The AMP Limited (ASX: AMP) share price is down 13%, with the market not impressed by the FY22 result despite the ASX financial share announcing that it was going to pay a dividend.

It has been a painful few years for shareholders, with AMP profits sinking following the Royal Commission into financial advice.

AMP has finally announced a dividend for investors. Yet, a return to making a statutory net profit after tax (NPAT) in the FY22 report was not enough to impress the market.

What was in the AMP result?

AMP revealed that it made a statutory NPAT of $387 million, a turnaround from the $252 million loss in FY21.

However, the underlying NPAT dropped from $280 million to $184 million. The company said this was a result of assets under management (AUM) suffering due to volatile investment markets, repricing in its wealth management businesses, and a weaker net interest margin (NIM) for AMP Bank.

AMP dividend

AMP hadn’t paid a dividend to shareholders for a few years, but the ASX financial share declared a final dividend for the 2022 financial year of 2.5 cents per share, with franking of 20%.

At the current AMP share price, that represents a partially franked dividend yield of 2.2%.

This is part of the company’s $1.1 billion plan to return capital to shareholders. In FY22, it delivered $267 million of a targeted $350 million share buyback.

This dividend amounts to around $75 million.

Will there be future AMP dividends?

AMP didn’t give much guidance about dividends in FY23.

It said that returning capital to shareholders remains one of its “key strategic priorities for 2023″.

But, the company did say that it continues to maintain a conservative approach to capital management to support the transformation of the business and maintain balance sheet strength.

It intends to return the $1.1 billion as a result of previously announced business sales.

While AMP is unlocking value for shareholders by divesting parts of the business, I think it’s likely that (some of) the cash could be sent shareholders’ way through a combination of dividends and share buybacks.

But, in terms of paying dividends from AMP’s ongoing operations, I think the focus will be on AMP ensuring that it can create a sustainable future and retaining profit for re-investment.

Before today’s result, estimates on Commsec suggested that AMP might pay an annual dividend per share of 4 cents in FY23 and 5.2 cents in FY24.

At the current AMP share price, excluding the impact of possible franking credits, that could be a dividend yield of 3.5% in FY23 and 4.6% in FY24.

The post The AMP dividend is back! Here’s what you need to know appeared first on The Motley Fool Australia.

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More reading

• Why AMP, Evolution, Perenti, and Whitehaven Coal shares are dropping
• AMP share price dives 12% on earnings miss
• Here are the top 10 ASX 200 shares today
• Why is the AMP share price smashing the ASX 200 on Tuesday?
• Why ASX shares will flog global stocks the next few years: economist

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 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 Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) lithium shares have garnered plenty of investor attention due to their outsized returns. 

Even after smashing the benchmark returns in 2022, all but one of the blue-chip lithium companies is outpacing the ASX 200 again this year.

Since the opening bell on 3 January, the ASX 200 is up 6.6%.

Here’s how the ASX 200 lithium shares have performed over that same period:

• Core Lithium Ltd (ASX: CXO) shares are down 1.0%
• Allkem Ltd (ASX: AKE) shares are up 12.4%
• Pilbara Minerals Ltd (ASX: PLS) shares are up 30.0%
• IGO Ltd (ASX: IGO) shares are up 7.9%
• Mineral Resources Ltd (ASX: MIN) shares are up 16.3%

The strong performance has been driven by soaring demand for – and the soaring price of – lithium, a critical element in most EV and home storage batteries.

While the lithium price has fallen from its 2022 record highs, the price remains elevated by historic standards. And all signs point to growing demand in the years ahead.

Which brings us to the US$1 trillion (AU$1.45 trillion) milestone.

Global spending on EVs is surging

According to a new report, published by Bloomberg, global spending on passenger EVs leapt 53% in 2022 year on year.

All told, consumers around the world splashed out US$388 billion on new passenger EVs last year.

That’s good news for ASX 200 lithium shares, as approximately 75% of the world’s consumption of lithium goes into rechargeable batteries.

