Zoono Group Ltd (ASX: ZNO) has seen more explosive share price growth than any company on the S&P/ASX All Ordinaries (INDEXASX: XGD) in FY20. In one financial year, it has grown by more than 2,788%! Dreams are made of this stuff. It’s even greater than Afterpay Ltd’s (ASX: APT) success story.

Zoono produces a new formulation for anti-bacterial hand sanitiser and disinfectant. The product is packaged in individual, bulk and industrial sizes and can be used for both hands and surfaces.

 It is a product tailor-made for our current times. Accordingly, the company’s share price tracked the progress of the pandemic. 

The Zoono share price year in review

January

Towards the end of the 2019 calendar year, the company saw its share price increase substantially due to a series of announcements.

First, a global distribution agreement on a product built for the poultry farming sector. In addition, the product was used successfully to disinfect against the African Swine Flu. This led to a deal with a group of Chinese industry leaders for exclusive distribution in the animal health and agribusiness sectors.

By the end of 1H FY20, the share price had risen a mere 600%! Then came the coronavirus. On 30 January the company mentioned the coronavirus for the first time revealing its products had been successfully tested against similar viruses in the past. They also disclosed that they were starting to see an unprecedented level of sales, primarily from China and Hong Kong.

February

Zoono enters into an exclusive distribution agreement with a Beijing company for the childcare and hotel sectors in China. A 5-year deal guaranteeing escalated sales volumes to NZ$3 million in its third year of the agreement. Then increasing by 10% in every year following. All payments to be prior to shipping. 

This was followed by 2 additional distribution deals. The first with Singapore under similar conditions to the Beijing deal. Then a deal with Eagle Health Holdings Limited (ASX: EHH) for distributing Zoono’s products in China.

On 28 February, Zoono announced its product tested positively against COVID-19. By this stage, its share price had risen by 2,011% since the start of the financial year.

Zoono’s current situation

As well as all of the distribution deals previously signed the company has signed additional deals in an exclusive arrangement for the Middle East and Africa. Moreover, they signed an additional deal with Johns Lyng Group Ltd (ASX: JLG), for the business to business (B2B) market in Australia.

By 5 May the company announced further distribution deals. In its company update, it announced further deals in the UK and Europe. It also disclosed revenue in April alone was in excess of NZ$11 million. This was only for B2B sales. 

In the entire first half of FY20, the company had a total revenue stream of a mere NZ$1,714,980. This by itself was an increase of 144% on the previous corresponding period.

Foolish takeaway

This company was a golden ticket for anybody who invested in it on 1 July of last year. After a 2,788% increase, the share price appears to be still going strong. The product was ideally suited to the pandemic, yet that alone was not enough.

Zoono was agile enough and wise enough to rapidly pull together distribution deals covering most of the globe. In addition, it ramped up production to levels the management could not have dreamt of in December 2019. No matter what happens from this point forward, large-scale sanitization of workplaces is likely to continue.  

The company’s FY20 report release in August will be very interesting, in my eyes. What an outstanding achievement.

More reading

• Are Newcrest shares set to take off in FY21?
• ASX 200 stocks to watch for FY2021
• These were the best performing ASX 200 shares in FY 2020
• Afterpay and these shares were the best performers on the ASX 200 in June
• Afterpay shares have exploded 142% in FY20

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Newcrest Mining Limited (ASX: NCM) share price hasn’t been one of the ASX’s star performers over the financial year that’s just been. Yes, today is 1 July, which means it’s the first day of the 2021 financial year.

Whilst some ASX shares have performed enviably throughout FY20, others have been less rewarding. On one level, this is understandable. The coronavirus pandemic has hobbled the S&P/ASX 200 Index (ASX: XJO) highs we saw back in February when the index broke through 7,000 points for the first time. Despite a considerable recovery since the bear market, the ASX 200 was still down around 11% for FY2020.

But on another level, we should always be striving for the best performance possible for our ASX portfolios. So today, let’s consider Newcrest Mining’s potential for FY2021.

How did Newcrest shares perform in FY20?

