The Dicker Data Ltd (ASX: DDR) share price is moving into uncharted territory this morning. This comes after the company released its FY21 half-year results before market open today.

At the time of writing, Dicker Data shares up 4.26% to a record high of $16.41 apiece.

Let’s take a closer look to see how the IT distributor performed for the period.

Dicker Data share price soars after achieving growth across all key metrics

The Dicker Data share price is advancing following the company’s interim result for the 12 months ending 30 June 2021. Here are some of the key highlights:

• Revenue of $1,069.3 million, up 6.3% year on year (FY20 $1,006.1 million);
• Earnings before interest, tax, depreciation and amortisation (EBITDA) of $51.2 million, up 8.6% (FY20 $47.1 million);
• Net profit after tax of $32.1 million, up 9.2% (FY20 $29.4 million);
• Interim dividend of 9 cents per share, bringing total dividends paid for half-year to 19.5 cents apiece

What happened in FY21 for Dicker Data?

Investors are buying up Dicker Data shares as the company registered a solid scorecard for the first half of FY21.

Dicker Data maintained its upwards revenue trajectory, despite the supply constraints such as the global chip shortage.

At the country level, Australia grew revenues by $50.2 million, up 5.4%, and New Zealand by $13 million, up 18.8%.

During the period, the company added 5 new vendors which accounted for incremental revenue of $14.5 million. Of the existing vendors, sales lifted by $46.2 million, up 4.6% on the prior corresponding period.

Overall, profit increased as a result of growth in other income and lower interest costs.

What did management say?

Dicker Data chair and CEO David Dicker, commented on the solid achievement, saying:

We are pleased with the HY21 results which represents over 43 years of the company’s consistent and strong results. Despite ongoing changes in the current environment, we’re operating in, we will continue to focus on executing strategic decisions that ensure we continue to grow, meet challenging requirements and deliver value-added services to our vendors and reseller partners.

The recent Exeed acquisition further demonstrates the commitment to take on new opportunities, deliver results for our people, investors, resellers and uphold our value proposition. Our recent record share price further consolidates our place as Australia’s leading distributor and a fast growing and high returning tech stock.

What’s instore for Dicker Data in FY22?

Looking ahead, Dicker Data advised that FY22 is expected to be a bumper year as Australia’s lockdowns accelerate digital agendas.

The company noted that demand for its technology and value-added services remains robust. This is underpinned by government incentives for IT hardware, software and internet services in the small-to-medium business market. Ongoing uncertainty in the economy has led business to adopt a remote and digital workforce.

In addition, the global chip shortage is expected to continue for the foreseeable future as manufacturers work to manage the available inventory. Despite the current challenges, Dicker Data is experiencing strong demand with a number of backlog of orders to fulfil.

It noted that when supply improves, demand is anticipated to be met in the second half of 2021.

Dicker Data chief operating officer and executive director, Vladimir Mitnovetski added:

The company sees its greatest opportunity in the next 12 months in supporting reseller partners who are building and delivering return to work solutions and strategies that are compliant with evolving Government guidelines. The commercialisation of edge technologies will accelerate as home offices become office sub-branches that require connectivity, security and device management solutions.

Dicker Data share price snapshot

Year to date, the Dicker Data share price has stormed 50% higher. When factoring in the past 12 months, the company’s shares have more than doubled in value.

Based on the current Dicker Data share price, the company has a market capitalisation of around $2.7 billion.

The post Dicker Data (ASX:DDR) share price hits record high following strong interim results 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. owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data 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 Eagers Automotive Ltd (ASX: APE) share price is flat this morning after the company released its report for the first half of FY21.

Shares in the automotive dealer have been trading in a wide range as investors digest its report.

Let’s take a look at how Eagers performed for the first half of FY21.

Highlights from Eagers’ first-half report for FY21

• Statutory Profit After Tax of $202.3 million, compared to $11.8 million in 1H20
• Underlying Operating Profit Before Tax of $218.6 million, compared to $40.3 million in 1H20
• EBITDA from continuing operations increased to $378.0 million, compared to $228.5 million in 1H20
• $661.1 million cash on hand as at 30 June 2021
• Statutory Earnings per Share (EPS) of 77.1 cents per share (cps) compared to 3.2 cps in 1H20

Eagers also declared an ordinary dividend to shareholders of 20 cents per share. In addition, the company also approved a special dividend of 8.4 cents per share following the sale of its Daimler Trucks business.

What happened to Eagers in the first-half of FY21?

