Last week was a tough one for investors, with the S&P/ASX 200 Index (ASX: XJO) having its worst showing since 2020. Over the five days, the benchmark index lost 3.1% of its value to end the period at 6,997.8 points.

While a good number of shares dropped with the market, some fell more than others. Here’s why these were the worst performing ASX 200 shares last week:

Appen Ltd (ASX: APX)

The Appen share price was the worst performer on the ASX 200 last week with a 21.6% decline. Investors were selling down this artificial intelligence data services company’s shares following the release of its full year results. That release revealed that Appen delivered a 3% increase in underlying EBITDA to US$77.7 million in FY 2021, which fell short of its revised guidance. Management’s lack of guidance for FY 2022 also weighed on sentiment.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price wasn’t far behind with its decline of 20.2%. At the start of the week, this sports betting company’s shares came under fire due to the release of a disappointing update from rival DraftKings. Its shares crashed after revealing a loss of US$326 million for the fourth quarter. It also warned that it was likely to make a loss of US$1 billion in FY 2022. A selloff in the tech sector later on in the week also put pressure on PointsBet’s shares.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price was out of form and tumbled 18.9% last week. Investors were selling the pizza chain operator’s shares after its half year earnings fell short of expectations. Domino’s reported an 11.1% increase in network sales but a 5.3% decline in underlying net profit after tax to $91.3 million. This earnings miss was driven by the underperformance of its Asian operations.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price continued its slide and dropped a further 18.1% over the five days. A good portion of this decline came on Friday when the embattled fund manager revealed that its funds under management (FUM) has declined again over the last two weeks. Magellan advised that its total FUM now stands at $77.2 billion, which is down 11.4% since its last update on 11 February.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts this Friday
• Why Blackmores, BWX, Kogan, and Magellan shares are dropping
• Why Adbri, Appen, Block, and Life360 shares are storming higher
• Here’s why the Appen (ASX:APX) share price is racing 14% higher today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd and Pointsbet Holdings Ltd. The Motley Fool Australia owns and has recommended Appen Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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While the outlook for interest rates is certainly improving, it looks likely to still be some time until rates reach levels that investors could earn a sufficient income from savings accounts and term deposits.

In light of this, the dividend shares listed below could be top options for income investors for the foreseeable future. Here’s what you need to know about them:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT. As its name implies, this real estate investment trust invests in social infrastructure properties. These properties, which are on very long leases, include bus depots, police and justice services facilities, and childcare centres.

Goldman Sachs is positive on the company and currently has a conviction buy rating and $4.20 price target on its shares. The broker was pleased with its half year results, highlighting its solid like for like rental growth, 100% occupancy, and weighted average lease expiry of 14.6 years.

As for dividends, Goldman is forecasting dividends per share of 17.2 cents in FY 2022 and 18.3 cents in FY 2023. Based on its current share price of $3.80, this implies yields of 4.5% and 4.8%, respectively.

Coles Group Ltd (ASX: COL)

Another ASX dividend share for investors to consider is Coles. It is of course one of the big two supermarket chains, operating over 800 supermarkets. It also operates over 900 liquor retail stores and more than 700 Coles Express stores

This strong network, its defensive qualities, and track record of same store sales growth, has analysts predicting growing dividends in the coming years.

For example, analysts at Morgans are forecasting fully franked dividends of 61 cents per share in FY 2022 and then 63 cents per share in FY 2023. Based on the current Coles share price of $17.49, this will mean yields of 3.5% and 3.6% respectively.

Morgans also sees decent upside for its shares. The broker currently has an add rating and $19.70 price target on its shares.

The post These ASX dividend shares have been given buy ratings by analysts 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 owns and has recommended COLESGROUP DEF SET. 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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Today, the S&P/ASX 200 Index (ASX: XJO) avoided negative territory after its worst fall in 17 months yesterday. At the end of the session, the benchmark index finished 0.1% higher at 6,997.8 points.