2022’s figures have now seen the total value of passenger EVs sold over the past 10 years (when EVs first began to make real inroads) hit US$1 trillion.

Granted, that’s only around 4% of the total value of all passenger vehicles sold over the last decade (some US$25 trillion).

But when seeking out long-term investments, it can pay to look for these kinds of mega-growth trends with a lengthy horizon ahead of them.

Indeed, according to Bloomberg’s analysis, passenger EV sales are likely to surpass US$500 billion in 2023. That represents a 29% annual growth rate.

That will see lithium demand continue to ramp up and should offer some ongoing tailwinds for ASX 200 lithium shares.

The best-performing ASX 200 lithium share over 12 months

Up top we looked at how the big lithium miners have performed so far in 2023.

But which one is leading the pack over the past 12 months?

With a nod to the runner-up, Pilbara with a 52% share price gain over 12 months, the best-performing ASX 200 lithium share for the full year is Mineral Resources.

As you can see in the chart below, the Mineral Resources share price is up a whopping 77% since this time last year.

Boom!

The post Why this US$1 trillion milestone matters for ASX 200 lithium shares appeared first on The Motley Fool Australia.

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More reading

• 4 ASX 200 lithium shares being targeted by short sellers
• Pilbara Minerals shares: Future dividend darling?
• Could this new advancement reignite ASX 200 lithium stocks?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why is short interest in Core Lithium shares growing?

Motley Fool contributor Bernd Struben 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 Scott Phillips.

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ASX tech share Revasum Inc (ASX: RVS) is soaring with its share price up 39.39% despite no news from the company today.

Revasum is an ASX nano-cap share with a market capitalisation of just $17.5 million.

The company designs, manufactures, and markets semiconductor processing equipment used in the creation of wafers, which are inserted into microchips, sensors, LEDs, mobile phones, and cars.

So, why is this ASX tech share shooting the lights out today?

Great day for ASX tech shares

Revasum may be riding a broader momentum wave for ASX tech shares today, although that doesn’t explain the scale of its share price increase.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) is the second-best performer of the 11 market sectors today.

It’s up 2.44% at the time of writing, with many ASX tech shares enjoying surges today.

Revasum is the top-performing ASX tech share, followed by fellow nano cap Digitalx Ltd (ASX: DCC) shares, up by 20%.

Some other big ASX tech share movers today include Brainchip Holdings Ltd (ASX: BRN) shares, up 11.5%, and Sezzle Inc (ASX: SZL) shares, up 9%.

What’s the latest news from Revasum?

The last time we heard price-sensitive news from Revasum was last Wednesday when the company announced a financing facility deal.

Revesum told the market it has entered into a non-binding term sheet with SQN Venture Partners LLC and Firsthand Capital Management.

Firsthand has backed the company since its incorporation. It will invest up to an additional US$2 million to help Revesum cure a recent default in its financing agreement with SQN.

Revesum has a growth capital facility with SQN. On 2 September, the company announced it had defaulted by failing to meet certain covenants, such as a requirement to maintain at least six months of liquidity.

The money invested by Firsthand will help cure the breach, with discussions ongoing to finalise the terms. The parties have not yet decided whether the $2 million will be taken as debt, equity, or a mix of both.

Revesum share price snapshot

This ASX tech share is down 73% over the past 12 months.

But it’s enjoying a better time in 2023, up 77% in the year to date.

Revesum has only been trading on the ASX for four years. It began trading in December 2018 at $2 per share with a market capitalisation of $153 million.

The post Guess which ASX tech share just rocketed 40% appeared first on The Motley Fool Australia.

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More reading

• New Hope share price tumbles 6% despite surge in earnings
• Down 38% since mid-November, is it time to bag some Liontown shares?
• Why Bapcor, Magellan, Sonic Healthcare, and Telstra shares are charging higher
• Why is the Zip share price rocketing 7% today?
• 2 ASX 200 stocks on the move following earnings updates

Motley Fool contributor Bronwyn Allen 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 Scott Phillips.

