The Dusk Group Ltd (ASX: DSK) share price is falling this Thursday morning after the ASX homewares retailer reported its half-year earnings for the six months to 31 December 2021. Dusk shares opened at $2.59 apiece today but have plunged 4.63% at the time of writing to $2.47 a share. 

Dusk share price falls on lacklustre first half update

• Revenue from sales fell 12% over the half to $80 million. That was below the $90.9 million reported for the same half last year (1H20). But still above the $58.6 million recorded for 1H19 
• Pro forma earnings before interest and tax (EBIT) of $21.3 million. Tahat’s down from 1H21’s $28 million.
• Pro forma gross margin of 68%, a rise from last year’s 67.7% 
• Dusk’s online sales rose 2.8%, making up $7.7 million, or 9.7% of total sales 
• Store count up by 6 to 128 stores 
• Net cash of $33.3 million 
• Shareholders to receive an interim dividend of 10 cents per share, fully franked. That is flat on last year’s final dividend, but a 33% fall from the previous interim dividend of 15 cents per share 

What else happened in the first half?

Dusk stated that sales over the half were “adversely impacted” by the government-mandated lockdowns (and subsequent store closures) over the half across New South Wales, Victoria and the ACT. These shutdowns resulted in a loss of 4% of the half’s trading days.

On a positive note, Dusk reported that Dusk Rewards active members grew from 630,000 to 718,000 over the half, with Dusk Rewards members now accounting for 62% of sales, up from 59%.

This was the half where Dusk acquired candle company Eroma for $28 million. This acquisition was announced in mid-December. It saw the Dusk share price shoot meaningfully higher at the time. 

 What did management say?

Here’s some of what Dusk CEO Peter King had to say on these results:

Given the circumstances faced during the half, there is much to be pleased about in the overall result delivered, especially having regard to the fact we cycled exceptional LFL sales growth from the prior corresponding period. 

We remain focused on our customer and strategic priorities, and have made tangible progress on our growth strategies, including continued store roll out in Australia, preparing to commence operations in New Zealand, and the acquisition of Eroma.

What’s next?

Dusk also gave a trading update for the first eight weeks of the second half of FY2022. The company stated that “consumer sentiment continued to be soft and shopping centre foot traffic was sharply down” over this time. However, “our sales conversion rates and ATV remain up vs pcp”. 

For those eight weeks, total sales remain down 11.8% over the same period last year. In saying that, Dusk’s online sales are a pleasingly 19.4% above where they were last year. 

The company says that supply and distribution disruptions remain and that freight costs remain “elevated”, but inventory is healthy and the company is on track to open four new stores by Monther’s Day. 

Dusk share price snapshot

The Dusk share price has had a tough start to 2022 and remains down 22.2% year to date. The company is also down more than 14% over the past year, but up close to 45% since its IPO back in November 2020. 

At the current Dusk share price, this ASX retailer has a market capitalisation of $153.8 million, with a dividend yield of 8.1%. 

The post Dusk (ASX:DSK) share price slumps as revenues plunge 12% appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns Dusk Group 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 recommended Dusk 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 Cimic Group Ltd (ASX: CIM) share price is entering the stratosphere during early morning trade on Thursday. This comes after the company announced a takeover approach from a leading German construction group.

At the time of writing, the Cimic share price is $22.01, up an astonishing 33.47%.

Cimic flys on takeover announcement

According to the release, Cimic advised that its majority shareholder, Hochtief Australia has made an off-market takeover offer.

Headquartered in Sydney, Hochtief Australia operates as a holding company for German construction major, Hochtief AG (FRA: HOT). The group provides construction, services, and concessions/public-private partnerships (PPP) focused on Australia, North America, and Europe.

The takeover offer is an unconditional and final cash offer of $22 per Cimic share that Hochtief does not own. Currently, the German group holds a 78.58% interest in Cimic.

Hochtief also lodged a copy of its bidder’s statement with the Australian Securities and Investments Commission (ASIC). This document, detailing all the information about the offer, is expected to be dispatched to Cimic shareholders about 9 March.

In response to the offer, the Cimic board has appointed an Independent Board Committee (IBC) to evaluate and respond to the takeover bid. Once a decision has been made, the IBC will update Cimic shareholders in due course. This will include an independent expert’s report on whether the offer represents good value for the company.

