Category: Stock Market

The Invictus Energy Ltd (ASX: IVZ) share price started today’s session strongly in the green.

Shares in the oil and gas explorer opened 7% higher at 15 cents after releasing an update to the market earlier today.

Let’s take a look at what Invictus announced.

Invictus shares lift on Cabora Bassa update

Investors have pushed the Invictus Energy share price higher today after the company released an update on its Cabora Bassa Project.

The update informs Invictus shareholders that seismic data acquisition will commence in the first week of September.

The company noted that, in preparation, 400km of line has been cleared ahead of the commencement of data acquisition.

In addition, Invictus highlights that the latest generation STRYDE wireless nodes will be used.

This technology will allow the company to double the seismic data coverage.

The update also informs investors that the seismic data processing contract has been awarded to Canadian-based firm Earth Signal Processing Ltd.

Managing Director Scott Macmillan commented on the news driving the Invictus share price:

The Company is pleased to be commencing the seismic data acquisition in the coming days and the preparation for this campaign has gone well and all the equipment and personnel heading to the field. We are extremely pleased with the performance of Polaris and the local field crew who have completed 400km line clearing ahead the data acquisition which will ensure that the campaign is completed seamlessly.

The company’s management also noted that preparation for its opening drilling campaign is progressing well. As a result, Invictus is on track to select a rig and service providers towards the end of this quarter.

Invictus share price snapshot

Invictus Energy is an independent oil and gas exploration company focused on high impact energy resources in sub-Saharan Africa.

The company’s portfolio consists of 250,000 acres within the Cabora Bassa Basin in Zimbabwe.

The Invictus share price has had a stellar year thus far, storming ~170% since the start of 2021.

Shares in the oil and gas explorer bolted to record highs earlier this year and have tapered off since then.

At the time of writing, the Invictus share price is flat for the day. Shares in the company were trading more than 7% higher earlier, after hitting an intra-day high of 15 cents.

The post Here’s why the Invictus (ASX:IVZ) share price opened 7% higher this morning appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Fortescue result and dividend impress, Altium sinks
• Booktopia (ASX:BKG) share price sinks 7% despite 125% EBITDA growth in FY21
• Tesserent (ASX:TNT) share price fails to fly despite 230% revenue growth in FY21
• Why the Piedmont Lithium (ASX:PLL) share price is zooming 8% higher today
• The Fortescue (ASX:FMG) dividend has doubled to record levels

Motley Fool contributor Nikhil Gangaram 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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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) has been bouncing around but remains in positive territory. The benchmark index is currently up 0.15% to 7,498.5 points.

Here’s what is happening on the ASX 200 today:

Fortescue share price jumps on full year results

The Fortescue Metals Group Limited (ASX: FMG) share price is charging higher today after the release of a strong full year result and the announcement of a huge dividend. For the 12 months ended 30 June, the iron ore giant reported a 117% increase in net profit after tax to US$10.3 billion. This was a touch ahead of the consensus estimate of US$10.2 billion. This allowed the Fortescue Board to declare a fully franked final dividend of $2.11 per share. This doubled its full year dividend to $3.58 per share.

Altium shares sink following results release

The Altium Limited (ASX: ALU) share price has tumbled lower today following the release of its full year results. Investors have been selling the electronic design software provider’s shares despite it achieving its full year revenue guidance with a 1% lift to US$191.1 million. In fact, not even an upgraded outlook for FY 2022 could keep its shares from falling. Management has upgraded its revenue expectations to 16% to 20% growth for the year ahead.

PointsBet misses out on Arizona licence

The PointsBet Holdings Ltd (ASX: PBH) share price is under pressure on Monday. This follows news that PointsBet and its partner Cliff Castle Casino Hotel have missed out on a sports betting license in the US state of Arizona. The Arizona Department of Gaming has not provided any further information as to why it was not selected. Management advised that whilst disappointed with the news, it continues to assess market access opportunities in the state.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the InvoCare Limited (ASX: IVC) share price with an 8% gain. This follows a strong half year update this morning. The worst performer on the ASX 200 has been the Altium share price with an 11% decline following its results release.

