The JB Hi-Fi Limited (ASX: JBH) share price is on the decline on Friday morning. This comes after the electronic goods and appliance retailer provided an update in regards to a senior leadership change.

At the time of writing, JB Hi-Fi shares are down 0.93% to $45.63. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.18% to 7,477 points.

What did JB Hi-Fi announce?

In a statement to the ASX, JB Hi-Fi advised that its group CEO Richard Murray has tendered his formal resignation.

Murray will be leaving the company after spending more than 4 years at the helm. He will leave at the end of August to pursue a new role. However, no details were disclosed as to which company Murray will be joining.

To ensure a smooth succession, the managing director of The Good Guys, Terry Smart, will assume the top job today. Smart previously held the CEO position of JB Hi-Fi from May 2010 to June 2014.

In addition, Smart and group chief financial officer Nick Wells will join the board as executive directors. This will also come into effect as of today.

JB Hi-Fi chair Stephen Goddard commented on the leadership reshuffle:

The board thanks Richard for his outstanding contribution to the company over the past 18 years, wishes him all the best for the future and looks forward to Terry taking on the role of group CEO and continuing to deliver on the group’s previous success.

About the JB Hi-Fi share price

Over the past 12 months, the JB Hi-Fi share price has gone somewhat on a rollercoaster ride, down 11%. This is a stark contrast from when its shares were on a steep growth trajectory from March 2020 to August 2020.

JB Hi-Fi released its FY21 full-year results during the middle of August.

On valuation grounds, JB Hi-Fi commands a market capitalisation of roughly $5.3 billion, with approximately 114 million shares on hand.

The post Why the JB Hi-Fi (ASX:JBH) share price is edging lower today 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 Wesfarmers Ltd (ASX: WES) $2.3 billion capital return has so far failed to excite investors this morning. The hefty return to shareholders comes following a strong full-year result from the Aussie conglomerate.

However, the Wesfarmers share price is down 2.3% at the time of writing, trading at $62.49. Let’s take a look.

What you need to know about Wesfarmers’ $2.3 capital return

In case you missed it, Wesfarmers released its results for the year ended 30 June 2021 (FY21) this morning. Some of the key takeaways from the update include:

• Revenue up 10.0% on the prior corresponding period (pcp) to $33,941 million
• Earnings before interest and tax (EBIT) up 18.8% on pcp to $3,776 million
• Net profit after tax up 16.2% on pcp to $2,421 million
• Free cash flow down 47.2% on pcp to $2,741 million
• Basic earnings per share (EPS) up 16.2% on pcp to 214.1 cents
• Full-year, fully-franked dividend up 17.1% on pcp to 178 cents

In addition to the above, Wesfarmers announced a significant capital return to shareholders. That is set to come in the form of a 200 cents per share payment on top of the company’s final dividend.

The $2.3 billion capital return to Wesfarmers shareholders comes after years of speculation about the Wesfarmers mergers and acquisitions (M&A) war chest.

Strong performance

Today’s result was backed by strong divisional performance from Bunnings, Kmart Group, Officeworks and Industrial and Safety. The largest EBIT growth was recorded by Kmart (+69.0%) and Industrial and Safety (+79.5%).

Wesfarmers gave approval alongside its joint venture (JV) partner to commence construction at the Mt Holland lithium project. First production of lithium hydroxide is expected to start in the second half of the calendar year 2024.

The Wesfarmers capital return, in addition to the final dividend, will give shareholders a total distribution of 378 cents per share. That wasn’t enough to boost the Wesfarmers share price higher on Friday as investors weighed up the news against future growth opportunities.

The post What you need to know about Wesfarmers (ASX:WES) $2.3bn capital return 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 owns shares of and has recommended Wesfarmers 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 AVITA Medical Inc (ASX: AVH) share price is climbing higher this morning following the release of the company’s financial year 2021 (FY21) earnings.

at the time of writing, the AVITA share price is up 7.13%, trading at $5.335.