Cimic stated that its shareholders do not need to take any action at this point in time.

Cimic share price snapshot

Over the past 12 months, Cimic shares have been mostly tracking sideways until today’s takeover proposal announcement. Since then, the company’s shares have skyrocketed back to February 2021 levels.

Currently, the Cimic share price is 2% up on this time last year. But it’s more than 30% higher year-to-date due to today’s announcement.

Based on today’s price, Cimic presides a market capitalisation of $5.13 billion.

The post Cimic (ASX:CIM) share price explodes 33% higher following takeover approach 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. 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 Flight Centre Travel Group Ltd (ASX: FLT) share price is under pressure on Thursday.

In morning trade, the travel agent’s shares are down over 5% to $19.01 following the release of its half year results.

Flight Centre share price down after posting another large loss

• Total transaction value (TTV) up 112.9% over the prior corresponding period to $3.26 billion
• Revenue up 98.1% to $315.7 million
• Underlying EBITDA loss increased 18.3% to $184 million
• Underlying loss after tax up 4% to $188 million
• Balance sheet remains strong with $1.5 billion of cash and investments

What happened during the first half?

Flight Centre delivered a much-improved top line result during the six months ended 31 December. The travel agent more than doubled its TTV to $3.26 billion and almost doubled its revenue to $315.7 million.

Management notes that this reflects a significant rebound in sales immediately after the Delta spike in late August and early September, which led to COVID-period record gross TTV of $859 million in November. This rebound was short-lived, though, with the emergence of the Omicron variant hitting demand in December.

A highlight was its corporate business, which contributed about 60% of first half sales and organically increased TTV by almost 150% to $2.04 billion.

However, despite its solid top line growth, Flight Centre continues to post sizeable losses. In fact, its losses have increased year on year, with the company reporting an 18.3% increase in its EBITDA loss to $184 million. Management advised that this was driven partly by the prior corresponding period benefiting from $65 million of government subsidies.

Management commentary

Flight Centre’s Managing Director, Graham Turner, appears optimistic that the worst is now behind the company.

He commented: “After two years of lockdowns and heavy restrictions, we are now seeing the strongest indicators of a return to normalcy. Borders are now generally open and some governments, particularly in Europe, are starting to treat the virus as endemic.”

“Changes are happening at pace – we are seeing positive new developments relating to travel every day. Confidence in the recovery is building and momentum is taking off globally, as we are clearly seeing right now in both the corporate and leisure sectors and particularly in the three regions that materially drive our results – EMEA, the Americas and Australia.”

“There is, of course, some uncertainty around future variants and government responses to them, so we will continue to monitor developments,” he concludes.

Outlook

Management remains confident with the company’s pre-Omicron return to profit timetables and is continuing to target a return to monthly profitability in corporate and leisure during FY 2022.

Mr Turner commented: “The corporate business is now targeting profit in March-April and a return to PC [pre-COVID] TTV levels on a monthly basis during FY23, assuming client activity increases to circa 60-75% and with a significant contribution from our new accounts.”

“The global leisure business is expected to return to profit later in the FY22 2H, when its core product of international travel is likely to be back in a more meaningful way.”

“We are not yet able to provide specific FY22 profit guidance, given the lack of visibility around the likely timeframes for – and extent of – recovery and government reactions to future variants. In many ways, we are entering uncharted waters after two years of unprecedented restrictions,” he concluded.

The post Flight Centre (ASX:FLT) share price tumbles after posting $188m half year loss appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel 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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Life360 Inc (ASX: 360) investors are abandoning the US software provider after it revealed heavy losses in its results for the 2021 calendar year.

After the first 20 minutes of trade on Thursday, the Life360 share price had plunged a whopping 26% to $4.99. It closed Wednesday at $6.57.

The company’s financial year ends on 31 December each year.

What did the company report?

• Statutory net loss for the full-year ending on 31 December was US$33.6 million, more than double the US$16.3 million in 2021
• Underlying EBITDA loss was US$13.1 million, almost doubled from US$7 million in 2021
• US$12.2 million of cash was used in operating activities, compared to US$7.3 million one year prior 
• Revenue was up 40%, hitting US$112.6 million

What else happened in the financial year?

Life360 started as a mobile app that allows parents to track their teeangers’ whereabouts. During 2021, the company made two acquisitions — Tile and Jibit — to broaden out its offering as a “family services” software suite.