Eagers cited that strong demand for new and used vehicles continued throughout the first half of FY21. The company noted demand was driven by favourable economic conditions and changes in social trends and consumer behaviour.

In the larger markets of Queensland, New South Wales and Victoria, Eagers recorded sales increases of 33.9%, 29.1% and 22.3% respectively.

Eagers also noted that the company was able to mitigate the impact of localised COVID-19 government restrictions for the first half.

The company also said cost reductions managed to deliver more than $100 million in annualised savings.

In addition, Eagers also noted strong growth from its pre-owned business easyauto123. In addition, the company highlighted strong growth in its property strategy, with $110 million worth of property acquired during the period.

What did management say?

Commenting on the half-year performance, Eagers Automotive CEO Keith Thornton noted:

Our first half results reflect strong market dynamics, a disciplined approach to managing operations within the current environment and the benefits of our Next100 strategic progress and are further validation of our transformative merger with AHG. A key driver of our strong financial performance has been the deliberate action we have undertaken to simplify our business and reduce our cost base. This has resulted in permanent cost savings that will continue to benefit shareholders in future periods.”

What’s next for Eagers Automotive?

Eagers painted an optimistic outlook for the company moving into the second half.

The company cited that its strong balance sheet provides flexibility and capacity to invest in organic growth and acquisition opportunities.

Eagers cited a strong devotion to the execution of its Next100 strategy and accelerating the scaling of its easyauto123 business.

In addition, the company plans to advance its property strategy through the acquisition of strategically located sites.

The post Eagers Automotive (ASX:APE) share price stalls on half-year report appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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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Shares in emerging ASX tech company Megaport Ltd (ASX: MP1) have skyrocketed over the past 6 months.

The Megaport share price has rallied almost 40%, from a low of $12.15 six months ago to $17.09 at the time of writing. The company even set a new 52-week high price of $18.55 on 30 June.

It has been a busy few months for Megaport, with the release of the company’s FY21 full-year financial results, as well as the announcement that it had completed a key strategic business acquisition.

Let’s take a closer look at how these two events have boosted the Megaport share price.

About Megaport

First, a quick reminder of what Megaport actually does.

Megaport describes itself as a network as a service (NaaS) company. It leverages cloud technology to supply “on demand” network services to corporate clients. It helps clients expand their network connectivity, and also allows them to manage their bandwidth usage.

Customers have the ability to scale up their bandwidth requirements when demands are high, and then reduce consumption during off-peak times. This flexibility means Megaport’s customers can tailor the network to suit their individual needs, and better manage their overall costs.

Recent news

Let’s start with the financials.

Megaport released its full-year FY21 results to the market on 10 August. The company recorded revenues of $78.28 million for FY21, a year-on-year uplift of 35%. This was underpinned by strong growth in customer numbers, with Megaport ending the year with 2,285 active users (an increase of 24% over the prior year).

Megaport CEO Vincent English commented on the result, saying that the company’s “investment in innovation and products supported big growth in Fiscal Year 2021”. He said that Megaport’s mission for FY22 was to accelerate growth and increase its “lead in the NaaS space”.

One way to drive growth is through acquisitions.

On the same day as it released its annual results, Megaport also reported that it had acquired tech company InnovoEdge for up to US$15 million, half in cash and half in ordinary shares of Megaport.

InnovoEdge develops software to help customers manage and analyse the performance of cloud-based applications. In its release to the market, Megaport stated that the acquisition would provide “increased functionality” on its NaaS platform.

Megaport share price snapshot

Megaport’s strong financial performance and growth strategy appear to be the catalysts for sending its shares soaring higher recently.

The Megaport share price is up almost 5% over the past month.

The post The Megaport (ASX:MP1) share price is up almost 40% in 6 months appeared first on The Motley Fool Australia.

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Motley Fool contributor Rhys Brock owns shares of MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT 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 City Chic Collective Ltd (ASX: CCX) share price has been a very strong performer on Thursday.

In morning trade, the plus sized fashion retailer’s shares have jumped 13% to a record high of $6.19 following the release of its full year results.

City Chic share price jumps after strong sales and profit growth

• Sales revenue up 32.9% to $258.5 million
• Comparable sales growth of 31.6%
• Online sales growth of 49.3%
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 59.8% to $42.4 million
• Underling net profit after tax up 80.6% to $24.9 million
• No dividend for FY 2021

What happened in FY 2021 for City Chic?

For the 12 months ended 30 June, City Chic reported a 32.9% (38.5% in constant currency) increase in sales revenue to $258.5 million.