Investors were torn in two directions today as the market unleashed a number of well-received company earnings, while the terror of Russia’s invasion of Ukraine raged on.

Surprisingly, it was the tech sector that aided in the positive performance across the Aussie index. Remarkably, every tech share in the ASX 200 finished in the green, putting the sector at an 8.14% gain.

The question is: which shares managed to stay in the green on the ASX today? Here are the top ten stocks that pulled through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Paladin Energy Ltd (ASX: PDN) was the biggest gainer today. Shares in the uranium mining company charged ahead 12.41% after losses narrowed to US$11 million in the first half. Find out more about Paladin Energy here.

The next biggest gaining ASX share today was APM Human Services International Ltd (ASX: APM). The employment and health services provider experienced a 10.90% jump in its share price. Investors were reacting positively following its solid first-half result. Uncover the latest APM Human Services International details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Paladin Energy Ltd (ASX: PDN)	$0.77	12.41%
APM Human Services International Ltd (ASX: APM)	$2.95	10.90%
Liontown Resources Ltd (ASX: LTR)	$1.43	10.00%
Yancoal Australia Ltd (ASX: YAL)	$3.49	7.39%
Chalice Mining Ltd (ASX: CHN)	$7.40	7.25%
Telix Pharmaceuticals Ltd (ASX: TLX)	$5.19	7.23%
Lynas Rare Earths Ltd (ASX: LYC)	$9.57	6.93%
Imugene Ltd (ASX: IMU)	$0.235	6.82%
Home Consortium Ltd (ASX: HMC)	$6.45	6.61%
Nickel Mines Ltd (ASX: NIC)	$1.54	6.57%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Friday
• Back on the horse! ASX tech shares stage stunning comeback following sell-off
• Magellan (ASX:MFG) share price slips 6% as funds continue mass exodus
• ASX 200 (ASX:XJO) midday update: Block rockets, Blackmores sinks
• Paladin (ASX:PDN) share price soars 14% on ‘strong cash position’

Motley Fool contributor Mitchell Lawler owns Lynas Corporation Limited. 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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ASX lithium shares may be hot at the moment, but which is the best value on the market?

Two ASX lithium shares that reported earnings recently are Pilbara Minerals Ltd (ASX: PLS) and Mineral Resources Limited (ASX: MIN). The Pilbara share price finished 4.58% in the green today, while Mineral Resources climbed 2.54%

So which of these top lithium shares does one expert recommend?

Which lithium stock is best?

ASX lithium shares are popular right now due to surging demand and tight supply, with lithium a critical component in electric vehicle (EV) batteries.

Speaking with livewire yesterday, Eley Griffiths Group analyst and portfolio manager Tim Serjeant gave some clues to the best ASX lithium shares to buy.

Which is the cheapest lithium stock in the market? Look, it’s how adventurous you want to be.

I think today, [Pilbara] has the best exposure to current pricing dynamics… it is incredibly challenging to bring these assets into production. And I think that reinforces the positions of the incumbents. 

Pilbara Minerals reported its half-year financial results to the market this week, while Mineral Resources presented its financial results on 9 February. Pilbara reported an underlying profit after tax of $84.2 million and the shock exit of its CEO. Meanwhile, as my Foolish colleague James reported, the half-year results presented by Mineral Resources fell short of expectations.

One to buy, one to hold, says expert

Serjeant recommends shareholders buy Pilbara, and hold Mineral Resources, saying:

I think in the shorter term, [Pilbara] is a clean 100% exposure to that raw material shortage in lithium, through spodumene. For me, given the pricing backdrop, I think in the shorter term that’s probably where you want to be.

[Mineral Resources] is a hold today but their position in the value chain — being further downstream — means there is a lot of embedded growth to come over the next three to five years. 

Serjeant said he did not believe there was enough incentive to take risks with emerging ASX lithium shares compared to six to nine months ago.

However, he noted that Core Lithium Ltd (ASX: CXO) and Liontown Resources Limited (ASX: LTR) may be worth considering if the bigger players underperformed.