AVITA Medical share price in focus on 105% revenue increase

Here’s a snapshot of the medical technology company’s performance over FY21:

• US$29.2 million of revenue – up 105% on that of FY20
• Net loss of US$26.5 million – a 37% improvement on FY20’s $42 million loss
• Earnings per share came to a US$1.17 loss

Over FY21, AVTIA’s commercial revenues from its RECELL system were US$21.5 million. The company’s total commercial revenues increased 50% on that of FY20.

Revenues from a contract between AVITA and the U.S. Department of Health and Human Services’ Biomedical Advanced Research and Development Authority within the Office of the Assistant Secretary for Preparedness and Response (BARDA) for the supply of RECELL came to US$7.7 million.

The company also received US$2.1 million of funding from BARDA for FY21, down from US$3.9 million of funding in the previous financial year. The drop in funding was due to the wind down of some activities to do with supporting the US’ Food and Drug Administration’s (FDA) approval of the RECEL system, as well as the compassionate use, continued access programs, and pivotal trials for the treatment of paediatric scald injuries.

AVITA’s total operating expenses dropped 10% to US$51.9 million in FY21.  

Costs involved with sales and marketing fell by 7% to US$14.7 million, due to a lessening in fewer conferences, lower travel expenses due to COVID-19 restrictions, and higher FY20 costs from a product launch.

AVITA’s general and administrative expenses dropped 32% to US$22.4 million.

Research and development expenses increased 61% to US$14.8 million as the company’s clinical trials and related activities for the treatment of vitiligo ramped up.

AVITA ended the period with cash and cash equivalents valued at US$110.7 million and no debt.

What happened in FY21 for AVITA Medical?

Here’s what drove the AVITA share price in FY21:

The major news out of AVITA in FY21 was its latest contract with BARDA.

Under the contract, AVITA provided BARDA with 5,614 RECELL system units. Additionally, AVITA was to support the emergency deployment of the RECELL system for use in mass casualty or other emergency situations. The company announced the news in July 2020.

The company was also listed on the NASDAQ stock market on 1 July 2020. Its prospectus for the dual listing was released to the ASX in March. The proceeds from the prospectus’ offer were around US$69.1 million.

What did management say?

AVITA’s chief medical officer, Dr Mike Perry, commented on the results likely to drive the company’s share price today, saying:

We are excited to report our substantial progress this quarter. As COVID-related restrictions decreased and people resumed everyday activities, the organisation was well-positioned for the marked increase in burn-related accidents.

We realised a significant revenue increase primarily from the increase in burn cases but also from our further penetration in burn centre accounts. We also realised an acceleration of enrolment into our soft tissue reconstruction trial, which is now over half enrolled at 36 of 65 subjects.

What’s next for AVITA Medical?

While AVITA didn’t give any clues as to what those interested in the company’s share price should keep an eye out for, here’s what might interest the market in FY22:

Earlier this month, AVITA announced it had received FDA approval to amend its clinical trial testing if RECELL may help treat vitiligo. As we reported at the time, AVITA stated it could have RECELL available for vitiligo applications in early 2023.

Additionally, another version of AVITA’s RECELL system is under review with the FDA. The company hopes it will be commercialised in the first half of 2022.  

Finally, the company hopes it will be able to launch RECELL in Japan in 2022.

AVITA share price snapshot

The AVITA share price has fallen 1.5% year to date. It is also currently 19% lower than it was this time last year.

The post AVITA Medical (ASX:AVH) share price up 7% 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. owns shares of and has recommended Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical 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 Bega Cheese Ltd (ASX: BGA) share price is in positive territory on Friday morning. This comes after the company released its FY21 full-year results before market open.

At the time of writing, Bega shares are trading at $5.57 apiece, up 1.09% after touching an intraday high of $5.75 in opening trade.

Let’s take a closer look to see how the diversified food company performed during the period.

