The Ampol Ltd (ASX: ALD) share price is sliding today after the petroleum company released its results for the 12 months ending 31 December 2021.

At the time of writing, the Ampol share price is down 2.08% at $30.60. Let’s take a closer look.

Ampol shares slide on record fuel sales

Key takeouts from the period in Ampol’s report today include:

• Replacement cost of sales operating profit (RCOP) EBIT up 57% to $631 million delivered against the COVID-19 backdrop; highest result since 2018
• Record total sales volumes of 22.04 billion litres; strong international growth
• Historical cost of operating sales profit (HCOP) profit (statutory profit) of $560 million compared with a loss of $485 million in FY 2020
• Declared a final dividend of 41 cents per share (fully franked), taking the total dividend to 93 cents per share
• Leverage at 1.2 times RCOP earnings before interest, tax, depreciation and amotisation EBITDA; $479 million returned to shareholders

What else happened this year for Ampol?

It was a strong 12 months for Ampol, with fuels and infrastructure delivering RCOP EBIT of $417.6 million, representing an increase of 170% on last year.

The company said the result was “underpinned by a strong operating performance at Lytton and earnings growth in our international business”.

For the year, Australian sales volumes totalled 13.05 billion litres in FY21, 4% behind FY20’s result. Ampol says this reflects “the full-year impact of COVID-19 on jet volumes, the impact of rolling lockdowns on Australian retail market demand in the second half, as well as competitor supply chain decisions earlier in the year that adversely impacted net buy/sell volumes”.

Although Australian sales volumes declined, this was offset by growth in international sales to roughly 9 billion litres and, as a result, total group sales volumes notched a record of 22.04 billion litres.

Ampol’s board also declared a fully franked final dividend of 41 cents per share, taking the total dividend to 93 cents per share – an increase from 48 cents per share in FY20.

The company is completing the dividend on a 61% payout ratio of the full-year RCOP net profit after tax (NPAT), to be paid in March 2022.

Management commentary

Speaking on the announcement, Managing Director and CEO of Ampol Matt Halliday said:

Ampol’s strong financial results and record fuel sales reflect the ability of our people to thrive under challenging conditions and demonstrates how our business and earnings can respond to the market recovery. Throughout the year, we focused on managing what we can control. The safety and wellbeing of our people has been paramount during this time, and I am pleased that during a period of ongoing disruption and uncertainty, we have achieved industry top quartile performance for personal safety. Our customers are responding well to the successful return of the iconic Australian Ampol brand, with rebranded sites outperforming our control sites across key performance indicators. As we look ahead, we have a clear strategy to maximise the value of our existing businesses during the energy transition and to diversify and grow our international earnings through the Z Energy acquisition while we prepare for a low carbon future.

What’s next for Ampol?

Regarding its outlook, the company noted that “[g]lobal refining fundamentals have improved through increasing demand for refined products and the structural decline in capacity caused by refinery closures”.

It added that the Lytton refinery is “well positioned to benefit from expansion in refiner margins, with reduced earnings downside through the Fuel Security Services Payment, should the Government Margin Marker fall below a certain level”.

The company also added it is well on track to complete the first steps of the Z Energy Ltd (ASX: ZEL) acquisition and will realise cash flow to earnings in the second half.

“During 2022, we will focus on the three key projects: commencing the rollout of EV charging stations to over 100 sites, a targeted pilot of an Ampol branded electricity offer and deepening our understanding of the hydrogen supply chain”, the company concluded.

Ampol share price snapshot

The Ampol share price has climbed 16% in the last 12 months, rallying 3.5% this year to date. However, in the past week, it has dipped almost 4% into the red.

The company has a market capitalisation of approximately $7.3 billion at its current share price.

The post Ampol share price (ASX:ALD) slips despite highest earnings since 2018 and record sales 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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The Flight Centre Travel Group Ltd (ASX: FLT) share price is in the red in morning trade.

Flight Centre shares are down 0.8% to $20.38 per share, having closed Friday at $20.54 per share.

But wait, aren’t Australia’s international borders opening back up today for the first time in almost 2 years?

Travellers are coming back Down Under

The Flight Centre share price is under pressure today despite what should be good news for the travel industry.