That said, I think the lithium industry is going to prove that you want to back one of the incumbents as opposed to backing smaller players outside of that. That’s how I expect it will play out.

How have these ASX lithium shares been performing?

The Pilbara share price has soared 151% in the past year, while Mineral Resources has surged nearly 13%.

In comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) has climbed 2.4% in the past year.

Year to date, Pilbara has plunged 14%, while Mineral Resources has tumbled about 20%.

The post Is this the best-value ASX lithium share right now? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• How have ASX lithium stocks been faring this reporting season?
• These 3 ASX 200 shares are topping the volume charts this Wednesday
• Pilbara Mineral (ASX:PLS) share price sinks 7% amid half-year results and CEO exit

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 Tesserent Ltd (ASX: TNT) share price surged by 15% today after the cybersecurity provider released its half-year results.

The company reported increases in earnings and revenue, alongside the induction of three acquired businesses.

At the market close, the Tesserent share price was up 15.38% at 15 cents. To compare, the S&P/ASX 200 Information Technology Index (ASX: XIJ) closed up 8.14% today.

So what did the IT company report to make its share price skyrocket?

Tesserent share price surges on rise in earnings, revenue

The Tesserent share price surged today on the back of the half-year results for the period ending 31 December 2021. Key takeouts included (against the prior corresponding period):

• Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) up 102% to $5.6 million
• Turnover up 72% to $62.9 million
• Statutory revenue up 52% to $43.9 million

All in all, the company’s annual recurring revenue increased by 44%, though no dividend was declared for the half year.

What else happened?

During the half, Tesserent underwent a branding and integration facelift — remodelling the company as “a single customer-facing brand”.

Further, the IT company completed the acquisitions of three businesses — Loop Secure, Clarinet, and Pearson Corporation.

In order to fund these takeovers and “strengthen the balance sheet”, the company successfully completed a $25 million capital raise during the period.

This has led to organic growth and a higher turnover, Tesserent said.

What did management say?

Commenting on the results that boosted the Tesserent share price today, executive chairman Geoff Lord:

The management team successfully executed its brand and business unit integration strategy – strengthening Tesserent’s commercial position in the market by enabling the Group to enhance its value proposition to existing and new clients and improve gross margins and net margins reported across the business.

Given the significant events that are occurring in eastern Europe, we are also mindful of the heightened level of cyber security risk that exists for Tesserent clients. We note that Tesserent has targeted capabilities to address these risks in its Cyber Enhanced Situational Awareness and Response (CESAR) capabilities.

Tesserent share price snapshot

In the last 12 months, the Tesserent share price has dropped by 54%. It saw a 52-week high price of 33 cents at the end of July, after releasing a quarterly report for the period ending 30 June 2021. However, Tesserent shares hit a 52-week low of 13 cents just yesterday.

Tesserent shares have fallen 12% this year to date and 6% over the past month.

The company has a market capitalisation of $163.56 million.

The post Tesserent (ASX:TNT) share price rockets 15% as earnings, revenue soar appeared first on The Motley Fool Australia.

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• Back on the horse! ASX tech shares stage stunning comeback following sell-off

Motley Fool contributor Alice de Bruin 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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Inflation keeps rearing its ugly head amongst investor circles this year and that’s got both individual investors and money managers planning to tackle the worst in 2022.

Whilst the core level of inflation seems to be faring better in Australia than other jurisdictions, the situation isn’t nearly as glossy when factoring in all components of the consumer price basket.

Not only inflation, but the topic of interest rates is one of hot debate right now, as investors try to navigate the next moves of central banks in anticipation of a number of rate hikes in 2022.

The volatility has crept over into the Australian treasuries market, the benchmark equity index being the S&P/ASX 200 index (ASX: XJO) and AUD/USD forex rates, as seen on the chart below.

Alas, what is there to do in these pressing times, to counteract the dark forces of inflation and establish a reasonable hedge to the regime?

