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Among the flurry of earnings flying out this month, you might have missed this ASX All Ordinaries tech share which produced solid top-line growth in the first half.

The FINEOS Corporation Holdings PLC (ASX: FCL) share price is finishing the week lower than where it started.

However, shares in the insurance software provider climbed 3.1% today after falling 3% yesterday. This follows the release of FINEOS’ results for the first half of FY22 on Thursday.

ASX All Ordinaries tech share slips despite productive half

• Revenue up 24.4% to €65.4 million (A$102.04 million)
• Annual recurring revenue reached €51.8 million, increasing 35.2% year on year
• Gross profit of €42.5 million, representing an increase of 25.6% year on year
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 103.1% to €6.5 million
• Net loss after tax narrowed to €4.6 million from €5.1 million
• Cash balance as at 31 December 2021 of €48.6 million

What else happened during the half?

Investors have lacked an attraction to this ASX All Ordinaries share this week. However, FINEOS showed improvement across all of its key metrics in the first half.

According to the release, top-line growth of 24.4% was driven primarily by cross-selling and up-selling to its existing client base. In addition, the company notched up another client win, helping diversify its customer base.

Notably, the largest organic growth was witnessed in FINEOS’ subscription revenue — increasing 39.5% year on year. Meanwhile, services revenue experienced a 16.4% improvement on the prior corresponding period.

Furthermore, the company highlighted its improvements in de-risking its client concentration during the period. In August 2021, 74% of FINEOS’ revenue was tied to its top 10 clients. However, that number has been reduced further to less than 61%.

During the half, FINEOS raised around $74 million to feed future growth across its operations and expand into new markets.

What’s next?

Investors might have been displeased to see FINEOS guide towards the lower end of its previously stated revenue range for FY22. For reference, the range provided is between €125 million and €130 million.

Although, on a positive note, the company reaffirmed expectations for subscription revenue to grow at an annualised rate of around 30%. This was followed up with a disclaimer, noting the guidance is subject to prevailing influences from COVID-19 and the global economy.

How has this ASX All Ordinaries tech share performed?

The FINEOS share price has been unable to attract a higher value so far in 2022. In fact, shares in the insurance tech provider have slumped 27% since the year kicked off.

To be fair, this is relatively in line with the broader performance across the tech sector. For example, the S&P/ASX All Technology Index (ASX: XTX) is down 23% year-to-date.

The post This ASX All Ordinaries tech share just delivered 24% revenue growth appeared first on The Motley Fool Australia.

More reading

• Expert reveals why not all ASX gold ETFs are created equal
• ‘Excellent’ earnings: Here’s what lifted the DGL (ASX:DGL) share price today
• Mayne Pharma (ASX:MYX) share price slides on 38% EBITDA slump
• Brambles (ASX:BXB) share price melts away despite 8% FY22 revenue upgrade
• High risk, high reward: Analysts tip 2 small cap ASX shares for big things

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended FINEOS Corporation Holdings plc. The Motley Fool Australia has recommended FINEOS Corporation Holdings plc. 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 events of this week have once again highlighted the role that gold plays in the minds of investors all over the world. Gold is a universal asset, it doesn’t trade on any one country’s stock exchange, and it’s worth pretty much the same any place you have it in the world.

The yellow metal has always played the role of a ‘safe haven’ asset. In times of economic hardship, financial instability or (as this week has given the world) geopolitical tension, investors tend to flock to gold to help shore up their portfolios.

We have seen this play out in light of this week’s tragic events. A fortnight ago, gold was priced at just under US$1,830 an ounce. Today, it is over US$1,915 an ounce.

How does one invest in gold?

So many investors are clearly looking to gold right now. And there are several ways to gain exposure to the precious metal. There’s owning physical gold bullion, of course. Fort Knox style. The more opportunistic investors might opt instead for a leveraged play with gold mining shares. But an increasingly popular option in our modern age is to go after gold exchange-traded funds (ETFs).

But although there are many gold-based ETFs on the ASX, and around the world, one expert investor is warning that not all are created equal.

