The Cettire Ltd (ASX: CTT) share price is in the spotlight this morning after releasing its full-year results for the 2021 financial year.

At the time of writing, shares in the online luxury goods retailer are down more than 3%.

Cettire share price climbs after beating forecasts

• Gross revenue of $124.5 million, up 333% year-over-year on a constant currency basis
• Sales revenue of $92.4 million, up 304% year-over-over on a constant currency basis
• Statutory net profit after tax swung from $1.53 million to a loss of $251,000
• Active customers increased 285% to 114,830
• Operating cash flow of $12.7 million, up 131% on FY20
• Cash position at the end of June 2021 of $47.1 million with no debt

What happened in FY21 for Cettire

For the 12 months ended 30 June, Cettire achieved an exceptional increase of 304% in sales revenue to $92.4 million. This result exceeded the company’s previous forecasts by 32%. The exceptional performance was driven by considerable increases in active customers and product order numbers.

Furthermore, orders increased 353% to more than 170,000 during the financial period. An expansion in product range and broadening of its supplier base helped Cettire attract new sales.

On top of this, the luxury goods reseller made headway on direct brand partnerships during the tail end of the financial year. This followed critiques reported in The Australian Financial Review regarding the company’s relationship with third-party suppliers and wholesalers. At the end of the period, Cettire’s available products exceeded 200,000 across 1,700 brands.

Additionally, the company plans on further accelerating its marketing spend to drive greater traffic and customer conversion. At the same time, Cettire will selectively explore new market adjacencies to expand upon its addressable market. If successful in expanding its total addressable market, this could bode well for the Cettire share price.

What did management say?

Commenting on the result, Cettire founder and CEO Dean Mintz said:

It has been an exceptional year for Cettire, with the Company rapidly growing. I am particularly proud of the substantial increase in active customers, very strong revenue growth, robust product margins and the increasing proportion of revenues from repeat customers.

The achievements over the past 12 months, both operationally and financially, demonstrate the traction we have with consumers, the scalability of our business model and the benefits of our proprietary technology platform.

Additionally, with respect to the company’s performance so far in FY22, Mr Mintz stated:

Our growth trajectory has continued in FY22, with a strong July. Our number one priority is to maximise the global revenue potential of the Company by taking a long term view. We will continue to invest in opportunities aligned to our strategy, with a near term focus on customer acquisition, technology enhancements and building organisational capability.

What’s next for Cettire?

In the year ahead, Cettire will be continuing to invest in its proprietary technology platform and enhance its supply relationships. In addition, the company will be working on a mobile app and further investments in AI and brand awareness to gain additional revenue growth.

Already in July FY22, Cettire has experienced a 181% lift in unaudited gross revenue compared to the prior corresponding period. However, the company refrained from providing specific guidance.

Cettire share price snapshot

The Cettire share price has rewarded shareholders handsomely since its initial public offering (IPO) less than a year ago. Since listing, shares have soared 406% — in line with its meteoric revenue growth. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) added 12.6% during the same timeframe.

The post Cettire (ASX:CTT) share price slumps despite revenue quadrupling 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. owns shares of and has recommended Cettire Limited. The Motley Fool Australia has recommended Cettire 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 Pointerra Ltd (ASX: 3DP) share price is trading 5.33% higher at 39.5 cents on Tuesday after the company released its preliminary FY21 results.

Pointerra share price higher on triple-digit top-line growth

Here are the highlights of the geospatial data tech company’s prelim results:

• Annual contract value (ACV) up 241% to US$9.8 million
• Customer revenues rose 224% to A$3.98 million
• Customer cash receipts increased 121% to A$4.07 million
• Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of A$1.27 million (FY20: $1.83 million loss)
• Cash balance $5.18 million as at 30 July

What happened to Pointerra in FY21?

2021 has proved to be a challenging year for the Pointerra share price, down 24% year-to-date. This follows a bumper performance in 2020 where its shares surged 810% from 5.5 cents to 51 cents.

During the financial year, the company acquired US-based aerial imagery company, Airovant for US$1 million.

