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The Austal Ltd (ASX: ASB) share price is sliding during morning trade on Friday following the release of the company’s FY22 earnings results.

At the time of writing, the Austal share price is fetching $2.61 apiece after sliding nearly 2% lower from the open.

Austal revenue, profit declines from FY21

Key takeouts from the company’s earnings result include:

• Revenue of $1.43 billion, down 9.1% year on year from $1.57 billion
• Earnings before interest and tax (EBIT) of $120.7 million, up 5.3% year on year
• Net profit after tax (NPAT) of $79.6 million, down 1.8% from last year’s $81.1 million
• Dividend of 4.0 cents per share declared, unfranked, bringing total year dividend to 8 cents
• EBIT guidance for FY23 of around $100 million

What else happened in FY22 for Austal?

For the 12 months to June 30 2022, Austal generated $1.43 billion in revenue and EBIT of $120.7 million, a decrease and increase of 9% and 5% respectively.

Austal states the decline in revenue is mostly attributed to reduced throughput as the Littoral Combat Ship (LCS) programme continues to mature through to FY25.

The company announced in July that it had secured a contract for the design and construction of up to 11 ‘Offshore Patrol Cutters’, commissioned by the US Coast Guard.

“Even though the Award had no impact on Austal’s FY2022 operational performance, it positively
impacted various cost assumptions, such as Estimates at Completion (EAC) and labour utilisation as
at 30 June 2022,” the company said.

Management commentary

Speaking on the announcement, Austal Chief Executive Officer, Paddy Gregg said:

Austal is successfully delivering on its core strategic initiative to transition beyond these maturing programmes.

Our investment in steel capability is already paying off and combined with our deep track record of
operational excellence in aluminium, we are optimally positioned to achieve diversified, long-term and
sustainable growth.

We have a significant orderbook and our enhanced operational capabilities supported by a strong
balance sheet give us further potential to grow across both the USA and Australasia.

What’s next for Austal?

Austal notes it enters FY2023 with an order book of approximately $7 billion, which is the largest in the company’s history.

This is underscored by the US Coast Guard’s, which is worth up to $4.35 billion. With these points in mind, the company provided EBIT guidance of $100 million for FY23.

Austal share price snapshot

Austal shares are up more than 33% in the past 12 months.

The post Austal share price slides as revenue, profit contract in FY22 appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Austal Limited. 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 Scott Phillips.

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The Lynas Rare Earths Ltd (ASX: LYC) share price is up 2.13% in late morning trade, having earlier posted gains of 5.8%.

Lynas shares closed yesterday trading for $8.92 and are currently trading for $9.11.

This comes following the release of the S&P/ASX 200 Index (ASX: XJO) rare earth producer’s full-year results for the 12 months ending 30 June (FY22).

And there’s certainly plenty of ASX investor interest today, with more than $32 million worth of trades having gone through within the first hour of trading.

So, why are investors bidding up the Lynas share price today?

What’s piquing ASX investor interest?

As the only substantial producer of rare earths outside China, Lynas has seen strong demand from the United States and other nations looking to secure sources of the critical minerals outside of the Middle Kingdom.

Today, the Lynas share price is marching higher as investors eye FY22 revenue of $920 million, an 88% year-on-year leap.

And profits were way up from FY21 as well, with net profit after tax (NPAT) rocketing 244% to $540.8 million.

While the ASX 200 rare earths producer didn’t offer specific guidance for FY23, Lynas did highlight its ongoing growth plans, stating:

Our expansion initiatives will support the further growth and development of outside China supply chains, including the re-establishment of a rare earths supply chain in the United States.

With cash on hand as at 30 June of $966 million, Lynas arguably looks to be in a strong position to pursue those growth ambitions.

Lynas share price snapshot

Despite a sharp retrace in 2022, the Lynas share price remains up by around 37% over the past 12 months. That compares to a full-year loss of around 5% posted by the ASX 200.

Longer term, Lynas shares have gained 443% over five years, smashing the 24% return delivered by the benchmark index.

The post Lynas share price lifts off on rocketing FY22 profits appeared first on The Motley Fool Australia.

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More reading

• Jumbo share price climbs following ‘strong growth achieved in FY2022’
• Costa share price grows on fruitful first-half results
• Ramsay shares halted after earnings slashed and takeover letter lands
• BetMakers share price pops then drops as full-year revenue leaps 370%
• Paladin share price slips despite 57% revenue boost

Motley Fool contributor Bernd Struben 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 Scott Phillips.

