The Woolworths Group Ltd (ASX: WOW) share price will be in the spotlight on Thursday after the release of the supermarket giant’s FY21 full year results.

Woolworths share price on watch after ‘transformative year’

FY21 has been a significant year for Woolworths following its successful divestment of Endeavour Group Ltd (ASX: EDV). Key highlights include:

• Group sales rose 5.7% to $67,278 million
• eCommerce sales surged 58.1% to $5,602 million
• Group earnings before interest and tax (EBIT) increased 13.7% to $3,663 million
• Group net profit after tax up 22.9% to $1,972 million
• Final dividend of 55 cents per share

What happened to Woolworths in FY21?

The Woolworths share price has been a standout performer in wake of recent lockdowns and cycling through elevated sales from FY20.

In its results presentation, management said that “business was very different in H1 and H2” as the company cycled the impact of COVID-19 from late February onwards.

Australian Food FY21 sales increased 5.4% to $44.4 billion, with comparable sales increasing 4.2%.

H1 sales increased 10.6%, benefiting from COVID-related demand and the successful Disney+ Ooshies and glass containers campaigns. While sales in H2 increased by 0.2% as the business experienced COVID-19 pantry-loading in the prior year.

The company notes that sales in Q4 increased 1.2%, driven by elevated sales in May and June following coronavirus outbreaks in Victoria and NSW.

This might be a better outcome than what Woolworths previously forecasted in its half-year results, citing “we expect sales to decline over the March to June period compared to the prior year in all our businesses.”

Woolworths reported a material decline in pandemic-related costs on the prior year, and coupled with gross margin improvements, led to 4.5% EBIT growth in H2 and 9.0% EBIT growth before significant items for the full year.

Elsewhere, Big W achieved record annual sales of $4.6 billion, up 11.6% on the prior year, with all major categories experiencing strong annual growth.

While the company’s New Zealand food business experienced a 0.6% decline in total sales to $7.1 billion, cycling the strict COVID-19 lockdowns in H2 FY20.

Management commentary

Woolworths chair Gordon Cairns commented on the transformative year for Woolworths, following its successful Endeavour Group divestment and focus on growth.

We have also continued to invest in our existing business, spending $2 billion on sustaining and growth capex in F21. We will invest what is required to ensure that we are able to meet the expectations of customers whether they shop in store or online.

An example is our investment in eCommerce over many years which has helped to drive sales of over $5.5 billion this year. Despite this increased investment, normalised Group ROFE increased 1.4 points during the year to 15.1%.

Cairns said the company was also conducting a $2 billion off-market share buy-back and “declared a second-half dividend of 55 cents per share, bringing our full-year dividend to 108 cents per share, a 14.9% increase on F20. Endeavour Group is also expected to pay a dividend relating to H2 as previously communicated in the demerger booklet.”

What’s next for Woolworths?

Woolworths was unable to provide any guidance for FY22 earnings.

The Woolworths share price will go ex-dividend on Thursday, 2 September for a 55 cent final dividend.

Investors will receive this dividend on Friday, 8 October.

The post Woolworths (ASX:WOW) share price on watch following FY21 results appeared first on The Motley Fool Australia.

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• August has been a great month so far for the Woolworths (ASX:WOW) share price

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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The CSL Limited (ASX: CSL) share price has gained 8% since the beginning of August following upbeat investor sentiment. This comes as the global biotech released its FY21 scorecard to the market, highlighting another robust full-year result.

At Wednesday’s market close, CSL shares finished the day up 1.28% to $312.51. It’s worth noting the company’s share price is now sitting at a year-to-date high.

How did CSL shares react this earnings season?

Last Wednesday, CSL announced its full-year results citing growth against very challenging conditions brought on by the global COVID-19 pandemic.

CSL Behring’s portfolio faced headwinds while its Seqirus business, made up of seasonal influenza vaccines, recorded strong tailwinds in FY21. This led the company to post a net profit after tax in constant currency of $2,375 million, up 10%.

However, the focus remained on CSL’s update regarding its plasma collection issues faced since COVID-19 began.

As such, the company advised its plasma numbers are down around 20% compared to FY20’s levels.

These collection issues stemmed from federal government stimulus packages as well as extended lockdowns.