The acquisition was described as a “step-change in the dimension and scale of Pointerra’s US operations in the important AEC (architecture, engineering and construction), facilities management and energy utilities markets”.

According to the acquisition announcement, Airovant’s annual revenue averaged US$1.4 million over calendar years 2018, 2019 and 2020 with positive cash flow and earnings during this time.

Pointerra’s growth across key market sectors, in addition to Airovant’s contribution to earnings, helped deliver the triple-digit increase across key financial metrics. Pointerra was pleased to highlight that the business is profitable on its current ACV run-rate basis.

During the period, Pointerra delivered a lower underlying EBTIDA loss of A$1.27 million, reflecting scaling customer revenue is outpacing the modest increase in operating expenses.

Pointerra had a cash balance of $5.18 million for the year ended 30 June, boosted by its $2.5 million placement in July 2020 and options exercised during the year.

What’s next for Pointerra?

Pointerra believes it’s well-funded for continued organic growth in the new financial year.

The company continues to roll out its enterprise platform with key US utility customers in July and August, enhanced by additional paid proof of concept projects designed to validate the platform’s capabilities.

Pointerra successfully developed a digital twin solution for tier-1 mining sector customers in Australia and expects to launch the product in the US market. The company expects mining sector ACV spend to continue to grow in FY22.

Despite a solid outlook for FY22, the Pointerra share price is currently hanging around 9-month lows.

The post Pointerra (ASX:3DP) share price 5% higher on triple-digit revenue growth in FY21 appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointerra Limited. The Motley Fool Australia has recommended Pointerra 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 Harvey Norman Holdings Limited (ASX: HVN) share price is trading lower on Tuesday following the release of its full year results.

At the time of writing, the retail giant’s shares are down 5% to $5.25.

Harvey Norman share price tumbles on FY 2021 results

• Total aggregated sales up 15.3% to $9,491 million
• Comparable store sales up 13.9% year on year
• Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 54.2% to $1,457 million
• Profit after tax excluding property revaluations up 63% to record $743.1 million
• Fully franked total dividend up 45.8% to 35 cents per share

What happened in FY 2021 for Harvey Norman?

For the 12 months ended 30 June, Harvey Norman reported a 15.3% increase in sales to $9,491 million and a 63% jump in profit after tax to $743.1 million.

There were a number of drivers of the company’s growth in FY 2021. Management notes that the home-focused Australian consumer has continued to provide an environment of growth. This has underpinned strong growth in technology with increased demand for Smart Phones, Gaming Laptops and PCs that provide power and performance.

In addition, with Australian homes continuing to move quickly to being digitally connected, driven by remote working and learning, categories such as Connected Home, Mobile Technology and Super Wi-Fi have surged.

There was also a strong uptake of the Federal Government’s Homebuilder grants program and the renovations that have followed has led to strong demand for kitchen products.

And with more entertaining happening at home, Harvey Norman experienced strong sales in audio visual with higher demand for big screen, in-home experiences. Similarly, outdoor entertainment categories have performed well, as have furniture and bedding categories, and home office categories.

Harvey Norman’s strong form allowed the company to declare a fully franked final dividend of 15 cents per share. This brought it full year dividend to 35 cents per share, which is an increase of 45.8% year on year.

What did management say?

Harvey Norman’s Chairman, Gerry Harvey, said: “The solid results delivered in the 2021 financial year is a testament to the strength and resilience of the integrated retail, franchise, property and digital strategy, and its ability to adapt and transition to the challenging retail landscape and continue to navigate the uncertainties presented by COVID-19.”

“The results achieved this year demonstrates that customers continue to engage strongly with our brands and feel comfortable and safe shopping in our expansive, spacious overseas company-owned and Australian franchised complexes, with easy direct access to large showrooms and warehouses, or the various flexible ‘Contactless Click & Collect’ and ‘Contactless Delivery’ options on offer. We have continued to invest in technology, digital transformation and infrastructure to enable our overseas company-owned stores and Australian franchisees to enhance their ‘Shop Safe’ capabilities and bolster their customer-centric strategies,” he concluded.

