodity markets Adriatic has exposure to.

These results have outpaced the S&P/ASX 200 Index (ASX: XJO)’s return of around 20% in the last year.

The post Why is the Adriatic Metals (ASX:ADT) share price halted? appeared first on The Motley Fool Australia.

More reading

• Sandfire Resources (ASX:SFR) share price fizzles after sale of Adriatic Metals stake
• Why has the Adriatic Metals (ASX:ADT) share price leapt 11% in a month?
• 2 ASX shares set to double in the next year

The author Zach Bristow has no positions 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.

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The Digital Wine Ventures Ltd (ASX: DW8) share price is in the freezer in preparation for a major acquisition and capital raise.

The company is expected to announce news of its latest addition and equity boost sometime between now and Friday.

Until then, the Digital Wine share price will stay halted at its previous closing price of 6.6 cents.

The wine distributor and operator of wholesale distribution platform, WINEDEPOT, is no stranger to acquisitions. Let’s take a look at Digital Wine’s most recent acquisition and capital raise.

Digital Wine share price freezes over

The Digital Wine share price has been put on ice this morning ahead of the company announcing a new acquisition and capital raise.

Unfortunately, market watchers eager for more details might be waiting until Friday. If the company doesn’t release the announcement by then, its shares will resume trading as per normal.

Though, it hasn’t been that long since Digital Wine graced the market with news of its most recent acquisition and capital raise.

In July the company acquired Parton Wine Group. While Digital Wine’s consideration for Parton is through earn-outs via scrip, the company still raised $7.5 million.

Around $7.38 million was raised through a share placement for institutional and sophisticated investors. Within the placement, Digital Wine offered new shares for 6.5 cents apiece. The leftover $125,000 came from director participation.

Of the $7.5 million, $2.8 million was to pay Parton’s existing liabilities and $1.2 million to repay Parton’s debt. Another $1 million would fund Parton’s planned projects. The remaining $2.5 million went towards expanding the merged logistics business.

At the time, the 6.5 cent price tag represented a 28.6% discount to Digital Wine’s last traded share price and a 20% discount to its 15-day volume weighted average price.

Unfortunately, the market reacted poorly to Digital Wine’s most recent acquisition and capital raise. Digital Wine’s stock was frozen in preparation for the news, as it is today. It fell 11% when it emerged.

So, it’s safe to say that plenty of eyes will be fixed on the Digital Wine share price between now and Friday morning.

The post Why is the Digital Wine (ASX:DW8) share price on ice? appeared first on The Motley Fool Australia.

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• Sandfire Resources (ASX:SFR) share price fizzles after sale of Adriatic Metals stake
• Why the Pact Group (ASX:PGH) share price is sinking 15% today
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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.

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The Sandfire Resources Ltd (ASX: SFR) share price is drifting in the red during morning trading, currently changing hands at $5.40.

Sandfire shares are on the move this morning after the company announced a key divestment of its holding in Adriatic Metals PLC (ASX: ADT).

Here’s what we know.

What was announced?

Sandfire advised it had appointed an investment banking syndicate to sell its stake in Adriatic Metals. The syndicate comprises Canaccord Genuity Group Inc, RBC Europe Ltd, and Stifel Nicolaus Europe Limited.

Specifically, it has appointed the bookrunners to arrange a secondary placement of “up to 34,600,780 CHESS depositary interests representing ordinary shares” in Adriatic.

This represents Sandfire’s entire holding in the company and signifies around 16% of Adriatic’s existing float.

The secondary placement offer will be at a price of $2.80 per share. This represents an approximate 16% discount on the company’s closing price on Tuesday.

Proceeds from the divestment will gross Sandfire a hefty sum of around $97 million. It will sell the shares to institutional investors on the investment banking syndicate’s pitchbook.

Regarding the particulars of what sellers may or may not do in the situation, Sandfire said:

In the event that the Seller determines to sell less than all of its shares in the Secondary Placing, the Seller has agreed that it will not, for a period of 90 days following the completion of the Secondary Placing, offer, sell or otherwise transfer any shares from their remaining shareholdings in the Company without the consent of Canaccord, RBC and Stifel.

Sandfire expects the bookbuild to close no later than 2pm (AEST) on 13 October, unless otherwise stipulated.

What does this mean for Sandfire’s share price?