Bega share price lifts on growth across key metrics

The Bega share price is moving forward following the company’s robust result for the 12 months ending 30 June 2021. Here are some of the key highlights:

• Revenue of $2,703.4 million, up 39% year on year (FY20 $1,493.2 million);
• Earnings before interest and tax (EBIT) of $182.7 million, up 108% (FY20 $87.8 million);
• Net profit after tax of $72.2 million, up 239% (FY20 $21.3 million);
• Earnings per share (EPS) of 27.3 cents, up 176% (FY20 9.9 cents per share); and
• Fully-franked final dividend of 5 cents per share, bringing total FY21 dividend to 10 cents per share.

What happened in FY21 for Bega?

Investors are buying up the Bega share price as the company announced it completed a transformational acquisition during FY21.

This saw Bega expand its branded foods portfolio, gain new market share in growth categories, and significantly strengthen its consumer goods supply chain and organisational capability.

The $528 million takeover of Lion Dairy and Drinks resulted in the company doubling its annualised revenue to $3 billion. In addition, its cold chain distribution network is now one of Australia’s largest with the proportion of sales from branded products in excess of 80%.

Bega did note it experienced a softening in demand for infant formula milk due to changes in the Chinese market. This was created by shifts in customer preferences and a weakened Diagou channel.

What did management say?

Bega executive chair Barry Irvin touched on the result, saying:

The importance of consistent strategy and strong values is never more evident than in times of uncertainty. Our capacity to be agile and change, while remaining confident in the core direction and strategy was again tested and on display in FY2021 as we executed the acquisition of Lion Dairy and Drinks.

We continue to adapt our business to operate in a COVID-19 safe manner and respond to changing customer and supplier requirements.

What’s the outlook for Bega in FY22?

Moving into FY22, Bega advised it would continue to focus on boosting its presence in both domestic and international markets.

Furthermore, it aims to achieve costs synergy benefits from the Lion Dairy and Drinks acquisition, as well as manage the supply of milk. The latter is expected to remain competitive throughout FY22.

No revenue or profit guidance was given by the company.

Bega share price snapshot

Over the past 12 months, the Bega share price is marginally higher, up 7%. Year to date, the company shares have climbed, up by almost 8%.

Based on the current Bega share price, the company has a market capitalisation of around $1.6 billion.

The post Bega (ASX:BGA) share price advances following 39% revenue growth 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 Paragon Care Ltd (ASC: PGC) share price is in the green today after the company released its earnings for financial year 2021 (FY21). 

Right now, the Paragon share price is 30 cents, 5.26% higher than its previous close.

Paragon Care share price gaining on return to profit

Here’s a snapshot of how the producer of medical equipment, devices, and consumables performed during FY21:

• $235.8 million of revenue, 2% more than in FY20
• Net profit after tax of $8.3 million, up from FY20’s $71 million loss
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $26.5 million, up 16% on that of FY20
• 419% increase in operating cash flow, which reached $27.5 million
• 1 cent fully franked final dividend

All Paragon’s remaining vendor earn-outs from previous acquisitions were completed in FY21. They totalled $15.3 million. 

The company ended the period with $33.1 million of cash and $69.1 million of debt. 

What happened in FY21 for Paragon?

Here’s what drove Paragon and its share price in FY21:

Paragon’s major news from the financial year just been was a joint venture between Paragon’s diagnostic business, Immulab, and Jiangsu Zojiwat Bio-Pharmaceuticals Co. Ltd.

The companies will be working together to distribute Immulab’s proprietary in vitro diagnostics blood bank reagents in China. 

To do so, they must complete patient trials in at least three domestic clinical institutions, in line with the recommended National Medical Products Administration (NMPA) approval process. The process will likely take around 2 years. 

The joint venture is Paragon’s first foray into China. 

Additionally, Paragon announced it had renegotiated its financial facilities in May. The facilities are with National Australia Bank Ltd (ASX: NAB)

Finally, the company’s aged care-related business was impacted by COVID-19. However, these impacts were offset by growth in its devices pillar and expansion revenue in New Zealand. 

