CSL Limited (ASX: CSL) announced its FY21 half-year result to the market today. In the result was a 9% dividend cut for Aussie investors.

Why did CSL cut the dividend for Aussies?

To understand what happened, it’s important to note that CSL reports its result in US dollars. It also makes a lot of its revenue and profit in US currency too.

So, bearing that in mind, some investors may have been surprised to see that in Australian dollar currency terms, the interim dividend that CSL declared represented a 9% cut to approximately $1.34 per share.

However, in US dollar terms, the interim dividend was actually increased by the CSL board by 9% to US$1.09 per share. A year ago the Australian dollar with worth around US$0.67 and now it’s worth around US$0.78.

What was the rest of the CSL result like?

CSL reported that it delivered a strong first half result with reported net profit after tax (NPAT) growth of 44% to US$1.8 billion. Earnings per share (EPS) also grew by 44% to US$3.98.

The large healthcare business said that there was solid growth of its core immunoglobulin portfolio. It also said there was a successful transition to its own distribution model in China, this helped albumin sales grow by 93%. This new distribution model is expected to help improve CSL’s participation in the value chain as well as improving its sales, marketing and distribution network.

CSL also said that there was exceptionally strong growth by the vaccine division, Seqirus. This was achieved by growth in seasonal influenza vaccines, driven by record demand and the ongoing shift to Seqirus’ differentiated product portfolio.

New manufacturing facility

During the six month period, CSL announced that it would be building a new biotech manufacturing facility in Australia to manufacture influenza vaccines for countries around the world.

This facility will use cell-based technology to produce influenza vaccines for use in both influenza pandemics and seasonal vaccination programs. It will be the only cell-based influenza vaccine facility in the southern hemisphere.

Expectations for the rest of the year

CSL CEO and managing director Paul Perreault said:

Demand for CSL’s core plasma, and influenza vaccine products remains robust. Seqirus is performing well as strong demand for influenza vaccines together with our differentiated products portfolio will see it deliver another strong profitable year. Consistent with the seasonal nature of the business we anticipate, however, a loss in the second half of the year.

CSL’s net profit after tax for FY21 is anticipated to be in the range of approximately US$2.17 billion to US$2.265 billion at constant currency, representing growth over FY20 of up to 8%.

More reading

• ASX 200 up 0.2%: ANZ and CSL impress, Fortescue declares huge interim dividend
• Why CSL, Domino’s, IPH, & Treasury Wine shares are storming higher
• CSL (ASX:CSL) share price pops on increased dividend
• CSL (ASX:CSL) share price on watch after 45% jump in half year profit
• 5 things to watch on the ASX 200 on Thursday

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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 Coles Group Ltd (ASX: COL) share price was out of form again on Thursday and tumbled lower.

The supermarket giant’s shares finished the day 5.5% lower at $16.23.

This means the Coles share price is now down 10.5% over the last two trading sessions.

Why is the Coles share price tumbling lower?

The catalyst for this decline has been the release of Coles’ half year results on Wednesday.

Although the company delivered a strong result, concerns over market share losses and a tough near term outlook have been weighing on the Coles share price.

In case you missed it, Coles reported an 8% increase in revenue to $20,569 million and a 14.5% increase in net profit to $560 million for the six months ended 31 December. This was driven by solid growth across all segments.

While this outperformed the market’s expectations, this wasn’t due to its Supermarket segment.

According to a note out of Goldman Sachs, it was forecasting an 8.7% jump in Supermarket sales to $18,022.6 million. However, Supermarket sales only rose 7.6% to $17,800 million.

The broker commented: “Coles delivered a 1H21 result modestly ahead of expectations with sales +8.1% to A$20.4bn and EBIT +12.1% to A$1.02bn, 2% ahead of GSe although the outperformance came from the lower value non-food divisions.”

Based on this growth rate, it appears to believe Coles is losing supermarket market share to rivals Metcash Limited (ASX: MTS) and Woolworths Group Ltd (ASX: WOW).

What else was weighing on the Coles share price?

