Category: Stock Market

The Propel Funeral Partners Ltd (ASX: PFP) share price is in the green after the company released its financial year 2021 (FY21) results this morning.

Right now, the Propel share price is trading at $3.62, up 4.93%.

The Propel share price jumps on solid results

Here’s how the death care services company performed during FY21:

• Revenue of $120.4 million, up 8.7% on the prior year
• Operating earnings before interest, tax, depreciation, and amortisation (EBITDA) of $36.3 million, up 11.9% on that of FY20
• Operating net profit after tax of $15.3 million, up 7.6%
• Fully franked final dividend of 5.75 cents per share. Adding to the company’s total FY21 dividends of 11.75 cents. Up from 10 cents per share in FY20

Propel saw its average revenue per funeral increase 4.3% over FY21, reaching $5,917. That figure is also 2.8% higher than Propel’s average cost per funeral in pre-COVID-19 times.

The company’s operating costs also increased to $3.3 million in FY21.

Propel ended the period with $7.4 million of cash and $79 million of debt.

What happened in FY21 for Propel?

FY21 was a busy year for Propel and its share price.

The company spent $29.6 million on 3 acquisitions in Australia and New Zealand.

In October, it acquired Mid West Funerals, a funeral provider based in Geraldton, Western Australia. In November, Propel acquired Dils Funeral Services, which provides funeral directing and cremation services in Auckland.

Finally, in December, it made a foray into the pet funeral industry, acquiring Queensland’s Pets RIP, a pet cremation provider in Toowoomba and Ipswich.

Propel also purchased 2 properties in FY21 for a total of $4.25 million, excluding stamp duty.

In addition, the company became internally managed. Previously, Propel had been under the control of Propel Investments Pty Ltd. Propel had to pay the management company a $15 million termination fee, which was settled 50% in cash and 50% in Propel shares.

The company also increased its senior debt facilities with Westpac Banking Corporation (ASX: WBC) by $50 million to $200 million and extended the maturity date to October 2024.

Propel performed 13,916 funerals in FY21, up 4.6% on FY20. However, death volumes were below long-term trends in the company’s key markets. Propel stated this was due to social distancing, travel restrictions, an increased focus on hygiene, and flu vaccinations causing the last 2 flu seasons to be benign.  

What did management say?

Propel’s chair Brian Scullin, and managing director Albin Kurti, made joint comments on the results today, saying:

During FY21, the funeral industry continued to experience operational disruptions and uncertainty, following lockdowns across multiple jurisdictions which resulted in varying funeral attendee limits, travel restrictions, and social distancing directives aimed at curbing the spread of COVID-19.

Measures were implemented to mitigate potential operating and financial impacts from the pandemic. These measures, combined with the company’s diversification in providing essential funeral and related services across seven states and territories of Australia and in New Zealand, including regional and metropolitan markets, delivered considerable resilience in earnings and operating cash flows…

They said demand for death care services was expected to grow in Australia and New Zealand because of “increasing death volumes due to population growth and ageing of the baby boomers”.

The death care industry is highly fragmented with over 1,000 establishments in Australia and many hundreds in New Zealand. The company believes there is significant opportunity for further consolidation in Australia and New Zealand and Propel is well-positioned to capitalise on the acquisition opportunities.

What’s next for Propel?

Here’s what might drive the Propel share price in FY22:

For the year ending 30 June 2022, Propel expects death volumes to revert to long term trends. The company provided “a new record number of funerals” in July.

However, the company expects COVID-19 restrictions will continue impacting its business.

It also aims to complete more acquisitions to gain a greater hold on the fragmented funeral industry.

Propel share price snapshot

The Propel share price has gained 27% year to date. It has also gained 27.9% since this time last year.

The post The Propel Funeral Partners (ASX:PFP) share price lifts 5% on FY21 performance appeared first on The Motley Fool Australia.

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• Here’s why the Webjet (ASX:WEB) share price is taking off today
• Bigtincan (ASX:BTH) share price rockets 20% with capital raising update
• Worley (ASX:WOR) share price drops with 50% fall in profits

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 recommended Propel Funeral Partners 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 S&P/ASX 200 Index (ASX: XJO) has a very active contributor to its performance today. That would come from the WiseTech Global Ltd (ASX: WTC) share price.

WiseTech shares have exploded this morning, up a whopping 40% to $50.68 a share. And investors might have WiseTech’s dividend to thank.