The post ASX 200 midday update: Fortescue result and dividend impress, Altium sinks appeared first on The Motley Fool Australia.

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• InvoCare (ASX:IVC) share price jumps 9% after reporting strong first half growth
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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. owns shares of and has recommended Altium and Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Altium. The Motley Fool Australia has recommended InvoCare Limited and Pointsbet 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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The Booktopia Group Ltd (ASX: BKG) share price is sliding into the red in lunchtime trade on Monday as the online book retailer reported its FY21 earnings.

Let’s investigate further.

Booktopia share price slides 7% despite strong revenue and earnings growth in FY21

Booktopia outlined several investment highlights in its report, including:

• Revenue growth of 35% year on year to $223.9m million, up from $165.7 million
• Underlying EBITDA (adjusted for IPO costs) up 125% from the year prior to $13.6m
• A record 8.2 million units shipped, up from 6.5 million in FY20
• Sales in the first two months (July and August) of new financial year, tracking above the same period in FY21
• Completion of three (Brio Books, Zookal and Welbeck) strategic partnerships.

What happened in FY21 for Booktopia?

Recall that Booktopia completed its initial public offering (IPO) and listed on the ASX in December 2020, successfully raising $43.1 million.

In a potential positive for the Booktopia share price, the company grew its revenue by 35% in FY21, from $166 million to $224 million. The company explained it had achieved a compound annual growth rate (CAGR) in revenue of 26% since 2018.

This result carried through to EBITDA growth of 125% from the year prior, which also came in 45% above the prospectus forecast.

Booktopia’s revenue and earnings growth was underscored by a 27% increase in “total units shipped” which totalled 8.2 million units in FY21.

As a result, the “annual spend per customer” increased by around 14% to $126.85. Average order value also managed to creep up to $71.07 from $65.08, an increase of 9% from FY20.

From its FY21 results, the company “smashed” its prospectus forecasts, as customers “continue to splurge on books”.

Finally, the company invested over $20 million in the “automation of its 14,000 square metre distribution centre” in Sydney. This effectively doubles the company’s shipping capacity from “60,000 books across 145,000 different titles per day”.

What did management say?

Speaking on the company’s first results since listing on the ASX back in December, Booktopia CEO Tony Nash said:

Our prospectus set some very ambitious targets for our first year as a listed company and I am very happy to report we have been able to eclipse those expectations. Our focus has now shifted to executing our multi-pronged growth strategy that will see us ramp up our market penetration, expand our reach within the book industry and lock-in new, earnings accretive partnerships and acquisitions.

Touching on the growth vision for the company, Nash added:

Bolt-on opportunities, whether through acquisition or partnership, provide a clear path to supercharging our growth over the next few years and if we see an opportunity that provides the right benefits, at the right price, we will pursue it.

What’s next for Booktopia?

According the company, FY22 has already “started strongly” with revenue “tracking ahead” of results the same time last year.

Booktopia expects to continue benefitting from “strong tailwinds”, such as the dynamics around online shopping due to “structural and demographic shifts”.

The company believes COVID-19 will continue to “accelerate these trends” which is another potential tailwind to the Booktopia share price.

Moreover, the company believes there will be an “increase in discretionary spending” domestically due to travel restrictions imposed through the ongoing pandemic.

The Booktopia share price has had a choppy year to date, posting a return of 7.7% since January 1. This result has lagged the S&P/ASX 200 index (ASX: XJO)’s gain of around 14% over this same time.

At the time of writing, Booktopia shares had clawed back some ground and are now trading for $2.82 each, down 5.69% on their previous closing price.

The post Booktopia (ASX:BKG) share price sinks 7% despite 125% EBITDA growth in FY21 appeared first on The Motley Fool Australia.