COVID-19 continued to disrupt mobility for Americans with the Delta and Omicron variants keeping young and old folks at home.

There was also increasing privacy and stalking concerns about Apple Inc (NASDAQ: AAPL)’s AirTag products, which Life360 chief Chris Hulls admitted was a drag on the whole tracking tech category.

What did management say?

Understandably Hulls was focusing on subscriber and revenue growth, rather than the profitability of the business.

“We achieved accelerating operational metrics across the business, with 3 consecutive quarters of record subscriber additions,” he said.

“We finished the year with annualised monthly revenue of US$135.7 million, a year-on-year increase of 51% and a strong leading indicator of the growth opportunity ahead.”

According to Hulls, Life360 is in a “very strong financial position”, currently holding US$94 million of cash and cash equivalents.

“Global monthly active users increased 34% year-on-year, with the US delivering growth of 39%,” he said.

“Retention and engagement from our users continue to grow, with the proportion of returning monthly active users (RMAU) reaching a new record. Our membership model benefited from improving conversion to paid, with a 97% year-on-year increase in conversion rates, reflecting the investment we have undertaken in the user experience.”

What’s next?

Citing US securities regulations, Life360 declined to provide any guidance for 2022.

“After a strong CY21 performance, we are confident in our ability to drive continued growth, in particular in our core Life360 subscription business,” the company stated.

“We anticipate that we will return to providing guidance as soon as we can do so in ways that do not potentially raise US securities law implications.”

Life360 share price snapshot

Life360 shares were a darling of growth and tech fans for much of 2021, but it has lost half of its value this year so far.

The stock has lost 65% since mid-November. It had gained 248% in just 11 months prior to that.

The post Life360 (ASX:360) share price plunges 26% after bleeding money in 2021 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Apple and Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Lovisa Holdings Ltd (ASX: LOV) share price is soaring today. 

This morning, the jeweller released its latest half-year earnings for 1H FY22. It reported higher revenues and increased its dividend payment by 85% compared to 1H FY21.

At the time of writing, the Lovisa share price is up 20.54% at $19.95.

Let’s take a deeper look…

What did Lovisa report? 

For the FY22 half-year (ending 26 December 2021), Lovisa highlighted the following financials:

• Revenue up 48.3% to $217.8 million compared to the prior corresponding period (pcp)
• (Statutory) net profit after tax (NPAT) up 70.3% to $36.1 million
• Gross profit up 50.5% to $170.7 million
• (Statutory) earnings before interest, taxes, depreciation and amortisation (EBITDA) up 46.2% to $81.7 million
• Earnings per share (EPS) up 70.3% to 33.7 cents
• Upcoming dividend increased by 17 cents to 37 cents.

At its core, Lovisa aims to bring “brilliantly affordable fashion jewellery to the world”. As such, it continued with its “global rollout strategy” during the half, opening 42 new stores. In total, Lovisa now has 589 stores, with 73% located outside of Australia.

What else did Lovisa report?

The jeweller did experience COVID-19 disruptions and challenges during the period. This included temporary store closures in Victoria and New South Wales, as well as in New Zealand and Malaysia.

All in all, this contributed to “overall trading days lost higher than in prior year”, shipping difficulties, and heightened costs of doing business (CODB) — up 51.8% to sales.

The jeweller said it used this time for “continued investment in team structure to support building the platform for future growth”.

Lovisa sales were up against the pcp. Global sales were up 21.5%, online sales were up 36%, and total sales hit an almost 50% increase, reflecting “strong comps and growth”, the jeweller said.

It held a cash position of $52.7 million at the end of the period with no debt.

Finally, it declared an interim dividend (30% franked) of 37 cents to be paid to shareholders on 21 April.

What did management say?

Lovisa also transitioned to new leadership during the period, with Victor Herrero taking the reins as CEO.

Herrero said:

I’m thrilled to take over running the Lovisa business in such a strong position and we are very pleased with the performance for the first half despite the ongoing challenges and disruptions we face globally from COVID.

The team have performed very well through this period and have the business well positioned for the next phase of growth, with the strength of our balance sheet putting us in a great position to take advantage of future opportunities as they arise.

Lovisa share price snapshot

The Lovisa share price is down 0.15% this year to date. To compare, the wider S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has dropped 15%.