In response, CSL opened 25 new facilities along with marketing initiatives to attract lapsed and new donors. The company also reduced the holding period of plasma from 60 days to 45 days.

The FY21 results had a positive effect on the CSL share price, sending it on an upwards trajectory.

It appears investors believe the worst is over for the company. Vaccination rates are climbing and countries are eyeing a post-COVID-19 world.

CSL share price summary

Over the past 12 months, the CSL share price has pushed around 7% higher, with 2021 gains above 10%.

This is a stark contrast to when the company’s shares were trading at a 52-week low of $242.00 in March. In comparison, when COVID-19 hit the ASX in March 2020, CSL shares fell around the $270 mark.

CSL commands a market capitalisation of roughly $142.2 billion, making it the second-largest company on the ASX.

The post August has been a great month so far for the CSL (ASX:CSL) share price appeared first on The Motley Fool Australia.

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

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The Pointsbet Holdings Ltd (ASX: PBH) share price more than doubled last time the company reported its full-year results.

Investors will be keen for a similar performance when the company reports tomorrow.

Let’s take a look at how the Pointsbet share price reacted last earnings season.

Pointsbet share price doubles on FY20 report

When Pointsbet released its results last August, shares in the wagering company stormed more than 115% higher in early trading.

However, as the day drew on, many investors looked to cash in profits and the Pointsbet share price finished around 85% higher for the day.

Highlights from the company’s FY20 report included;

• Revenue of $75.2 million, a 193% increase from the prior corresponding period (pcp)
• Net revenue growth of 159% on pcp
• Earnings before interest, tax, depreciation and amortisation (EBITDA) positive of $6.9 million 
• 110,000 active clients, up 39% from pcp

In addition, PointsBet highlighted its 5-year media deal with NBCUniversal. The deal provides the company with exclusive promotional rights and exposure to more than 184 million viewers.

How is Pointsbet faring in 2021?

The Pointsbet share price failed to continue its positive momentum into the new year.

Since the start of 2021, shares in the wagering company are more than 6% lower for the year.

As a result, the Pointsbet share price is flat compared to where it closed last reporting season.

There have been several catalysts that have weighed down the company’s share price this year.

Most recently, shares in the wagering company tumbled after flagging a capital raising following its quarterly update.

For the fourth quarter ending 30 June 2021, Pointsbet recorded a 182% increase in turnover to $986.1 million.

This was driven by a 63% increase in Australian turnover to $494.8 million and a 956% jump in US turnover to $491.3 million.

Pointsbet also informed shareholders of its intentions to raise $400 million in equity.

The company cited the need to raise funds in order to support its North American marketing, client acquisition, technology and product development.

The company has already completed its institutional placement to raise a further $215.1 million at $10.00 per new PointsBet share.

In addition, Pointsbet recently completed its $81 million institutional entitlement offer.

Pointsbet is scheduled to release its results for FY21 tomorrow.

The Pointsbet share price was trading at $10.48 at the market close yesterday.

The post The Pointsbet (ASX:PBH) share price rocketed 115% last time the company reported 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. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet 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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Share prices are always changing. Sometimes businesses look good value and sometimes they don’t. There are a few great ASX shares that may be worth considering.

Businesses that have effective management, a healthy balance sheet and long-term growth plans might be worth of attention.

Whilst these companies have already seen their share prices rise over the last few years, these two ASX shares could worth looking at:

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is an ASX tech share that provides two main services. It processes billions of dollars of electronic donations for churches around the US. Pushpay also has church management software.

Management of the business deliberately chose software that was the best for clients and was also scalable for Pushpay. This is leading to higher profit margins for Pushpay as it gets bigger and bigger.

In FY21, operating revenue increased by 40% to US$179.1 million. But net profit went up 95% to US$31.2 million and operating cashflow jumped 95% to US$31.2 million.

The ASX share is always on the lookout to find ways to grow organically and also with acquisitions. The effort to expand in the Catholic sector is one area of growth.

But the latest news is that Pushpay has acquired Resi Media. This business is described as a US-based, market-leading streaming provider which services more than 70% of the Outreach 100 largest churches in the US.

Management say that Resi Media will broaden Pushpay’s core product offering, enhance the value proposition, maintain its position at the forefront of innovation in the faith sector, accelerate growth and add high margin software as a service (SaaS) revenue.