Today marks the lifting of Australia’s seemingly interminable international pandemic border closure. Unless you’re trying to travel to or from Western Australia. In which case that will be on 3 March.

Qantas Airways Limited (ASX: QAN) CEO Alan Joyce was encouraged by the development.

As The Australian reported, the airline will see 8 international flights arrive in Australia today. It expects some 14,000 international passengers to fly into Australia’s airports on its planes this week.

According to Joyce, “We can clearly see from the Australian government’s announcement that people are very keen to come back to Australia, and we continue to see strong bookings out of the US and UK, as well as South Africa and Canada.”

More turbulence ahead for the Flight Centre share price?

While Joyce rightfully points to the immediate lift in numbers from the reopening, there appears to be a long way to go before international tourist numbers return to their pre-COVID days.

According to ABC News, January 2020 saw 2.26 million overseas arrivals in Australia. And it could be 3 years before we see those kinds of numbers again.

Margy Osmond, CEO of Tourism and Transport Forum Australia, highlights the long road ahead for the tourist industry. Issues which could throw up more tailwinds to the recovery of the Flight Centre share price.

According to Osmond (quoted by ABC News):

It’s really critical to understand we may never go back to what were pre-pandemic levels. The world of travel has changed globally, it’s not just about Australia, and travel confidence is not what it once was.

Regarding a timeline for the potential return to pre-pandemic levels, Osmond said, “Realistically speaking, I can’t see it as being at a level that there was anything like we were pre-pandemic until two or three years from now.”

Osmond also highlighted issues of a loss of skilled labour in the industry along with stiff competition from other nations.

“This is a completely cutthroat global market now, every country in the world is looking to get those particularly high-yield leisure tourists back,” she said. Osmond added, “We’ve lost a whole generation of some of the most important and skilled workers in the industry.”

Some other unwanted potential turbulence for the Flight Centre share price is the possibility of a shooting war in eastern Europe where tensions between Russia and Ukraine remain high.

And then there’s soaring energy costs. With jet fuel prices hitting decade highs, this could see airlines forced to up their ticket prices, which in turn could impact international tourist numbers.

Flight Centre share price snapshot

The Flight Centre share price has performed strongly in 2022, as domestic travel resumed and investors eyed the return to international travel. Share are up 9% year-to-date compared to a 6% loss posted by the S&P/ASX 200 Index (ASX: XJO) in that same period.

Flight Centre shares remain down 42% since 14 February 2020.

The post Borders just reopened so why is the Flight Centre (ASX:FLT) share price falling today? 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 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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The Super Retail Group Ltd (ASX: SUL) share price is plummeting after the company released its earnings for the first half of financial year 2022.

At the time of writing, the Super Retail Group share price is $11.59, 9.81% lower than its previous close.

Super Retail Group share price plunges alongside profits

• $1.7 billion of sales, excluding Boxing Day – 4% lower than the first half of financial year 2021
• Statutory net profit after tax (NPAT) of $110.8 million – 35% lower
• Earnings per share (EPS) of 49.9 cents – down from 76.7 cents
• Segment earnings before interest, tax, depreciation, and amortisation (EBITDA) of $329 million – down from $418 million
• Fully franked 27 cent interim dividend announced – down from 33 cents

Super Retail Group struggled over the first quarter, and a rebound towards the end of the first half of financial year 2022 wasn’t enough to ensure its recovery.

The spread of COVID-19‘s Omicron variant saw the company’s trade disrupted.

Super Retail Group’s cost of doing business also increased as it lifted its investments to support growth and relaxed cost containment measures.

It faced higher wage costs due to retaining staff during lockdowns and absenteeism, as well as increased digital costs.

Additionally, it has chosen to build a strong inventory position for the second half to ward off potential supply chain disruptions.

Its gross margin came to 46.7% – 100 basis points below the previous first half but 170 basis points above the first half of financial year 2020.

Its margin was weighed down by increased freight and transport costs, more home delivery sales, and normalisation of promotional activity in the second quarter.

Though, it was buoyed by improved sourcing, pricing, and tailored ranging of inventory.

Not to mention, over the period the company opened 15 new stores and completed 28 refurbishments and relocations.