The other catalyst for the weakness in the Coles share price was management’s comments in relation to the second half.

It warned: “Depending on COVID-19, vaccine roll out and efficacy, and other factors, sales in the supermarket sector may moderate significantly or even decline in the second half of FY21 and into FY22. Coles will be cycling elevated sales from COVID-19 in Supermarkets late in the third quarter, for the remainder of the second half, and most of FY22.”

Is this a buying opportunity?

Despite the above, Goldman Sachs remains very positive on the company. As such, it has retained its buy rating but trimmed its price target slightly to $20.70.

This price target implies potential upside of 27.5% over the next 12 months. This increases to over 31% if you include its 3.8% fully franked dividend yield.

Goldman commented: “While it will likely be difficult to grow top line sales growth in this environment, we expect profits to be modestly easier to maintain given elevated costs in the base and COL’s ongoing cost out program, “Smarter Selling” which is on track to deliver A$250mn in cost out this year.”

“We have made only modest revisions to group EBIT +0.8% and +1.1% in FY21 and FY22, as improved earnings in Liquor and convenience offset a 1-1.5% decline in our Food EBIT forecasts. We revise our Price Target -1.9% to A$20.70, implying a 24.2% [then] forecast total return. Maintain Buy.”

More reading

• Why Bellevue Gold, Coles, NRW, & Perpetual shares are trading lower today
• Why the Coles (ASX:COL) share price is sinking 6% today
• Why Coles, Netwealth, Pro Medicus, & Zip shares are sinking
• ASX 200 down 0.5%: Domino’s delivers, Westpac impresses, Coles sinks
• Coles (ASX:COL) share price on watch following half year update

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Coles (ASX:COL) share price is down 10% in two days: Time to buy? appeared first on The Motley Fool Australia.

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The Palla Pharma Ltd (ASX: PAL) share price is among the top performers on the ASX market today. This comes after the company announced that it had received approval to change its manufacturing site to its Norway production facility.

During late afternoon trade, shares in the opiate-based pain relief medicine company are up 30.3% to 73 cents. It’s worth noting that the company’s shares rose to an intraday high of 82 cents in the first hour of market open.

Production facility change

The Palla Pharma share price is on the move after reporting a significant tailwind in its operations.

In today’s release, Palla Pharma advised that United Kingdom’s medicines regulator, MHRA, has given the green light to change the manufacturing site for its Co-Codamol tablet.

Palla Pharma’s Co-Codamol products contain two painkilling ingredients, paracetamol and codeine. The tablet form product relieves short-lasting painful conditions where paracetamol alone is insufficient.

In addition to the approval, the regulator also gave the nod for the company’s required marketing authorisations, as well as patient information leaflets and product packaging.

As a result, Palla Pharma immediately began producing its initial batches of the product in bulk. Once it has completed the packing process, it will move onto its sales process. The company noted that production would ramp up to meet the anticipated demand for the coming months.

The UK is the biggest market in Europe for painkiller relief tablets. Each kilogram of codeine phosphate sold as part of the approved Co-Codamol product has a higher gross margin than in active pharmaceutical ingredient form or tableted form as a contract manufacturer. This in-turn represents an increase in revenue generation for the company.

Palla Pharma revealed that it would release its full-year results on Friday, 26 February.

About the Palla Pharma share price

The Palla Pharma share price has taken investors on a rollercoaster ride in the past 12 months. The company’s shares dipped to an all-time low of 45 cents in March, before storming to a 52-week high of $1.08.

At today’s current share price of 72 cents, Palla Pharma is down around 15% from this time last year.

More reading

• Abacus Property (ASX:ABP) just revealed 85% profit growth in HY21
• Top brokers name 3 ASX shares to sell today
• What’s going on with the MyFiziq (ASX:MYQ) share price today?
• Here’s why the Mach7 (ASX:M7T) share price is down 6% today
• Why the EML Payments (ASX:EML) share price is still pushing higher

Motley Fool contributor Aaron Teboneras 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.

The post Palla Pharma (ASX:PAL) share price rockets 30% higher. Here’s why appeared first on The Motley Fool Australia.