This was driven by a 55.6% increase in online sales to $184.6 million and an 11.2% increase in Stores revenue to $67 million. This was offset slightly by weakness in Marketplace and Wholesale revenues.

Strong sales growth was achieved across all regions, which led to market share gains in the ANZ region.

Thanks to margin expansion, City Chic’s earnings grew at an even quicker rate. City Chic’s net profit after tax was up 80.6% on an underlying basis to $24.9 million.

What did management say?

City Chic’s Chief Executive Officer and Managing Director, Phil Ryan, commented: “Our strategic vision to lead a world of curves has taken a huge step in the last twelve months despite the impacts of the pandemic. I am proud and thankful for the way our team has remained committed to delivering for our customers.”

“Our razor-sharp focus on the three pillars of plus-size, digital and global customer acquisition have again delivered strong results. In the past year 73% of our sales were through the online channel, and we have over one million global active customers.”

What’s next for City Chic?

Also giving the City Chic share price a boost today was news that it has started FY 2022 positively, with strong top line and comparable sales growth.

This will soon be boosted by a number of marketplace partnerships that are scheduled to go live in September. This includes with Walmart in the US, Debenhams in the UK, and eBay in Australia. After which, marketplace integrations with Zalando in Europe, Amazon in the UK, Target in the US, and the Iconic in Australia are due to go live later in the half. Outside that, no guidance has been given for the year ahead.

The City Chic share price is up 54% in 2021.

The post City Chic (ASX:CCX) share price jumps 13% to record high on strong FY21 growth 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 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 Whitehaven Coal Ltd (ASX: WHC) share price is sinking in early trade, down 3.4% to $2.15 per share.

Below, we take a look at the ASX coal miner’s financial results for the year ending 30 June (FY21).

Whitehaven share price falls on FY21 results

• Revenue of $1.56 billion, down from $1.72 billion in FY20
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $204.5 million, down 33% year-on-year
• Operating cash flows of $138.8 million, a decrease of 5%
• Net loss after tax before significant items of $87.3 million, compared to a net profit after tax (NPAT) of $30.0 million in FY20

What happened during the reporting period for Whitehaven?

During the financial year, significant expenses for Whitehaven totalled $650 million, primarily related to asset impairments at its coal mines. FY20 saw no significant expenses.

Addressing the $87 million net loss before significant items – compared to the $30 million net profit the prior year – Whitehaven said its EBITDA margin on sales of produced coal decreased from $21 per tonne in FY20 to $14/t in FY21. The averaged realised price also fell by $9/t to $95/t in FY21. That was largely due to a strengthening Aussie dollar against the greenback.

The 14.4Mt of coal sales during the year were “broadly in line” with the prior year, but fell short of expectations.

Coal stocks of 2.3Mt were 17% above FY20 levels.

As at 30 June, the company had a net debt position of $808.5 million. It reported that it “holds a strong capital base to maintain investor, creditor and debt market confidence and ensure the business is well positioned to support attractive future opportunities”.

No final dividend was declared.

In the early months of FY22, Whitehaven reports it has repaid $178 million of debt drawn under its senior bank facility.

What did management say?

Commenting on the results, Whitehaven’s CEO, Paul Flynn said:

FY21 was very much a year of highs and lows both operationally and in terms of factors outside our control.

In the reporting period cyclical lows in coal price were replaced with record highs, with the gC NEWC index currently trading around of USD$170 per tonne.

While we had our hands full putting the more difficult geological conditions at Narrabri behind us, we also saw our largest production asset, Maules Creek, achieve record annual ROM production of 12.7Mt.

What’s next for Whitehaven?

The company notes that metallurgical and thermal coal prices have increased significantly from their lows in mid-2020.

Whitehaven noted:

Strong China coal demand, supported by increased economic activity and challenges in expanding domestic China coal production, compounded by China’s ban on Australian coal, have modified coal flows in the seaborne market and elevated seaborne coal prices to record levels.

It said that “tendering from Asia-based customers remains active” and the company has seen increased interest by customers to secure coal for the 2022 calendar year. It also highlighted that supply disruptions continue to hamper other major coal producing nations across the world.

Flynn said, “Today, the outlook is better than we have seen for some time, with the strong price environment putting us on an accelerated timeline to de-leveraging the balance sheet and returning cash to shareholders.”

The Whitehaven share price is up 111% over the past 12 months.

The post Whitehaven (ASX:WHC) share price sinks on falling FY21 revenues appeared first on The Motley Fool Australia.