Over the half, Super Retail Group’s operating cash flows came to $157 million – a drop of $370.2 million.

It ended the period with no bank debt and $94 million in cash.

What else happened in the half?

Over the 6 months ended 31 December, the company reported record online sales.

They increased 64% to come to $389 million worth. That represented 23% of the company’s total sales for the period.

Additionally, ‘click and collect’ sales increased 109% to $226 million, representing 58% of online sales.

3 of the company’s 4 major brands saw their sales decline last half.

Only Macpac recorded an increase. Its sales were boosted 4% to $65.5 million due to strong like-for-like sales and new store openings.

Meanwhile, Supercheap Auto’s sales dropped 6.9% to $616.1 million.

BCF also saw its sales fall 2.2% to $418.5 million.

Rebel saw its sales decline 2.9% to $605.6 million. Its fall was due to reduced CBD foot traffic during the peak Christmas trading period and delayed shipments of new season stock from key brands.

What did management say?

Super Retail Group CEO and managing director Anthony Heraghty commented on the company’s first half, saying:

We are pleased to have delivered a strong top line sales performance in the first half, despite the challenges of Omicron and a disrupted global supply chain.

After COVID-19 lockdowns disrupted trade in the first quarter, we delivered a fast finish to the half, achieving a record second quarter sales result.

Our omni-retail capability and execution has been key to meeting consumer demand, underpinning a record digital sales performance driven by uptake in Click & Collect.

We entered the second half with strong sales momentum, which has continued in the new calendar year. Looking forward, the group will continue to reinvest in the business, including digital, loyalty and network to execute our strategic priorities and grow our 4 core brands.

What’s next?

While the company didn’t provide guidance, it released a trading update for the first 6 weeks of the second half.

For the first 6 weeks of the second half, excluding Boxing Day, the company’s like-for-like sales increased 6%.

BCF is leading the charge, with a 12.2% increase to boast record January sales.

Supercheap Auto is also a top performer, with a sales increase of 9.3%.

Only Rebel is reporting fewer sales, recording a 2.4% drop.

“It has been a positive start to the year,” Heraghty said. “We have seen an encouraging uplift in sales momentum as the second half has progressed, with consumer caution starting to recede.”

“While COVID-19 continues to cause disruption to our customers, team members and trade partners, the group remains focused on executing our business strategy and investing for growth to deliver long-term value for our shareholders.”

Super Retail Group expects to report $125 million of capital expenditure for financial year 2022. That’s due to its store development program and investments in its omni, loyalty, and digital capability.

Additionally, it expects global supply chain disruptions to moderate over time, but they will impact its gross margins in the second half.

Super Retail Group share price snapshot

Today’s fall has plunged the Super Retail Group share price into the long-term red.

It is now 7% lower than it was at the start of the year. It is also 4% lower than it was this time last year.

The post Super Retail (ASX:SUL) share price crashes 10% after profits plunge 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 Super Retail Group Limited. The Motley Fool Australia owns and has recommended Super Retail 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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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? 

Trading took a turn for the worse in the middle of the holiday weekend for the cryptocurrency market and most values are down. There wasn’t a lot of news, but the liquidity may be a little lower than normal on a long holiday weekend, causing values to fluctuate wildly.

The value of Bitcoin (CRYPTO: BTC) is down 4.4% in the last 24 hours as of 3:20pm ET [US Eastern Time] on Sunday while Ethereum (CRYPTO: ETH) has fallen 4.2%, and Dogecoin (CRYPTO: DOGE) is down 2.6%. The market started turning at about 8:00pm ET on Saturday night and cratered until 4:00am ET on Sunday morning.

So what? 

Values started to fall on Saturday after UK Prime Minister Boris Johnson said financial sanctions on Russian companies should escalate. And the US seems to agree because Johnson said companies won’t be able to trade in “pounds and dollars”. Increasing tension around the conflict between Russia and Ukraine has affected the market as a whole in the last few weeks, and with crypto trading 24/7, this is the first place for investors to react.

It didn’t help that Ethereum’s largest NFT-trading marketplace, Opensea, had a hack or phishing attack, depending on who you ask, that drained hundreds of thousands of dollars from customers’ crypto wallets. The situation is ongoing, but it’s another black eye for some of the industry’s most visible projects. 