What about QBE shares as a hedge to inflation?

Firstly, there needs to be some distinction on what we actually mean here. An inflation hedge can act as so in a few ways.

Most commonly, this is either by producing a ‘real rate of return’ (i.e, adjusted for inflation) that outpaces the level of aggregate price growth in the economy. If inflation is at 2%, say, then we want assets that produce a real return of at least 4%, for instance as a reasonable hedge.

The other way to look at it is in the correlation, or directional relationship, in how an asset class performs in times of high or low inflation.

This can boil down to a myriad of factors, not in the least related to asset class, investment style and/or, in the case of equities, the company backing stock itself.

Take insurance giant QBE Insurance Group Ltd (ASX: QBE) for instance. It lies within the insurance industry, one that is highly sensitive to small changes in interest rates.

Let’s also remember that the Reserve Bank of Australia (RBA)’s main weapon in targeting headline inflation is its influence over interest rates in the economy.

Whilst the RBA doesn’t touch commercial or consumer-level rates directly, it makes adjustments to the cash rate to do so, producing an impulse effect in the credit markets.

In a nutshell, when inflation rises, the RBA will seek to push interest rates higher to increase the costs of credit, and (hopefully) compress the level of price increases seen throughout the economy. The opposite is true when inflation stalls.

As the RBA looks well poised for a few rate hikes in 2022–23′, according to many economists, insurance shares like QBE might be well placed to benefit from the change.

That’s what Lazard Asset Management portfolio manager Aaron Binsted said when speaking with Livewire recently, noting the insurance giant could be a major benefactor to an increase in rates.

Binsted estimates that for every 25 basis point jump in average interest rates, QBE’s earnings are set to lift dramatically – with earnings per share (EPS) as high as 5-6% from that jump.

In other words, QBE’s earnings are sensitive to changes in the interest rate cycle and could offer a return that is tied to a spike in rates – something most companies don’t enjoy the luxury of.

Binsted might be onto something too, as, at a quick glance, when charting the three datasets of inflation year on year change, Australian interest rates and QBE shares together over the last decade, the dispersion is remarkably similar, as seen below.

QBE shares gained 24% over the last 12 months and have climbed a further 4% this year to date to now trade near 52-week highs.

The post Should you buy QBE (ASX:QBE) shares as an inflation hedge? appeared first on The Motley Fool Australia.

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• Banking on the QBE (ASX:QBE) dividend? Here’s what you need to know
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• Why Fortescue, Goodman, Inghams, and QBE shares are dropping
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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Among the flurry of earnings flying out this month, you might have missed this ASX All Ordinaries tech share which produced solid top-line growth in the first half.

The FINEOS Corporation Holdings PLC (ASX: FCL) share price is finishing the week lower than where it started.

However, shares in the insurance software provider climbed 3.1% today after falling 3% yesterday. This follows the release of FINEOS’ results for the first half of FY22 on Thursday.

ASX All Ordinaries tech share slips despite productive half

• Revenue up 24.4% to €65.4 million (A$102.04 million)
• Annual recurring revenue reached €51.8 million, increasing 35.2% year on year
• Gross profit of €42.5 million, representing an increase of 25.6% year on year
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 103.1% to €6.5 million
• Net loss after tax narrowed to €4.6 million from €5.1 million
• Cash balance as at 31 December 2021 of €48.6 million

What else happened during the half?

Investors have lacked an attraction to this ASX All Ordinaries share this week. However, FINEOS showed improvement across all of its key metrics in the first half.

According to the release, top-line growth of 24.4% was driven primarily by cross-selling and up-selling to its existing client base. In addition, the company notched up another client win, helping diversify its customer base.

Notably, the largest organic growth was witnessed in FINEOS’ subscription revenue — increasing 39.5% year on year. Meanwhile, services revenue experienced a 16.4% improvement on the prior corresponding period.