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The Jumbo Interactive Ltd (ASX: JIN) share price is edging higher today following the release of the company’s full-year results.

At the time of writing, the lottery ticket seller’s shares are up 5.88% to $14.77.

Jumbo share price climbs amid double-digit growth

Jumbo delivered its FY2022 results for the 12 months ended 30 June 2022. Here are some of the key financial highlights:

• Total Transaction Value (TTV) up 36 % to $659.9 million
• Revenue up 25% to $104.3 million
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 13% to $55.1 million
• Underlying net profit after tax (NPAT) up 14% to $32.2 million
• Final dividend of 20.5 cents per share, fully franked, bringing the full year dividend to 42.5 cents per share, up 16%

What happened in FY2022?

Jumbo reported a robust result with all key metrics increasing by double-digits.

Group revenue surged by 28% on an underlying basis, underpinned by strong growth across all operating segments.

This included the lottery retailing segment, which registered a 26.7% increase in revenue to a record $91 million. Improved jackpots and customer activity drove the outstanding performance.

The software-as-a-service (SaaS) division experienced a 31.9% jump in revenue to $42.7 million. Jumbo stated that all SaaS clients were tracking well.

And lastly, the managed services business which predominantly reflects UK-based Gatherwell, soared 24.3% in revenue to $2.3 million. The company’s expanded international footprint via acquisitions of Stride and StarVale helped support this result.

On the back of achieving ongoing positive cash generation, the board declared a final, fully franked dividend of 20.5 cents per share. This translates to a dividend payout ratio of 85.6% of statutory NPAT.

The payment date for the dividend is on 23 September 2022.

In addition, Jumbo decided to further maximise shareholder value by undertaking an on-market share buyback of up to $25 million. This will be conducted on an opportunistic basis from next month.

What did management say?

Jumbo CEO and founder, Mike Veverka said:

We are pleased with the strong growth achieved in FY22 off the back of an improved jackpot cycle. FY22 was a pivotal year for Jumbo as we build the foundations to successfully execute our global growth strategy. Lottery Retailing is exceptionally well positioned to benefit from the ongoing shift to digital and the new OzLotto game launched in May 2022, while the integration of Stride and StarVale will build scale in our Managed Services and SaaS segments globally.

Veverka went on to talk about the company’s capital management, adding:

The strength of our balance sheet, strong cash generation profile of our business, debt headroom and flexibility from our revised dividend policy enables us to continue to invest in the business, provides capacity for further M&A and organic growth, and delivers shareholder returns through dividends and a share buy-back.

What’s the outlook for FY2023?

Jumbo didn’t provide any earnings or profit guidance for FY2022 but provided some insight on what lies ahead.

Cost of sales will be impacted by the increase in The Lottery Corporation service fee rising from 2.5% to 3.5%.

Marketing costs are expected to be in the range of 1.5% to 2% of Lottery Retailing TTV.

Excluding the impact of the Stride and StarVale acquisitions, group underlying operating cost growth is anticipated to moderate, with Jumbo targeting an increase of 20% to 22%.

This is expected to translate to an underlying EBITDA margin between 48% to 50%.

Jumbo share price snapshot

In the past 12 months, the Jumbo share price has fallen 10%.

The post Jumbo share price climbs following ‘strong growth achieved in FY2022’ 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 positions in and has recommended Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited. 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 Costa Group Holdings Ltd (ASX: CGC) share price is ripening this morning after the horticulture company delivered its half-year FY22 results.

Despite creeping lower when the market opened, the Costa share price is climbing 0.3% at the time of writing to $2.75.

Green shoots for the Costa share price as earnings grow

Here’s a high-level summary of Costa’s results for the half year ending 3 July 2022:

• Revenue came in at $708.7 million – up 16% compared to the prior corresponding period (pcp) of 1H21
• EBITDA before movement in biological assets and material items grew 13% on the pcp to $140.1 million
• Statutory net profit after tax (NPAT) edged 1% higher to $37.8 million
• Net debt stands at $328.2 million with leverage of 1.94x
• A fully franked interim dividend of 4 cents was declared

What else happened in FY22?

Costa’s performance in China was a standout, growing revenue by 34% as new plantings drove volume growth of 32%.

The company said this result reflected strong quality, demand, and higher pricing before major city COVID-19 lockdowns toward the end of the season.

Volumes in Morocco trickled 4% higher but revenue retreated by 16% on the back of delayed timing due to weather.