Earlier this month, the team at Macquarie pitched Lovisa as a buy due to its “bold expansion plans”.

The company has a market capitalisation of $1.77 billion.

The post All that glitters: Lovisa (ASX:LOV) share price skyrockets 20% on high-profit earnings appeared first on The Motley Fool Australia.

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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 recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Nine Entertainment Co Holdings Ltd (ASX: NEC) share price is climbing this morning. This comes after the company exceeded previous guidance to report growth across the board for the half-year ending 31 December.

The media company’s share price is up 5.9% to $2.87 in early trade on Thursday. 

Nine share price rises on strong result

• Revenue ($1.3 billion) and earnings before interest, taxes, depreciation, and amortisation (EBITDA) ($406.3 million) both up 15% for the half ending December
• Net profit after tax (NPAT) up 20% to $225.2 million
• Dividend pumped up 40% year-on-year to 7 cents per share

What else happened in the first half?

Australia’s two largest cities were plunged into long winter lockdowns during the December half, while the Delta variant of COVID-19 wreaked havoc.

It seems Nine made hay while millions of Australians were trapped at home looking for entertainment.

The company revealed growth in all its media — free-to-air television, streaming (Stan), digital newspaper subscriptions, and real estate classifieds (Domain Holdings Australia Ltd (ASX: DHG)).

What did management say?

According to Nine chief executive Mike Sneesby, the 2022 financial year could set a new high mark for the company.

Momentum remains clearly positive, with full-year guidance now of around 25% group EBITDA growth to what would be a record result for Nine.

Importantly, these results continue to be delivered by increasingly diversified, and increasingly digital revenue streams

He added that there were opportunities galore in 2022.

“We have balanced our programming decisions across broadcast and streaming, and carefully invested in and expanded the reach of 9Now, resulting in record total television revenues in calendar 2021, more than any year in Nine’s history.

“At Stan, we are continuing to grow revenues and subscribers while expanding our annual volume of Stan Originals as we take greater control of our premium content pipeline and continue to invest in Stan Sport. 

“In radio, we have been strengthening our underlying business, while building our audiences, and with 23% of our listeners now live streaming our content, there is a real opportunity to further expand our digital revenues. 

“And in publishing, we will continue to invest in the product, ensuring greater audience reach and higher subscriber numbers, of course augmented by the licensing agreements with Google and Facebook.”

What’s next?

Nine has already started the second half strongly, leading TV ratings in “all key demographics” to be more than 10% ahead of its nearest rival for prime time on its main channel for the 25 to 54 age group. It has a 7% lead on a total people basis.

The Australian Open tennis tournament in January no doubt was a huge contributor, as Ash Barty became the first Australian woman to win the singles title in 44 years.

“In total, Nine is now expecting FY22 group EBITDA growth of above 22% on FY21’s $565 million,” the company stated.

“This result continues to highlight the benefits of Nine’s business, with diverse earnings drivers (across advertising and subscription) and a growing portfolio of digital assets.”

Nine share price snapshot

The Nine share price has not lit the world on fire the past 12 months, falling by around 2%. It hasn’t fared much better in recent weeks, losing around 1% for the year so far.

However, it has performed reasonably over the long term. The stock has gained in excess of 170% over the past 5 years, while giving out a dividend yield of 3.87% before Thursday’s announcement.

The post Nine (ASX:NEC) share price lifts 6% on first-half profit jump appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

As of 12:30 p.m. ET, the Nasdaq remains in the red, following a steep morning sell-off that saw significant declines in all major indexes from their earlier gains this morning. That said, equities have begun to rally higher, pushing cryptocurrencies like Shiba Inu (CRYPTO: SHIB) that have had a mostly solid green day even higher. As of 12:30 p.m. ET, Shiba Inu has surged 11% higher, cutting its seven-day loss in half in today’s session. 

One of the key drivers of today’s rally in Shiba Inu is news that it is among the most traded tokens for Ethereum whales, and has recently hit an all-time high in the number of wallets holding the token. These metrics are solid indications that the community-oriented token is seeing its community grow stronger on this recent dip. 

So what

Reportedly, Shiba Inu has surged into the top spot among the most traded cryptocurrencies by Ethereum whales over the past 24 hours, surpassing Uniswap. This move suggests there are a number of influential, and wealthy, crypto traders who believe momentum may be coming back to the meme token trade. 