Furthermore, the company highlighted its improvements in de-risking its client concentration during the period. In August 2021, 74% of FINEOS’ revenue was tied to its top 10 clients. However, that number has been reduced further to less than 61%.

During the half, FINEOS raised around $74 million to feed future growth across its operations and expand into new markets.

What’s next?

Investors might have been displeased to see FINEOS guide towards the lower end of its previously stated revenue range for FY22. For reference, the range provided is between €125 million and €130 million.

Although, on a positive note, the company reaffirmed expectations for subscription revenue to grow at an annualised rate of around 30%. This was followed up with a disclaimer, noting the guidance is subject to prevailing influences from COVID-19 and the global economy.

How has this ASX All Ordinaries tech share performed?

The FINEOS share price has been unable to attract a higher value so far in 2022. In fact, shares in the insurance tech provider have slumped 27% since the year kicked off.

To be fair, this is relatively in line with the broader performance across the tech sector. For example, the S&P/ASX All Technology Index (ASX: XTX) is down 23% year-to-date.

The post This ASX All Ordinaries tech share just delivered 24% revenue growth appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended FINEOS Corporation Holdings plc. The Motley Fool Australia has recommended FINEOS Corporation Holdings plc. 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 events of this week have once again highlighted the role that gold plays in the minds of investors all over the world. Gold is a universal asset, it doesn’t trade on any one country’s stock exchange, and it’s worth pretty much the same any place you have it in the world.

The yellow metal has always played the role of a ‘safe haven’ asset. In times of economic hardship, financial instability or (as this week has given the world) geopolitical tension, investors tend to flock to gold to help shore up their portfolios.

We have seen this play out in light of this week’s tragic events. A fortnight ago, gold was priced at just under US$1,830 an ounce. Today, it is over US$1,915 an ounce.

How does one invest in gold?

So many investors are clearly looking to gold right now. And there are several ways to gain exposure to the precious metal. There’s owning physical gold bullion, of course. Fort Knox style. The more opportunistic investors might opt instead for a leveraged play with gold mining shares. But an increasingly popular option in our modern age is to go after gold exchange-traded funds (ETFs).

But although there are many gold-based ETFs on the ASX, and around the world, one expert investor is warning that not all are created equal.

Tim Toohey is the head of macro and strategy at Yarra Capital Management. He recently did a podcast interview for Livewire where he discussed gold ETFs. Mr Toohey prefers ETFs for exposure to the yellow metal, and says that for an active portfolio, an allocation of between 5% and 7% is “about right”. Here’s what he had to say:

I would favour ETFs that map the gold bullion price. Not those that are a combination of gold, gold companies and even derivatives. You probably want to avoid those.

How does one translate this advice to the ASX? Well, the ASX is home to a number of ETF products that give investors exposure to gold. 

Three such funds are the ETFS Physical Gold ETF (ASX: GOLD), the BetaShares Gold Bullion ETF (ASX: QAU) and Perth Mint Gold (ASX: PMGOLD). Two others are the VanEck Gold Miners ETF (ASX: GDX) and the BetaShares Global Gold Miners ETF (ASX: MNRS). 

Not all ASX gold ETFs are equal…

The interview claimed that pure gold exposed ETFs “are regarded as more liquid and align more closely with the gold price than other vehicles”. So let’s see what this means.

So according to its provider, the ETFS Gold ETF works in the following way:

GOLD is backed by physically allocated gold bullion held by JPMorgan Chase Bank, N.A. (the Custodian) in London. Only metal that conforms with the London Bullion Market Association’s (LBMA) rules for Good Delivery can be accepted by the custodian. Each physical bar is segregated, individually identified and allocated which means there is no credit risk. Investors can choose to redeem units for the physical holdings.

According to the providers of the QAU and PMGOLD ETFs, these funds work in a similar fashion. And these appear to align with what Mr Toohey describes as his preferred structure. 