The WiseTech share price was up even higher earlier this morning. An hour or so after market open, this WAAAX share hit a new all-time high of $57.31 a share which put the company up more than 58% on yesterday’s closing price.

But $50.68 is where the company will stay, at least for now. That’s because just before midday, WiseTech announced it has requested a trading halt for its shares “pending a further announcement”. That’s all we know about that right now.

WiseTech shares explode after 141% dividend increase

So, putting the trading halt aside, what has sparked such a rush into this tech company? WiseTech’s FY2021 earnings report of course.

As we covered extensively earlier today, WiseTech delivered its FY21 numbers this morning before market open. And, as evidenced by today’s initial share price reaction, they were impressive.

WiseTech managed to deliver an 18% increase in revenues to $507 million, as well as a 63% rise in earnings before interest, tax, depreciation and amortisation (EBITDA) to $206 million.

But WiseTech also set tongues a wagging with a 141% increase to its final dividend. The company will dole out a payment of 3.85 cents per share, fully franked and representing a payout ratio of 20% of underlying profits, on 8 October.

That will bring the total dividends for FY21 to 6.55 cents per share. That represents an annual yield of 0.13% on the current WiseTech share price.

Even so, this smashes what the company has paid out previously. For example, total dividends for FY2020 came in at 3.3 cents per share. For FY2019, it was 3.45 cents per share.

This new WiseTech dividend could well have contributed to the stunning share price gains investors have enjoyed this morning.

At the current WiseTech Global share price, the company has a market capitalisation of $16.47 billion, and a trailing dividend yield of 0.085%.

The post WiseTech Global (ASX:WTC) just raised its dividend by 141% appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. 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 Webjet Limited (ASX: WEB) share price has soared more than 5% in today’s session.

In addition, shares in the online travel company have had a stellar week thus far.

Let’s take a look at what could be pushing the Webjet share price higher today.

Possibility of Christmas travel boosts Webjet share price

Webjet has not released any price-sensitive news that could explain today’s bullish price action.

As a result, shares in the online travel company could be flying on the prospect of interstate travel by Christmas.

According to an article in the AFR, Prime Minister Scott Morrison has urged states and territories to adhere to the national plan.

Based on 80% of the population being vaccinated, the national plan outlines unrestricted domestic travel for vaccinated Australians.

The prospect of interstate travel by December bodes well on the outlook for travel companies like Webjet.

This news follows reports earlier this month that New Zealand may re-open its borders to international travellers in the near future.

Snapshot of the Webjet share price

In addition to today’s bullish price action, shares in the online travel company have had a stellar week thus far.

Since the start of the week, the Webjet share price has soared more than 16%.

As noted previously, Webjet hasn’t released any price-sensitive news that could explain the share price movement.

However, it is important for investors to note that shares in Webjet are the most shorted on the market.

According to the most recent data, Webjet’s share registry holds an 11.4% short interest.

As a result, the recent lift in Webjet’s share price could be the result of short-sellers reducing their risk.

Earlier this year, Webjet released its full-year result for FY21.

The company’s report was headlined by an earnings before interest, taxes, depreciation, and amortisation (EBITDA)  loss of $125.3 million.

Prior to the Delta variant outbreak in New South Wales and Victoria, Webjet was enjoying a prosperous few months.

In addition, the company also announced a new strategy earlier this year to help counter the pandemic.

Under this strategy, Webjet noted the pivot towards business-to-business opportunities through its WebBeds business.

With domestic and international travel restrictions still in place, the only reprieve for the Webjet share price is the rate of vaccinations.

Despite these disruptions, the Webjet share price remains more than 10% higher for the year.

The post Here’s why the Webjet (ASX:WEB) share price is taking off today appeared first on The Motley Fool Australia.

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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 owns shares of and has recommended Webjet 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 Bigtincan Holdings Ltd (ASX: BTH) share price is soaring after the company returned to trading today following its completed Placement and Institutional Entitlement Offer.

At the time of writing, the software company’s shares are fetching $1.44, up a sizeable 20.5%.

Bigtincan share price resumes

It’s been a strong day for the Bigtincan share price, with investors buying up amid the company’s successful equity raise.

In a statement to the ASX, Bigtincan advised it has raised gross proceeds of approximately $79.4 million. This consists of a placement to United Stated-based investment firm SQN investors and an accelerated institutional component.

The placement saw 20 million shares issued to SQN investors at a price of $1.05 per share, raising $21 million. This was completed Tuesday 24 August.