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Abacus Property Group (ASX: ABP) has reported a significant increase in statutory profit in its FY21 half-year result.

Abacus is a property business that owns two large property portfolios – one is office and the other is self-storage.

Why did Abacus Property’s profit soar?

The property group announced that its statutory profit went up 85% to $151.8 million. The business disclosed that the revaluation process of its property portfolio resulted in a net increase in the investment property values for the first half of FY21 of $93.9 million.

There was a gain of $97.5 million, or 8.4%, across the self-storage portfolio. However, the office portfolio suffered a $3.6 million decline, or 0.2%, across the commercial portfolio.

In terms of the operating rental profit, the funds from operations (FFO) fell 9.9% to $60.6 million. The FFO per security dropped 14.4% to 9.06 cents.

What else did it report?

Over the course of the first half of FY21, Abacus deployed $205 million of capital into the real estate sectors of office and self storage. This was done through both acquisitions and joint ventures, funded through a combination of debt and divestment of non-core assets.

Abacus said that it continues to reduce exposure to its non-core legacy investments, particularly in the residential land and mortgages sector.

The net tangible assets (NTA) per security of $3.26 reduced by 1.8% compared to FY20.

In terms of debt levels, Abacus said that its gearing reduced by 830 basis points to 18.2%.

Discussing the result, Abacus managing director Steven Sewell said:

Following an active half year including the entitlement offer, Abacus is in a position to extend its strong track record of investing into long term value enhancing assets. Realisation of non-core assets, together with the funds raised from the entitlement offer provides substantial acquisition capacity, ensuring Abacus will be in a strong position to continue to take advantage of opportunities in our key sectors of office and self storage.

Distribution

Due to the reduction of the funds from operations per security, the Abacus distribution declined by 10.1% to 8.5 cents per security.

This distribution represented a payout ratio of 94% of FFO.

Abacus outlook

The real estate investment trust (REIT) said that it remains a strong asset-backed, annuity-style Australian REIT. Given the prevailing market conditions, the board is expecting that the FY21 distribution will be paid with a payout ratio of between 85% to 95% of FFO.

Mr Sewell, the managing director, commented:

A combination of established and new collaborative joint ventures has created enduring investment opportunities and facilitated our debt recycling program. With 89% of total assets now deployed in office and self storage investments, the size, nature and market positioning of these key sector investments will permit the group to deliver recurring income and value creation over the long term.

More reading

• Top brokers name 3 ASX shares to sell today
• What’s going on with the MyFiziq (ASX:MYQ) share price today?
• Here’s why the Mach7 (ASX:M7T) share price is down 6% today
• Why the EML Payments (ASX:EML) share price is still pushing higher
• 2 of the best ETFs for ASX investors to buy today

Motley Fool contributor Tristan Harrison 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.

The post Abacus Property (ASX:ABP) just revealed 85% profit growth in HY21 appeared first on The Motley Fool Australia.

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On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

Appen Ltd (ASX: APX)

According to a note out of Macquarie, its analysts have downgraded this artificial intelligence services company’s shares to an underperform rating and slashed the price target on them to $19.00. The broker is concerned that increased competition is leading to a structural loss of market share. It also fears that as competition intensifies, pricing could become a lever to differentiate between solutions. As a result, it suspects that there is downside risk to consensus estimates. The Appen share price is trading at $21.94 on Thursday.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Analysts at Credit Suisse have retained their underperform rating but lifted their price target on this pizza chain operator’s shares to $71.11. According to the note, the broker was impressed with Domino’s first half result and notes that its outlook was very positive. However, it believes this is being underpinned by COVID tailwinds, which will only be temporary. In light of this, it appears to believe that too much growth is being priced into its shares. The Domino’s share price is fetching $111.08 today.