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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 recommended Booktopia Group Limited. 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 Tesserent Ltd (ASX: TNT) share price is struggling to catch a bid on Monday after the company released its preliminary FY21 results.

At the time of writing, shares in the cyber security company are trading flat at 27 cents .

Tesserent share price flat despite bumper FY21 performance

The Tesserent share price is off to a wobbly start on Monday despite marking significant growth and a pathway towards profitability in FY21. Key highlights include:

• Turnover surging 371% to $96.7 million
• Revenue lifting 233% to $67.3 million
• Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) of $9.6 million (FY20: $2.8 million loss)
• Normalised net profit after tax of $4.9 million (FY20: $5.1 million loss).

What happened to Tesserent in FY21?

FY21 marked a year of significant growth for the cyber security company.

Tesserent successfully executed its strategy to strengthen its core Cyber 360 capabilities and acquire complementary businesses to expand product and service offerings to key clients and sectors.

During the year, Tesserent acquired and integrated six companies including:

• Seer Security on 31 July 2020
• Airloom Holdings on 2 September 2020
• Ludus Information Security on 11 September 2020
• iQ3 on 11 November 2020
• Lateral Security Services (New Zealand) on 12 February 2021
• Secure Logic on 28 April 2021.

Tesserent achieved all set financial objectives in FY21 including a turnaround to achieve quarter-on-quarter EBITDA growth from a quarterly loss-making position in the prior year and a turnover run rate of $150 million.

Contrary to its positive FY21 performance, the Tesserent share price is down 22.8% year-to-date and flat for the past 12 months.

Management commentary

In a letter to shareholders, Tesserent chair Geoff Lord wrote:

FY21 saw the group achieve exceptional growth – both organically through its execution of the Cyber 360 go-to-market strategy and through successful completion and integration of six acquisitions – with the acquired businesses adding public and private sector consulting services, managed services, specialised product expertise, plus cloud, defend and detect services to the Tesserent offering.

Pleasingly, the FY22 year has started off well for the group with the business delivering above budget performance and a number of wins that will provide a foundation for continued strong organic growth during the current year.

What’s next for Tesserent

It’s been a challenging past 12 months for the Tesserent share price.

Management said that it would continue to focus on creating shareholder value by “building on Tesserent’s position as Australia’s #1 ASX-listed cybersecurity provider”.

Tesserent highlighted a number of “important goals” over the new financial year, centred around acquisitions, the expansion of proprietary intellectual property and driving market share in key sectors.

Lord said the acquisition of Loop Secure would be completed in September. “There are also a number of potential acquisitions currently in review which if completed, will further add to the inorganic earnings growth and deepen the Cyber 360 model,” he said.

In addition, the company pointed at international expansion opportunities with a focus on Australia’s key five eyes allies, consisting of the United States, United Kingdom, New Zealand and Canada.

The post Tesserent (ASX:TNT) share price fails to fly despite 230% revenue growth in FY21 appeared first on The Motley Fool Australia.

More reading

• Why the Tesserent (ASX:TNT) share price is surging 7% higher today

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 Piedmont Lithium Inc (ASX: PLL) share price has been a strong performer on Monday.

In morning trade, the lithium developer’s shares are up 8% to 79.5 cents.

This latest gain means the Piedmont Lithium share price is up 115% in 2021.

Why is the Piedmont Lithium share price charging higher?

Investors have been bidding the Piedmont Lithium share price higher today following the release of a positive announcement.

According to the release, the company’s 25%-owned Sayona Quebec business has completed the acquisition of North American Lithium (NAL) for C$196.2 million. This includes a cash consideration of C$94 million.

Sayona Quebec is a joint venture between Piedmont Lithium and Sayona Mining Ltd (ASX: SYA), with the latter owning the remaining 75%.

What is North American Lithium?

North American Lithium is a Canadian industrial minerals mining company located in Abitibi, near Val d’Or, Quebec.

This project is under development with commissioning of an open pit lithium carbonate mine and processing plant nearing completion. Once operational, the mine is expected to produce approximately 23,000 tonnes of battery grade lithium carbonate on an annualised basis.