What did management say?

Paragon Care’s CEO Phil Nicholl commented on the news driving the company’s share price today, saying:

These results validate our hard work over the past year to implement continuous improvement processes throughout the company and to diversify our revenue streams across product lines and geographies. The successful renegotiation of our banking facilities was a significant milestone and reflects the underlying strength of our business. We have taken the first steps in our China growth strategy, and we are now investing for growth to leverage our extensive portfolio of best-in-breed med-tech solutions.

What’s next for Paragon?

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

Paragon has stated it is looking to expand its product range and attract new agency agreements. 

It will also focus on cross-divisional selling to fully leverage the maturing pillar structure. Paragon believes this approach will likely see it report 15% EBITDA margins in the future. 

Paragon share price snapshot

The Paragon share price has gained 30% year to date. It is also 50% higher than it was this time last year.

The post Paragon Care (ASX: PGC) share price soars 5% on $8.3 million profit 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 Crown Resorts Ltd (ASX: CWN) share price is climbing in early trade this morning. That’s after the company officially announced the retirement of chair Helen Coonan, effective today.

Coonan will be replaced by former Telstra Corporation Ltd (ASX: TLS) CEO Ziggy Switkowski. Jane Halton will act as interim chair until Switkowski is confirmed to his position.

At the time of writing, the Crown share price is trading at $9.44 – up 1.62%%. For context, the S&P/ASX 200 Index (ASX: XJO) is trading 0.05% lower.

Let’s take a closer look at today’s news.

‘Ms Coonan…cannot be the critical face of change required at Crown’

It will be interesting to see how the Crown share price performs today as investors digest the latest news from the embattled casino operator.

Crown Resorts had already signalled to the Victorian Royal Commission looking into its gaming licence in the state that Coonan would leave by the end of this month. The pressure was on the former Howard government minister to step down from the board following a scathing submission by counsel assisting.

“Ms Coonan… cannot be the critical face of the change required at Crown if it is to remain the licensee,” counsel assisting Adrian Finanzio told the Royal Commission at the time.

Finanzio had similarly harsh words for Crown Melbourne CEO Xavier Walsh. Walsh, too, resigned after those adverse comments were made against him. The Crown share price rose on this news.

In today’s release, former chair Coonan said it was a “privilege” working at Crown, especially driving a “transformation of the culture, governance and compliance” of the company.

“My aim has been to stabilise and strengthen the business following the recommendations of the Bergin inquiry and set Crown on the reform path now being embedded across our world-class assets in Melbourne, Perth and Sydney,” she said.

“I have always sought to act in the best interests of Crown and endeavoured to consider the impact on our shareholders, customers, and employees. I am confident the board’s selection of Ziggy as chairman will reinforce the organisation-wide commitment to our reform program.”

She did not address the allegations made against her at the Royal Commission. Crown, however, did previously respond to the comments at the Royal Commission. Counsel for Crown told the inquiry that no findings by counsel assisting “reflect[ed] adversely on her character, honesty, or integrity.”

Dr Switkowski added he looked forward to joining the board, “growing value for shareholders, and continuing reforms at the company”.

Crown share price snapshot

Over the past 12 months, the Crown share price has increased 0.43%. The ASX 200 is up 22.3% over the same period. The impacts of the Royal Commission saw Crown lose all the value it gained from multiple takeover approaches.

Crown has a market capitalisation of about $6.3 billion.

The post Crown (ASX:CWN) share price lifts as controversial chair retires appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Sidarous 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 Telstra Corporation 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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Just yesterday, Woolworths Group Ltd (ASX: WOW) released its FY21 full-year results to the ASX. The retail conglomerate reported a busy year that saw its divestment from liquor and hotels business, Endeavour Group Ltd (ASX: EDV).