Treasury Wine Estates Ltd (ASX: TWE)

A note out of Citi reveals that its analysts have retained their sell rating but lifted their price target on this wine company’s shares to $8.60 following its first half results. According to the note, while Treasury Wine posted a sizeable profit decline, it was better than it feared. Nevertheless, Citi believes the medium term will be difficult and suspects the market may be expecting too much from the company. Especially given the uncertainty around the reallocation of product meant for the China market. The Treasury Wine share price is trading at $11.82 on Thursday.

More reading

• Treasury Wine Estates (ASX:TWE) share price bubbles 12% higher
• ASX 200 up 0.2%: ANZ and CSL impress, Fortescue declares huge interim dividend
• Why CSL, Domino’s, IPH, & Treasury Wine shares are storming higher
• Leading broker tips Domino’s (ASX:DMP) share price to go even higher
• ASX 200 dips, EML soars after reporting, Appen sinks

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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 MyFiziq Ltd (ASX: MYQ) share price hit a new 52-week high today. This follows the announcement of a binding agreement for integration and distribution in China.

Upon open, MyFiziq share’s rallied 12.7% to $2.04. However, the excitement appears to have worn off throughout the day. This is reflected in a flat share price at the time of writing, sitting at $1.81.

Details of the agreement

MyFiziq is a software application company that has developed a way of converting photos of the human body into 3D images. The images are then used within the company’s application to track weight, fitness, etc.

The deal struck today is with China-based Tinjoy Biotech Limited. Tinjoy owns multiple brands in China and services over 28 million monthly consumers. The company also owns 650 Dongchen pharmacies, catering to 3.5 million repeat monthly customers.

As part of the agreement, MyFiziq’s CompleteScan platform will be integrated and distributed by Tinjoy. This will be carried by integrating the platform with Tinjoy’s own WinScan Digital Health Platform (WinScan).

The WinScan platform itself addresses wellness, preventive health, and precision nutrition.

MyFiziq plans on utilising Tinjoy’s 500 person call centres to facilitate the China launch. However, as part of the deal, the company is expected to contribute US$100,000 towards the training of the call centre marketers. An additional US$100,000 will be made towards the marketing and launch of the product.

Reading the finer details

Included in the term sheet, revenue sharing between MyFiziq and Tinjoy will be a 70% and 30% split respectively. Furthermore, MyFiziq has the option to acquire up to 40% of the WinScan platform for a consideration of US$2 million to US$4 million. This option will remain valid for 12 to 24 months.

Depending on user sign-ups, MyFiziq might also be triggered to invest in Tinjoy based on the terms of the agreement.

The company anticipates collecting licensing fees from the commercial arrangement in the future, although no forecast could be given.

MyFiziq share price in view

The MyFiziq share price has performed exceptionally over the last 12 months, increasing by 598%. This blows the socks off the S&P/ASX 200 Index (ASX: XJO) loss of 3.4% over the same timeframe.

However, big returns typically come with big risk and at a market capitalisation of $232 million, MyFiziq is still a small fish.

More reading

• Why the MyFiziq (ASX:MYQ) share price is racing higher today

Motley Fool contributor Mitchell Lawler 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 Mach7 Technologies Ltd (ASX: M7T) share price has come under pressure on Thursday.

In afternoon trade, the enterprise imaging platform provider’s shares are down 6.5% to $1.42.

Despite this decline, the Mach7 share price is still up a massive 71% since this time last year.

Why is the Mach7 share price under pressure?

Investors have been selling Mach7 shares today following the release of its half year results.

For the six months ended 31 December, the company reported a 24% increase in sales to $10.9 million. Management notes that this was achieved despite some disruption caused by COVID-19.

Management advised that it has been pleased with the early success of the eUnity (Client Outlook) acquisition and its integration. It notes that it is seeing high demand for the enterprise viewing solution to enable teleradiology in a COVID environment.

Annualised recurring revenue (ARR) stood at $10.2 million at the end of the half. This is up 88% on the prior corresponding period and provides 64% coverage of operating expenses

In respect to earnings, Mach7 reported an operating loss of $1.2 million for the half. This was down from profit of $2.5 million a year earlier. However, this was due to the timing of revenue.

At the end of the period, the company was in a strong financial position with $14.4 million in cash and no debt.