What’s next for Harvey Norman in FY 2022?

The weakness in the Harvey Norman share price today appears to have been driven by its soft start to FY 2022.

Management revealed that rolling lockdowns in most States and Territories have affected sales in July and August. However, it expects spending to recover quickly when lockdown restrictions ease.

According to the update, Australian franchisee sales between 1 July to 26 August are down 19.2% compared to the prior corresponding period. Sales are also down in the double digits in New Zealand and Malaysia for the same reasons.

The Harvey Norman share price is up 12% in 2021.

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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 Harvey Norman 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 Sandfire Resources Ltd (ASX: SFR) share price is in the green on Tuesday morning. This comes after the copper and gold producer reported its full-year results for the FY21 financial year.

At the time of writing, Sandfire shares are up 0.69% to $6.54.

Let’s take a look and see how the company performed for the period.

Sandfire Resources share price jumps on record result

The Sandfire Resources share price accelerated after the company delivered another record result for the 12 months ending 30 June 2021. Here are some of the highlights:

• Total sales revenue of $813 million, up 24% on the prior corresponding period;
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $449.8 million, up 32.7%;
• Net profit after tax (NPAT) of $171.6 million, up 132%;
• Earnings per share (EPS) of 96.3 cents, up 124.4%; and
• Fully franked final dividend of 26 cents per share, up 86%, bringing the total dividend for FY21 to 34 cents per share.

What happened in FY21 for Sandfire Resources?

Sandfire attributed the robust result to increased copper prices which hit decade-long highs during the year. Coupled with the company’s low-cost performance at the DeGrussa operations in Western Australia, this led to bumper profits.

Annual production for FY21 came in at 70,845 tonnes of copper, and 39,459 ounces of gold. C1 costs stood at US$0.82 per pound.

The group ended the period with a cash position of $573.7 million, almost double this time last year. This came from the senior leadership team making substantial investments in exploration and future growth projects in FY21.

What did management say?

Managing director Karl Simich touched on the results possibly pushing the Sandfire Resources share price higher:

This exemplary set of financial results marks the culmination of what has been a standout year of delivery, achievement and growth for our business.

Our strong cash position and debt-free balance sheet represents a fantastic springboard for Sandfire as we move ahead with the execution of our strategic growth plan, having significantly expanded the depth and capability of our organisation and senior leadership team during the year and embarked on the development of a major new copper mine at Motheo in Botswana.

What’s next for Sandfire in FY22?

Looking ahead, Sandfire noted that production is set to continue at full pace at DeGrussa through until the September 2022 quarter.

The guidance for FY22 is between 64,000 and 68,000 tonnes of copper and 30,000 to 34,000 ounces of gold.

C1 costs are expected to come in around US$1 to US$1.10 per pound.

In other developments which could affect the Sandfire Resources share price, a major focus will be on the new Motheo Copper Mine in Botswana. Construction has been rapidly ramping up following the grant of the mining license in July.

Sandfire is also progressing its near-mine exploration program at the Black Butte copper project in Montana. The Black Butte Feasibility Study is expected to continue being enhanced against the backdrop of improved copper prices.

Sandfire Resources share price snapshot

It has been a good year for Sandfire Resources on the ASX so far. Sandfire shares are up around 23% year to date. They are also up about 40% over the past 12 months.

Additionally, the Sandfire Resources share price is up about 7% over the past week.

The post Sandfire Resources (ASX:SFR) share price advances on record $170m net profit 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 Mesoblast Limited (ASX: MSB) share price is in the red this morning after the company released its results for financial year 2021 (FY21).

Right now, the Mesoblast share price is $1.77, 10.35% lower than its previous close.