According to coinglass.com, the drop in crypto values led to $208 million in liquidations over the last 24 hours. Bitcoin was the most affected with $80.3 million in liquidations followed by Ethereum at $54.9 million. 

Now what? 

The volatility in cryptocurrencies has been high on weekends, in part because traders are taking time away from the market. And this is a holiday weekend in the US, so there may be more absences than normal, increasing the volatility even more. 

What I think we’re broadly seeing is investors selling risky assets as fears of conflict erupt in Eastern Europe, and cryptocurrency is the first place from which they can pull money. While an armed conflict doesn’t seem to be particularly likely, outside of financial sanctions, markets don’t like any kind of uncertainty. 

Volatility will continue for cryptocurrencies short term, but the long-term picture remains the same. Investors should be watching for utility being built on top of blockchain technologies because that’s where the real value will be added long term. Ethereum is the leader out of these three, which is why it would be my pick to buy on this dip, but like all cryptocurrencies, it will be volatile with the market overall.

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

The post Why Bitcoin, Ethereum and Dogecoin plunged this weekend appeared first on The Motley Fool Australia.

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Travis Hoium owns Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and 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 Nuix Ltd (ASX: NXL) share price is trading lower on Monday following the release of its half year results.

In morning trade, the investigative analytics and intelligence software provider’s shares are down almost 7% to a new low of $1.32.

Nuix lower on half year results

• Revenue down 1.5% over the prior corresponding period to $84 million
• Annualised contract value (ACV) up 1.7% to $164.5 million with low churn of 4.1%
• Consumption ACV up 24.6% to $27.1 million
• EBITDA down 56.4% to $13.8 million
• Net loss of $2.3 million
• Net cash of $52.5 million

What happened during the first half?

During the six months ended 31 December, Nuix reported a 1.7% increase in ACV to $164.5 million.

The main driver of its growth was its North American business, which performed strongly thanks to a combination of upselling and new business. This includes large new deals and three key advisories renewed on multi-year deals. Pleasingly, Nuix’s US Government team recorded strong growth on key renewals.

This offset weakness in the EMEA segment, which had a challenging half. It reported lower new business and upselling compared with the prior corresponding period. Management notes that this was partly driven by important contract wins in the prior period.

Finally, in the Asia Pacific region, the company’s growth was driven by strong renewals, particularly in the Government sector, driven by Regulators and Defence. Strong SaaS revenue growth is also being experienced in the region.

One thing that weighed on its margins during the half was its increased spend on research and development (R&D). Total R&D spend rose 29% to $28.8 million, which represents 34% of revenue. This was driven partly by Nuix continuing to develop its integrated SaaS platform, as well as the incorporation of the Topos Natural Language Processing capabilities.

Management commentary

Nuix’s new CEO, Jonathan Rubinsztein, is optimistic on the company’s future.

He commented: “Since joining Nuix late last year, I’ve had the opportunity to meet with many of our people and customers. It’s clear that Nuix has great technology and talented people, and this has allowed us to solve a broad range of customer problems. The market potential continues to grow and expand into new industry sectors and use cases for our technology. We are continuing to evolve and improve our solutions and business models to capitalise on these expanded opportunities.”

Mr Rubinsztein highlighted three key focuses for the company that will aim to drive growth in the future.

The CEO explained: “We are focused on three horizons of change. Firstly, we will look to build on our strengths, with an immediate focus on driving competitiveness, commercial performance and customer relationships in our core business. Beyond that we have an opportunity for robust medium term growth through anticipating the needs of enterprise customers and building out our cross-solution platform to make the best of Nuix easily accessible. Lastly, over the longer term, we need to solve for the future. We will undertake longer-range investment and prioritise the innovation pipeline for new ways to use our technologies.”

“I am excited about Nuix’s future. The strategies the organisation is currently putting into place are the right ones to leverage Nuix’s remarkable technology and people to drive growth,” he concluded.

I was fortunate to have the opportunity to talk to Mr Rubinsztein following the release.