Outlook

The second half has started strongly, with sales momentum accelerating. In fact, the company advised that it has already received $12 million of orders.

As a result, the company anticipates stronger revenue, positive operating earnings, and free cash flow in the second half of the year.

Mach7’s CEO, Mike Lampron, commented: “Following a challenging 2020 for new business opportunities I am pleased Mach7 remained focused on our customers and their enterprise imaging needs. The successful integration of eUnity viewing software into our platform is helping us to compete on larger opportunities. We’re excited about the momentum in our business and our differentiated enterprise imaging capabilities.”

More reading

• Why the Mach7 (ASX:M7T) share price is lifting today
• ASX 200 rises 0.4%
• Here’s why the Mach7 (ASX:M7T) share price just reached a multi-year high
• Why IDP Education, Lake Resources, Mach7, & Tyro shares are shooting higher
• Why the Mach7 (ASX:M7T) share price is surging 8% higher today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MACH7 FPO. The Motley Fool Australia has recommended MACH7 FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Mach7 (ASX:M7T) share price is down 6% today appeared first on The Motley Fool Australia.

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The EML Payments Ltd (ASX: EML) share price is still on the rise today after finishing off yesterday as the best performer in the ASX 200. 

It’s presently up 6.8% to trade around $5.24 a share.

While the EML Payments share price continues going up, let’s take another look at the HYFY21 results.

EML Payments share price explodes after these results

EML Payments increased its revenue during the HYFY21 period by 61% to reach $95.3 million.

The company’s HYFY21 gross profit jumped by 50% to $67.3 million.

Underlying operating cash inflows totalled $35.1 million.

The EML Payments Group expects FY21 earnings before interest, tax, depreciation and amortisation (EBITDA) to be in a range of $50 million to $54 million.

This represents a growth of between 54% and 66% when compared to the HYFY20 EBITDA of $32.5 million.

The company finished off the period with $136.5 million cash on hand, with no secured debt.

Director comments about the EML Payments share price horizon

Discussing company operations during HYFY21 Chairman of the Board, Peter Martin, said:

“Maintaining momentum during tough times is a real challenge for all companies. The team at EML has generated record results for the Group whilst revitalising EML’s strategy and undertaking the integration of PFS. This has happened whilst dealing with the impacts of COVID-19 in key markets, plus Brexit in the UK, with most of our people working remotely. A tremendous effort…

In summary, EML is successfully trading through one of the worst periods in global economic and social memory. As COVID-19 impacts recede with the introduction of vaccines in 2021 and beyond, EML is ideally placed to take advantage of the explosive growth in the payments industry around the world. Our financial results should continue to reflect that opportunity.”

EML Payments wrap up

EML Payments provides payment solutions in Australia offering payment technology solutions for payouts, gifts, incentives and rewards, and supplier payments. 

The company issues mobile, virtual, and physical card solutions around the world and manages more than 3,500 programs across 26 countries in North America Europe and Australia.

The EML Payments share price is up 17.2% year-to-date.

More reading

• ASX 200 dips, EML soars after reporting, Appen sinks
• One year on and 50% up, the All Technology Index is booming
• ASX 200 down 0.5%: Domino’s delivers, Westpac impresses, Coles sinks
• Why Domino’s, EML Payments, Redbubble, & Westpac shares are storming higher
• Why the EML Payments (ASX:EML) share price is rocketing 19% higher

Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends EML Payments. The Motley Fool Australia has recommended EML Payments. 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 for an easy way to invest in international shares for diversification, then exchange traded funds (ETFs) could be the answer.

But which ETFs should you look at? Here are two popular ETFs that have generated strong returns for investors:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF gives investors access to a group of the most promising technology companies in the Asian market. The ETF is invested in a total of 50 of the largest technology and ecommerce companies that have their main area of business in Asia (excluding Japan).

This means you’ll be buying a slice of tech giants such as Alibaba, Baidu, JD.com, Samsung, and Tencent Holdings.