Mesoblast share price slips on $98 million loss

The biotech company is focused on allogeneic cellular medicines for inflammatory diseases. Here’s how it performed over FY21:

• Net loss after tax of US$98.8 million, 27% greater than that of FY20
• US$7.45 million in revenue, 77% less than that of FY20
• US$53 million in research and development costs, a 6% drop on that of the prior financial year
• US$32.71 million in manufacturing and commercialisation costs, a 29% increase

At the end of the period, Mesoblast had US$136.9 million of cash and US$94.2 million of debt.

What happened in FY21 for Mesoblast?

The company has been focused on its first-generation mesenchymal lineage stromal cell product platform, remestemcel-L. It’s in late-stage development for the treatment of paediatric steroid refractory acute Graft versus Host Disease (SR-aGVHD), acute respiratory distress syndrome (ARDS), and biologic refractory inflammatory bowel disease.

The company is also working on rexlemestrocel-L, a second-generation mesenchymal lineage precursor cell product platform. Rexlemestrocel-L is in late-stage development for the treatment of chronic heart failure and chronic lower back pain.

In October 2020, the US Food and Drug Administration (FDA) found Mesoblast didn’t have enough evidence of remestemcel-L’s effectiveness in treating SR-aGVHD. The Mesoblast share price slid 37% on the back of the news.

Mesoblast’s stock recovered somewhat when it released its quarterly results and announced a new agreement with Novartis in November. The agreement would see the development, manufacturing, and commercialisation of remestemcel-L.

In December, Mesoblast had another major tumble on the ASX. Firstly, it announced its trial of rexlemestrocel-L in the treatment of advanced chronic heart failure failed to meet its primary end point.

Days later, Mesoblast announced its controlled trial of remestemcel-L in patients with moderate to severe ARDS due to COVID-19. According to the company, the treatment of COVID-19 has improved over the course of the pandemic. As a result, the company found the trial was unlikely to meet its target reduction in mortality and was halted.

The Mesoblast share price slid 46% over the course of the 3 days surrounding the updates.

In March, Mesoblast completed a US$110 million private placement.

Since then, Mesoblast has released good news of its COVID-19 ARDS trial.

It also announced positive updates on its trial testing rexlemestrocel-L’s ability to treat chronic lower back pain in February. This followed earlier positive news from the clinical trial in which rexlemestrocel-L’s was used to treat chronic heart failure in January.

What did management say?

Mesoblast’s CEO Silviu Itescu commented on the results driving the company’s share price today, saying:

During this calendar year we made significant progress in both regulatory and clinical outcomes for our lead product candidate, remestemcel-L, after experiencing a disappointing set-back last year.

We are pleased with recent recommendations by FDA’s CBER to meet with the review team and address remaining CMC items for remestemcel-L in the treatment of steroid-refractory acute graft versus host disease in children. Additionally, our most recent meeting with the FDA has provided clarity on the pathway towards an emergency use authorization for remestemcel-L in the treatment of COVID ARDS.

What’s next for Mesoblast?

Here’s what investors interested in the Mesoblast share price might want to keep an eye on in FY22:

Mesoblast is working to get remestemcel-L FDA emergency use authorisation approval to treat people with ARDS due to COVID-19. It’s looking to complete a phase 3 trial the FDA has stipulated is needed to get the approval.

Additionally, the company hopes to meet with the FDA’s Office of Tissue and Advanced Therapies in the final quarter of 2021 to address potency assays for remestemcel-L in relation to SR-aGvHD. It believes the potency assays are also relevant to COVID ARDS.

Mesoblast is also in talks with the FDA regarding the approval of remestemcel-L as a treatment for SR-aGVHD in children.

Finally, the company expects to receive feedback from the FDA on pathways towards receiving approval for rexlemestrocel-L after its Phase 3 trials in patients with chronic heart failure and chronic low back pain.

Mesoblast share price snapshot

Right now the Mesoblast share price has fallen 22.5% year to date. It is also 66% lower than it was this time last year.

The post Mesoblast (ASX:MSB) share price slides 10% following FY21 earnings 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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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

Shares of Amazon.com (NASDAQ: AMZN) are up a modest 2.4% as of 1:30 p.m. EDT on Monday — which may not sound like much, but on a $1.7 trillion stock, it equates to an additional $40.8 billion in market capitalization.