Resi Media supposedly has a large addressable market across all church segments, non-profit organisations and other verticals. Pushpay believes that there are material synergy opportunities through product cross-selling and integration with Pushpay’s sales and marketing engine.

According to CommSec, the Pushpay share price is valued at 26x FY23’s estimated earnings.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is one of the oldest ASX shares around. It has been listed for around 120 years.

But it isn’t just a pharmacy business any more, even if it still has Soul Pattinson in the name.

Soul Patts is a diversified investment conglomerate with a number of different investments including TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API), Pengana International Equities Ltd (ASX: PIA), Bki Investment Co Ltd (ASX: BKI), Pengana Capital Group Ltd (ASX: PCG) and Tuas Ltd (ASX: TUA).

It is steadily investing and diversifying its portfolio. Recent investments include agriculture, swimming schools and a failed takeover attempt for Regis Healthcare Ltd (ASX: REG).

Soul Patts recently announced it was going to acquire Milton Corporation Limited (ASX: MLT), one of the oldest and largest listed investment companies (LICs) on the ASX by issuing new Soul Patts shares.

Management say that the merger will provide greater portfolio diversification, extra cash for investing and access to new investment classes including private markets, ‘real’ assets, credit and international shares.

Soul Patts currently has a grossed-up dividend yield of 2.5%.

The post 2 great ASX shares to consider appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Brickworks, PUSHPAY FPO NZX, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Flight Centre Travel Group Ltd (ASX: FLT) share price will be in focus today.

This follows the release of the travel agent’s full year results for FY 2021.

Flight Centre share price on watch after $364 million loss

• Group total transaction value (TTV) down 74.2% to $3,945 million
• Total revenue down 79.1% to $396 million
• Underlying loss before tax flat at $507 million
• Underlying loss after tax improved to $364 million
• Cash balance of $1.36 billion

What happened in FY 2021 for Flight Centre?

It was another tough year for Flight Centre because of the COVID-19 pandemic and its impact on the travel market. For the 12 months ended 30 June, Flight Centre recorded a 74.2% reduction in TTV to $3,945 million.

The main drag on its performance was its global leisure businesses, which were still tracking at 16% of pre-COVID TTV levels at the end of July. Flight Centre’s global corporate businesses performed better and contributed 55% of TTV during the year. This is up from 38% a year earlier.

Flight Centre reported a revenue margin of 10% for the year. This was in line with expectations but lower than normal as a result of heavier than normal domestic travel weightings, a higher proportion of corporate TTV, and a relatively high proportion of low margin government repatriation business in Australia.

This ultimately led to Flight Centre reporting an underlying loss before tax of $507.1 million and an underlying loss after tax of $364 million for FY 2021. And while underlying losses were similar in both FY 2021 and FY 2020 and in the first and second halves of FY 2021, management notes that its operational performance has improved significantly during the pandemic. Particularly given how its second half results were significantly impacted by the reduction and subsequent loss of the JobKeeper subsidy in Australia.

This led to monthly recurring costs hitting $70 million to $75 million and a second half cash burn of between $30 million and $40 million per month. Positively, management believes the company is well-placed financially to deal with this. After deducting all client cash and allowing for a complete unwind of working capital, Flight Centre had a $941 million liquidity runway. This could potentially bode well for the Flight Centre share price.

What did management say?

Flight Centre’s CEO, Graham Turner, commented: “FY21 was another challenging year for our industry, but conditions have gradually started to improve. When lockdowns have lifted and borders have re-opened – as they have just started to do in a more meaningful way outside of Australia and New Zealand – we have typically seen immediate and strong travel recovery, which is what we have now started to see in key locations like the US, Canada and Europe. The near-term outlook has also improved in the UK, another large and important market for our company, with most restrictions now lifted and people learning to live with the virus.”

“As an organisation, we too have learnt a lot during the past 18 months, particularly about being resilient, consistent and as optimistic as possible during tough times. Our priorities have evolved from emergency cost cutting at the beginning of the crisis to maintaining those significantly reduced expenses, while still developing and implementing our technology, improving productivity and finetuning our recovery strategies to drive stronger future returns.”

What’s next for Flight Centre in FY 2022?