Back home, berry volumes increased by 10%, while revenue lifted by 12%. As you might have guessed from rising prices on the supermarket shelves, pricing was strong across all four berry types. The average sale price for premium berries jumped by 40%.

Turning our attention to tomatoes, the first crop from glasshouse 4 and the new nursery for the half led to a 38% rise in volume. Combined with positive pricing and demand, revenue grew by 28%.

The company’s citrus portfolio recorded a 40% jump in revenue. However, this was helped by the acquisition of 2PH. As the season has progressed, weather events have been impacting quality, volume, and pack-out rates across Costa’s three citrus growing regions in South Australia, Victoria, and Queensland.

The company had previously flagged this in a trading update in July, which sent the Costa share price reeling.

Finally, the company’s avocado category was impacted by a prolonged Western Australian crop and the lack of further export market access. Revenue went backwards by 16%.

Costa noted that the Australian and Japanese governments continue negotiating market access for avocados grown on the eastern seaboard.

What did management say?

CEO Sean Hallahan was pleased with the company’s first-half performance, saying:

Our long term growth strategy has come to the fore in the current uncertain economic environment, including our high quality of asset base, the scope and range of our protected cropping footprint, the successful deployment of new varieties which attract a price premium, a diversified portfolio and our market leading positions in high demand categories.

What’s next?

Looking ahead, here’s the outlook for the company’s core fruits and vegetables:

• Citrus: Positive volumes are expected to continue in the second half, but the extent of the impact of extreme weather conditions won’t be known until later in the season
• Domestic berry: Quality of early season protected berries is strong with season volume forecast in line with expectations
• Mushroom/Tomato: On a positive trajectory to perform favourably over the second half
• Avocado: Current pricing conditions are improving, but industry conditions are expected to remain challenging for the remainder of the year.

Costa share price snapshot

Costa’s share price performance has been a mixed bag so far this year. The Costa share price has outperformed the S&P/ASX 200 Index (ASX: XJO) over the last month, growing by 11%.

However, the Costa share price has dropped 12% since the start of the year, underperforming the market.

Costa shares are currently trading on a 12-month trailing dividend yield of 3.2%, which bumps up to 4.6% with the benefit of franking credits.

The post Costa share price grows on fruitful first-half results appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh 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 COSTA GRP FPO. 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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Ramsay Health Care Limited (ASX: RHC) shares are in a trading halt on Friday morning after the company released its 2022 full-year financials.

While no official indication for the halt was given, Ramsay managing director and chief executive Craig McNally reportedly mentioned in an investor call that a letter had been received from the consortium led by KKR regarding its acquisition proposal.

What did the company report?

• Revenue up 3.1% to $13.74 billion
• Earnings before interest and tax down 21.3% to $891.3 million
• Statutory profit down 39% to $274 million
• Final dividend per share down 52.9% to 48.5 cents
• Full-year dividend per share down 39.7% to 97 cents

What else happened in FY22?

Ramsay Health Care operates private hospitals and healthcare facilities, and saw its business plunge during COVID-19 lockdowns. Australia’s two largest cities, Sydney and Melbourne, both spent many months during the 2022 financial year repressing elective procedures.

The other big piece of news impacting Ramsay during the year came from a private consortium led by KKR & Co, which proposed to acquire the business at $88 per share. That deal, which values Ramsay at $14.8 billion, is a 20% premium to the halted price on Friday morning.

What did management say?

McNally said:

FY22 proved again the resilience of Ramsay’s people and business in the face of further severe disruption from COVID. I would like to thank our people and partners for continuing to work with us to support our patients, navigating the difficult operating environment while transitioning to the next phase of the pandemic.

What’s next?

The company did not make any specific group-wide forecasts on revenue, earnings or profit.

McNally said:

We have maintained our focus on the group’s medium to long term strategy continuing to invest to optimise our world class hospital network for future demand while entering into new and adjacent services. To support this we are investing in our digital and data road map, and have continued Ramsay’s long standing commitment to research and clinical trials. These investments place Ramsay in a strong position within the sector to benefit from the growth in demand for healthcare services over the medium to long term.

The company’s presentation stated:

In the near term, the industry continues to be under pressure from a high level of COVID cases in the community combined with the highly restrictive guidelines around the patient pathway together with the resultant impact on the availability of the workforce, impeding a recovery in volumes and productivity. 

Underlying earnings growth in FY23 will benefit from the additional capacity created over the last few years combined with full year contributions from Elysium and recent acquisitions in Europe. The focus will remain on driving the synergies, realising the growth opportunities and improving returns.