Newcrest shares were asking $31.26 on 1 July last year. Yesterday, they closed at $31.53, which tells us that Newcrest has returned 0.86% over the past 12 months. That’s still pretty decent when compared with the returns of the broader market, but not as good as some other ASX shares like Afterpay Ltd (ASX: APT) or Fortescue Metals Group Limited (ASX: FMG).

This is surprising to me, considering the price of gold (which is what Newcrest mines) has had a stellar run over the past year. Gold started FY2020 at around US$1,395 per ounce and rounded out the financial year more than 27% higher at US$1,776.

Newcrest’s ‘performance drag’ can probably be partly explained by numerous production issues it has endured over the past 12 months, which includes a scale back of production at its flagship Cadia mine.

But it also tells me that there might be some upside for Newcrest going into FY2021.

Will the gold miner take off in FY21?

I’m still very bullish on Newcrest for FY2021 and beyond. This ASX gold miner is the largest of its kind in Australia. As of its 2019 annual report, the company estimated it has gold reserves of approximately 54 million ounces across its portfolio of mines. At the current gold price of US$1,776 per ounce, this gives Newcrest’s reserves a value of US$95.5 billion (or $138 billion in Australian dollars). Newcrest’s current market capitalisation is around $26.3 billion. Bargain? It doesn’t look like a bad deal to me.

I also think there is a strong case for the gold price over the next year or two. Due to the ongoing coronavirus crisis, together with the ultra-loose monetary policy central banks have been implementing around the world, I think demand for ‘safe haven’, inflation-resistant assets like gold will hold up well. Thus, I definitely think one could argue that Newcrest shares are undervalued at their current price. As such, I wouldn’t be surprised if the Aussie gold miner’s shares made up for their flat performance in FY20 over the coming financial year.

More reading

• Why Polynovo and JB Hi-Fi shares outperformed in FY20
• Millionaire maker increases share price 28 times in FY20
• Why I’d buy and hold a2 Milk shares until 2025
• 3 ASX ETFs to hedge your portfolio
• ASX 200 stocks to watch for FY2021

Motley Fool contributor Sebastian Bowen owns shares of Newcrest Mining Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

Are you thinking about starting to invest but on the fence about getting your money into the market during these turbulent times? 

It’s natural to be worried about investing in a recession, especially as the stock market has been somewhat volatile lately (to put it mildly). But while you may be uncertain about jumping in with both feet, there are a few great reasons it makes sense to get your money into the market ASAP. 

That doesn’t mean investing is right for everyone, though. So here are three big reasons to invest now along with three reasons to wait. 

3 reasons to invest now

Why to get your money into the market, ASAP. 

1. There’s never a wrong time for long-term investors to get started: When you’re investing for the long term, it doesn’t really matter when you buy in since you should (hopefully) make a profit over time. That’s true even if you buy during a bubble, because while you may suffer short-term losses during a market correction, your investment should come back strong during the recovery that will inevitably follow. 
2. Recessions present buying opportunities: Periods of economic downturn often provide the opportunity to buy index funds or shares of high-quality companies when they’re on sale. You could potentially set yourself up for higher returns down the line by buying at a discount. 
3. Trying to time the market could cost you thousands: Over a long investing career, missing just a few key days could cost you hundreds of thousands of dollars. It’s impossible to predict when those important days will happen; few people see rallies coming before they occur. Instead of trying to wait to invest until stocks hit rock-bottom prices, it’s better to get your money in now so you won’t miss out on any market surges that could net you major profits. 

3 reasons to wait 

Although there’s no wrong time for long-term investors to get started, there could be a wrong time for you to personally start investing if your finances aren’t in good shape. There are three key reasons now may be a bad time to put your money into the market. 