But GDX and MNRS are different. They don’t invest in gold bullion itself, but in a basket of global gold mining shares. Thus, units of the ETF represent shares of gold mining companies, rather than raw gold bullion. So these are the kinds of ETFs that Toohey states he avoids. 

So there are many gold ETFs on the ASX to choose from. But make sure you know what you’re looking at if you’re looking to buy. Gold exchange-traded funds are not all equal. And some might suit our goals more than others. 

The post Expert reveals why not all ASX gold ETFs are created equal appeared first on The Motley Fool Australia.

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• ‘Excellent’ earnings: Here’s what lifted the DGL (ASX:DGL) share price today
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• High risk, high reward: Analysts tip 2 small cap ASX shares for big things
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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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The DGL Group Ltd (ASX: DGL) share price spent Friday in the green after the company dropped its earnings for the first half of financial year 2022.  

As of the week’s close, the DGL share price is trading at $2.71, 0.37% higher than it was at the end of Thursday’s session.

DGL share price lifts as revenue increases 55%

• Revenue of $134 million ­– a 55% increase on pro forma revenue in the first half of financial year 2021
• Normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) of $23 million – 77% more than the prior period’s pro forma EBITDA
• Net profit after tax (NPAT) of $8.5 million – up 70% on the prior period’s pro forma NPAT
• Ended the period with a net debt position of $35 million

DGL has completed its first full half as a listed company. And not only has it survived, but it’s also seemingly thrived.

The specialist chemicals manufacture, transportation, storage, and processing company floated on the ASX on 24 May 2021.

Last half, it saw all three of its segments contribute to revenue and EBITDA growth.

Its warehousing and distribution leg experienced high demand due to widespread supply chain issues and shipping delays.

Meanwhile, its environmental segment saw its Victorian lead smelter commissioned in June.

Additionally, despite being hampered by shipping and logistical issues when dispatching battery materials to offshore customers, the segment reported a strong conversion of finished goods to sale.

Finally, the company’s manufacturing business saw an impressive number of acquisitions.

Over the first half, DGL recorded an operating cash flow of $15 million – 8% lower than the prior period.

It also underwent $41 million worth of acquisitions and $21 million of property purchases, leading the company to finish the half with a net debt position of $35 million.

That’s down from a $23 million net cash position at the end of the prior half.

What else happened in the half?

As mentioned, the company engaged in several purchases last half. In fact, it completed a whopping seven acquisitions.

Six of those were integrated into its manufacturing segment. The first – Labels Connect – was acquired in July for around $1.55 million in cash and scrip.

After that, the company acquired Opal, Profill, Aquapac, Austech and AUSblue.

Additionally, it acquired freight carrier service, Shackell Transport.

It also expanded into Queensland, purchasing a storage hub in Townsville which it plans to transform into a chemicals facility, as well as the freehold property of its chemical manufacturing operation in Victoria.

Perhaps unsurprisingly given the company’s acquisition action, the DGL share price gained 144% between 30 June 2021 and 31 December 2021.

What did management say?

DGL CEO Simon Henry commented on the company’s results for the first half, saying:

Our first half [of financial year 2022] results are excellent.

[They evidence] DGL’s ability to successfully execute our strategy to sustainably grow through organic growth and acquisitions of strategically positioned businesses.

All 3 operating segments performed exceedingly well and is a testament to the efforts of our employees across the entire DGL Group.

The continuing trend in on-shoring of international supply in response to the pandemic, is benefiting DGL. We are seeing customers forward ordering and implementing long-term supply planning. This highlights the benefit of being a locally operated, vertically integrated speciality chemicals and dangerous goods company that can assist across the supply chain.

We expect DGL’s [quarter 2] momentum to carry into [quarter 3] and [quarter 4] with greater contributions from completed acquisitions.

What’s next?

Likely helping boost the DGL share price on Friday, the company reconfirmed its increased financial year 2022 guidance on the back of its strong first half.

Its upgraded earnings guidance predicts revenue of around $343 million for financial year 2022.