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The New Hope Corporation Limited (ASX: NHC) share price is tumbling despite the company revealing an 89% jump in earnings.

Stock in the S&P/ASX 200 Index (ASX: XJO) coal producer is down 4% right now, trading at $5.50.

New Hope share price plummets despite $1b of earnings

Here are the key takeaways from New Hope’s January quarterly report:

• $1 billion of unaudited underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) ­– an 89% jump on those of the prior comparable period (pcp)
• $983 million of cash generated from operating activities in the first half
• Thermal coal prices closed at US$357.80 for the quarter – a 59% increase on the pcp
• So far, the company has completed $31 million of its on-market buy-back
• Ended the period with $1.1 billion of cash and equivalents

The company’s run of mine coal production came in at around 2.1 million tonnes last quarter – a 7.2% quarter-on-quarter drop. That left its year-to-date production down 24.7% on the pcp.

Meanwhile, coal sales slumped 22.3% quarter-on-quarter to close to 1.5 billion tonnes – leaving its year-to-date production 27.7% lower.

Finally, oil production for the quarter came in at 71,652 barrels while sales volumes slipped 7% due to a build-up of crude stock.

What else happened last quarter?

New Hope notes demand for coal weakened last quarter as Europe and Asia saw more mild temperatures and a drop in industrial activity.

Meanwhile, a price cap on coal was introduced by the New South Wales Government, limiting the black rock’s value to $125 a tonne.

New Hope’s 80% owned Bengalla was directed to reserve the lower of 280,000 tonnes or 15% of production for domestic consumption until June 2024.

However, due to existing supply contracts, the operation won’t be impacted until early next year.

Finally, New Hope paused its on-market buy-back in December, turning its attention to buying back its 2.75% senior convertible notes with a face value of $200 million.

What’s next?

The company expects demand to rebound in the coming months as COVID-19 lockdown measures ease in China, and Japan continues lessening its use of Russian coal.

New Hope share price snapshot

After roaring higher in 2022, the New Hope share price has started this year out on the wrong foot.

The stock is currently 6% lower than it was at the start of 2023. Though, it’s still 119% higher than it was this time last year.

For comparison, the ASX 200 gained nearly 7% year to date and around 2% over the last 12 months.

The post New Hope share price tumbles 6% despite surge in earnings appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why AGL, New Hope, News Corp, and REA shares are dropping today
• New Hope share price dives 9% as ASX 200 coal stocks get hit hard
• 2 ‘high quality’ ASX 200 shares to navigate a turbulent 2023: expert

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 Scott Phillips.

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Liontown Resources Ltd (ASX: LTR) shares are heading in the right direction at last on Thursday.

In afternoon trade, the lithium developer’s shares are up almost 2% to $1.37.

However, this gain cannot hide the fact that Liontown shares are down 38% from its mid-November peak of $2.22.

Why have Liontown shares been smashed?

There have been a number of catalysts for the sudden pullback by Liontown’s shares over the last three months.

The first is concerns over the outlook for lithium prices. With some analysts suggesting that the price of the battery making ingredient could fall materially in the next 18 months, investors appear worried that lithium miners may not deliver earnings as strong as hoped. This has obvious consequences for valuations in the industry.

Also weighing on Liontown’s shares has been short sellers loading up on its shares, as well as a number of other lithium developers. They may believe that lithium prices are indeed heading lower and have been shorting their shares.

Finally, a cost blowout at the Kathleen Valley lithium project has shaken confidence. The cost of the project continues to rise and there are fears that Liontown will need to raise funds in the near future given its cash shortfall.

Is this a buying opportunity?

Not everyone is bearish on Liontown shares. The team at Bell Potter remains positive and recently retained its speculative buy rating with a $2.81 price target. This suggests that its shares could double in value over the next 12 months.