So what

Why are Amazon shares up so much?

To find out, let’s go back in time to Friday afternoon, when buy now, pay later (BNPL) stock Affirm Holdings (NASDAQ: AFRM) announced that Amazon will begin allowing customers to choose its service as a payment option during checkout.

Now, this is obviously bigger news for Affirm than for Amazon. The former’s stock is up 43.5% on the news, gaining 20 times as much as Amazon’s shares are. But this is also an incremental positive for Amazon itself. It will be able to offer customers who spend $50 or more an alternative to paying up front in cash, buying with a credit card (which they might not have or might not want to use), or paying interest on their purchases (shorter-term Affirm payment options don’t charge interest).  

Instead, they can simply pay for larger purchases through an installment plan with Affirm.

Now what

On the one hand, this new payment option may increase spending at Amazon, which would be good news for the company. On the other hand, you have to imagine there will be some cannibalization of purchases through Amazon’s Prime Rewards, Prime Store, and Prime Secured credit cards. And that would imply that Amazon will be giving up at least some of the revenue that it gets from its credit card partners in exchange for making a little more by (hopefully) scoring more sales with Affirm.  

Whether the latter outweighs the former will determine if this is as good news for Amazon as it’s already turned out to be for Affirm. 

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

The post Why Amazon stock rose on Monday appeared first on The Motley Fool Australia.

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Rich Smith has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Affirm Holdings, Inc. and Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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 IGO Ltd (ASX: IGO) share price is climbing higher on Tuesday after the Aussie miner’s latest full-year results.

In early trade today, IGO shares are up 1.26% to $9.64.

IGO share price on rise after profit and revenue surge

IGO provided its results for the year ended 30 June 2021 (FY21) this morning. Some of the key takeaways include:

• Revenue from continuing operations up 12% on the prior corresponding period (pcp) to $671.7 million
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) up 3% on pcp to $474.6 million
• Net profit attributable to parent up 254% on pcp to $548.7 million
• Profit from continuing operations up 35% to $116.8 million
• Net operating cash flow up 12% on pcp to $446.1 million
• 10 cents per share final (and therefore full-year) dividend compared to 11.0 cents in FY20.

The IGO share price is climbing in early trade following the miner’s latest update.

What happened in FY21 for IGO?

Higher realised metal prices helped boost revenue and profits for the Aussie miner in FY21. IGO also generated $431.9 million in net profit after tax from its discontinued Tropicana Operation during the year. That was due to an after-tax gain of $384.8 million after the sale to Regis Resources Limited (ASX: RRL).

Higher gold prices offset lower production and sales volumes to boost associated earnings during the year.

IGO reported 22,051 tonnes of nickel, 10,752 tonnes of copper, and 454 tonnes of cobalt sold from its Nova Operation in FY21. The group reported average realised prices per tonne on each commodity of A$21,986, $10,974, and $52,057, respectively.

The group announced the completion of its 49% acquisition of Tianqi Lithium Energy Australia Ltd on 30 June which boosted the IGO share price higher.

What did management say?

Managing director and CEO Peter Bradford commented on the results possibly driving the IGO share price:

FY21 was a highly successful and transformational year for IGO, with the continued delivery of strong operating and financial performance, while also delivering two transactions to transform IGO into a business 100% focused on metals critical for enabling clean energy.

We delivered record outcomes across all key financial metrics in FY21, which was attributable to continued outstanding performance at Nova and continued delivery from Tropicana through to the divestment of our interest to Regis in May 2021.

Going forward we remain committed to further growth to deliver a diversified portfolio of clean energy metal products, and to do this with a combination of exploration and disciplined mergers and acquisitions.

What’s next for IGO and its share price?

IGO previously provided FY22 guidance for its Nova Operation in Western Australia and exploration expenditure. The group is targeting 25,000 to 27,000 tonnes of nickel, 11,500 to 12,500 tonnes of copper, and 900 to 1,000 tonnes of cobalt in FY22.