On the other hand, the institutional component is set to raise roughly $58.4 million at the same price. This comprises a 1 for 4 underwritten accelerated pro-rata non-renounceable entitlement offer. In turn, the company will issue around 55.6 million new ordinary shares.

A retail entitlement component is also expected to be raised, allowing everyday shareholders to take part in the offer. It’s projected approximately a further $56 million (before costs) will be added to Bigtincan’s equity raise.

In total, all 3 components will bring a value of $135.4 million should the retail offer move forward.

The proceeds will go towards funding the acquisition of United States-based Brainshark, Inc. for US$86 million (A$118.7 million). Bigtincan regards Brainshark as a strong fit for its growing portfolio.

About the Bigtincan share price

Over the past 12 months, Bigtincan shares have moved in circles with sharp share price movements. The company’s share price is up 65% since this time last year, with 31% gains year to date.

Bigtincan presides a market capitalisation of about $631 million, with more than 435 million shares on its books.

The post Bigtincan (ASX:BTH) share price rockets 20% with capital raising update appeared first on The Motley Fool Australia.

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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. owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN 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 Worley Ltd (ASX: WOR) share price is tumbling after the company released its full-year results for FY21.

At the time of writing, shares in the energy and chemicals engineering company are trading for $10.97 – down 3.35%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is 0.22% higher.

Let’s take a closer look at today’s announcement.

Worley share price slumps with 27% plunge in revenue

• Revenue of $9.5 billion, down 27% on the prior corresponding period (pcp)
• Earnings before interest, tax, depreciation and amortisation (EBITA) fell 35% on the pcp to $324 million
• NPAT of $86 million, a fall of 50% on the pcp
• Basic earnings per share (EPS) of 16.5 cents – down 50%
• A full-year dividend of 50 cents per share (25 cent final + 25 cent interim), unfranked. This is the same as the prior dividend payout but represents a yield of 4.5% on the current share price.

What happened to Worley in FY21?

As with most other companies, COVID played a disproportionate impact on the Worley share price.

CEO Chris Ashton conceded as much in remarks today:

FY2021 has been a year of dynamic global change. Our business has felt the impact of the global economic circumstances, including COVID-19 as global activity slowed and project sanctioning was deferred. Through this year, we’ve acted with agility to accelerate our strategic transformation and position our business for future success. These efforts contributed to an improved result in the second half in line with our expectations.

The second half of the year was better for the company financially than the first half of FY21.

What else did management say?

Ashton also said the following:

With reduced revenues, we’ve managed the elements of our business within our control. Our underlying operating cash flow of $621 million further strengthened our balance sheet with net debt reducing by 13% to $1,556 million and similar to H1 FY2021 is at the lowest levels since the ECR acquisition. Leverage (defined as net debt to EBITDA) has increased to 2.0x and gearing is well below the target range of 25-35% at 21.7%. We aligned our financing with our purpose, delivering a more sustainable world, and successfully issued Australia’s first sustainability-linked bond with a €500 million issuance under a Euro Medium Term Note program.

What’s next for Worley?

Looking forward, Worley says there are “positive indicators” for FY22, and it expects momentum from H2 FY21 to continue into the new financial year. It attributes this to an “increasing backlog and factored sales pipeline.”

Its push into sustainability should produce positive financial results for the company, according to the statement. Let’s see what this means for the Worley share price going forward.

Worley share price snapshot

Over the past 12 months, the Worley share price has increased 20.42%. Year to date, however, it is down 4.53%.

Worley has a market capitalisation of $5.9 billion.

The post Worley (ASX:WOR) share price drops with 50% fall in profits appeared first on The Motley Fool Australia.

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• Bigtincan (ASX:BTH) share price rockets 20% with capital raising update
• Adbri (ASX:ABC) share price slips on half year results
• Here’s why the AGL (ASX:AGL) share price is down 6% in a week
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Motley Fool contributor Marc Sidarous 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 Adbri Ltd (ASX: ABC) share price is falling in intraday trade, down 4% to $3.50 per share.

This follows on the release of the ASX construction materials company’s financial results for the half year through to 30 June (1H21).

Adbri share price slips on half year results

• Underlying net profit after tax (NPAT) of $55 million, an increase of 15.5% on 1H20
• Revenue increased 7.4% from the prior corresponding period (pcp) to $752.3 million
• Underlying earnings before interest, taxes and depreciation (EBITDA) margins improved from 17.5% to 17.7%
• Declared an interim dividend of 5.5 cents per share (cps), fully franked, up from 4.75 cps in 1H20

What happened during the reporting period for Adbri?