Its acquisition now paves the way for the creation of Abitibi lithium hub. This will see the integration of Sayona Mining’s Authier and Tansim Lithium Projects with NAL to become Quebec’s leading lithium producer.

Sayona Mining’s Managing Director, Brett Lynch, said: “We are committed to swiftly developing a profitable and sustainable business at NAL, delivering new jobs and investment and maximising the benefits of its existing facilities to make it the centre of our Abitibi lithium hub.”

“Demand for lithium to power North America’s EV and battery storage revolution continues to accelerate. The timing is perfect and we look forward to realising this opportunity, working closely with our partner, Piedmont and all other key stakeholders including Investissement Québec, as we help drive Québec’s clean energy future,” he added.

This sentiment was echoed over at Piedmont Lithium. Its President and CEO, Keith D. Phillips, commented: “We are very pleased to have partnered with Sayona in the consolidation of the spodumene resources in the Abitibi region of Quebec, with Sayona Quebec now comprising a large Canadian lithium resource base.”

“NAL’s concentrate operations are amenable to a relatively rapid restart and we will work with Sayona to develop suitable plans in that regard. We are also evaluating a variety of options for production of lithium hydroxide in Quebec and will update the market further as our plans crystalize. Piedmont intends to become North America’s leading lithium hydroxide producer and our Quebec investments are an ideal complement to our flagship Carolina Lithium Project in Gaston County, North Carolina,” he added.

The post Why the Piedmont Lithium (ASX:PLL) share price is zooming 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 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 Fortescue Metals Group Ltd (ASX: FMG) dividend received a much-welcomed boost following the company’s FY21 full-year results today.

No doubt, investors will be standing with open arms when the mining giant pays its final dividend next month.

Let’s take a look at Fortescue’s FY21 scorecard and the details of its upcoming dividend.

How did Fortescue perform in FY21?

Investors are buying up Fortescue shares, following the company’s positive results for the 12 months ending 30 June 2021.

The world’s fourth-largest iron ore miner recorded its second consecutive year of record performance.

Ongoing constraints in iron ore supply from traditional producers resulted in strong market conditions for Fortescue. The average revenue for iron ore rose to US$135 per dry metric tonne, a 72% increase over the period.

Coupled with the company’s industry-leading cost position, C1 cost of US$13.93 wet metric tonne, this led to bumper profits.

On the bottom line, Fortescue achieved net profit after tax (NPAT) of US$10.3 billion, up 117% from FY20. This also represents a return on equity of 66%.

The Fortescue board decided to bump up its fully-franked full-year dividend to $3.58 per share, up 103%. This makes up a final dividend of $2.11, equating to $11 billion and an 80% payout of NPAT.

Based on the current Fortescue share price of $21.00 apiece, this gives the company a trailing dividend yield of a mammoth 17%.

Fortescue CEO Elizabeth Gaines commented:

Reflecting the team’s outstanding performance in FY21 and our strong commitment to deliver shareholder returns, Fortescue’s board was pleased to declare our largest ever final dividend…

The ability to continue delivering increased returns to our shareholders is underpinned by the successful execution of our integrated operations and marketing strategy, disciplined capital allocation, sustained focus on productivity and efficiency, as well as the strength of the iron ore market.

Fortescue dividend key dates

Fortescue provided the distribution amount and payment dates of its final dividend for the 2021 financial year. Here’s a summary of the important dates Fortescue shareholders will need to know.

Ex-dividend date

The ex-dividend date will be 6 September 2021.

This is when investors must have purchased Fortescue shares.

If you sell your Fortescue holdings before the ex-dividend date, you will not receive the upcoming dividend. However, if you sell your shares on or after this date, you will still receive the dividend.

Record date

The record date for Fortescue’s final dividend is 7 September 2021.

This is the date where the company checks its records to see which shareholders are on its registry. Those who bought Fortescue shares before will be eligible to receive its upcoming dividend.