Potentially giving the Flight Centre share price a boost today was the company’s outlook.

Mr Turner revealed that he is positive on the long term and believes the company could achieve profitability in FY 2022. The CEO is also targeting June 2024 for a return to pre-COVID TTV levels, but with much lower costs.

He said: “Looking ahead, we believe our position as a diversified global business with compelling customer offerings across three main travel divisions – leisure, corporate and supply – will be of enormous value and a great advantage to us and to our major suppliers. Although we can’t predict the future, given the current government-enforced restrictions, we are targeting a return to monthly profitability later in FY22 and to return to pre-COVID TTV by June 2024, but with significantly reduced ongoing operating costs.”

“Travel will inevitably be more complex in the post-COVID world and customers will require more assistance as they navigate new requirements and try to understand any restrictions that may still apply. In this type of environment, our people’s knowledge and our enhanced systems will prove invaluable at every step of the customer journey.”

To reach break-even in FY 2022, the company needs to generate ~50% of its pre-COVID TTV in corporate and ~40% in leisure. However, this is based on its current spending. As a result, things could change if Flight Centre increases its investment in key growth drivers like marketing, sales channels or technology to generate stronger future returns.

And while no other guidance can be provided for FY 2022 due to the uncertainty it faces, management revealed that the financial year has started positively. It notes that global gross TTV was tracking at 26% of pre-COVID levels in July. This reflects 41% pre-COVID corporate TTV and 16% pre-COVID leisure TTV. It also sees significant leisure upside potential as international travel resumes.

Flight Centre share price performance

The Flight Centre share price has unsurprisingly underperformed this year and is up just 2% year to date. This compares to a 12.7% gain by the ASX 200.

The post Flight Centre (ASX:FLT) share price on watch after $364 million loss in FY21 appeared first on The Motley Fool Australia.

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

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The Santos Ltd (ASX: STO) share price has been on a continuous decline since the middle of June. This comes as the spot price of oil faces renewed pressure.

Nonetheless, at Wednesday’s market close, Santos shares finished the day up 0.33% to $6.16.

What’s going on with the Santos share price?

It seems investors have been relatively pessimistic about the Santos share price recently, considering its 7% drop over the past month.

In its FY21 half-year results released last week, the company reported revenue of US$2.04 billion, up 22% over the prior corresponding period. The robust performance was driven by record production of 47.3 mmboe (million barrels of oil equivalent) and record sales volumes of 53.8 mmboe.

In addition, higher oil prices were realised but were offset by lower LNG (liquified natural gas) prices due to long-term, fixed-price offtake contracts.

This led the company to post a net profit after tax of $354 million. This represented a swing of $643 million compared to a net loss after tax of $289 million achieved in H1 FY20. Santos attributed the turnaround to the lower after-tax impairment loss of $6 million, compared to the $526 million posted in 2020.

However, the Santos share price has been tumbling as the spot price for oil corrected from its recent rally. The WTI (West Texas Intermediate) crude oil price is currently trading at US$67.57 per barrel. This represents a 12% drop from its 52-week high of US$76.98 per barrel reached in July.

Santos dividend yield

Santos paid a fully-franked final dividend of US 5 cents per share to shareholders in March. On top of this, the company rewarded shareholders with an interim dividend payment of US 5.5 cents apiece this earnings season.

When factoring in the current share price, this gives Santos a trailing dividend yield of 2.35%.

Santos commands a market capitalisation of roughly $12.8 billion, with more than 2 billion shares on its books.

The post The Santos (ASX:STO) share price is now trading on a trailing 2.35% fully-franked dividend yield 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 Fortescue Metals Group Limited (ASX: FMG) share price has been under pressure this past month. Shares in the Aussie iron miner have fallen more than 20% since 26 July amid a broader iron ore slump.

Why the Fortescue share price is down 20% in a month

Until this month, 2021 had been pretty good for iron ore prices. In fact, the key commodity price hit as high as US$229.50 per tonne on 12 May. There was a price slump through to late May before a recovery followed.

The Fortescue share price tracked iron ore prices lower throughout May and similarly recovered to $26.30 per share by late July.

However, iron ore prices have been plummeting since. From 16 July to 23 August, the value of iron ore has fallen from US$217.2 per tonne to US$132.6 per tonne. That’s a decline of 39% in the space of just 5 weeks.