Ramsay Health Care share price snapshot

Ramsay shares were treading water before the KKR takeover proposal came along in April, still sitting 23.9% below their pre-COVID high.

The deal for $88 per share understandably put a rocket under the stock, although it has since settled back to $72.92, up 1.46% year to date.

After the latest update, Ramsay now hands out a dividend yield of 1.3%.

The post Ramsay shares halted after earnings slashed and takeover letter lands appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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 Ramsay Health Care Limited. 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 BetMakers Technology Group Ltd (ASX: BET) share price is on a rollercoaster this morning after the company released its earnings for the 2022 financial year (FY22).

The business-to-business (B2B) betting technology provider’s stock opened 1.2% higher a 41 cents before leaping to a high of 44 cents – marking an 8.6% gain.

The BetMakers share price has since plummeted 4.9% to trade in the red at 38.5 cents.

BetMakers share price soars despite losses deepening

Here are the key takeaways from the company’s full-year earnings:

• Revenue came to $91.7 million – a 371.1% increase on that of the prior corresponding period (pcp)
• Posted an after-tax loss of $89.2 million – 411.1% deeper than the pcp’s $17.4 million loss.
• Gross profit lifted 550% to $66.3 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a $86 million loss – 374% deeper than the pcp’s $18.1 million loss
• Adjusted EBITDA, however, reached $2.2 million – up from a $2.9 million loss

The company’s three divisions each posted higher revenue in FY22.

Its global betting services brought in $40.6 million of revenue, up 179% year-on-year, while its global tote division saw $46.9 million of revenue, a whopping 2,719% improvement.

Finally, its global racing network business boasted $4.1 million of revenue – a 28% increase.

What else happened in FY22?

The biggest boost to the BetMakers share price last financial year came in April when the company announced its set to supply a new venture with wagering technology. The deal could bring in $300 million of revenue over its ten-year life.

Betmakers also revealed an on-market share buy-back in June and secured an agreement to provide tote technology services in Norway.

What did management say?

In a letter to shareholders released alongside BetMakers’ earnings, CEO Todd Buckingham said:

BetMakers achieved key milestones [in FY22] as it focussed on maximising revenue growth and executing on transformative deals in line with Australian and international strategic plans.

The performance across its three divisions … showed strong overall growth and re-enforced the position of BetMakers as a leading B2B wagering technology company within the global landscape.

The further development of proprietary technologies to service the global racing industry … has been supported by a targeted recruitment of key personnel for management and the board.

In establishing this world-class team across a wide international footprint, and together with the deals signed in FY22, I am especially pleased with the position it now places BetMakers to accelerate growth opportunities in each of its revenue divisions in FY23 and beyond.

What’s next?

The company didn’t provide any new earnings guidance today. However, Buckingham said it expected benefits of several recent deals would begin to flow in this financial year and beyond.

Its global betting services business is set to launch several wagering platforms in the coming 12 months. It’s expecting strong FY23 revenues.

BetMakers’ global tote business is expected to consolidate its gains in FY23 while setting the platform for FY24 and beyond.

Finally, the company expects its global racing network’s revenue to more than double in FY23 as it executes on opportunities.

BetMakers share price snapshot

The BetMakers share price has struggled through 2022 so far.

It has tumbled 51% year to date and 64% over the last 12 months.

For comparison, the All Ordinaries Index (ASX: XAO) has dumped 8% since the start of 2022. It’s also fallen 6% since this time last year.

The post BetMakers share price pops then drops as full-year revenue leaps 370% appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. 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 Paladin Energy Ltd (ASX: PDN) share price was largely unmoved this morning even as the surge in uranium prices boosted its FY22 results.

The miner posted a 57% increase in full-year revenue to US$4.7 million as its statutory net loss after tax improved 39% to US$26.7 million.

The Paladin share price dipped 1 cent in early trade to $0.81 while the All Ordinaries (ASX: XAO) added 0.2%.

Summary of Paladin’s FY22 results

• Average selling price for Paladin’s uranium in FY22 was US$47 a pound, or 57% above FY21
• Amount of U3O8 sold was flat at 100,000 pounds
• Cost of sales increased by 58% in FY22 to US$4.7 million
• Net loss after tax from continuing operations improved 25% to US$43.9 million

What you need to know about Paladin’s FY22 results

The net loss from continuing operations was mainly due to higher foreign exchange losses of US$8.2 million (2021 loss was US$3.9 million). This primarily relates to the increase in Australian dollars held after the completion of the equity raising.