Payment date

The payment date for Fortescue’s dividend will be 30 September 2021.

This is when shareholders can expect to see the final dividend of $2.11 per share arrive in their accounts.

The post The Fortescue (ASX:FMG) dividend has doubled to record levels appeared first on The Motley Fool Australia.

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• The Fortescue (ASX:FMG) share price fell 11.5% last time the company reported
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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 Aussie Broadband Ltd (ASX: ABB) share price opened higher Monday after the company released its FY21 results.

The Aussie share price shot up to $3.84 at market open on Monday.

Aussie Broadband share price higher on FY21 results

• Revenue rose 84% to $350.3 million
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged 433% to $19.1 million before initial public offering costs
• Total broadband services increased 53% to 400,848
• Mobile services lifted 102% to 25,606
• Business and wholesale broadband services up 90% to 37,498

Focus on growth

The Aussie Broadband share price has more than tripled from its IPO listing price of $1. The business is focused on growing its share in a market highly concentrated towards four main companies. Those four are the Telstra Corporation Ltd (ASX: TLS), TPG Telecom Ltd (ASX: TPG), Vocus Group Ltd (ASX: VOC) and Optus.

Aussie Broadband achieved well-rounded growth underpinned by its increased market share in several segments. Those segments include residential and business NBN connections, strategic product and services expansion, and key contracts to further enable growth.

What happened to Aussie Broadband in FY21?

Residential NBN broadband connections increased 50% in FY21 to 363,350 connections. Aussie Broadband flagged that NBN connections were impacted in the second half as a result of increased competition. This was generated by NBN’s Focus on Fast campaign, its significant appointment system, staffing issues and its stop-sell on HFC connections due to equipment shortages. The company advised that most of these issues should resolve by early FY22.

A new partnership with Optus enabled the company to revamp its mobile offering to residential customers. There was a higher than expected take-up in the first two months of the offering (towards the end of FY21). This translated to a 20% increase in active services over the previous quarter.

Business telecommunications was a key focus for the Aussie Broadband business during FY21. The company took several measures such as putting in place the right people and skills, quality products and services, and a strong emphasis on automation. As a result, the segment achieved a 90% increase in connections to 37,498.

Aussie Broadband continued building its fibre network in FY21, completing 250 km of fibre in the ground and connections to 25 Point of Interconnect (POIs) and data centres at 30 June 2021. The company said that it will complete its fibre build this financial year. This should result in more than $15 million per year saving in backhaul charges from FY23 onwards.

Management commentary

Aussie Broadband Managing Director Phillip Britt commented on the results:

With our record of strong financial and operational achievements over the past financial year, we believe Aussie Broadband is positioned well for growth in FY22.

We will continue our marketing and sales focus on organic growth of our residential and business/ enterprise segments, as well as exploring new channels for growth… continue to review merger and acquisition opportunities that are aligned with our strategy and culture and would deliver value for our shareholders.

We anticipate that our fibre network will start to show financial benefits not only through offloading existing leased infrastructure, but also through the opportunity to directly connect customers to our own network.

What’s next for Aussie Broadband?

Aussie Broadband said its business experienced record broadband and mobile sales in July. It is expecting a new record month for August.

The company was unable to provide guidance for FY22 due to the volatile nature of the retail telecommunications market and ongoing lockdowns.

The Aussie Broadband share price is currently 2.71% higher to $3.79. This is within arms reach of its 12 August all-time high of $3.97.

The post Aussie Broadband (ASX:ABB) share price rallies 4% on bumper earnings appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun owns shares of Aussie Broadband Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Aussie Broadband Limited. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Aussie Broadband Limited and TPG Telecom 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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The Pointsbet Holdings Ltd (ASX: PBH) share price is falling this morning after the company released unfortunate news of its planned debut in Arizona’s sports betting market.

The company’s previous plan to break into the state’s newly legalised sports betting market has hit some turbulance.