Additionally, it expects to report full year EBITDA of around $54 million, before acquisition costs.

DGL share price snapshot

Despite its day in the green, the DGL share price is still lower than it was at the start of 2022.

The company’s stock has fallen 10.5% year to date. Though, it has gained more than 150% since it debuted on the ASX last year.

The post ‘Excellent’ earnings: Here’s what lifted the DGL (ASX:DGL) share price today 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 and has recommended DGL Group Limited. The Motley Fool Australia has recommended DGL 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 Mayne Pharma Group Ltd (ASX: MYX) share price finished in the red today after the company released its interim report and financial results for the half-year ended 31 December 2021.

At the closing bell, the Mayne Pharma share price was 2% down at 24.5 cents.

Mayne Pharma share price tanks as earnings hit hard

Key takeouts from the pharmaceutical company’s 1H FY22 earnings results today include:

• Reported revenues of $196.4 million, down 6% year on year (YoY)
• Reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $48.8 million, up 20% YoY from a non-cash deferred consideration reassessment due to COVID
• Reported net loss after tax of $50.4 million driven by intangible asset impairment
• Underlying EBITDA of $23.7 million, down 38% on 1H FY21
• International division delivered 29% revenue growth on the previous year
• Entered into five new supply agreements during the half with leading pharmaceutical companies.

What else happened this half for Mayne Pharma?

Drilling down into its individual components, Mayne reports that its Metrics business outperformed other sections of the portfolio with revenues up 20% YoY to $46 million.

This carried through to a 33% gain in gross profit while direct contribution was also up 37% to $22.1 million in response.

Perhaps most of the strength was seen in the company’s international operating segment, which contributed almost $28 million to the top line. This was a growth of almost 30% on the prior corresponding period (pcp).

In fact, all of Mayne’s business lines delivered double-digit growth. Its Australian product revenues were up 15% to $10 million due to the launch of Solarize (diclofenac) gel to treat “actinic keratoses”.

Contract development and manufacturing organisation (CDMO) turnover also widened by 39%. This was helped by new development contracts and growing sales of the Kapanol label in Canada and Switzerland.

Taking a more broader view of the company’s earnings, there was a slowdown in the pace of growth this half. Reported revenue was 6% behind last year whereas the company’s net loss after tax came in at over $50 million.

Mayne ended the half with net debt of $272.6 million bolstered by cash of $114.7 million on the balance sheet at 31 December 2021. It also had another $387.3 million in available liquidity from borrowings and has more than 7x cover over the interest on its debt.

Management commentary

Speaking on the results that might have impacted the Mayne Pharma share price today, CEO Scott Scott Richards said:

At a group level, our underlying results this half have incorporated our significant investment in commercial infrastructure to support the launch of NEXTSTELLIS. Pleasingly, excluding our NEXTSTELLIS investment, underlying EBITDA was up 11% on the 1H FY21 and up 35% on the 2H FY21 despite our retail generics business segment continuing to erode as a result of the sustained competitive pricing environment.

Encouragingly, Metrics Contract Services, International and our dermatology portfolio delivered double-digit earnings growth versus pcp. At the bottom line, we reported a net loss after tax which was impacted by a non-cash intangible asset impairment of the generic portfolio.

What’s next for Mayne Pharma?

The company touts its upcoming catalysts as “growth in the dermatology portfolio from recent product launches, the launch of a number of new products in international markets, the potential launch of a generic version of Nuvaring and further growth of Metrics Contract Services”.

Aside from it, management is most excited about the Nextstellis segment, in which the company is seeking to enter the “US$3.4 billion short-acting combined hormonal contraceptive market with nearly 10 million American women using CHCs for their contraceptive needs”.

Mayne Pharma share price summary

In the last 12 months the Mayne Pharma share price has collapsed by more than 14%. It is also down 17% this year to date. In fact, Mayne is down in the red across all major time frames.

The post Mayne Pharma (ASX:MYX) share price slides on 38% EBITDA slump appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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