The company credited its revenue lift on improved conditions during the half year, particularly in Queensland and New South Wales. It said “robust demand” for construction materials saw increased volumes across all its products.

Adbri secured 3-year contracts to supply lime to ASX mining giant Northern Star Resources Ltd (ASX: NST) and US-listed Newmont Corporation (NYSE: NEM). The company also reached an agreement with Alcoa Corp (NYSE: AA) to supply lime to their Wagerup facility until the end of September, with the potential to continue supply through the end of January 2022.

Adbri reported its Mawsons joint venture (JV) has agreed to acquire the Milbrae concrete, aggregates and crushing business. This will add 7 concrete plants and 13 quarries in regional New South Wales, subject to completion.

It reported that the sale process for its Hilltop land site in Geelong, Victoria has commenced. The company expects this to be complete in late 2021 or early 2022.

A long-term gas deal with Senex was also secured (post reporting period), which Adbri said will lock in an “important portion” of its gas requirements in South Australia until 2029.

Joining a growing list of companies addressing climate change, Adbri announced its goal of net zero carbon emissions by 2050.

What did management say?

Commenting on the results, Adbri’s CEO Nick Miller said:

Adbri delivered a robust first half financial performance for 2021 recording solid growth in revenue and profits with improving margins as demand for construction materials rebounded, supported by increased residential housing activity and infrastructure spending.

We have made strong progress in executing on our strategic priorities and investment initiatives, while continuing to maintain a disciplined focus on managing our cost base.

What’s next for Adbri?

Looking ahead, the company expects surplus land sales, including the Geelong Hilltop land, to deliver $20­–$30 million over the next 2 years. It also expects to see roughly $100 million in cost savings over the next 5 years, in part driven by low-cost energy contracts.

The second half of 2021 will see an increase in capital expenditure, with more investment in Adbri’s Kwinana and Accolade projects. It forecast full year capex of approximately $200 million.

Miller said that, “earnings in the second half will be impacted by a reduction in lime volumes to Alcoa, the anticipated commencement of a competing cement import terminal in NSW and COVID-19 impacts”.

These include rolling restriction on construction activity and the increased cost due to the delayed return of the Accolade from its drydock in Singapore.

Milled added that Adbri remains “well positioned to benefit from increasing construction activity as a result of ongoing government stimulus”.

The Adbri share price is up 48% over the past 12 months.

The post Adbri (ASX:ABC) share price slips on half year results appeared first on The Motley Fool Australia.

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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 AGL Energy Limited (ASX: AGL) share price is seeing some green shoots today. At the time of writing, AGL shares are trading at $6.91, down a nasty 3.76% for the day.

However, zoom out and the picture gets a lot bleaker the further you go. Since last Wednesday, AGL shares have lost around 6.3% of their value, seeing as the company was trading at $7.35 a share a week ago.

Year to date, AGL is now down by 43.23%. Over the past 12 months, these losses climb to 55.73%. And over the past 5 years, shareholders have had to watch AGL shares lose more than 63% of their value. In fact, since AGL’s last share price peak back in 2017, this company is now down more than 75%. Ouch.

To find the last time AGL shares have seen the levels we are at today, you’d have to go back to 2003.

But let’s focus on the past week. So what has sent AGL to new multi-decade lows in the past 5 trading days?

AGL shares drop from dividend, earnings report

Well, it’s not as bad as investors might fear. AGL shares are down today because the company has just gone ex-dividend for its upcoming shareholder payout. In its FY21 earnings report that AGL released on 12 August, AGL announced a final dividend of 34 cents per share, to be paid out on 29 September.

The ex-dividend date for this payment is… today. Thus, the value of this dividend has been taken out of the current AGL share price by the markets. That’s because any new AGL investors from today won’t be eligible for this dividend. 

On yesterday’s closing share price of $7.16, this dividend was worth a yield of 4.75% just on its own. That’s partly why we have seen such a steep fall in AGL shares over the past week.

But we must also look at the impact of AGL’s FY21 earnings report, which AGL delivered to investors just over a fortnight ago. After all, AGL shares have fallen around 10% since the time this report was released.