Bell Potter acknowledges that project costs are rising but is overlooking this due to an increase in its production capacity. It commented:

LTR has announced that the Kathleen Valley capital cost is now expected to be $895m (June 2022 estimate of $545m), a 20% increase in initial plant capacity to 3.0Mtpa (from 2.5Mtpa) and the potential for early revenues from sales of Direct Shipping Ore (DSO). The capital cost increase is due to industry cost inflation, the increased plant capacity and prioritising schedule to maintain first concentrate production from mid2024. Around $75m has been spent on the project to date, implying $820m remaining. LTR has cash reserves of $385m, undrawn debt of $300m and is progressing a range of further funding options which it does not expect will be required until late 2023.

The post Down 38% since mid-November, is it time to bag some Liontown shares? appeared first on The Motley Fool Australia.

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• 4 ASX 200 lithium shares being targeted by short sellers
• 2 ASX lithium shares to pounce on before they explode: experts
• Here are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to buy next week
• Buy Liontown shares today for 70% upside: Macquarie

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 Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 0.75% to 7,407.3 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are rising:

Bapcor Ltd (ASX: BAP)

The Bapcor share price is up 5.5% to $6.55. Investors have been buying this auto parts retailer’s shares following the release of its half year results. Bapcor reported an 11.2% increase in revenue to $1 billion and a 2.3% increase in pro-forma net profit after tax to $146.3 million. Both were records for the period. This allowed Bapcor to boost its interim dividend by 5% to 10.5 cents per share.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price has jumped 10% to $10.37. This is despite the struggling fund manager delivering a terrible half year result. Magellan reported a 67% decline in net profit after tax to $83.8 million. This was driven by the halving of its average funds under management since this time last year. Investors appear to have been expecting an even worse update or are attracted to its 46.9 cents per share interim dividend.

Sonic Healthcare Limited (ASX: SHL)

The Sonic Healthcare share price is up almost 14% to $33.03. Investors have been buying this healthcare company’s shares despite its half year result falling ever so slightly short of consensus estimates. They may be focusing more on news that the company is looking at making some acquisitions.

Telstra Group Ltd (ASX: TLS)

The Telstra share price is up 2% to $4.23. This follows the release of the telco giant’s first half results. Telstra delivered a result ahead of expectations with its 6.4% increase in total income to $11.6 billion and 11.4% jump in EBITDA to $3.9 billion. This allowed the Telstra board to increase its fully franked interim dividend by 6.3% to 8.5 cents per share.

The post Why Bapcor, Magellan, Sonic Healthcare, and Telstra shares are charging higher appeared first on The Motley Fool Australia.

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• Bapcor share price surges 5% on record half
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• Sonic Healthcare share price surges 9% on ‘amazing’ profit result
• Magellan share price shakes off 60% profit slump and marches higher
• Telstra share price higher on half-year revenue and earnings beat

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 positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Bapcor and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s been a day of relief for ASX investors so far this Thursday. After posting some nasty falls on both Monday and yesterday, the All Ordinaries Index (ASX: XAO) is back in the green today, up a healthy 0.72% so far. But the Zip Co Ltd (ASX: ZIP) share price makes this look like child’s play.

Zip shares are on fire today. The All Ords buy now, pay later (BNPL) share is currently up a whopping 7.21% to 60 cents per share. Yep, Zip shares closed at 56 cents a share yesterday but opened at 57 cents this morning before rising to 60 cents just after lunchtime.

So what’s going on with Zip today that has resulted in such a happy jump in value?

The Zip share price just gained 7%, what’s going on?

Well, it’s not entirely clear. There hasn’t been any news or official announcements out of Zip today. Or indeed for a few weeks.

However, moves like this aren’t exactly uncommon with Zip shares – one of the more volatile companies in the All Ordinaries Index:

This company has also been on a bit of a slide of late too. Between 2 February and yesterday, the Zip share price lost a rather horrible 18.84%.

Today’s gains reduce that loss to 13.8%. But Zip still remains a good 29% or so from the 84 cents the company got up to last month. And we won’t even mention Zip’s current 52-week high of $2.80 per share. Nor Zip’s 2021 all-time record high of $14.53.