The key takeaways from that chat were the sizeable total and serviceable addressable market opportunities the company has, the quality of its technology, and how the whole team at Nuix are aligned with the belief that its software can help create a better world.

All in all, Mr Rubinsztein is sounded optimistic on the future and confident that Nuix is back on the right track again.

The post Nuix (ASX:NXL) share price falls to new low on results but there are reasons for optimism 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 recommended Nuix Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Aussie Broadband Ltd (ASX: ABB) share price is on the rise this morning after the ASX 200 telecommunications provider reported its half-year earnings for the six months ending 31 December 2021 (1H22) today before market open.

Aussie Broadband shares opened at $4.49 this Monday after closing at $4.50 last week, and are going for $4.60 each at the time of writing, up 2.22%.

Aussie Broadband share price rises on solid first-half update

• Revenue up 46% from $157.4 million in 1H21 to $229.3 million in 1H22
• Earnings before interest, tax, depreciation and amortisation (EBITDA) up 7% from $8.5 million in 1H21 to $9.1 million for 1H22.
• Gross margins up 1% to 27%.
• Net profit after tax (NPAT) of $1.4 million, up substantially from the net loss of $10.5 million in 1H21.
• Total broadband services up by 45% to 494,803

What else happened in the first half?

Aussie Broadband managed to increase its market footprint substantially over the half year. The increase in broadband services helped push Aussie Broadband’s NBN market share to 5.66% from 4.23% in December 2020. The company also managed to increase the number of mobile services by 70% to 32,207 over the half. Business broadband services also rose, increasing by 67% to 45,483.

The company also highlighted its successful $134 million capital raise. Conducted in September last year, this saw the Aussie Broadband share price rise at the time.

What did management say?

Here’s some of what Aussie Broadband managing director Phill Britt had to say on the results:

It’s been another year of growth for Aussie, and I am extremely proud of the work the whole team has put in to create some great half-year results…

The year started with a huge amount of uncertainty due to the ongoing effects of the COVID-19 pandemic, but our growth in broadband services, for both residential and business segments, remained consistently strong.

We continued the fibre roll out with 63 sites complete at 31 December 2021; the remainder of the sites will be connected by end of FY22 when 1200km of Aussie fibre will be in the ground.

What’s next?

Looking forward, Aussie Broadband has given us an outlook and guidance. For one, it is expected that Aussie Broadband’s takeover of Over the Wire Holdings Ltd (ASX: OTW) will be completed following Federal Court approval in March 2022. The company has also announced that it is expecting full-year EBITDA for FY2022 to be in the range of $27 million to $30 million. That’s “before transaction costs and excluding any contribution from OTW”.

This performance is “expected to be driven by employee and administration costs being lower as a percentage of revenue, as well as continued growth in connections and services, and the completion of the white label migrations”. “Comparable marketing costs, lower promotional costs, and the benefit of a full half of revenue from 1H FY22 acquired customers” will also help.

Aussie Broadband is also anticipating broadband net additions of 85,000 to 95,000 for the second half of the 2022 financial year. That would bring its total broadband connections to between 580,000 and 590,000 by 30 June 2022.

Aussie Broadband share price snapshot

Although the Aussie Broadband shares have had a rough start to 2022 (still down by 4%), the company remains up a pleasing 70% over the past 12 months. Its gains since first listing in October 2020 now stand at almost 140%.

At the current Aussie Broadband share price, this company has a market capitalisation of $1.02 billion.

The post Aussie Broadband (ASX:ABB) share price rises on 46% revenue surge appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Aussie Broadband Limited and Over The Wire Holdings Ltd. The Motley Fool Australia has recommended Aussie Broadband 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 Telstra Corporation Ltd (ASX: TLS) share price is edging higher today after announcing an unlikely partnership.

At the time of writing, the telco giant’s shares are up 0.5% to $3.93.

Why is the Telstra share price rising?

The Telstra share price is rising today after it announced a deal with archrival TPG Telecom Ltd (ASX: TPG).

According to the release, Telstra and TPG have signed a ground-breaking ten-year regional Multi-Operator Core Network (MOCN) commercial agreement. This agreement will provide significant value to Telstra’s wholesale mobile revenues, while providing TPG’s subscribers with 4G and 5G services within a defined coverage zone across regional and urban fringe areas.