Tim Toohey is the head of macro and strategy at Yarra Capital Management. He recently did a podcast interview for Livewire where he discussed gold ETFs. Mr Toohey prefers ETFs for exposure to the yellow metal, and says that for an active portfolio, an allocation of between 5% and 7% is “about right”. Here’s what he had to say:

I would favour ETFs that map the gold bullion price. Not those that are a combination of gold, gold companies and even derivatives. You probably want to avoid those.

How does one translate this advice to the ASX? Well, the ASX is home to a number of ETF products that give investors exposure to gold. 

Three such funds are the ETFS Physical Gold ETF (ASX: GOLD), the BetaShares Gold Bullion ETF (ASX: QAU) and Perth Mint Gold (ASX: PMGOLD). Two others are the VanEck Gold Miners ETF (ASX: GDX) and the BetaShares Global Gold Miners ETF (ASX: MNRS). 

Not all ASX gold ETFs are equal…

The interview claimed that pure gold exposed ETFs “are regarded as more liquid and align more closely with the gold price than other vehicles”. So let’s see what this means.

So according to its provider, the ETFS Gold ETF works in the following way:

GOLD is backed by physically allocated gold bullion held by JPMorgan Chase Bank, N.A. (the Custodian) in London. Only metal that conforms with the London Bullion Market Association’s (LBMA) rules for Good Delivery can be accepted by the custodian. Each physical bar is segregated, individually identified and allocated which means there is no credit risk. Investors can choose to redeem units for the physical holdings.

According to the providers of the QAU and PMGOLD ETFs, these funds work in a similar fashion. And these appear to align with what Mr Toohey describes as his preferred structure. 

But GDX and MNRS are different. They don’t invest in gold bullion itself, but in a basket of global gold mining shares. Thus, units of the ETF represent shares of gold mining companies, rather than raw gold bullion. So these are the kinds of ETFs that Toohey states he avoids. 

So there are many gold ETFs on the ASX to choose from. But make sure you know what you’re looking at if you’re looking to buy. Gold exchange-traded funds are not all equal. And some might suit our goals more than others. 

The post Expert reveals why not all ASX gold ETFs are created equal appeared first on The Motley Fool Australia.

More reading

• ‘Excellent’ earnings: Here’s what lifted the DGL (ASX:DGL) share price today
• Mayne Pharma (ASX:MYX) share price slides on 38% EBITDA slump
• Brambles (ASX:BXB) share price melts away despite 8% FY22 revenue upgrade
• High risk, high reward: Analysts tip 2 small cap ASX shares for big things
• Survey: ASX shares top Aussie women’s investments. Guess what came second

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

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The DGL Group Ltd (ASX: DGL) share price spent Friday in the green after the company dropped its earnings for the first half of financial year 2022.  

As of the week’s close, the DGL share price is trading at $2.71, 0.37% higher than it was at the end of Thursday’s session.

DGL share price lifts as revenue increases 55%

• Revenue of $134 million ­– a 55% increase on pro forma revenue in the first half of financial year 2021
• Normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) of $23 million – 77% more than the prior period’s pro forma EBITDA
• Net profit after tax (NPAT) of $8.5 million – up 70% on the prior period’s pro forma NPAT
• Ended the period with a net debt position of $35 million

DGL has completed its first full half as a listed company. And not only has it survived, but it’s also seemingly thrived.

The specialist chemicals manufacture, transportation, storage, and processing company floated on the ASX on 24 May 2021.

Last half, it saw all three of its segments contribute to revenue and EBITDA growth.

Its warehousing and distribution leg experienced high demand due to widespread supply chain issues and shipping delays.

Meanwhile, its environmental segment saw its Victorian lead smelter commissioned in June.

Additionally, despite being hampered by shipping and logistical issues when dispatching battery materials to offshore customers, the segment reported a strong conversion of finished goods to sale.

Finally, the company’s manufacturing business saw an impressive number of acquisitions.

Over the first half, DGL recorded an operating cash flow of $15 million – 8% lower than the prior period.

It also underwent $41 million worth of acquisitions and $21 million of property purchases, leading the company to finish the half with a net debt position of $35 million.

That’s down from a $23 million net cash position at the end of the prior half.

What else happened in the half?

As mentioned, the company engaged in several purchases last half. In fact, it completed a whopping seven acquisitions.