So it’s possible that investors just decided that Zip shares had gotten too low yesterday, and have given the company’s share price a shot in the arm on this positive day for the All Ords.

Another thing to keep in mind is that Zip is now one of the ASX’s most short-sold shares. This can mean that a good session for the company can amplify the share price gains, as some short sellers are forced to cover their positions.

At the current Zip Co share price, this ASX All Ords BNPL share has a market capitalisation of $424.77 million.

The post Why is the Zip share price rocketing 7% today? 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 positions in and has recommended Zip Co. 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 Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is up 0.85% today as companies continue to release their half-year results for the six months ending 31 December 2022.

Here we take a look at the results of the biggest real estate investment trust (REIT) among the ASX 200 stocks, Goodman Group (ASX: GMG), as well as those of the operator of the Australian Securities Exchange, ASX Limited (ASX: ASX).

Goodman Group profit up 11.5%

Goodman Group is one of the largest ASX 200 stocks, with a market capitalisation of $37.25 billion. The Goodman share price is up 1.2% today to $20.05 after the industrial property specialist reported an 11.5% profit boost and upgraded its full-year FY23 guidance.

Here are the highlights of 1H FY23 for Goodman Group:

• Operating profit of $877 million, up 11.5% on the prior corresponding period (pcp) of 1H FY22
• Operating earnings per share (EPS) of 46.4 cents, up 10.7% pcp
• Gearing at 9.7%, (8.5% at 30 June 2022) with look through gearing at 20.7%
• Available liquidity of $2.8 billion
• Net tangible assets (NTA) of $8.87 per share, up 6% from 30 June 2022
• Total assets under management of $79.5 billion, up 17% pcp
• $1.4 billion of revaluation gains across the group and partnerships during the half
• Portfolio occupancy at 99% and like-for-like net property income growth of 4.2%
• Development pipeline valued 9% higher on pcp to $13.9 billion, with a forecast yield on cost of 6.4%.

In a statement, Goodman Group said “the business is performing better than originally anticipated”.

Goodman said:

We’ve seen continued rental growth in our markets which has underpinned strong cash flows.

The capital position is strong, the portfolio remains almost fully leased, and development activity
continues to be robust.

As a result, the Group expects to achieve full year OEPS growth of 13.5% compared to the previous guidance of 11%.

Massive CHESS derecognition cost impacts ASX profit

This ASX 200 stock is the company that runs the largest securities exchange in Australia. The ASX share price is down 0.7% to $69.55.

Here are the key points for 1H FY23:

• Statutory profit of $73.7 million (impacted by the CHESS derecognition charge of $176.3 million announced in November 2022)
• Underlying net profit after tax (NPAT) of $250 million, down 0.1% pcp
• Operating revenue of $499.5 million, down 0.4% pcp
• Interim dividend of 116.2 cents per share declared.

In a statement, ASX CEO Helen Lofthouse said it was a “pleasing performance … achieved in a period of notable change for our organisation and volatility in our external environment”.

The post 2 ASX 200 stocks on the move following earnings updates appeared first on The Motley Fool Australia.

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• Which ASX 200 shares are rebounding fastest in 2023?
• Brokers say these quality ASX 200 blue chip shares are buys

Motley Fool contributor Bronwyn Allen has positions in Goodman Group. 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 Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is charging higher. At the time of writing, the benchmark index is up 0.65% to 7,400.1 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

AMP Ltd (ASX: AMP)

The AMP share price is down over 13% to $1.13. Investors have been selling this financial services company’s shares following the release of its half year results. Investors appear disappointed that AMP reported a 34% decline in underlying net profit after tax to $184 million.

Evolution Mining Ltd (ASX: EVN)

The Evolution share price is down 3% to $2.93. Although the gold miner reported a 13% increase in EBITDA to $446 million, it decided to cut its dividend down to 2 cents per share. Management advised that this dividend balances capital investment and balance sheet management with investor returns.