The loss was offset by the reduction in financing costs from the redemption of senior secured notes. The 13% depreciation of the Namibia dollar to the US currency also helped. Paladin’s flagship Langer Heinrich mine is in Namibia.

One of the key achievements for the miner in FY22 was winning the tender to supply uranium to a major North American power utility.

A shortfall in supply of power, energy security and the big global drive to cut carbon emissions have driven up the price of uranium over the past year.

What Paladin is saying

Paladin’s chief executive, Ian Purdy, commented:

Nuclear energy provided approximately half of the USA’s carbon-free electricity in 2021, making it their largest domestic source of low carbon energy.

Nuclear expansion remains a focus in Asia, with 35 reactor builds underway across the region. Europe and North America are focused on preserving existing nuclear assets and looking to the future via new reactor programs that include the deployment of small modular reactors.

Outlook

Paladin didn’t provide much of an outlook in its FY22 results. It only pointed to its decision to restart activities at its Langer Heinrich mine and its commitment to maintaining its spending discipline.

The ramp up of activities at the mine will support “operational readiness and uranium marketing” during this period of high energy prices.

To better capitalise on the buoyant trading environment, Paladin is also restarting its exploration program. It said it will undertake development studies at the Michelin Project in Labrador, Canada.

The truth is the outlook for Paladin is probably more tied to external events. For example, Japan’s push to restart its nuclear power plants.

Paladin share price snapshot

Even before Paladin’s FY22 results announcement this morning, the Paladin share price has shot up 71% over the past year.

That’s well ahead of the All Ordinaries, which shed 6% over the same period.

But Paladin isn’t alone in outrunning the broader market. Other ASX uranium miners have also been shooting out the lights.

The Deep Yellow Limited (ASX: DYL) share price jumped 35% while the Boss Energy Ltd (ASX: BOE) share price surged from under 20 cents to $2.62 over the period.

The post Paladin share price slips despite 57% revenue boost appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why is the Paladin Energy share price rocketing 13% today?
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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Brendon Lau has positions in Boss Resources Limited and Paladin Energy Ltd. 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 Scott Phillips.

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The Air New Zealand Limited (ASX: AIZ) share price is trading more than 2% down this week. At the time of writing, Air New Zealand shares are trading at 60 cents apiece, 0.84% higher.

Notably, investors weren’t impressed with the airline‘s FY22 results released on Thursday. Alas, yesterday’s losses were extended following the update.

Zooming out, and the airline’s share price is down almost 32% this year to date, as seen on the chart below.

What else happened for Air New Zealand last period?

The key point from the company’s performance last year was its loss before tax of $725 million, compared to last year’s $444 million.

This result was projected during previous market guidance back in June, so didn’t come as a surprise. Nevertheless, statutory loss before tax also came in at $810 million.

Travel restrictions related to COVID-19 were largely to blame for the narrowed result.

“Although the financial year ended strongly following the phased reopening of New Zealand’s borders from March, the airline’s operating revenue of $2.7 billion was significantly impacted by pandemic related travel restrictions,” the company said.

“Cargo and domestic revenues helped lift overall revenue by 9%, however high fuel prices and reduced flying over much of the year resulted in a loss for the period,” it added.

Management commentary

Speaking on the result, Air New Zealand Chief Executive Officer, Greg Foran said:

For customers, we’ve been focused on restoring services, maintaining a choice of fares and launching innovations to improve their journey with us. For our amazing staff we have provided one-off awards to acknowledge their continued extra mahi, and for our communities we’ve been obsessed with operational performance, which drives the reliable services they depend on.

For our shareholders, whose support has refuelled the business for future growth, we’ve completed a
successful recapitalisation that was structured to be fair to our shareholders, including those that didn’t take up the rights offer.

What’s next for Air New Zeland?

The company didn’t provide any earnings guidance in its report. However, it expects total flying capacity for FY23 to be in the range of 75% to 80% of pre-COVID levels.

In the past 12 months, the Air New Zealand share price has slipped around 60% into the red.

The post Why has the Air New Zealand share price fallen this week? appeared first on The Motley Fool Australia.

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The Bega Cheese Ltd (ASX: BGA) share price is shooting up this morning following the release of the company’s financial results for the year ended 30 June 2022.

Bega Cheese shares are trading 6.55% higher at $3.99 apiece at the time of writing.