Right now, the Pointsbet share price is $10.13, 2.22% lower than its previous close.

Let’s take a closer look at the disappointing news out of the bookmaker today.

Trouble in Arizona

The Pointsbet share price is slipping after the company’s plans to break into Arizona’s sports betting market hit a wall.

Today, Pointsbet announced Cliff Castle Casino Hotel, a subordinate economic organisation of the Yavapai-Apache Nation, was denied a sports betting license from the Arizona Department of Gaming. The Yavapai-Apache Nation is made up of 5 tribal communities and is located in the state’s Verde Valley.

Pointsbet and Cliff Castle Casino Hotel has previously agreed to partner to open a sports betting business in Arizona. The Pointsbet share price gained 1.4% on the back of the plan, which was announced to the market last month.

According to Pointsbet, the department didn’t provide a reason as to why Cliff Castle Casino Hotel was refused a license.

Pointsbet didn’t state if the two bodies will continue working to secure a sports betting licence following the rejection.

Under the previously announced 10-year arrangement, Pointsbet was to pay the Yavapai-Apache Nation a market access fee and a portion of its gaming revenues from online sportsbook operations.

Pointsbet also planned to cover the licencing and regulatory costs of launching and operating its betting services.

Additionally, Pointsbet was to pay to create a Pointsbet branded retail sportsbook at the Cliff Castle Casino Hotel.

Online sports betting was legalised in Arizona earlier this year. According to Pointsbet, 10 online sports betting licences have been reserved for tribal communities in the state.

Pointsbet share price snapshot

The Pointsbet share price has been struggling lately.

It has slipped 11% since the start of 2021. It’s also currently 12% lower than it was this time last year.

The post Pointsbet (ASX:PBH) share price slips following denied betting licence appeared first on The Motley Fool Australia.

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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. owns shares of 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.

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The Freedom Foods Group Limited (ASX: FNP) share price is slipping in early trade on Monday as the food manufacturing company released its FY21 earnings.

After an initial jump of 3% on Friday’s closing price, Freedom Foods shares have slid 4.55% to 42 cents at the time of writing.

Let’s investigate further.

Freedom Foods share price falls despite strong revenue and earnings growth

• Total revenue from continuing operations of $559.1 million, an 8% year on year growth
• $76.4 million “earnings turnaround” from the year prior
• Adjusted Operating EBITDA from continuing operations of $22.4 million, up 141% on restated loss of $54.0 million in FY20
• Plant-based Beverages revenue up 16% to $152.9 million, with MILKLAB sales up 49% year on year
• Dairy and Nutritional’s revenue grew 7% to $394.3 million, with lactoferrin sales up 215%
• Statutory net loss after tax of $38.8m million, a 72% improvement on “restated FY20 loss” of $136.4 million
• No declared dividend for FY21.

What happened in FY21 for Freedom Foods?

In a potential positive for the Freedom Foods share price, the company grew total revenue by 8% to around $560 million in FY21, underscored by strength in its plant-based beverages plus dairy and nutritional’s segment.

In fact, plant-based beverages grew revenue by 16% to approximately $153 million, alongside MILKLAB sales which grew about 50% over the year.

Freedom’s dairy and nutritional’s revenue also expanded by 7% to $394 million. Much of the growth here was underlined by lactoferrin sales which grew a mammoth 215% from the year prior.

The company also outlined growth in “key channels”, including a 38% year on year increase in e-commerce sales and a 31% growth in export sales.

Consequently, export sales now “represent 24% of group revenue”, a 4 percentage point gain from FY20.

Freedom also recognised an adjusted EBITDA growth of 141% from the year prior of $22.4 million. This represents a “significant, $76.4 million turnaround” from the EBITDA loss of $54 million reported in FY20.

The company explained this turnaround stemmed from “improved operational efficiencies across the business” but does exclude a one-off “restructuring cost” of about $28 million.

Freedom also recognised a statutory net loss after tax of $38 million, which is a “substantial improvement” from the net loss of $136 million a year ago.