1. You don’t have an emergency fund: At all times, but especially in these turbulent times, you need to have an emergency fund because you never know when an illness, income cut, or other financial emergency could occur. You don’t want to invest only to have to sell soon after (potentially at a loss) because you need the money for an emergency. So make sure you have liquid funds first, to cover at least three to six months of living expenses, before putting your money into the market. 
2. You have a lot of high-interest debt: Although stocks have, over time, produced a better average return than virtually any other investment presenting a reasonable risk, it’s very unlikely they’ll produce a return on investment that’s higher than the one you’d get from paying off high-interest debt. If you owe money on credit cards, payday loans, or other debt that’s costing you a fortune in interest, get that taken care of before investing.
3. You haven’t devised an investment strategy: Long-term investors with a sound strategy almost always do well over time. But first, you need that sound investment strategy. If you’re willing to spend time learning about and monitoring your stocks, you may be able to beat the market by purchasing shares of individual companies. But unless you’re really interested in doing that, your best bet may be to build a diversified portfolio of index funds. 

Should you invest or check other items off your to-do list first?

The bottom line is, if you have the financial basics covered, there’s no bad time to invest in the market. Whether you buy during a correction or the peak of a bubble, you should still do well if you pick solid investments and leave your money alone over time. History has proved it. 

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

More reading

• Why Polynovo and JB Hi-Fi shares outperformed in FY20
• Why Alterity Therapeutics, Flight Centre, NEXTDC, & Telix are surging higher
• Millionaire maker increases share price 28 times in FY20
• Are Newcrest shares set to take off in FY21?
• Suncorp share price edges higher after announcing its new operating model

Christy Bieber has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Suncorp Group Ltd (ASX: SUN) share price is edging higher on Wednesday after announcing a new operating model and leadership structure.

At the time of writing the insurance and banking giant’s shares are up 0.25% to $9.25.

What did Suncorp announce?

Suncorp has announced a new operating model and leadership structure which it believes will drive further improvements in its core insurance and banking businesses. It also expects the initiatives to accelerate its digital and data driven transformation. The latter of which has increased in importance following the pandemic.

Suncorp’s CEO Steve Johnston explained: “COVID-19 has resulted in changes such as the faster adoption of digital channels by customers and new, more innovative and agile internal ways of working. It has changed our perspective on what is possible.”

“We now need to seize this opportunity to speed up the execution of our priorities so we can continue to deliver for our people and customers, while growing returns and creating better outcomes for our shareholders,” he added.

What changes are being made?

According to the release, the key operating model changes are as follows:

• Accountability for the performance of Insurance (Australia) to be assumed by two executives. One will be focused on underwriting, distribution, brands, marketing, product design, and innovation. The other will be responsible for all aspects of claims management and operations.
• Combining a number of Insurance (Australia) and company functions to create a more streamlined and efficient organisation.
• Greater end-to-end operational accountability within Banking & Wealth and Suncorp New Zealand to drive improved performance.
• Aligning Group Strategy and Technology to fast-track digital and automation capabilities and opportunities.

FY 2021 Reinsurance Program.

Suncorp also advised that it has finalised its catastrophe reinsurance program for FY 2021.

The structure of the program will remain largely consistent with prior years. However, the maximum loss limit is lower than FY 2020 as a result of reduced Commercial Insurance exposures in Australia and increased building coverage through the Earthquake Commission in New Zealand.

Suncorp’s maximum event retention remains at $250 million. The main catastrophe program includes one prepaid reinstatement which covers losses up to $6.5 billion for a second event and two further prepaid statements at the lower layer. These will cover losses up to $500 million for the third and fourth events.

In addition to this, Suncorp has purchased dropdown aggregate protection and Aggregate Excess of Loss (AXL) cover.

Finally, management also provided an update on its COVID-19 impact. The impact on its profit and loss is expected to be broadly neutral in FY 2020. Though, this is excluding investment market movements and Bank impairment losses.

More reading

• ASX beware: RBA warns on bank loan deferrals
• ASX 200 rebounds 1.5%, Qantas drops on capital raising
• Why Air NZ, Evolution, Orora, & Suncorp shares are dropping lower
• ASX winners and losers from last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The A2 Milk Company Ltd (ASX: A2M) share price has continued to soar higher during the coronavirus crisis, while many companies on the S&P/ASX 200 Index (ASX: XJO) have struggled.

Since the beginning of February, a2 Milk shares have increased from $14.16 to their current price of $18.84, at the time of writing. Demand for a2 Milk’s products has remained high throughout the crisis. But aside from the company’s strong performance recently, here’s why I think a2 Milk shares are a good option to buy and hold for the long term.