Under the deal, TPG will gain access to around 3,700 of Telstra’s mobile network assets, increasing TPG Telecom’s current 4G coverage from around 96% to 98.8% of the population. Whereas Telstra will gain access to TPG’s spectrum across 4G and 5G, which will allow it to grow its network, increase capacity and continue to provide the country’s largest and fastest network.

“Significant value to shareholders”

Telstra’s CEO, Andrew Penn, believes the deal provides significant value to shareholders and customers and was a continuation of its strategy to maximise the utilisation and monetisation of its assets.

He commented: “This additional spectrum will mean that all Telstra customers will continue to experience Australia’s best and fastest network across the country, in combined 4G and 5G speeds. In particular, the spectrum agreement will ensure that regional and rural customers will now experience faster speeds in more locations on their mobiles.”

The company estimates that the deal will deliver between $1.6 billion and $1.8 billion of revenue to Telstra over the initial 10-year term.

“A material uplift”

TPG’s CEO, Iñaki Berroeta, was pleased with the deal and expects it to significantly expand its mobile network footprint in regional Australia and enable growth of its customer base in regional and metropolitan areas.

He said: “It represents a material uplift in the capability of our network and will provide significant value for TPG Telecom shareholders over the medium and long term. We will be open for business in regional and rural Australia like never before, offering a 4G network that provides 98.8% population coverage and rapidly growing 5G coverage across the nation. The agreement demonstrates best-practice asset utilisation and a commitment to rationalising our operations to deliver a better customer experience, while increasing capital efficiency.”

In response to the agreement, TPG will decommission the 725 mobile sites it currently operates within the coverage area. It notes that this will reduce environmental impact, energy consumption, operating costs, and future capex.

The post Telstra (ASX:TLS) share price rises on surprise TPG deal 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 Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Endeavour Group Ltd (ASX: EDV) share price is in celebration mode on Monday.

At the time of writing, shares in the drinks and hotel network operator are up 11% to $7.23.

Endeavour share price pops amid maiden listed results

• Group sales relatively flat on prior corresponding period, down 0.3% to $6.3 billion
• Earnings before interest and tax increased 3.2% to $556 million
• Group net profit after tax (NPAT) grew 15.6% to $311 million
• Online sales reached $603 million, reflecting an increase of 24.8%
• Earnings per share (EPS) up 16% to 17.4 cents per share
• Fully-franked interim dividend of 12.5 cents per share

What happened during the first half?

Today is a milestone for Endeavour Group, its first full financial reporting period since listing on the ASX. Making it an even more exciting moment is the positive reaction to its half-year results.

After months of trading without a price-sensitive announcement, investors are responding positively to the information disclosed today.

Despite cycling against strong comparables and pushing through a challenging period with Omicron, Endeavour’s sales slipped a minimal 0.6% to $5.7 billion across the retail division. Boding well for the Endeavour share price, earnings improved amid premiumisation and a reduction in promotional spend.

Additionally, the company’s hotel operations remained impacted by COVID-19 measures. Compared to H1 FY20 (2019), sales were down 26%. However, sales lifted 1.9% to $680 million compared to the previous corresponding period.

What did management say?

Endeavour Group managing director and CEO Steve Donohue commented on the result:

Our first 6 months trading as an independent business has demonstrated the structural resilience of the Group. We maintained Group Sales in line with last year, and improved our profitability significantly. This is a positive result during a period which was heavily impacted by COVID-19. These financial outcomes have been delivered through the hard work and dedication of our team who have responded diligently and flexibly to many COVID-19 related challenges.

Regarding the impacts on the hotel segment, Donohue said:

Our Hotels business was particularly hard hit in H1 F22. There were multiple and extensive COVID-19 impacts in the first quarter, including lockdowns in the key markets of Victoria and New South Wales. We have however, continued to invest in our Hotels, retained core team members, deployed new digital services and created COVIDSafe environments; all of which enabled the business to rebound strongly during periods when COVID-19 impacts abated.

What’s next?

Looking ahead, Endeavour has warned that the first six weeks of trading in the second half is tracking behind FY21. Hotels operations are trending 2.9% below last year’s sales, while retail is 2% behind the comparable period. Despite these figures, concern doesn’t appear to be impacting the Endeavour share price today.