The Fortescue share price hasn’t slumped quite as hard. Shares in the Aussie iron ore giant fell 24.4% over that same 5 week period and it wasn’t the only one.

Fellow iron ore producers BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) also saw their values get hammered. BHP shares slumped 14.3% from 16 July to 23 August while the Rio Tinto share price fell 18.3% in the same period.

It means that despite a broadly positive earnings season, August has not been a good month for the Fortescue Metals share price.

The biggest factor, perhaps unsurprisingly, has been a crackdown from China. China is a major importer of iron ore but regulators are looking to keep a cap on steel production levels to reduce emissions.

That’s bad news for iron ore demand and comes amid a global infrastructure and property boom that has boosted demand.

The market has reacted accordingly, sending iron ore prices and the Fortescue Metals share price plummeting.

The post August hasn’t been a great month for the Fortescue (ASX:FMG) share price 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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If you’re looking to add some blue chip ASX 200 dividend shares to your portfolio, then the two listed below might be ones to consider.

Here’s what you need to know about them:

Aurizon Holdings Ltd (ASX: AZJ)

The first ASX 200 dividend share to look at is Australia’s largest rail freight operator. Each year, Aurizon transports more than 250 million tonnes of Australian commodities, connecting miners, primary producers, and industry with international and domestic markets.

It also provides customers with integrated freight and logistics solutions across an extensive national rail and road network, traversing Australia.

Earlier this month it released its full year results and revealed a 1% decline in revenue to $3.019 billion and a flat net profit after tax of $531 million. This was in line with the expectations of leading broker Credit Suisse, which led to the broker retaining its outperform rating and $5.30 price target on its shares.

Not only does Credit Suisse see value in its shares, it sees generous dividends in the near term. It is forecasting dividends per share of 29.5 cents in FY 2022 and then 30.9 cents in FY 2023.

Based on the current Aurizon share price of $3.82, this represents yields of 7.7% and 8%, respectively.

Westpac Banking Corp (ASX: WBC)

Another blue chip ASX dividend share to look at is Australia’s oldest bank. Although this banking giant’s shares are smashing the market in 2021, it isn’t too late to invest according to analysts at Goldman Sachs.

This morning the broker retained its buy rating and trimmed its price target slightly to $29.83. This compares very favourably to the current Westpac share price of $26.15.

The broker is expecting fully franked dividend yields of 4.4%, 4.9%, and 5.4% between FY 2021 and FY 2023.

Goldman likes Westpac due to its belief that the earnings risks are skewed to the upside because of its bold cost reduction plans. It notes that management is aiming to reduce its cost base down to $8 billion by FY 2024.

The post 2 blue chip ASX 200 dividend shares named as buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 Aurizon Holdings 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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Some ASX dividend shares are implementing large dividend increases for shareholders in this reporting season.

It has been a strange time ever since the onset of the COVID-19 pandemic. Some businesses have been disrupted. Others have seen a boom in demand.

The following two businesses just implemented large dividend increases for their shareholders in the FY21 result:

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second largest funeral operator across Australia and New Zealand. Despite all of the disruptions caused by COVID-19, Propel performed 13,916 funerals in FY21 – an increase of 4.6%. Death volumes were below historical long-term trends.

The average revenue per funeral in FY21 was up 4.3% to $5,917.

Those two growth numbers combined helped operating earnings before interest, tax, depreciation and amortisation (EBITDA) grow 11.9% to $36.3 million, with the EBITDA margin increasing 90 basis points to 30.1%.

Operating net profit after tax (NPAT) went up 7.6% to $15.3 million, whilst operating earnings per share (EPS) climbed 6.7% to 15.3 cents.

The Propel board decided to pay a final dividend of 5.75 cents per share. That brought the annual dividend for FY21 to 11.75 cents per share, an increase of 17.5%.

During the year, the ASX dividend share spent $29.6 million on acquisitions in New Zealand, Western Australia, New South Wales and Queensland.

In FY22, it’s expecting to benefit from death volumes reverting to long-term trends, acquisitions and a “strong” funding position. It also pointed to the growing and ageing populations in Australia and New Zealand as long-term tailwinds.

In July 2021, it performed a record number of funerals, with total and comparable funeral volumes materially higher than July 2020.