Additionally, the number of wallets holding Shiba Inu has surged, suggesting that the breadth of investors holding this token is widening. Unlike many cryptocurrencies that are often highly centralized in terms of ownership, this broadening investor base could be bullish for momentum-driven rallies, assuming retail investors hold on to their positions.

Now what

Shiba Inu remains among the most volatile crypto tokens in the market right now. As far as large-cap tokens go, Shiba Inu’s high-beta moves provide for more of a trading vehicle than a long-term investment, for most in the crypto world. However, as Shiba Inu’s investor base broadens, perhaps the volatility dynamics with this token will change as well. Time will tell. 

For now, positive momentum in the crypto market is spurring yet another impressive day for Shiba Inu holders. For those looking at this token from the outside, this ongoing market volatility may provide for an entertaining ride from here. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post The market is down, but Shiba Inu has surged 11%. Here’s why appeared first on The Motley Fool Australia.

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Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Ethereum. The Motley Fool Australia owns and has recommended Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Iluka Resources Ltd (ASX: ILU) share price is in the red after the company released its earnings for 2021.

At the time of writing, the Iluka Resources share price is $10.94, 0.45% lower than its previous close.

Iluka Resources share price falls as profit surges

• Mineral sands revenue came to $1.48 billion – a 57% increase on that of 2020
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $652 million – up 54%
• Underlying net profit after tax (NPAT) of $315 million – a 108% increase
• Operating cash flow came to $528 million – up 189%
• 12 cent, fully franked dividend declared – 500% more than last year’s 2 cent dividend

While Iluka Resources’ underlying NPAT substantially increased in 2021, its reported NPAT dropped from $2.41 billion to $366 million.

That’s mainly due to a $2.24 billion payday recorded during 2020 on the demerger of Deterra Royalties Ltd (ASX: DRR). Iluka Resources retained a 20% holding in Deterra.

The company said higher exchange rates between the United States dollar and the Australian dollar impacted its revenue last year.

Still, Iluka Resources experienced increased volumes across all markets.

Global zircon production dropped while the ceramics industry’s growth continued.

Iluka sold 355 kilotons of zircon last year – up from 240 kilotons in 2020. During the final quarter of 2021, the company’s weighted average zircon price was US$1,590 a tonne – a 23% increase on the final quarter of 2020.

At the same time, demand continued to outstrip supply for high-grade titanium feedstocks.

Iluka Resources sold 513 kilotons of high-grade titanium feedstocks – up from 278 kilotons. 2021 also saw the company report a rutile price of US$1,264 per tonne, a 4% increase on that of 2020.

The company’s unit cost of production for the period came to $777 per tonne, 15% less than that of 2020.

Meanwhile, its unit cost of goods sold was $916 per tonne ­– 11% lower than in the prior period. That reflects the company’s move to lower-cost products.

What else happened in 2021?

The company also continued to advance its position in rare earths – its Eneabba project in Western Australia and its Wimmera project in Victoria – in 2021.

The company progressed the development of Eneabba in 2021, completing phase 1 and securing an offtake agreement. 

In 2021, Iluka Resources received encouragement from Australian Government ministers to continue pushing to get Eneabba up and running. However, the news saw the Iluka Resources share price slide lower.

Meanwhile, the Wimmera project is the subject of a feasibility study.

Today, the company announced the inaugural mineral resource estimates for 2 of Wimmera’s heavy mineral deposits – WIM100 and WIM50.

The WIM100 deposit contains an indicated mineral resource estimate of 340 megatons grading 4.7% heavy minerals for 16 megatons of contained heavy minerals.

It also contains an inferred mineral resource estimate of 100 megatons grading 3.4% heavy minerals for 3.4 megatons of contained heavy minerals – totalling 440 megatons grading 4.4% heavy minerals for 19 megatons of contained heavy minerals.

Meanwhile, the WIM50 deposit contains an inferred mineral resource estimate of 360 megatons grading 4.1% heavy minerals for 15 megatons of contained heavy minerals.

What did management say?

Iluka Resources managing director Tom O’Leary commented on the company’s earnings for 2021, saying:

Iluka delivered an excellent result in 2021 underpinned by strong operating performance, increasing demand, and observable supply-side challenges across the mineral sands industry.