Strong financial performance

In its half year FY 2020 results, a2 Milk recorded a very strong 31.6% increase in total revenue to NZ$806.7 million. Earnings also grew strongly despite the company’s aggressive growth strategy, with earnings before interest, tax, depreciation and amortisation (EBITDA) increasing 20.5%. A2’s Liquid Milk business continues to grow strongly in Australia and New Zealand, while sales for the company doubled in its United States market.

In its most recent trading update, a2 Milk revealed continued strong growth from late February to late April across all regions. Demand for the company’s infant nutrition products sold in China and Australia has been particularly robust.

Chinese and US markets key to a2 Milk’s long-term success

I believe that continued expansion into the US and China will be key to a2 Milk’s success over the next 5 years. In particular, the Chinese market still holds huge untapped potential for the ASX and NZX dual listed company. Not only is the size of this market very large, Chinese consumers are increasingly choosing premium brands over mass market products. A growing number also have a preference for foreign brands, especially for specific market niches like infant formula.

However, a significant degree of regulatory risk still remains in China. Bellamy’s Australia Ltd has already witnessed some obstacles in this respect. Also, competition in the Chinese market is growing from locally based providers such as Junlebao Dairy. 

Foolish takeaway

It appears the market has already factored in ambitious growth targets for a2 Milk. And, if these targets are not met, then the company’s share price would most likely be negatively impacted. I’m confident, however, that a2 Milk remains reasonably well positioned to continue growing and realise its future plans.

I also believe that a2 Milk’s well-established brand name and entrenched position in the Australian market gives it the edge over other infant formula providers such as Bubs Australia Ltd (ASX: BUB) and Nuchev Ltd (ASX: NUC).

In my mind, this makes a2 Milk shares a good buy and hold proposition for the long term.

More reading

• 3 ASX ETFs to hedge your portfolio
• ASX 200 stocks to watch for FY2021
• These were the best performing ASX 200 shares in FY 2020
• These were the worst performing ASX 200 shares in FY 2020
• Can the Coles share price climb 12% again in July?

Phil Harpur owns shares of A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended BUBS AUST FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This year is fast becoming known as the year the markets stopped being aligned with the economy.

The ASX, along with international markets, has seen some amazing gains from its March lows to now, while the world suffers in the wake of the COVID-19 pandemic. The lack of market correlation to the state of the economy is a confusing notion. As an investor, it can be challenging to see the forest from the trees amid this unpredictability.

Even if you do expect further correction to occur in our market, selling your shares may not be your preference as this can result in paper losses (and gains) being realised. There is another way to protect yourself by using ASX ETFs as a hedge.

What is a hedge? 

While no one has a crystal ball, it can be comforting to know that you have options available to you if you want to hedge your ASX portfolio against the risk of further downturns. The concept of hedging is nothing new, but for those investors a little fresh to the game, here is one definition:

“A hedge is an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security.” – Investopedia.com

Essentially, if you are holding ASX 200 listed companies and are planning to retain your holding through a downturn period, you could also invest in an ASX ETF that is negatively correlated to the S&P/ASX 200 Index (ASX: XJO). This means that if your holdings were to drop in value, your ETF position is likely to rise. To me it is simple – hedging your portfolio means you can sleep a little better at night.

3 ETFs to consider for a potential downturn

The following ETFs have been included as they directly relate to the Australian and American markets. As in investor, if you purely hold shares on the ASX, the first two are likely to be more relevant to you.

It should be noted that a significant number of ‘negative correlation’ ASX ETFs are available to retail investors. If you are considering this strategy, it is worth conducting further research to understand all available options.

Australian Equities Bear Hedge Fund (ASX: BEAR)

BEAR aims to produce returns that are negatively correlated to the returns of the ASX 200. If the ASX 200 moves -1%, BEAR can be expected to be positive +1%.

Australian Equities Strong Bear Hedge Fund (ASX: BBOZ) 

BBOZ aims to produce magnified returns that are negatively correlated to the returns of the ASX 200. If the ASX 200 moves -1%, BBOZ can be expected to be positive +2.4%.