According to BetaShares, due to its younger and tech-savvy population, Asia is surpassing the West in respect to technological adoption. As a result, this area of the economy is anticipated to remain a growth sector for a long time to come. This could make it a great place to invest over the long term.

The BetaShares Asia Technology Tigers ETF has been a very strong performer over the last 12 months. Since this time last year, it has provided an 80% return for investors.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another BetaShares ETF to consider is the BetaShares NASDAQ 100 ETF. As its name implies, this ETF aims to track the performance of the famous NASDAQ 100 index.

The NASDAQ 100 comprises 100 of the largest non-financial companies listed on the NASDAQ exchange. BetaShares notes that it includes many companies that are at the forefront of the new economy. This includes companies such as Amazon, Apple, Microsoft, Netflix, and Tesla, to name just five.

BetaShares also notes that with a strong focus on technology, the ETF provides diversified exposure to a high-growth potential sector that is under-represented on the Australian share market.

Since this time last year, the BetaShares NASDAQ 100 ETF is up a market-beating 21%.

More reading

• 2 great ASX growth shares to buy
• Nasdaq at record high! Here’s what it means for the ASX 200
• 2 ETFs to buy for strong diversification
• Afterpay and Zip were among the most traded ASX shares last week
• Is this the best ETF for ASX investors to buy right now?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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 Mortgage Choice Ltd (ASX: MOC) share price is falling hard today, down 14% in afternoon trading.

At the time of writing, the Mortgage Choice share price has recovered slightly to $1.42, down 13%.

The mortgage broker services provider’s released their financial results for the half-year ending 31 December (H1 FY21). Interestingly, this fall comes despite the report revealing a boost in profits.

What results did were reported for the half-year?

In this morning’s ASX release, Mortgage Choice reported net profits after tax (NPAT) on an International Financial Reporting Standards (IFRS) basis of $4.1 million. That’s an increase of 3% from the $4.0 million reported in the first half of the 2020 financial year.

Earnings per share (EPS) on an IFRS basis increased 3% to 3.3 cents per share.

The company reported settlements of $6.1 billion. This is an increase of 21% compared to the prior corresponding period. Mortgage Choice noted a continuing rebound in the housing market, fuelled by easing lending conditions, record low-interest rates, and increased government incentives.

Mortgage First’s total loan book was $54.1 billion at the end of the half-year. This was up from $54.0 billion on 30 June.

The company said it did not receive any JobKeeper assistance.

Comments from the CEO

Addressing the results, Mortgage Choice CEO, Susan Mitchell, said:

As a result of the investments we have made in regenerating the network and improving the customer experience, we have seen a noticeable improvement in average settlements across our franchisees. The increase in settlement volumes during the first half resulted in a higher payout ratio, as more customers elected to refinance or build up cash balances in their mortgages due to COVID related uncertainty. This resulted in cash net profit being steady on the prior half.

Looking ahead Mitchell added, “National leads are up 121% and at record levels, which bodes well for the second half as we look to deliver exceptional customer service through a combination of digital engagement and personalised, human service.”

Mortgage Choice will pay an interim dividend of 4.0 cents per share (cps), up from 3.0 cents per share in H1 FY20.

Share price snapshot

Mortgage Choice shares have been on a strong rebound. Indeed, this comes since hitting their post viral selloff lows in late March, up 163% since 23 March. With today’s intraday losses factored in, the share price is down 3% over the past 12 months. The All Ordinaries Index (ASX: XAO) is also down 3% during that same time.

Year-to-date, the Mortgage Choice share price is down 4%.

More reading

• Why the QuickFee (ASX:QFE) share price is falling 8% lower today
• Why the Bellevue Gold (ASX:BGL) share price is crashing 23% lower today
• South32 (ASX:S32) posts 46% drop of HY21 profit
• SkyCity (ASX:SKC) share price on the rise despite 37% revenue drop
• Data#3 (ASX:DTL)’s gangbuster first half boosts dividend

Motley Fool contributor Bernd Struben 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.

The post Mortgage Choice (ASX:MOC) share price tumbles 14% despite profit boost appeared first on The Motley Fool Australia.

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