In zircon, tile manufacturers in many geographies maintained high levels of demand after rebounding to pre-pandemic levels of production in the first half of the year. This occurred despite increasing challenges from raw material cost inflation, supply chain disruptions and some dampening sentiment from deleveraging in the Chinese property market…

Tightness is also a feature of the high-grade titanium feedstock market, with demand in all regions continuing to outstrip supply…

Ongoing logistics issues due to port fires and other disruptions in South Africa continue to impact industry production.

What’s next?

In 2022, the company will be focusing on supplying key accounts and balancing sustainable pricing outcomes with reinvestment in its mineral sands market.

Additionally, it is expecting the first production from the restarted SR1 kiln at its Cataby project to occur in the final quarter of next year, and a final investment decision for its Balranald deposit around the same time.

The company also plans to finalise Wimmera’s processing solution and scale-up to inform its economic feasibility.

The feasibility study for Eneabba’s phase 3 is expected to be finalised in the first quarter of 2022 with a final investment decision to be made thereafter.

Over 2022 in Australia, Iluka Resources expects to produce 280 kilotons of zircon – 40 kilotons less than in 2021, 65 kilotons of rutile – 2 kilotons less than in 2021, and 230 kilotons of synthetic rutile – 31 kilotons more than in 2021.

It expects its Australian operation’s unit cash costs of production to come to $820 per tonne – up from $636 in 2021. While its unit cost of goods sold is predicted to increase from $774 per tonne to $930 per tonne.

Its capital expenditure is expected to increase from $54 million to $220 million.

At Sierra Rutile, the company’s predicting it will produce 144 kilotons of rutile – 15 kilotons more. It’s also expected to produce 5 kilotons of zircon – a 1 kiloton increase.

It expects it will record unit cash costs of production of US$970 per tonne with capital expenditure of US$30 million.

Looking to the group, its outlook includes cash costs of production to be $660 ­– up from $559.

Additionally, today the company’s chair Greg Martin announced his intent to retire from the board at April’s annual general meeting.

Martin’s seat will be filled by non-executive director, Rob Cole.

Iluka Resources share price snapshot

So far, 2022 has been good to the Iluka Resources share price.

It has gained 5% since the start of this year. It is also 48% higher than it was this time last year.

The post Iluka Resources (ASX:ILU) share price slips despite ‘excellent’ full-year results 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 Qantas Airways Limited (ASX: QAN) share price is down 2.1% in early trade.

Qantas shares closed yesterday at $5.35 and are currently trading for $5.24.

Below we look at the highlights from the ASX 200 airlines financial results for the half year ending 31 December (1H FY22).

Qantas share price tumbles on losses

• Revenue and other income increased 32% from 1H FY21 to $3.07 billion
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) came in at a loss of $245 million, down from a positive $86 million in the prior corresponding period
• Underlying loss before tax of $1.28 billion
• Net debt decreased to $5.5 billion
• No interim dividend declared

What else happened during the half year?

Pandemic travel restrictions continued to severely hamper operations during the half year. Qantas reported its total flying during the period was only 18% of pre-COVID levels.

However, the ASX 200 airline said it still managed to make “significant inroads to balance sheet repair”. Crediting a surge of bookings when the Delta lockdowns ended alongside the cash it received from the sale of its land at Mascot, Qantas net debt of $5.5 billion ended the half within its target range.

The half finished strong, with Qantas reporting 3 consecutive month of positive net free cash flow from October through December, not including its land sale. The positive cash flow was mostly due to improved forward bookings.

Travel demand was again negatively impacted later in December with the spread of the Omicron variant, dragging on the Qantas share price. This occurred just as Qantas had decided to stand up all its Australian-based employees, leaving the airline with a temporary 17% surplus of its workforce in Q3.

Despite the headwinds, Qantas reported its recovery program is on track to deliver some $900 million in annualised cost benefits by the end FY22, ahead of schedule.

As at 31 December, the airline had $4.3 billion in cash and undrawn facilities.

What did management say?

Commenting on the results, Qantas CEO, Alan Joyce said:

We saw a sharp rebound in travel demand when borders started opening in November and December, only to be hit by the Omicron wave and all the uncertainty that came with it.

The uncertainty carried over into January but demand has started to recover as Australia adjusts to truly living with COVID. Our frequent flyer surveys show the intent to travel is extremely high and we’re seeing good leisure demand into the fourth quarter. We’ve also seen a sharp uptick in international ticket sales in the past few weeks…

Despite all the uncertainty, we finished the first half with net debt back inside our target range and with strong liquidity, meaning we can start to look further ahead at strategic decisions on fleet, network and growth opportunities.