Meanwhile, Coles Group Ltd (ASX: COL) delivered its FY21 earnings on 18 August, announcing a solid performance despite continued disruptions. Its share price also edged higher on the result for the following days.

Comparing the financial figures of two companies can give investors a clearer picture of how the industry is travelling.

It’s no secret that COVID-19 has positively impacted the grocery market. However, all eyes are now on both supermarket giants to see if they can continue their strong growth in a post-pandemic world.

Below, we take a look at how the Woolworths earnings result stacks up against Coles’ numbers.

A recap on the Woolworths earnings result

Here’s a summary of the financial details that Woolworths posted for the 6 months ending 30 June 2021.

• Group sales of $67,278 million, up 5.7% on the prior corresponding period;
• Group earnings before interest and tax (EBIT) of $3,663 million, up 13.7%;
• Group net profit after tax (NPAT) of $1,972 million, up 22.9%; and
• Final dividend of 55 cents per share, up 14.6%.

The robust result came as the company noted customers shopped more frequently but with small basket sizes. In addition, 23 new stores were opened up, bringing the total network to 1,076 stores.

In early trade on Friday, the Woolworths share price is down 0.93% to $40.61.

How does this compare to Coles?

Coles revealed its own FY21 numbers, highlighting the surging grocery market. Let’s see how it stacked up against Woolworths’ earnings.

• Sales revenue of $38,562 million, up 3.1% on the prior corresponding period;
• Earnings before interest and tax (EBIT) of $1,873 million, up 6.3%;
• Net profit after tax of $1,005 million, up 7.5%; and
• Final dividend of 61 cents per share, up 6.1%.

Coles recorded a bumper year driven by strategic initiatives that were implemented to allow customers to spend more time at home during COVID-19. This included the continued roll-out of “Click & Collect”, the launch of a digital catalogue, and “Fresh Produce Easy Ordering”.

After the results announcement on 18 August, the company’s shares rallied to a record high of $18.94. However, investors decided to take profit off the table, sending its shares lower. At the time of writing, Coles shares are swapping hands for $17.69, up 0.28% on yesterday’s closing price.

Comparing Woolworths’ earnings with those of its rival, there are similarities in terms of revenue growth. Although when it comes to EBIT and NPAT, Woolworths is far ahead of Coles in both numbers and percentage increases.

Woolworths share price snapshot

It has been a blissful 12 months for Woolworths shares, posting a gain of more than 18% over the period. The company’s share price reached an all-time high of $42.66 last week, before also dipping lower due to profit-taking.

Based on today’s price, Woolworths has a market capitalisation of $51.9 billion, with approximately 1.2 billion shares on issue.

The post How does the Woolworths (ASX:WOW) earnings result compare to Coles (ASX:COL)? 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 owns shares of 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 BWX Ltd (ASX: BWX) share price won’t be going anywhere on Friday.

This follows the personal care products company’s request for a trading halt this morning.

That request was made following the release of its full year results and the announcement of a capital raising.

BWX share price halted after results release

• Revenue increased 3.4% to $194.1 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 11.5% to $34.5 million
• Statutory net profit after tax up 60.9% to $23.7 million
• Earnings per share up 44.9% to 17.1 cents
• Fully franked final dividend of 3.1 cents per share
• $100 million equity raising to fund acquisition of 50.1% interest in Go-To Skincare

What happened in FY 2021 for BWX?

For the 12 months ended 30 June, BWX reported a 3.4% increase in revenue to $194.1 million. This was driven by strong sales volumes, reflecting a recovery in some regions from pandemic conditions and increased consumer adoption of retail omni-channel options.

Things were better for the company’s earnings, with underlying EBITDA rising 11.5% to $34.5 million. Management advised that this was driven by a 134bps improvement in its gross margin to 59.3%, a disciplined approach to its cost base, and efficiencies across manufacturing,

The key Sukin brand was the star performer during the year, delivering a 16% increase in sales to $95 million. This was supported by a modest increase in Nourished Life sales and offset slightly by declines in Andalou Naturals and Mineral Fusion sales.