Six of those were integrated into its manufacturing segment. The first – Labels Connect – was acquired in July for around $1.55 million in cash and scrip.

After that, the company acquired Opal, Profill, Aquapac, Austech and AUSblue.

Additionally, it acquired freight carrier service, Shackell Transport.

It also expanded into Queensland, purchasing a storage hub in Townsville which it plans to transform into a chemicals facility, as well as the freehold property of its chemical manufacturing operation in Victoria.

Perhaps unsurprisingly given the company’s acquisition action, the DGL share price gained 144% between 30 June 2021 and 31 December 2021.

What did management say?

DGL CEO Simon Henry commented on the company’s results for the first half, saying:

Our first half [of financial year 2022] results are excellent.

[They evidence] DGL’s ability to successfully execute our strategy to sustainably grow through organic growth and acquisitions of strategically positioned businesses.

All 3 operating segments performed exceedingly well and is a testament to the efforts of our employees across the entire DGL Group.

The continuing trend in on-shoring of international supply in response to the pandemic, is benefiting DGL. We are seeing customers forward ordering and implementing long-term supply planning. This highlights the benefit of being a locally operated, vertically integrated speciality chemicals and dangerous goods company that can assist across the supply chain.

We expect DGL’s [quarter 2] momentum to carry into [quarter 3] and [quarter 4] with greater contributions from completed acquisitions.

What’s next?

Likely helping boost the DGL share price on Friday, the company reconfirmed its increased financial year 2022 guidance on the back of its strong first half.

Its upgraded earnings guidance predicts revenue of around $343 million for financial year 2022.

Additionally, it expects to report full year EBITDA of around $54 million, before acquisition costs.

DGL share price snapshot

Despite its day in the green, the DGL share price is still lower than it was at the start of 2022.

The company’s stock has fallen 10.5% year to date. Though, it has gained more than 150% since it debuted on the ASX last year.

The post ‘Excellent’ earnings: Here’s what lifted the DGL (ASX:DGL) share price today appeared first on The Motley Fool Australia.

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• ‘Better than expected’: Soaring revenues drive the DGL (ASX:DGL) share price up 17%

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

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The Mayne Pharma Group Ltd (ASX: MYX) share price finished in the red today after the company released its interim report and financial results for the half-year ended 31 December 2021.

At the closing bell, the Mayne Pharma share price was 2% down at 24.5 cents.

Mayne Pharma share price tanks as earnings hit hard

Key takeouts from the pharmaceutical company’s 1H FY22 earnings results today include:

• Reported revenues of $196.4 million, down 6% year on year (YoY)
• Reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $48.8 million, up 20% YoY from a non-cash deferred consideration reassessment due to COVID
• Reported net loss after tax of $50.4 million driven by intangible asset impairment
• Underlying EBITDA of $23.7 million, down 38% on 1H FY21
• International division delivered 29% revenue growth on the previous year
• Entered into five new supply agreements during the half with leading pharmaceutical companies.

What else happened this half for Mayne Pharma?

Drilling down into its individual components, Mayne reports that its Metrics business outperformed other sections of the portfolio with revenues up 20% YoY to $46 million.

This carried through to a 33% gain in gross profit while direct contribution was also up 37% to $22.1 million in response.

Perhaps most of the strength was seen in the company’s international operating segment, which contributed almost $28 million to the top line. This was a growth of almost 30% on the prior corresponding period (pcp).

In fact, all of Mayne’s business lines delivered double-digit growth. Its Australian product revenues were up 15% to $10 million due to the launch of Solarize (diclofenac) gel to treat “actinic keratoses”.

Contract development and manufacturing organisation (CDMO) turnover also widened by 39%. This was helped by new development contracts and growing sales of the Kapanol label in Canada and Switzerland.

Taking a more broader view of the company’s earnings, there was a slowdown in the pace of growth this half. Reported revenue was 6% behind last year whereas the company’s net loss after tax came in at over $50 million.

Mayne ended the half with net debt of $272.6 million bolstered by cash of $114.7 million on the balance sheet at 31 December 2021. It also had another $387.3 million in available liquidity from borrowings and has more than 7x cover over the interest on its debt.