What’s next?

Looking ahead, Joyce said, “Predictions in a pandemic are naturally fraught, so we always forecast according to the best information we have but with the agility to adjust as needed.”

He said that the $900 million in annualised savings Qantas will realise through restructuring means it will be able to recover faster and perform better than it did before the pandemic.

Qantas estimates EBIT in the second half of the financial year will take a $650 million hit from ongoing issue with Omicron.

It expects domestic capacity to reach 68% of pre-COVID levels in the third quarter and hit 90-100% in the fourth quarter.

International capacity will recover more slowly, forecast to reach 22% in Q3 and 44% in Q4.

Qantas share price snapshot

The Qantas share price remains up 2% in 2022, compared to a year-to-date loss of 6% posted by the S&P/ASX 200 Index (ASX: XJO).

Qantas shares are still trading some 30% below their pre-COVID levels.

The post Qantas (ASX:QAN) share price nosedives as losses mount 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 Appen Ltd (ASX: APX) share price is being crushed on Thursday morning.

At the time of writing, the artificial intelligence data services company’s shares are down 17% to $7.11 following the release of its full year results.

Appen share price crushed following earnings and guidance miss

• Group revenue up 8% to a record of US$447.3 million
• Underlying EBITDA margin (constant currency) improved 5 basis points to 17.6%
• Underlying EBITDA (constant currency) up 11.6% to US$78.9 million up 11.6%
• Underlying EBITDA up 3% to US$77.7 million
• Net profit after tax down 20% to US$28.5 million
• Dividends per share flat at 10 cents.

What happened in FY 2021?

For the 12 months ended 31 December, Appen delivered an 8% increase in revenue to US$447.3 million. Management advised that this was driven by a strong second half from Global Services and a higher contribution from New Markets.

Global Services revenue was up 5% for the year to US$344.7 million thanks to a 32% half on half lift in the second half. Management highlights that non-ad related projects now represent 76% of total revenue from Global customers.

Elsewhere, New Markets revenue grew 21% year on year to US$102.5 million. This was driven by a 55% increase in revenue from Enterprise, China, Government and Quadrant to US$60.8 million. Collectively, these channels now account for 14% of group revenue, up from 9% in FY 2020. Management notes that this is improving its customer diversification.

However, despite this growth, Appen has fallen short of its earnings guidance. With its half year results, Appen downgraded its EBITDA guidance to the low end of US$81 million to US$88 million. This compares to its actual EBITDA of $77.7 million or US$78.9 million excluding foreign exchange impacts.

Also missing the mark was its net profit after tax, which fell 20% to US$28.5 million. This compares to the Factset consensus estimate of US$36.1 million.

This may go some way to explaining the weakness in the Appen share price today.

Management commentary

Appen’s Chief Executive Officer, Mark Brayan, commented: “Appen has maintained its track record of profitable growth in 2021. The result benefited from an increase in new non-ad-related Global projects and a significant increase in new business in China.”

“We continue to invest for the future. Our investments in product development reflect the important role our technology plays to drive new business, scale, quality and margin expansion.”

“This year we also completed a strategic review to ensure that we remain at the forefront of technology and market trends. As part of this strategy, we’ve set ourselves ambitious future revenue, business mix and profitability targets,” he added.

Outlook

No short term guidance will be given anymore, with management instead laying out longer term targets.

It is aiming to at least double its FY 2021 revenue by FY 2026, which would imply a top line compound annual growth rate (CAGR) of approximately 15%.

Appen is also targeting improvements in its customer mix, with one-third of revenue coming from non-Global customers. And, finally, it is aiming to lift its EBITDA margin to 20% by FY 2026.

Though, it has warned that its pursuit of these targets could impact its earnings and dividends in the near term.

Management commented: “We are highly focused on these targets and will invest for growth in new products, sales and marketing, partnerships and explore M&A opportunities with a focus on long-term revenue growth. Our long-term revenue focus may impact EBITDA margins in the near term and future dividend payouts.”

The post Appen (ASX:APX) share price crashes 17% after FY21 guidance miss appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd. The Motley Fool Australia owns and has recommended Appen 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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