The divestment follows an announcement 2 weeks ago from Sandfire. Then it announced it intended to raise around $322 million from an underwritten retail entitlement offer.

That offer was conducted at $5.40 per share. This was part of a $1.25 billion round that the company intended to help finance the purchase of the Minas De Aguas Teñidas (MATSA). The MATSA mining complex is located in Spain.

Sandfire purchased a US$1.86 billion stake. It financed the deal with a combination of equity capital, its own cash, and an existing debt facility of $897 million.

Sandfire’s divestment away from Adriatic will fortify the company’s balance sheet. The cash injection will equate to just under $100 million.

With this in mind, the net effect the sale will have directly on Sandfire Resources’ share price is not yet clear.

For reference, Adriatic Metals finished yesterday 4% higher at $3.33, and is up 43% this year to date.

Sandfire Resources share price snapshot

The Sandfire Resources share price has struggled this year to date, posting a return of 8% since 1 January. However, it has climbed 32.5% in the past 12 months, and rallied 4% this past week.

This comes in ahead of the S&P/ASX 200 Index‘s (ASX: XJO) return of about 20% in that time.

The post Sandfire Resources (ASX:SFR) share price fizzles after sale of Adriatic Metals stake appeared first on The Motley Fool Australia.

More reading

• Why has the Adriatic Metals (ASX:ADT) share price leapt 11% in a month?
• 2 ASX shares set to double in the next year
• Which shares are set to finish the week as the top movers on the ASX 300?
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The author Zach Bristow has no positions 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.

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The Pact Group Holdings Ltd (ASX: PGH) share price is plummeting on Wednesday morning. This comes after the packaging company provided an update on the sale of its contract manufacturing businesses.

At the time of writing, Pact Group shares are down a sizeable 15.7% to $2.90.

What did Pact Group update the ASX with?

Investors are heading for the hills, sending the Pact Group share price to an 8-month low following the company’s latest release.

In today’s statement, Pact Group advised it has ceased the sale process of its contract manufacturing businesses. The terminated deal was perceived to be unfavourable on the company’s terms.

Pact Group CEO and managing director Sanjay Dayal commented:

I have consistently advised shareholders we would sell the business if the sale process met our value hurdle. Continued market uncertainty and supply chain disruption arising from COVID-19 has created challenges in realising our expectation. At this time, we believe retaining the business delivers greatest value for our shareholders.

How has Pact Group performed in Q1 FY22?

While it has been a challenging year for the company, demand for most of its businesses has remained resilient. In particular, the Packaging & Sustainability and Materials Handling and Pooling segments have stayed afloat.

Pact Group noted that it has managed higher raw material and international freight costs.

However, the same cannot be said for its contract manufacturing segment, with demand weaker than expected. This is a result of continued COVID-19 lockdowns as well as lower margins due to rising input costs.

The company stated a further trading update will be delivered at its Annual General Meeting (AGM). The event has been rescheduled to take place between 17 November and 29 November 2021.

About the Pact Group share price

Over the past 12 months, Pact Group shares had accelerated almost 50% although today’s plunge pulls that figure back to 26%. Year-to-date, performance is up around 11%.

Pact Group commands a market capitalisation of roughly $1.03 billion and has approximately 344 million shares outstanding.

The post Why the Pact Group (ASX:PGH) share price is sinking 15% today appeared first on The Motley Fool Australia.

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• Bank of Queensland (ASX:BOQ) share price tumbles 4% on FY 2021 results
• Bubs (ASX:BUB) share price rockets 17% on revenue growth
• Lovisa (ASX:LOV) share price falls on surprise CEO exit
• Why the Paladin Energy (ASX:PDN) share price is up 8% today
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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 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.

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The Bank of Queensland Limited (ASX: BOQ) share price is tumbling lower on Wednesday.

At the time of writing, the regional bank’s shares are down over 4% to $9.29.

Why is the Bank of Queensland share price falling?

Investors have been selling down the Bank of Queensland share price this morning following the release of its full year results.

For the 12 months ended 31 August, the regional bank reported an 83% increase in cash net profit after tax to $412 million. This was driven by a 13% increase in total income to $1.26 billion and its improving net interest margin (NIM).

The bank’s strong profit growth allowed the board to declare a fully franked final dividend of 22 cents per share, which brought its full year dividend to 39 cents per share. This is up more than 200% from FY 2020’s 12 cents per share dividend.