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

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The Bigtincan Holdings Ltd (ASX: BTH) share price slumped at the market open but has since pared back its losses following the group’s full-year results release.

Bigtincan share price seesaws as revenue surges 42%

Some of the key takeaways from this morning’s result include:

• Annual recurring revenue (ARR) up 48% on the prior corresponding period (pcp) to $53.1 million
• Group revenue up 42% on pcp to $43.9 million
• Customer retention rate flat at 89%
• Gross margin flat at 85%

What happened in FY21 for Bigtincan?

It was a big year for the Aussie sales enablement software provider. Bigtincan estimates an addressable market of more than $10 billion exists for the business with more than 500,000 licensed seats at 30 June 2021.

The software group diversified its recurring revenue base throughout the year across Life Sciences (20.1%), Technology (18.5%), Retail (17.2%), Telecommunications (14.2%), Financials (11.9%), Manufacturing (8.0%) and Other (10.0%).

The Bigtincan share price is up nearly 40% in 2021 having surged higher following yesterday’s capital raising update.

Bigtincan grew its lifetime value (LTV) of customer subscriptions from $270 million in FY20 to $392 million as at 30 June. That was aided by strong organic and acquisition-based growth throughout the year with the purchase of Vidinoti, VoiceVibes, ClearSlide and Agnitio completed in FY21.

Bigtincan will also acquire Brainshark for US$86 million (A$116 million) in cash. The purchase will bring Bigtincan’s sustainable ARR to $99 million with estimated organic growth of $20 million in FY22.

What’s next for Bigtincan?

Bigtincan is targeting ARR above $119 million with revenue above $100 million for FY22. That includes ongoing growth from winning new customers as well as targeted, strategic acquisitions to take advantage of market conditions.

The Bigtincan share price has climbed 52.7% in the past 12 months and is trading just shy of its $1.60 52-week high. At the time of writing, the company’s shares are changing hands for $1.49, up 2.76%.

The post Bigtincan (ASX:BTH) share price seesaws after revenue 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. owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN 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 Qantas Airways Limited (ASX: QAN) share price is climbing higher on Thursday. This follows the release of the airline’s FY21 full-year earnings. A result of what CEO Alan Joyce described as “diabolical” trading conditions.

At the time of writing, shares in the Aussie airline are up 2.26% to $4.98 – suggesting investors had braced for even worse.

What’s happening with the Qantas share price?

Investors are buying up the Qantas share price this morning, despite the company posting a $2.3 billion loss for the 2021 financial year.

According to its results, the airline operator was at the mercy of COVID-19 lockdowns and restrictions. As a result, the international segment was confronted with a challenging environment, to say the least.

Including freight, Qantas’ international business made a $157 million loss in earnings before interest, tax, depreciation, and amortisation (EBITDA).

While international capacity had benefitted from the trans-Tasman bubble, this was quickly squashed following the Greater Sydney lockdown. New Zealand suspended the travel agreement, citing the risk from the Delta strain as too great — this put downward pressure on the Qantas share price.

Qantas CEO Alan Joyce noted his expectation for the total costs of the pandemic, stating:

It comes on top of the significant loss we reported last year and the travel restrictions we’ve seen in the past few months. By the end of this calendar year, it’s likely COVID will cost us more than $20 billion in revenue.

However, domestic travel delivered an EBITDA profit, potentially helping the Qantas share price this morning. Moreover, Qantas and Jetstar combined pulled $304 million in underlying EBITDA profit during the period.

Where to from here?

While the COVID-19 situation remains unpredictable, Qantas is expecting Victorian and New South Wales’ borders to reopen in early December.

Meanwhile, travellers hoping to look further abroad may have to wait until the end of 2021.

Surprisingly, the Qantas share price is shaking off the result this morning. Instead, investors appear to be looking ahead to the potential reopening once vaccination targets are met.

The post Qantas (ASX:QAN) share price rises despite big COVID-19 blowout 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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The Australian Ethical Investment Limited (ASX: AEF) share price is gaining after the company released its financial year 2021 (FY21) earnings this morning.

Right now, the Australian Ethical Investment share price is $9.73, 6.34% higher than its previous close.

Australian Ethical share price jumps on 5 cents of dividends

Here’s how the ethically-focused wealth management company performed in FY21:

• Profit after tax of $11.3 million, 19% more than that of FY20
• $58.7 million of revenue, up 18%
• $6.07 billion of funds under management, up 50%
• 4 cent fully franked final dividend, with a 1 cent fully franked performance fee dividend

Over FY21, Australian Ethical saw a 43% bump to the amount of funds managed by its super services while its managed funds’ balances increased 63%.