What did management say?

BWX ‘s CEO and Managing Director, Dave Fenlon, commented: “BWX has recorded another solid financial performance in FY21. Despite continual COVID-19 related retail lockdowns, we achieved growth in sales, gross margin and profit, with increased market share across our core categories of skincare, body and hair.”

Mr Fenlon also spoke positively about the future, which could bode well for the BWX share price when it returns from its trading halt.

He said: “Our future trajectory has never been stronger. In FY21 we accelerated our growth in distribution points for our brands Sukin, Andalou Naturals and Mineral Fusion through our new strategic partnership with Chemist Warehouse, and new partnership with Woolworths Australia, and Walmart Canada, as well investment in our direct-to-consumer model to meet growing consumer demand.”

What’s next for BWX?

Mr Fenlon commented: “We enter financial year 2022 with momentum and a good execution against our Three Year Strategic Roadmap, and our soon-to-be opened manufacturing facility is expected to deliver a step change in both financial and operating performance. The current environment requires a proactive and responsive approach. While we continue to monitor our key markets – which are at varying stages of recovery – we are confident we have the right strategy and we are in the right category.”

The company’s future performance will also be boosted by the proposed acquisition of a 50.1% interest in Go-To Skincare for approximately $89 million. This values Go-To Skincare on a 100% enterprise value basis at $177 million, representing an FY 2021 EV/EBITDA acquisition multiple of 14.9x pre-synergies and 11.9x post-synergies.

Founded by Zoë Foster Blake in 2014, Go-To is an Australian skin care provider with a range of simple, trusted and effective skin care products for the masstige market. In FY 2021, it generated $36.8 million of revenue and $11.6 million of EBITDA.

The deal is expected to be mid-single digit earnings per share accretive on a FY 2021 pro forma basis (pre-synergies) and double digit earnings per share accretive post $3 million of potential synergies in the first full financial year.

To fund the deal, BWX is seeking to raise $100 million. This comprises an $85 million fully underwritten institutional placement and a $15 million share purchase plan.

The placement is being undertaken at $4.85 per new share, which represents an 8.7% discount to the BWX share price at yesterday’s close.

BWX share price performance

The BWX share price has been a strong performer in 2021. Since the start of the year, the company’s shares have gained 28%. This compares favourably to a 12% gain by the ASX 200.

The post BWX (ASX:BWX) share price halted following FY21 results and Go-To acquisition 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 BWX 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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Zip Co Ltd (ASX: Z1P) shares are locked in a tug of war between bulls and bears following its FY21 results on Wednesday.

On the day of the announcement, the Zip share price tumbled 5.19% to an intraday low of $6.94 in the first few minutes of trade.

Buyers would step up, rallying its shares well into positive territory, up 1.78% to $7.45 by noon. Its gains would fade into the afternoon, closing 2.60% lower at $7.13.

In terms of results, Zip delivered an encouraging performance in FY21, with classic triple digit growth across key operating metrics.

Some key highlights include:

• Revenue of $403.2 million, up 150% year on year (FY20 $161 million)
• Transaction volumes of $5,8 billion, up 178.5% (FY20 $2.1 billion)
• Active customers at 7.3 million, up 247.5% (FY20 2.1 million)
• Active merchants at 51,300, up 109.4% (FY20 24,500)

But upon closer inspection, the company’s FY21 loss after tax ballooned to $653 million compared to a $19.94 million loss in FY20. This loss was primarily driven by the adjustment relating to its acquisition of Quadpay.

While Zip shares might remain in a lull state, let’s take a look at what might drive the Zip business in FY22.

Zip goes international

Europe and Middle East

In May, Zip announced its plans to acquire the remaining shares in its minority investments Twisto and Spotii.

The acquisition of Twisto provides Zip with the ability to “passport licensing” across Europe to further its regional expansion.