How does this compare to expectations?

Despite what the Bank of Queensland share price performance may indicate, this result was in line with expectations.

According to a note out of Goldman Sachs, its analysts were expecting cash earnings growth of 80% to $406 million, cash earnings per share of 66 cents, a NIM of 1.92%, and a final dividend of 22 cents per share.

This compares to the bank’s actual result of cash earnings of $412 million, cash earnings per share of 74.7 cents, a NIM of 1.95%, and a final dividend of 22 cents per share.

So why are its shares falling?

The weakness in the Bank of Queensland share price appears to have been driven by its outlook and particularly comments relating to its NIM.

Management advised that it expects its “NIM to decline by c.5-7bps in FY22, as competition continues and the low interest rate environment remains.”

However, it is worth noting that Goldman was forecasting such a decline. So, this could prove to be an overreaction by the market.

Goldman has a buy rating and $10.09 price target on the Bank of Queensland share price at present. Though, it has yet to respond to this results release and could amend its recommendation once it has run the rule over it.

The post Bank of Queensland (ASX:BOQ) share price tumbles 4% on FY 2021 results appeared first on The Motley Fool Australia.

More reading

• Bank of Queensland (ASX:BOQ) share price on watch after 83% cash profit jump
• 5 things to watch on the ASX 200 on Wednesday
• Here’s what happened to the Bank of Queensland share price in the FY22 first quarter
• Own Bank of Queensland (ASX:BOQ) shares? Here’s what to expect from its FY21 results
• Bank of Queensland (ASX:BOQ) share price hits 52-week high on Friday

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.

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The Bubs Australia Ltd (ASX: BUB) share price is rocketing, up 17% in early trade to 42 cents per share.

This as the All Ordinaries Index (ASX: XAO) is down 0.2%.

Below we take a look at the company’s quarterly report for the first quarter of the 2022 financial year (Q1 FY22), which looks to be driving ASX investor interest.

Bubs share price surges on quarterly revenue leap

The Bubs share price is charging higher after the company reported a 96% year-on-year leap in gross revenue of $18.5 million for the quarter. Revenue was also up 45% from the previous quarter.

Breaking the revenue down, Bubs Infant Formula gross revenue was up 124% over Q1 FY21 and up 64% over the prior quarter. Revenue from its Adult Goat Milk Powder was up 100% year-on-year and up 61% quarter-on-quarter.

Bubs also reported a resurgence in its Chinse business, with a 156% year-on-year increase in revenue.

Overall international revenue was up 489% from Q1 FY21.

The company ended the quarter with a strong balance sheet, holding $28.3 million in cash as at 30 September.

What management said

Commenting on the results Bubs CEO Kristy Carr said:

Bubs has largely put the disruption and challenges of COVID-19 behind us, delivering a turnaround to high growth during the quarter as we revamped our business strategy in response to the rapidly changing market dynamics.

Importantly, there continues to be strong consumer demand for Bubs’ quality nutritional products in all key markets with solid performance across our core business segments…

Our global expansion strategy continues to advance with business entities and representation now established in New Zealand, China and North America… The first shipment of Aussie Bubs’ products arrived in the USA during the quarter and Bubs is now an official Walmart vendor, with the first online sales expected to be realised in October 2021.

Bubs share price could also be getting a boost from the fairly positive outlook the company provided.

Looking ahead, Bubs executive chair Dennis Lin added:

We are investing in our manufacturing capabilities at our facility in Victoria and have extended the Bubs family to have local representation in New Zealand, China and North America, as we continue to diversify our business model.

Having recovered the ground lost due to COVID-19 disruption, we expect to be able to sustain continued growth momentum, to the extent our go forward approach does not depend on a material improvement in the pandemic setting.

Bubs share price snapshot

The Bubs share price has struggled this year, down 30% in 2021. That compares to a gain of 9% posted by the All Ords.

Over the past month Bubs shares are up 8%.

The post Bubs (ASX:BUB) share price rockets 17% on revenue growth appeared first on The Motley Fool Australia.

More reading

• Why is the Bubs (ASX:BUB) share price leaping 7% on Tuesday?
• Bubs (ASX:BUB) share price down 9% in September despite upcoming US launch

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 BUBS AUST FPO. 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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