It reported a record $1.6 million donated to its Foundation throughout FY21.

At the same time, its operating expenses were $43.6 million, up 18% on that of FY20, driven by reinvestment into the business.

What happened in FY21 for Australian Ethical?

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

Over FY21, the company’s customer base grew 23%. Managed fund customers increased 31% while super customers increased 22%.

Additionally, it was recognised by Morningstar as 1 of 6 global leaders for its commitment to ethical, social, and governance (ESG). Morningstar described the company’s shares fund as “setting the ESG standard for Australian domestic-equity strategies”.

Australian Ethical reduced fees on its Defensive super option, its Income and Fixed Interest funds, its Australian Shares and International super options, its Balanced, International, Diversified, Advocacy, Australian Shares and Emerging Companies retail funds, and its Balanced and International wholesale funds.

Australian Ethical also reduced the threshold on its Balanced wholesale fund.

The company’s highlights include the performance of its Australian Shares Fund (retail) which returned 41.9%. Its Emerging Companies Fund (retail) returned 50.3%. Additionally, Australian Ethical’s Emerging Companies Fund generated performance fees of $2.9 million.

Australian Ethical’s Balanced option also delivered a 17.5% return while its Australian Shares super option delivered a 38.8% return.

COVID-19‘s impact on the company’s business has been minimal.

What did management say?

Australian Ethical’s CEO John McMurdo commented on the results driving the company’s share price today, saying:

Despite the ongoing challenges posed by the pandemic, it has been a pivotal year for ethical investing, climate pledges, and sustainable commitments around the world. As the coronavirus continues to reshape economies and global markets, a near-universal desire for the more sustainable future is emerging.

As a result, out ethical approach is rapidly gaining popularity for its inherent tilt towards quality, resilience, and long-term capital appreciation…

However, the most recent Intergovernmental Panel on Climate Change (IPCC) report makes for sobering reading and tells us that the climate emergency is here, and the clock is ticking, Recent climate pledges and commitments must now be accelerated with a clear role for investors to push for mandatory climate action plans. Because as much as the report is bleak and troubling, it is also a historic moment for investors to step up and support urgent and large-scale initiatives to reduce emissions.

What’s next for Australian Ethical?

Here’s what might drive the Australian Ethical share price in FY22:

The company is expecting to experience an increase in demand shortly as ethical investing nears the mainstream.

As a result, it’s embarking on a growth strategy to reinforce and expand its market share.

In the short term, Australian Ethical will focus on deepening its investment capability, expanding its product offerings, and growing its brand awareness.

Over the long term, it plans to cement its leadership with the above short term focuses and scale its business.

Australian Ethical also plans to update its digital channels in FY22.

Australian Ethical share price snapshot

The Australian Ethical share price has gained 98% year to date. It has also gained 116% since this time last year.

The post Australian Ethical (ASX:AEF) share price soars 6% on FY21 results appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment 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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Blackmores Limited (ASX: BKL) shares are edging lower on Thursday after the supplements company released its FY21 full-year release. At the time of writing, the Blackmores share price is trading 0.74% lower at $79.20.

Blackmores share price struggles whilst profit surges

The company reported the following key performance results for the 2021 financial year:

• Revenue up 1.3% on the prior corresponding period (pcp) to $575.9 million.
• Underlying group earnings before interest and tax (EBIT) up 51.7% to $47.6 million.
• Underlying group net profit after tax (NPAT) up 51.7% on the pcp to $25.4 million.
• China segment revenue up 17.7% with Australia segment revenue down 14.0%.
• Final dividend of 42 cents per share, fully franked.

The Blackmores share price is struggling to stay in the green on Thursday morning as investors digest the company’s latest results.

What happened in FY21 for Blackmores?

Despite a “challenging” operating environment amid the COVID-19 pandemic, Blackmores posted revenue, earnings and profit growth in FY21.

Strong momentum in the group’s international and China segments helped offset softer conditions in Australia and New Zealand.

Some of the group’s key initiatives for the year included its business improvement program, targeted investment strategy to capitalise on organic growth in Asia and efficiency and price/mix initiatives.

The Blackmores share price has climbed around 17% in the past 12 months despite the challenges faced.

What did management say?

Blackmores CEO Alastair Symington had the following to say about the result:

Blackmores has made strong progress towards delivery against our strategic priorities over the past 12 months by aligning our resources to capitalise on growth markets, channels and segments.