According to the results announcement, the Twisto business is performing well, with annualised revenue of $12 million and total transaction volumes of $230 million. Zip cited a strong product pipeline with a virtual card rollout to drive incremental growth in the region.

The Spotii acquisition was another strategic investment to provide an entry point for further regional expansion across the Gulf Cooperation Council (GCC) region.

Zip believes the region will be supported by strong e-commerce growth in addition to a strong pipeline of enterprise merchants.

Minority Asia investment

More recently, Zip completed a minority investment (25%) in a Philippines based BNPL solution. TendoPay delivers classic core instalment products with a unique repayments solution via salary deduction.

The results stated that the company is in the process of securing debt funding to provide future headroom for growth.

TendoPay has partnered with major brands including Samsung, Havaianas and Western Appliances with a strong pipeline for the next 6 months.

Moving to full ownership in Africa

Zip will purchase the remaining shares in South Africa-based BNPL, Payflex.

Zip initially acquired a 24.7% stake in Payflex in October 2019.

The full ownership of Payflex is viewed as a “strong first-mover advantage with access to broader African markets”.

Zip is targeting Africa given its significant population of mobile payment users and underlying fundamentals of rapid smartphone adoption. The company believes its services can help address and support the “underbanked” population.

Zip share price snapshot

The Zip share price has been moving sideways since March this year, despite a 26.3% year-to-date performance.

The post Own Zip (ASX:Z1P) shares? Here’s what to look out for in FY22. 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 ZIPCOLTD FPO. 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 AGL Energy Limited (ASX: AGL) share price hasn’t exactly established a good reputation as an ASX 200 performer in 2021 so far.

Even before this month when AGL reported its FY21 earnings, AGL shares had lost around 49.7% of their value between January and the end of July.

AGL reported its FY21 earnings more than a fortnight ago on 12 August. Here’s a summary of what my Fool colleague Marc reported at the time:

• Revenues dropped 10% on the prior corresponding period (pcp) to $10.9 billion.
• Underlying profits down 33.5% to $537 million on the pcp.
• Underlying earnings per share (EPS) fell 31.6% to 86.2 cents.
• Full-year dividend of 75 cents per share (41 cents interim + 35 cents final), a 23.5% drop from the pcp

This earnings report has been the centrepiece of AGL’s August performance so far. To illustrate, here’s a graph of the AGL share price over the month to date:

As you can see, AGL was having a relatively positive month until the release of its FY21 earnings. In fact, between 30 July and 11 August, AGL shares were up around 5%.

However, since 12 August, investors seemed to have changed their minds. On yesterday’s closing share price of $6.71 a share, AGL is now down around 11.7% since the day before the earnings were released.

That puts this company’s losses for the month of August so far at roughly 7.2%.

About the AGL Energy share price

While AGL’s performance in both August and 2021 so far has been rather bleak, things aren’t any better for long-term investors.

In addition to being down 44% year to date in 2021 so far, the AGL share price is also down around 54% over the past 12 months, and 64% over the past 5 years.

Since this company hit its all-time high of around $27.70 a share back in 2017, investors have had to watch AGL shares lose a nasty 75.8% of their value.

In some (perhaps much-needed) better news, investment bank Goldman Sachs still rates AGL with a 12-month share price target of $7.95 a share (albeit with a ‘neutral’ rating). That implies a potential 12-month upside of 18.5%. Even though the broker acknowledges that FY2022 will be a tough year for the company, it still sees “long-term embedded value in AGL’s portfolio”.

The post August hasn’t been a great month so far for the AGL (ASX:AGL) share price appeared first on The Motley Fool Australia.

More reading

• Here’s why the AGL (ASX:AGL) share price is down 6% in a week
• How does the AGL (ASX:AGL) earnings result compare to Origin?
• When was the worst-ever day on the AGL (ASX:AGL) share price chart?
• The AGL (ASX:AGL) share price is underperforming the ASX 200 in 2021
• Top brokers name 3 ASX shares to sell next week

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

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