Despite these growth patterns, Freedom’s specialty seafood revenue decreased by 22% year over year. The decrease came as “COVID-19 disrupted global supply chains, causing stock shortages” which resulted in the “need to cancel promotions”.

Finally, the company left FY21 with around $32 million in cash on its balance sheet, with an additional $48 million in working capital from “undrawn facilities”.

What did management say?

Speaking on the results, Freedom Foods CEO Michael Perich said:

FY21 was a defining year for Freedom Foods Group, marking the start of our ‘Reset, Transform, Grow’ transformation into a progressive Australian and regional branded FMCG business, with a much improved operating model and tighter controls that better respond to changes occurring in the local and international environments.

Touching on the earnings turnaround, Perich added:

Actions to transform the Company are well underway, with the Group benefitting from the hard work and commitment of our employees. The continued focus by the team on the customer, quality and innovation has continued to deliver very pleasing results. The significant $76.4 million turnaround in our Adjusted Operating EBITDA performance year-on-year – as well as the sales growth we are seeing in our key brands and markets here and overseas – point to the potential of these actions to continue delivering better returns for the Company and its investors.

What’s next for Freedom Foods?

Freedom does not expect to see the “full benefits of the improvements [it is] making to flow through until FY23”.

This refers to the Group’s “transformation strategy” that aims to “springboard” sales growth by capturing the “ever-increasing consumer demand” for healthy food and lifestyle alternatives.

As a result, management is confident in “continuing the positive momentum” achieved in FY21, as it pursues this transformation strategy.

Freedom also acknowledges the “uncertain impact of the latest COVID-19 lockdowns” to its supply chain, operations and end-markets and, thus, did not provide specific earnings guidance.

The Freedom Foods share price has had a choppy year to date, posting a loss of 85% since January 1. This result has lagged the S&P/ASX 200 Index (ASX: XJO)’s return of around 14% over this same time.

The post Freedom Foods (ASX:FNP) share price slides on 141% EBITDA growth in FY21 appeared first on The Motley Fool Australia.

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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 recommended Freedom Foods Group 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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The BlueBet Holdings Ltd (ASX: BBT) share price has been a disappointing performer on Monday.

In morning trade, the sports betting company’s shares were down as much as 13% to $2.43.

The BlueBet share price has recovered a touch since then but remains down 7.5% to $2.60 at the time of writing.

Why is the BlueBet share price under pressure?

Investors have been selling down the BlueBet share price today after its US ambitions were dealt a blow.

According to the release, the company’s US business and its partner Colorado River Indian Tribes (CRIT) have been unsuccessful in their application for one of the 10 licences to operate an online sportsbook in the state of Arizona.

The release explains that the number of licences awarded to Tribes in Arizona was capped at 10, and although it met the requirements of a qualified event wagering operator, it missed out after a competitive process which considered a range of factors.

One small positive, though, is that BlueBet’s agreement with CRIT remains in place if further event wagering licences become available in the future.

Furthermore, management notes that securing an Arizona licence at this time would have been an unexpected addition to its USA entry strategy and was not factored into its USA business plan, which remains unchanged.

It is also worth noting that rival Pointsbet Holdings Ltd (ASX: PBH) revealed that it also failed to secure a licence in Arizona today.

What else did the company announce?

Management also provided an update on its licence application for the state of Iowa.

That application remains on track after its Advanced Deposit Sports Wagering Operator agreement with Q Casino was approved by the Iowa Racing and Gaming Commission on Friday.

But management isn’t resting on its laurels. In addition to Iowa, BlueBet has identified a further four priority states in the USA for licences: Virginia, Colorado, Tennessee and Maryland. It notes that these states have an aggregate population of over 27 million people.

Despite today’s pullback, the BlueBet share price is up 128% since its IPO in July.

The post Why the BlueBet (ASX:BBT) share price is crashing 13% lower 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. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended BlueBet Holdings Ltd and Pointsbet 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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