Furthermore, the company is wary of potential headwinds including input cost inflation, interest rate increases, and increased competitiveness.

Finally, shareholders can expect to receive their 12.5 cents per share dividend on 28 March. Importantly, shares will go ex-dividend from 1 March.

Endeavour share price snapshot

The Endeavour share price has managed to navigate a difficult environment to provide market-beating returns in the last year. For context, the S&P/ASX 200 Index (ASX: XJO) is up 5.9% in the past 12 months. Meanwhile, the Aussie drinks retailer is up 8.1%.

Based on the current share price, Endeavour Group is trading on a price-to-earnings (P/E) ratio of 26 times.

The post Crack a bottle! Endeavour (ASX:EDV) share price jumps 11% on profit lift 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 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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Motley Fool Australia Chief Investment Officer Scott Phillips joined Peter Overton on Nine’s Late News on Sunday night to discuss the big economic week ahead, including company earnings from Rio Tinto Limited (ASX: RIO), Coles Group Ltd (ASX: COL) and Endeavour Group Ltd (ASX: EDV), plus wages data and business conditions as the RBA weighs up its next move.

The post The week ahead: Earnings, wages and business conditions. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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Motley Fool contributor Scott Phillips 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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The Lendlease Group (ASX:LLC) share price is taking a tumble in early trade, down 2.4%.

Lendlease shares closed Friday at $10.31 and are currently trading for $10.07.

Below we look at the highlights from the ASX 200 international property group’s financial results for the half year ending 31 December (1H FY22).

Lendlease share price slides on losses

• Statutory loss after tax came in at $264 million
• Earnings per share (EPS) of 4.1 cents
• Launched $6 billion of investment partnerships to grow funds under management
• Interim dividend of 5 cents per share, unfranked, payable on 16 March

What else happened during the half year?

Lendlease reiterated that FY22 is a reset year for the company. It is working to simplify its operating model with an eye to future growth. And the company has been impacted by the ongoing pandemic.

Despite the sizeable statutory loss, Lendlease reported a core operating profit after tax of $28 million. This figure, the company said, “Reflects Statutory earnings adjusted for non-operating items and the non-core segment.”

The $264 million statutory loss was driven by the loss of $262 million from non-operating items. These included restructuring charges, development impairments and revaluation gains. There was also a loss of $30 million recorded from the company’s non-core segment.

The property group said its gearing of 12% is at the lower end of its 10–20% target range. It has $3 billion in liquidity, comprised of $800 million cash and $2.2 billion in available undrawn debt.

What did management say?

Commenting on the results, Lendlease CEO Tony Lombardo said:

Despite the ongoing impacts of COVID-19, we’ve made significant progress in reducing the cost base of the organisation as well as improving operational execution and capital allocation decisions.

We also made significant headway progressing projects and initiatives we expect will drive future profits. This includes introducing major new investors to our platform, growing our funds under management, and achieving important planning milestones across projects in San Francisco, London and Sydney.

Lendlease CFO, Simon Dixon added:

Financial strength is a priority as we transition through a reset year for the Group. Simplification is enabling a lowering of our operating cost structure that will enhance returns as growth re-emerges.

What’s next?

Lendlease said it expects that the second half of FY22 will see “significant improvement” in its core business activity and profitability, with the first half forecast to “mark the trough”.

The company said costs savings will start to be realised in the upcoming months, with improved productivity from its construction segment amid reduced COVID restrictions. Lendlease has numerous multi-billion projects under development.

Looking ahead, Lombardo said, “We’re confident Lendlease has passed the low in profitability. While COVID risks remain, improved visibility of factors within our control provides more certainty on the outlook for the Group.”

The company releases it full year results on 22 August.

Lendlease share price snapshot

Over the past 12 months the Lendlease share price is down 14%. That compares to a gain of 6% posted by the S&P/ASX 200 Index (ASX: XJO).

Year-to-date, Lendlease shares are down 7%.

The post Lendlease (ASX:LLC) share price tumbles on ‘reset year’ results appeared first on The Motley Fool Australia.

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

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