Perenti Ltd (ASX: PRN)

The Perenti share price is down 8% to $1.11. This follows news of an incident at the Dugald River underground mine in Cloncurry, Queensland. The mining services company remains hopeful that a positive outcome can be achieved and is working around the clock.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is down 3% to $7.95. Investors have been selling this coal miner’s shares following the release of its half year results. Although Whitehaven Coal delivered incredible growth and a sales and profit result in line with consensus expectations, its dividend appears to have disappointed the market. Whitehaven Coal increased its fully franked interim dividend by a massive 300% to 32 cents per share. However, this was still well short of the 44 cents per share consensus estimate.

The post Why AMP, Evolution, Perenti, and Whitehaven Coal shares are dropping appeared first on The Motley Fool Australia.

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More reading

• AMP share price dives 12% on earnings miss
• Everything you need to know about the monster Whitehaven dividend
• Whitehaven Coal share price sinks despite 423% profit jump
• ‘Looks attractive’: Fund names 3 ASX shares to buy for the energy crisis
• 5 things to watch on the ASX 200 on Thursday

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 Scott Phillips.

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The Bapcor Ltd (ASX: BAP) share price is roaring higher after the company released its earnings for the first half of the financial year this morning.

Shares in the S&P/ASX 200 Index (ASX: XJO) automotive spare parts and accessories provider are currently trading 5.15% higher at $6.53.

Bapcor share price leaps as revenue reaches $1b

Here are the key takeaways from Bapcor’s latest earnings release:

• $1 billion of revenue – a 11.2% jump on the prior comparable period (pcp) and a new record
• $62 million of pro-forma net profit after tax (NPAT) – up 2.3%
• $146.3 million of pro-forma earnings before interest, tax, depreciation, and amortisation (EBITDA) – a 6.7% jump
• Pro-forma earnings per share (EPS) came to 18.3 cents
• Interim dividend boosted 5% to 10.5 cents per share

The company’s specialist wholesale segment brought in the lion’s share of revenue last half, at 36%, with trade close behind, responsible for 35% of revenue. Retail brought in 21% of its revenues while its New Zealand business was behind the other 8%.

Its positive financial result came despite overall margins being impacted by challenges in retail, economic weakness in New Zealand, and higher supply chain costs.

Bapcor ended the period with a $329 million net debt position.

What else happened last half?

It’s been a busy period for Bapcor.

The company boasts 31 more company-owned locations than it did in the first half of financial year 2022.

It has also successfully transitioned its Bearing Wholesales and Federal Batteries brands into its Victorian distribution centre last half and is on track for practical completion of its Queensland distribution centre in the current half.

Finally, its Better than Before transformation moved from planning into implementation and execution and remains on schedule.

What did management say?

Bapcor CEO and managing director Noel Meehan commented on the news driving the company’s share price higher today, saying:

Our diversified model has demonstrated the resilience of Bapcor’s business, and despite input cost pressure we have had strong performances of our trade and wholesale operations that allowed us to mitigate shorter-term headwinds in supply chain, retail and New Zealand.

What’s next?

The company experienced a solid start to the year in January, with trading conditions unchanged.

It believes the second half of this fiscal year will bring slight improvements in trading, subject to market conditions. It also notes more progress is needed to further reduce elevated inventory levels.

Finally, it still expects to realise the initial capital expenditure for its transformation plan next half. The plan aims to provide a net earnings before tax and interest (EBIT) benefit of at least $100 million and return at least 12% of invested capital by financial year 2025.

Bapcor share price snapshot

Today’s gain has put the Bapcor share price back into the year-to-date green.

The stock is currently 1% higher than it was at the start of 2023. Though, it has fallen 7% since this time last year.

For comparison, the ASX 200 has gained 7% year to date and 2% over the last 12 months.

The post Bapcor share price surges 5% on record half appeared first on The Motley Fool Australia.

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More reading

• Why is nobody talking about this gem of an ASX 200 stock?

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 Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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