US Equities Strong Bear Hedge Fund (ASX: BBUS)

BBUS aims to produce magnified returns that negatively correlate to the returns of the S&P 500 Index, hedged to Australian dollars. If the S&P 500 moves +1%, BBUS can be expected to be negative -2.5%.

How to use these ETFs to hedge against a market correction

As an example, lets look at how we can hedge a $10,000 portfolio against another potential market correction. If you’re concerned about a 10% fall in the market, you may wish to hedge 10% of your portfolio. In this case, you would purchase $1,000 worth of BEAR shares (standard negative correlation) or as little as $500 worth of BBOZ shares (magnified negative correlation)

The great thing about these ETFs is that you buy them the same way you buy shares on the ASX. This makes it extremely easy to hedge your portfolio quickly.

Now, you might be thinking that you could use these same ETFs to profit from a falling market, and you’re right. While the context of this article is to discuss portfolio protection, it is possible that investing in bear market ETFs could also produce some profit when the market falls.

Foolish takeaway

Buying ETFs is no different to buying shares. Markets can certainly be confusing and 2020 takes the cake! Adding ETFs to your portfolio can offset some risk, provide profit in a falling market and maybe even help you sleep a little better at night.

More reading

• Why I’d buy and hold a2 Milk shares until 2025
• ASX 200 stocks to watch for FY2021
• These were the best performing ASX 200 shares in FY 2020
• These were the worst performing ASX 200 shares in FY 2020
• Can the Coles share price climb 12% again in July?

Motley Fool contributor Glenn Leese owns shares of BetaShares Australian Equities Strong Bear Hedge Fund. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The last financial year started so promising but fizzled towards the end. The silver lining is that FY21 is likely to be better and here are some stocks to consider for your portfolio.

Why the optimism after the S&P/ASX 200 Index (Index:^AXJO) slumped by the worst in eight years? I think global markets have passed “peak” COVID-19 shock and things have to get very much worse to send it tanking to the bear market low of March.

But my increasing bias towards value stocks over growth has been derailed by what’s happening in my home state of Victoria.

Value vs. Growth

As Australia looked to have squashed the coronavirus-curve and was poised to reopen state borders, I believed investors would increasingly hunt for ASX shares that are lagging behind.

Growth stocks like Afterpay Ltd (ASX: APT), which typically trade at a hefty premium, were looking too expensive.

But threats of a second wave of COVID-19 infections mean the rotation towards value stocks is put on hold for now. I suspect we may have to wait till the end of calendar 2020 for things to change.

Expensive stocks looking “cheap”

This means it’s too early to be shedding or shunning growth stocks, although I am reluctant to touch Afterpay as its valuation seems a little too extreme.

This sounds like an oxy-moron, but there are better priced “expensive ASX stocks” to put on your watchlist.

One perennial favourite among mum and dad investors is Commonwealth Bank of Australia (ASX: CBA). The bank is the least favourite of the big four among brokers, but that’s due to its outperformance.

As I’ve mentioned before, high valuations won’t be the downfall of growth stocks. Investors are happy to pay for certainty in this environment and CBA is the best quality bank stock you can own.

Gold to keep shinning in FY21

Another group of stocks that got hit by broker downgrades in recent times are gold miners like Newcrest Mining Limited (ASX: NCM) and Evolution Mining Ltd (ASX: EVN).

Again, that’s due to valuation (the sector’s been running hot) and the rising Australian dollar. But the precious metal is the ultimate safe haven asset in my view and I think gold can climb to new records in FY21.

As long as the miners can avoid any production hiccups, I think these stocks will remain well supported.

Other growth stocks on my list

I would also put CSL Limited (ASX: CSL) on the list of growth stocks to own in FY21. Shares in the blood products developer may have softened towards the end of FY20 following its strong rally, but I think it will draw fresh support over the coming months for quality management and its defensive qualities.

Finally, the iron ore majors make up a major part of my portfolio and I expect them to keep outperforming in this new financial year.

These include the BHP Group Ltd (ASX: BHP) share price, Rio Tinto Limited (ASX: RIO) share price and Fortescue Metals Group Limited (ASX: FMG) share price.