The IGO share price has rocketed 44% higher in 2021 and is outperforming the S&P/ASX 200 Index (ASX: XJO) year to date.

The post IGO (ASX:IGO) share price jumps following 35% profit surge appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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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One of InvoCare Limited (ASX: IVC)’s business units saw a stunning 1600% increase in revenue in just 12 months.

The funeral business reported strong numbers for the half-year ending June 30, increasing revenue, earnings and profit. In fact, the results were so good the share price spiked up 8.7% on Monday.

That’s despite COVID-19 restrictions hitting the industry hard, especially on the east coast.

But perhaps the success can be attributed to a niche part of InvoCare’s operations.

Saying goodbye to our furry friends

In a presentation to the market, InvoCare revealed that its pet cremations business brought in $13.7 million in operating revenue for the June half-year.

That’s a stunning 17-fold increase from just $800,000 one year earlier.

According to the presentation, Australians buying more pets during coronavirus lockdowns the past couple of years has given this business a massive boost.

InvoCare also launched an e-commerce platform and invested in new pet cremators in Victoria and Western Australia to improve its capacity.

The company is also working on signing agreements with vet practices to receive business.

The pet cremation unit also saw its operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) rocket from negative $300,000 to $3.6 million for the June half.

The EBITDA margin is now a chunky 27%. The average amount spent on a pet cremation is $332.

COVID-19 still causing great uncertainty for InvoCare

As for humans, funeral numbers remain below pre-pandemic levels. 

With Australians largely staying home and practising social distancing, influenza has been suppressed the last 2 winters.

Therefore, InvoCare declined to provide earnings guidance for the current financial year.

But the company reiterated the long-term potential of the funeral industry, citing the ageing population and its strong cash balance.

InvoCare listed on the ASX in 200 and the stock has risen 539% since then. The company’s shares have risen nearly 22% in the past 12 months as investors bet on it as a post-COVID ‘reopening’ beneficiary.

The post ASX company’s crack unit rakes in 1600% revenue growth 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 recommended InvoCare 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 Bubs Australia Ltd (ASX: BUB) share price is under pressure on Tuesday following the release of its full year results.

In morning trade, the struggling goat milk infant formula company’s shares are down 7% to 39 cents.

Bubs share price sinks after posting $74.7 million loss

• Revenue down 24% year on year to $46.8 million
• Underlying EBITDA loss of $28.5 million
• Statutory loss after tax of $74.7 million
• Cash balance of $27.9 million

What happened in FY 2021 for Bubs?

For the 12 months ended 30 June, Bubs reported a 24% decline in revenue to $46.8 million. This was driven by a 44% decline in Australian sales to $20.4 million and a 17.5% decline in China sales to $10.47 million.

Things were much worse on the bottom line, with the company posting a massive loss after tax of $74.7 million. The latter appears to be weighing heavily on the Bubs share price today. However, it is worth noting that some of this loss reflects a $44.6 million non-cash impairment relating to the Nulac Foods cash generating unit and Deloraine Dairy cash generating unit. This was driven by the conservative outlook the company has adopted over next five years due to the prolonged uncertainties.

On an underlying basis, Bubs reported an operating loss of $28.5 million. This reflects its weaker sales, a $12.6 million inventory write down, and the sale of excess bulk powder at a loss to maximise its cash conversion.

This left Bubs with a cash balance of $27.9 million, which management believes is sufficient to fund its FY 2022 growth plans. Though, that seems unlikely to ease concerns that the company will require yet another capital raising in the near future. This could be another factor weighing on the Bubs share price today.

What did management say?

Bubs’ Founder and Chief Executive Officer, Kristy Carr, said: “There is no doubt that the disruptions caused by the COVID-19 pandemic significantly impacted our performance, with international border closures triggering a severe demand shock and sharp decline in revenues in the first quarter, followed by subdued Daigou sales throughout the remaining three quarters. In addition, we experienced disruption and increased costs associated with outbound international supply chain logistics.”