So, as we covered at the time, AGL reported revenue losses of 10%. As well as a 33.5% drop in underlying profits and a 31.6% fall in earnings per share (EPS). It also trimmed its dividend policy to help fund its upcoming demerger. This demerger, which will see AGL’s generation and retail businesses separate, is expected to be completed by the fourth quarter of FY2022.

So it’s likely that a combination of AGL’s poorly received earnings report, together with the company going ex-dividend today, is responsible for AGL shares’ recent run of bad fortune.

At the current AGL share price, the company has a market capitalisation of $4.3 billion and a trailing dividend yield of 9.45%.

The post Here’s why the AGL (ASX:AGL) share price is down 6% in a week appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Wednesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record another gain. The benchmark index is currently up 0.3% to 7,524.1 points.

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

Afterpay results

The Afterpay Ltd (ASX: APT) share price is largely flat on Wednesday after the release of its full year results. The soon to be acquired buy now pay later provider reported a 90% increase in underlying sales to $21.1 billion and a 78% jump in total income to $924.7 million. This was driven by increased repeat use and a 63% increase in active customers to 16.2 million. Management advised that the Square-Afterpay transaction is on track to complete in the first quarter of calendar year 2022.

WiseTech Global share price rockets after smashing guidance

The WiseTech Global Ltd (ASX: WTC) share price is rocketing higher today after smashing its earnings guidance in FY 2021. The logistics solutions platform provider was targeting full year revenue of $470 million to $510 million and EBITDA of $165 million to $190 million. This morning it reported an 18% increase in revenue to $507.5 million and a 63% jump in EBITDA to $206.7 million. Looking ahead, management is guiding to EBITDA growth of 26% to 38% in FY 2022.

Zip shares lower on results

The Zip Co Ltd (ASX: Z1P) share price is trading lower on Wednesday following the release of its full year results. For the 12 months ended 30 June, the buy now pay later provider reported a 150% increase in revenue to $403.2 million. This was driven by a 178.5% jump in transaction volume to $5.8 billion, which was underpinned by a 247.5% increase in customer numbers to 7.3 million. The company also revealed that so far in FY 2022 total transaction value was up 58% in Australia and 240% in the United States.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday by some distance has been the WiseTech share price with a 27% gain. This follows its stronger than expected full year results. The worst performer has been the Reece Ltd (ASX: REH) share price with a 9% decline. The plumbing parts company released its full year results after the market close on Tuesday.

The post ASX 200 midday update: WiseTech rockets, Afterpay & Zip report appeared first on The Motley Fool Australia.

More reading

• Wisetech (ASX:WTC) share price soars 23% as profit doubles in FY21
• Zip (ASX:Z1P) share price sinks despite 150% increase in revenue
• WiseTech (ASX:WTC) share price on watch after smashing FY 2021 earnings guidance
• Afterpay (ASX:APT) share price on watch after reporting 90% sales growth
• 5 things to watch on the ASX 200 on Wednesday

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 AFTERPAY T FPO, WiseTech Global, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and WiseTech Global. 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 MyDeal.com.au Ltd (ASX: MYD) share price is falling after the company released its financial year 2021 (FY21) earnings.

Right now, the MyDeal share price is 79.5 cents, 5.36% lower than its previous closing price.

MyDeal.com.au share price slumps on 1,700% drop in profit

Here’s how the online retail store performed during FY21:

• $38.2 million of revenue – 144% more than that of FY20
• Loss of $5.8 million after tax ­– a 1,700% drop from FY20’s $331,632 profit
• Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a loss of $4 million
• Net cash flow from operations was an outflow of $3.9 million
• No dividend

While the company’s FY21 results were pretty lacklustre, it wasn’t all bad for MyDeal.com.au.

The company reported record gross sales of $218.1 million. It also reported its net transaction value was $204.6 million, up from $94.0 million in FY20. Additionally, its FY21 gross profit was $33.3 million, 119% more than that of FY20.

Mydeal stated its EBITDA loss was mainly driven by its increased spending on advertising and promotional activity, which is expected to support its goal of increasing customer acquisitions and investment into its private label business.

It invested $4.9 million into its private label’s inventory in FY21. The private label contributed $8.8 million to the company’s gross sales.

Before its private label inventory investment, MyDeal’s operating cash flow was $1 million.

The company ended the period with $42.7 million cash and no borrowings.

What happened in FY21 for MyDeal.com.au?

FY21 was a big year for MyDeal and its share price with a corporate restructure in September and the company’s debut on the ASX in October.

MyDeal raised $40 million through its initial public offering (IPO).