Propel’s FY21 dividend translates to a grossed-up dividend yield of 4.6%.

Ansell Limited (ASX: ANN)

Ansell is another ASX dividend share that has grown its FY21 dividend substantially.

Indeed, it has grown its annual dividend by 53.6% to US 76.8 cents. That was after the board decided to pay a final dividend of 43.6 cents.

This came after a large increase in profit. Sales increased 25.6% to US$2 billion, whilst net profit grew 57.5% to US$246.7 million. EPS increased by 59.9% to US 192.2 cents. That means the dividend payout ratio is only 40%, allowing the business to re-invest for more growth.

Ansell has invested during FY21. It was focused on bringing its major capacity expansions into production despite the challenging operation environment. It was able to get 12 new glove lines and several new body protection lines live which helped it deliver the profit growth it reported.

However, in some areas of the business, it’s expecting lower demand in FY22 in areas that benefited the most during the onset of COVID-19, such as chemical body protection and exam/single use gloves.

Also, a number of Ansell’s factories and suppliers in the region have had short-term closures or reduced operations, which could impact sales in the first half of FY22. It continues to experience increased freight costs and shipping delays.

The post 2 ASX dividend shares that just grew their dividend by more than 10% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 Ansell Ltd. and Propel Funeral Partners 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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Volatility in share markets, in times such as the past 18 months, can be nerve-wracking for investors with growth stocks.

So sometimes it can be comforting to hear some advice from experts about which ones they think can sustain their momentum.

Two prominent fund managers each picked out an ASX share that they thought could keep up double-digit earnings growth in the coming years.

Still early days for Temple and Webster

Sage Capital portfolio manager Kelli Meagher reckons Temple & Webster Group Ltd (ASX: TPW) won’t see double-digit growth this financial year but will do so in subsequent years.

“It’s enjoyed a huge amount of growth during COVID-19,” she told Livewire. 

“The other reason, though, that their earnings will not grow this next year is because they’re choosing to reinvest back into the business to really grow their brand presence and their IT. They’re doing some really cool things with artificial intelligence to shore up their growth profile.”

The furniture retailer is in the “early stages of penetration” in Australia, giving it a massive addressable market still to grab.

“Australia is way behind the US in terms of per cent of the market that is online — we’re about 9%. The US is more than double that at about 25%,” Meagher said.

“The industry will move online… and Temple and Webster, as the largest player in that industry, is going to continue to grow really strongly.”

The foundations are now set up for double-digit growth for patient investors, according to Meagher.

“It makes a profit, it’s debt-free,” she said.

“It generates a lot of cash, can self-fund its growth, and I think that it’s one that you can pop in the bottom drawer and wake up in five years and you will have made a lot of money.”

Temple and Webster shares lost 1.53% on Wednesday, but have gained more than 62% over the past 12 months.

COVID-19 is driving people to cars

Airlie Funds portfolio manager Emma Fisher is a fan of car dealership and parts retail network PWR Holdings Ltd (ASX: PWH).

“It’s a bit of an under the radar, smaller market cap business,” she told Livewire.

“But I think it’s one for the bottom drawer for the next 10 years.”

According to Fisher, a big money-spinner for PWR is providing cooling systems for motorsports.

“They supply every Formula 1 team,” she said.

“That tells you that they make the best cooling systems in the world.”

But the real driver of future growth is its “emerging technologies” division. 

“They are doing cooling systems for electric vehicles, for aerospace applications, for missiles, for defence — for a number of applications,” said Fisher.

“We think that business will underpin double-digit earnings growth well into the future.”

PWR shares closed up 2% on Wednesday to $8.40, after a 4% increase on Tuesday. The stock has gained almost 85% in value this year.

The post 2 ASX shares primed to grow double-digits for years: experts appeared first on The Motley Fool Australia.

More reading

• Top broker names Temple & Webster (ASX:TPW) share price as a buy
• 2 ASX COVID-19 shares reporting big growth
• These are the 10 most shorted ASX shares
• Here are 3 buy-rated ASX growth shares
• PWR Holdings (ASX:PWH) share price edges lower despite strong earnings

Motley Fool contributor Tony Yoo owns shares of Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended PWR HLDING FPO and Temple & Webster Group 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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