We have a clear path and focus towards achieving our stated FY24 strategic and financial objectives and I am pleased with the progress we are making which is evidenced from the improvements in our earnings profile.

Blackmores remains focused on delivering growth and operational excellence across its 3 brands, 3 focus markets and 5 consumer growth pillars, while maintaining a discplined risk and capital management framework to capitalise on the opportunities and navigate through the challenges that will arise.

What’s next for Blackmores?

Blackmores said it is continuing to adapt to the demands of the “rapidly changing health sector”. That includes a focus on generating efficiency and cost savings in Australia and New Zealand.

The outlook for its international and China segments remains positive with strong sales momentum to start FY22.

Blackmores share price snapshot

The Blackmores share price has climbed 5.4% higher in 2021 but lags the S&P/ASX 200 Index (ASX: XJO) gains this year. At the current share price, the company has a market capitalisation of around $1.5 billion.

The post Blackmores (ASX:BKL) share price edges lower despite profit surge appeared first on The Motley Fool Australia.

More reading

• What happened to the Blackmores (ASX:BKL) share price last earnings season?
• Own Blackmores (ASX:BKL) shares? Here’s what to expect during reporting season

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 Blackmores 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 has opened lower on Thursday after the company released its maiden FY21 results as an independent listed business.

At the time of writing, shares in the retail drinks and hospitality business are down 2.5% to $7.03.

Endeavour share price lower on volatile earnings

The Endeavour share price is off to a wobbly start on Wednesday despite a solid FY21 performance. Some key highlights include:

• Group sales up 9.3% to $11,595 million
• Group earnings before interest and tax (EBIT) lifting 22.1% to $899 million
• Group net profit after tax of $445 million
• Final dividend of 7 cents per share

What happened to Endeavour in FY21?

The Endeavour share price made its ASX debut on 24 June following its demerger from Woolworths Group Ltd (ASX: WOW). The company’s shares closed at $6.02 on its first day.

Endeavour delivered a solid 9.3% increase in group sales to $11.6 billion, with both retail and hotel segments delivering higher sales than the prior corresponding period.

Endeavour believes its BWS and Dan Murphy’s businesses are well-positioned in the market with customer engagement metrics improving again in FY21.

Retail sales increased 9.6% to $10,178 million while EBIT grew 17.6% underpinned by a shift to in-home consumption as a result of COVID-19. The company said that the closure of on-premise venues which began in March 2020 has “increased retail demand which remained elevated across the first half of FY21”. While in the second half of FY21, “on-premise restrictions eased and retail trading began to normalise”.

Endeavour continued to invest in its digital capabilities during the year, improving the customer experience for its website and apps. The company believes this created a strong foundation to drive online sales, which increased 24.7% in FY21. Online sales now account for 8.4% of total retail sales compared to 6.9% a year ago.

Endeavour’s hotel business continues to face challenging conditions due to COVID-related restrictions and associated costs. Despite these challenges, sales increased 7.3% to $1.4 billion while EBIT grew 49.1% to $261 million.

The positive outcome was mainly due to the cycling of hotel closures in FY20.

In the past, once restrictions were lifted in each market, the company said that strong trading conditions quickly resumed as customers returned to hotels. Unfortunately, the resurgence of COVID-19 cases towards the end of FY21 has brought back lockdowns and restrictions, again impacting operations.

Management commentary

Looking ahead, Endeavour managing director and CEO Steve Donohue said:

The strength of this year’s result has demonstrated the resilience of our business model and the commitment of our team to living our purpose and values and delivering for their customers and communities. We are excited that we are entering the new year with a robust balance sheet and a significant number of opportunities to create value, including growing our digital engagement, expanding and enhancing our network and optimising our business through a focus on profitability and capital management

What’s next for Endeavour?

Endeavour advised that its performance so far in FY22 continued to experience significant volatility due to COVID-19 outbreaks.

In the first eight weeks, retail sales were “tracking well” and cycling through trading highs of 1Q21. Retail sales were down 1.7% compared to FY21, but up 21.5% compared to FY20.

Its hotels business was off to a “very challenging start”. The company advised that as at 24th August, 41% of its hotels were closed due to public health orders. Hotels sales in the first eight weeks of FY22 are down 7.3% against the prior corresponding period and down 36.2% compared to FY20.

The volatility in the first eight weeks of sales could be a drag on the Endeavour share price in today’s trading session.

The post Endeavour (ASX:EDV) share price down 2% after maiden FY21 results announcement 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. 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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