“As we pivoted to new ways of doing business, resetting our supply chain, and working closely with our key domestic and international trading partners, our agility and resilience have underpinned our momentum toward a rebuild phase, following the setback in the first quarter. The strategies implemented to redirect product through the eco system led to an uplift in the second half delivering ten percent half-on-half growth, and we can report that our fourth quarter gross revenues were only four percent below the fourth quarter of FY20.”

Mrs Carr added: “In response to the COVID driven demand shock, we followed a strategy of resisting pressure to push inventory to distributor channels and instead took the position of discounting sales of bulk powder to clear excess inventory and prioritise cash conservation. This enabled the Company to return to a balanced inventory position, with milk supply rightsized to match stabilised offtake demand forecasts.”

What’s next for Bubs?

No guidance has been provided for the year ahead. However, Bubs appears optimistic it could be a better year.

Bubs’ CEO Kristy Carr commented: “Bubs is well placed with strong foundations, brand share growth, and a robust balance sheet to go forward with a sustainable growth strategy as the Australian lead challenger brand in infant nutrition.”

“The company is now well placed to go forward and we expect to see growth momentum across all channels in FY22.”

Bubs share price performance

The Bubs share price has unfortunately destroyed significant wealth over the last 12 months.

Following today’s decline, the Bubs share price is now down 58% over the period.

The post Bubs (ASX:BUB) share price sinks 7% after posting $74.7 million 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 BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Webjet Limited (ASX: WEB) share price is on the move on Tuesday.

At the time of writing, the online travel agent’s shares are up 4% to $5.72.

Why is the Webjet share price rising?

Investors have been bidding the Webjet share price higher today following the release of a trading update ahead of its annual general meeting.

That trading update reveals that the company’s WebBeds business returned to profitability during the month of July. Pleasingly, it has continued to be profitable in August and is expected to remain profitable in September.

This follows a sharp rise in WebBeds total transaction value (TTV) over recent months. After being as low at $18 million in February, the segment’s TTV hit $55 million in June and then $96 million in July. The latter is just ahead of its break-even point.

Pleasingly, August has been even better, with its TTV expected to reach $113 million this month. This will be approximately 50% of its pre-COVID TTV levels.

What about other segments?

The Webjet OTA business was profitable for much of the year but recent lockdowns have ended this streak. However, management notes there is significant demand for leisure travel and pent-up demand for international travel.

Another positive, which could be supporting the Webjet share price, is that management notes that the pandemic is accelerating the structural shift to online booking. This is good news for the company given that its Webjet OTA business is the number one player in the ANZ market.

Elsewhere, it has been a similar story for its smaller Online Republic business which has become unprofitable again. However, management is confident its performance will rebound once lockdowns end.

Management commentary

Webjet’s Managing Director, John Guscic, said: “Our post-Covid strategy is delivering results and the Company will be operating cash flow positive for the first half of Financial Year 2022. The WebBeds business was profitable in July and August and is well on track to be profitable in September.”

“We have seen strong demand as travel restrictions ease in North America and Europe, suggesting significant upside as more international markets reopen. Webjet OTA was profitable for April to July but has been subsequently impacted by the current lockdowns in Australia and New Zealand.”

“Online Republic was profitable in April and May, but like the Webjet OTA, has been impacted by lockdowns. However, we are confident that both businesses will return to profitability as soon as the domestic Australian and New Zealand markets reopen.”

Mr Guscic remains very positive on Webjet’s long term growth prospects.

He said: “We see a world of opportunity for Webjet. All our businesses have significant potential to grow market share by expanding into new market segments and benefiting from consumers shifting to buy travel online. Transformation initiatives are underway and we on track to reducing costs by at least 20% once the Company gets back to scale.”

“As a result, as conditions normalise, we believe our Webjet businesses will have higher market share, lower costs and greater profitability. While the exact timing is uncertain as our growth opportunities are driven by the opening of borders, we know demand for travel will return and we are absolutely ready to capture it,” he concluded.

The post Webjet (ASX:WEB) share price higher on positive trading update 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 shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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