They probably the only large cap growth stocks that aren’t trading at significant premiums – particularly if you believe the price for the commodity will hold around current levels in FY21.

The relatively bright outlook for the steel making ingredient and their robust balance sheets make them one of my favourite stocks to hold in the year ahead.

More reading

• Why I’d buy and hold a2 Milk shares until 2025
• 3 ASX ETFs to hedge your portfolio
• These were the best performing ASX 200 shares in FY 2020
• These were the worst performing ASX 200 shares in FY 2020
• Can the Coles share price climb 12% again in July?

Brendon Lau owns shares of BHP Billiton Limited, Commonwealth Bank of Australia, Evolution Mining Limited, Newcrest Mining Limited, and Rio Tinto Ltd. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Temple & Webster Group Ltd (ASX: TPW) quadrupled in value during FY20 despite bushfires, pandemics and lockdowns. The share price started the financial year at $1.38 and finished at $6.31 on Tuesday, 30 June. The company ended the year on a market capitalisation of $717.7 million.

The company sells furniture and kitchenware via a drop shipping operations model. That means they ship directly from the manufacturer to the customer. In addition, Temple & Webster also has Milan Direct, its private label brand. Milan Direct is sold on the company’s marketplace platform and sold wholesale to distributors. 

Like many other companies, Temple & Webster saw an increase in online sales during the lockdown. On 18 June the company announced revenue growth of 90% against the previous corresponding period (PCP). That is an outstanding level of revenue growth echoed in other companies with online sales channels.

Pandemic trading

During the lockdown, the company saw a dramatic improvement in performance. Revenue rose by 68% YTD and earnings before interest, depreciation, and amortization (EBITDA) rose by an astounding 668%. Moreover, the company’s active customers increased by 68% to 440,257. The company’s share price rose more than 8% over the 3 days after this announcement.

The unpredictable element is, what happens once the lockdown is over? Temple & Webster CEO and Co-founder, Mark Coulter, said:

“…We can already see in our numbers that many of the customers who have never shopped with us before, and may be first time online shoppers in our category, have already returned and made repeat purchases…”

This bodes well. It is also supported by Australia Post data which shows that e-commerce growth rose by 80% in the 8 weeks following the World Health Organization’s (WHO) announcement. They believe that this year online sales will reach 15% of all retail sales. That is 3–5 years ahead of previous forecasts.

Share price history

As a company Temple & Webster is still very much in the growth phase. The company has only turned a profit once in FY19 since listing in 2015. As it recorded earnings it also recorded its first return on equity (ROE) figures. This was very impressive at 24.7%. This means the company returned about a quarter of the net asset value.

The company’s share price has increased 585.87% since listing.  The vast majority of this growth has been in FY20, and most of that was after the 23 March market trough.

Foolish takeaway

Temple & Webster benefited greatly from the COVID-19 lockdown. Not only did they see a large percentage of new customers, but many of them were repeat users of the website. The likelihood that they will continue with high online sales after the hard lockdown is reasonably high. At the very least the company has had a chance to impress new people. Time will tell if they were successful.

Most interesting from these figures was the huge leap in EBITDA. It implies a solid cost base that is able to service sales levels far above the level of, say, Christmas of 2019 with little additional costs. 

More reading

• E-commerce is the COVID-19 success story. These businesses are the clear winners.
• These ASX retail shares are lockdown winners
• Short-sellers are stepping up their attack against these popular ASX shares
• Temple & Webster shares continue to grow despite coronavirus restrictions
• Why A2 Milk, Afterpay, Mesoblast, and Temple & Webster are pushing higher

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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After a strong start to the financial year, the S&P/ASX 200 Index (ASX: XJO) gave back its gains and more during the coronavirus crisis. This led to the benchmark index ultimately recording a 10.9% decline for the 2020 financial year.