The company reported that the number of active customers increased 83% year-on-year over FY21. It ended the period with 894,225 active customers.

Repeat business also grew, with 59.4% of transactions in the fourth quarter coming from returning customers.

Customers now shop with MyDeal an average of 1.7 times per year, up from 1.5 times in FY20.

Finally, the MyDeal app represented around 10% of the company’s sales over FY21. It launched in May 2021.

What did management say?

Commenting on the results, MyDeal.com.au founder & CEO Sean Senvirtne said:

FY21 represents a significant moment in MyDeal’s history, a record 10 years in the making and just the beginning of what’s to come… We have put ourselves in the perfect position to capture the increased demand in the market.

Now with over 1,100 active sellers, 6+ million products and a private label business on a steep incline, we continue to entrench ourselves as one of Australia’s prominent online retail marketplaces for home and lifestyle products.

Senvirtne said MyDeal continued to scale by leveraging its proprietary technology across sellers, products and sales and “continuously refining the user experience”.

We invest in efficient customer acquisition and retention strategies to accelerate active customer growth, while attracting marketplace sellers and investing in our private label offering to expand our range of products across in-demand categories.

Promoting and further optimising the app will remain a key feature of our strategy going forward.

What’s next for MyDeal.com.au?

Here’s what might drive the MyDeal share price in FY22:

While MyDeal didn’t provide guidance for FY22, the company pledged to provide regular business updates.

It stated FY22 was off to a good start and noted its soon-to-launch multi-channel brand and advertising campaigns.

MyDeal said it would keep focusing on customer acquisition and its private label business in FY22.

MyDeal share price snapshot

The MyDeal share price has slipped 54% since its first close on the ASX. It is also currently 20.5% lower than its prospectus’ offer price of $1 per share.

The post Mydeal.com.au (ASX:MYD) share price slides 5% on $5.8 million loss 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. 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 Lovisa Holdings Ltd (ASX: LOV) share price is leaping higher today, up 18.19% at the time of writing to $19.40 per share.

This comes following the release of the ASX jewellery retailer’s financial results for the year ending 30 June (FY21).

Lovisa share price leaps on FY21 profit results

• Revenue of $288 million, up 18.9% from FY20
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 34.6% year on year to $60.2 million
• Net profit after tax (NPAT) of $27.7 million, up 43.3% from the $19.3 million reported in FY20
• Net cash of $35.6 million, up from $20.4 million in FY20
• Declared a final dividend of 18 cents per share (cps); no final dividend was paid in FY20

What happened during the reporting period for Lovisa?

Like most ASX retailers, Lovisa reports that it was “heavily impacted” in the first quarter of the financial year by COVID-19 restrictions. It pointed to store closures in Victoria and weakness in most of its global markets as hampering operations in Q1.

Things turned around in the second quarter with Lovisa’s Victorian stores reopening and “most other markets showing improved performance.” This led to positive comparable store sales through the second quarter. However, more closures later in the year, particularly in the United Kingdom, continued to impact operations.

COVID also slowed sales in its Asian markets, with tourism numbers way down. And it added to costs, with “significantly higher freight costs due to COVID surcharges on freight rates.”

The company’s beeline acquisition (of a European retail store network) in November aided its cash flow position. It benefitted from the receipt of 11.8 million euro cash as part of the acquisition.

During the financial year, Lovisa opened 22 stores in its existing markets and 87 stores in Europe as part of its beeline acquisition. That brings the total number of stores to 544.

The final dividend lifts the full-year dividend payout to 38 cps.

What did management say?

Lovisa managing director Shane Fallscheer commented on the results:

We are pleased with the performance of the business for the year, in particular with the sales performance we saw across most markets since the end of Q1FY21 with solid trading despite the continued global challenges we face with the impact of COVID.

The strength of our balance sheet and the current global footprint puts us in a great position to take advantage of future opportunities as they arise.

What’s next for the Lovisa share price?

Lovisa said it will continue to focus on expanding its physical and digital store networks.

With the resurgent pandemic, it cautions that “logistics capacity challenges” will hinder bricks and mortar store openings.

Management did not provide guidance on future dividend levels. It said “profitability, cash flows, and future growth capex requirements” will determine this. The company said that due to the uncertain outlook for the global economy, it could not provide further guidance.

The Lovisa share price is up 150% over the past 12 months.

The post Lovisa (ASX:LOV) share price leaps 18% higher on FY21 profit boost appeared first on The Motley Fool Australia.

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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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