Bega Cheese earnings slide in FY22

Key takeouts from the company’s results include:

• Group revenue of more than$3 billion, up 45% year on year
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $149 million, down 19%
• Profit after tax of $24.2 million, a 69% decrease from FY21’s result of $78 million
• Net operating cash flow of $158 million, reduced debt by $60 million
• Earnings per share (EPS) of 8 cents, down from 29.5 cents the year prior
• Declared final dividend of 5.5 cents per share, total dividend to 11 cents per share

What else happened this period for Bega Cheese?

Bega notes that the first full year of ownership of Bega Dairy and Drinks is reflected in the growth of the wider Group, with revenue growth of 63% to $2.5 billion.

Amid challenging conditions, brought on by supply chain bottlenecks and other disruptions from COVID-19, profit after tax declined by almost 70% year on year.

Despite this, the company still managed to declare a total dividend of 11 cents per share in FY22, and also managed to pay down $60 million in debt.

As a result, Bega’s leverage ratio narrowed by 22% from 2.3x to 1.8x, bringing the net debt total to $265 million.

Management commentary

Speaking on the announcement, CEO Paul van Heerwaarden said:

What’s next for Bega?

The company projects normalised EBITDA to be in the range of $160 million to $190 million for FY23.

It also said that competition for milk during June and July “resulted in further increases to approximately 30% higher than FY2022 farm gate milk price”.

This is coupled with a substantial increase in global dairy commodity pricing, the company says.

Bega Cheese share price snapshot

Despite today’s gains, the Bega Cheese share price has fallen 27.6% over the last 12 months and almost 30% year to date.
Based on today’s price, the company has a market capitalisation of $1.2 billion.

The post Bega Cheese share price soars as net profit slides 69% year on year appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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 Scott Phillips.

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The Smartgroup Corporation Ltd (ASX: SIQ) share price is taking a sharp fall, currently down 11.14% having earlier posted losses of 15%.

Smartgroup shares closed yesterday at $6.91 and are currently trading for $6.14 apiece.

This comes following the release of the employee management services company’s half-year results for the six months ending 30 June (H1 2022).

Highlights below…

Smartgroup share price hit by inflation concerns

• Revenue of $113.6 million was up 4% from H121
• Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) of $49.4 million, in line with the prior corresponding period
• Net profit after tax (NPAT) of $30.9 million, an increase of 16% year on year
• Fully franked interim ordinary dividend of 17.0 cents per share (cps)

What else happened during the half?

Smartgroup reported growth of some 5,500 salary packages for the half year, bringing its customer numbers to 383,000 across Australia.

The company said that despite vehicle supply disruptions continuing to stretch sales lead times, increasing its excess pipeline of future settlements by $2 million over the half to around $14 million, leasing settlement volumes increased 1% compared to the prior corresponding period.

The Smartgroup share price is facing some headwinds from higher interest rates and inflation.

The company said lower consumer confidence along with extended vehicle delays have seen some potential customers delay their buying decisions. As a result, vehicle order levels were down 7% compared to H1 2021.

As at 30 June this year, the company had net debt of $26.0 million, after paying $39.7 million in special dividends in March.

Investors who want to receive the interim dividend need to own shares on the record date of 9 September.

What did management say?

Commenting on the half-year results, Smartgroup CEO Tim Looi said:

We have been able to deliver a good financial result for the half year, despite lengthening vehicle delivery timeframes and we continue to have success in increasing our level of engagement with potential customers via both digital and non-digital channels.

What’s next?

Looking ahead, Looi commented on the impacts of wage inflation, a factor that looks to be impacting the Smartgroup share price today.

Like all businesses in Australia, we are experiencing some wage inflation. It’s good to see the growth in vehicle leads as we roll out our digital assets, but the impact of interest rate rises on consumer confidence is leading to an extension to the timeframe for customers to proceed to a vehicle order.

Vehicle supply timeframes are continuing to extend and delay our settlement timeframes, resulting in a further increase in our pipeline of future settlements,” he added. “While we face some short to medium term macro-economic and industry-wide headwinds, we have a resilient business model and our operational performance is strong.

No specific guidance was provided.

Smartgroup share price snapshot

With today’s big intraday fall factored in, the Smartgroup share price is down by around 20% for the calendar year. That compares to a loss of around 8% posted by the All Ordinaries Index (ASX: XAO) so far in 2022.

The post Smartgroup share price plunges 11% as inflation bites appeared first on The Motley Fool Australia.

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