Not all shares were out of form during the 12 months. Here’s why these ASX 200 smashed the market:

Afterpay Ltd (ASX: APT)

The Afterpay share price was the best performer on the ASX 200 during the 2019-20 financial year with a gain of 150%. Investors were fighting to buy the payments company’s shares after it continued its meteoric customer and sales growth. This was especially the case during the pandemic when many feared its business model would struggle. In addition to this, the arrival of WeChat owner Tencent as a substantial shareholder has got investors excited. They believe Tencent could open the door to the Asia market for Afterpay.

Perseus Mining Limited (ASX: PRU)

The Perseus Mining share price wasn’t far behind with an impressive 140% gain during the last financial year. Investors have been buying the gold miner’s shares following a sharp rise in the price of the precious metal. This has been driven by increasing demand for safe haven assets during the pandemic. In addition to this, a solid production performance, the development of Yaoure, encouraging exploration results at Sissingue’s Zanikan prospect, and its inclusion in the ASX 200 index have given its shares a lift.

Mesoblast Limited (ASX: MSB)

The Mesoblast share price was on form and surged 129% higher during the last 12 months. The majority of this gain has come in the last few months after investors responded positively to trial results. Mesoblast’s allogeneic cellular medicine remestemcel-L has performed strongly in COVID-19 infected patients with moderate to severe acute respiratory distress syndrome (ARDS) on ventilator support. Mesoblast was also added to the ASX 200 at the recent rebalance.

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)

The Fisher & Paykel Healthcare share price wasn’t far behind with a 116% gain during the financial year. Investors were buying the medical device company’s shares following a series of guidance upgrades and an impressive full year result. This was driven largely by strong demand for its ventilators during the pandemic. In FY 2020, operating revenue increased 18% to NZ$1.26 billion and net profit jumped 37% to NZ$287.3 million.

More reading

• Why I’d buy and hold a2 Milk shares until 2025
• 3 ASX ETFs to hedge your portfolio
• ASX 200 stocks to watch for FY2021
• These were the worst performing ASX 200 shares in FY 2020
• Can the Coles share price climb 12% again in July?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The coronavirus crisis weighed heavily on the S&P/ASX 200 Index (ASX: XJO) in FY 2020 and led to it having its worst 12 months since 2012. The benchmark index recorded a 10.9% decline over the year.

While a good number of shares dropped lower with the index, some fell more than most. Here’s why these were the worst performers on the ASX 200 during the last financial year:

Southern Cross Media Group Ltd (ASX: SXL)

The Southern Cross Media share price was the worst performer on the ASX 200 during the financial year with a massive 80.7% decline. Investors were selling the media company’s shares amid concerns that the coronavirus crisis could impact advertising revenues materially. Also weighing heavily on its shares was a highly dilutive capital raising at the height of the pandemic.

oOh!Media Ltd (ASX: OML)

The oOh!Media share price wasn’t far behind with a disappointing decline of 71.7%. This was also driven by extremely weak advertising markets, which look likely to lead to it falling well short of its (withdrawn) guidance this year. And with many advertisers pushing back their campaigns until after the crisis passes, this weakness could continue for a little while to come. A $167 million fully underwritten equity raising (at a 37% discount to its last close price at the time) also weighed on its share price performance.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price was a very poor performer and fell 70.1% during the last financial year. The pandemic was of course to blame for this one. Investors were heading to the exits in their droves after borders were closed and travel bookings collapsed. In addition to this, Flight Centre was forced to undertake a material capital raising to give it sufficient liquidity to survive the crisis.

G8 Education Ltd (ASX: GEM)

The G8 Education share price was out of form and recorded a disappointing 67.7% decline during the 12 months. The childcare centre operator has experienced a sharp reduction in its occupancy level because of the pandemic. And while the government did offer support to the industry, it wasn’t enough to stop the company from launch a highly dilutive $301 million equity raising. Unsurprisingly, G8 has also suspended its dividends for the foreseeable future.

More reading

• Why I’d buy and hold a2 Milk shares until 2025
• 3 ASX ETFs to hedge your portfolio
• ASX 200 stocks to watch for FY2021
• These were the best performing ASX 200 shares in FY 2020
• Can the Coles share price climb 12% again in July?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and oOh!Media Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post These were the worst performing ASX 200 shares in FY 2020 appeared first on Motley Fool Australia.

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