Management commentary

Speaking on the results that might have impacted the Mayne Pharma share price today, CEO Scott Scott Richards said:

At a group level, our underlying results this half have incorporated our significant investment in commercial infrastructure to support the launch of NEXTSTELLIS. Pleasingly, excluding our NEXTSTELLIS investment, underlying EBITDA was up 11% on the 1H FY21 and up 35% on the 2H FY21 despite our retail generics business segment continuing to erode as a result of the sustained competitive pricing environment.

Encouragingly, Metrics Contract Services, International and our dermatology portfolio delivered double-digit earnings growth versus pcp. At the bottom line, we reported a net loss after tax which was impacted by a non-cash intangible asset impairment of the generic portfolio.

What’s next for Mayne Pharma?

The company touts its upcoming catalysts as “growth in the dermatology portfolio from recent product launches, the launch of a number of new products in international markets, the potential launch of a generic version of Nuvaring and further growth of Metrics Contract Services”.

Aside from it, management is most excited about the Nextstellis segment, in which the company is seeking to enter the “US$3.4 billion short-acting combined hormonal contraceptive market with nearly 10 million American women using CHCs for their contraceptive needs”.

Mayne Pharma share price summary

In the last 12 months the Mayne Pharma share price has collapsed by more than 14%. It is also down 17% this year to date. In fact, Mayne is down in the red across all major time frames.

The post Mayne Pharma (ASX:MYX) share price slides on 38% EBITDA slump appeared first on The Motley Fool Australia.

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• Brambles (ASX:BXB) share price melts away despite 8% FY22 revenue upgrade
• High risk, high reward: Analysts tip 2 small cap ASX shares for big things
• Survey: ASX shares top Aussie women’s investments. Guess what came second
• Why is the Blackmores (ASX:BKL) share price tumbling another 10% today?
• Australian Strategic Materials (ASX:ASM) share price surges 9% on Hyundai deal

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 Bruce Jackson.

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Shares in Brambles Limited (ASX: BXB) edged lower on Friday after the company released its interim report and financial results for the half-year ended 31 December 2021.

At market close, the Brambles share price finished down 0.81% at $9.81 apiece.

Brambles share price tanks as profit lands ahead of guidance

Key takeouts from the company’s earnings results today include:

• Sales revenue growth of 8% and Underlying Profit growth of 4%, ahead of FY22 guidance
• Underlying Profit included US$24.4 million of short-term transformation costs associated with the ‘Shaping Our Future programme’
• Excluding short-term transformation costs, Underlying Profit increased 9% and included small use of leverage
• Cash Flow from Operations decreased US$260.5 million
• Free Cash Flow after dividends decreased by US$311.7 million
• Declared an increased FY22 interim dividend of 10.75 US cents up from 1H21 dividend of US10 cents
• A $2.4 billion share buyback program to recommence on 28 February 2022 and expected to complete in FY22

What happened this half for Brambles?

Brambles says that revenue growth this half was underscored by “price realisation in all regions to recover inflationary cost pressures and other cost to-serve increases”.

The company also realised a lower cash flow from operations that decreased to US$260.5 million. The decline was attributed to higher lumber costs of US$270 million whilst another US$80 million of pallet purchases was deferred from FY21 due to supply constraints.

Brambles was also decisive in its response to supply chain pressures that were brought on by the global pandemic, resulting in cost blowouts for major industry.

“In response to supply chain challenges and scarcity of critical inputs, manufacturers and retailers increased inventory levels to de-risk their supply chains, which has resulted in increased demand for pallets and included empty pallet stockpiling across the supply chain”, the company said.

“This increase in inventory levels and pallet stockpiling, especially evident in Europe and Australia, combined with ongoing lumber scarcity and new pallet supply constraints, further exacerbated industry-wide pallet shortages”.

Sales revenue came in at US$2.77 billion and increased 8% year over year. Brambles achieved this by passing price increases downstream to recover higher input costs caused by inflation.

Underlying profit increased 4% and when backing out non-recurring items it increased 9% year on year. As such, the board declared an interim dividend of US10.75 cents per share, to be paid as 15.06 Australian cents per share, and franked at 30%.

Investors should know that, per the release, the unfranked component of the interim dividend is considered a conduit foreign income and may have implications at tax time.

Free cash flow after dividends was an outflow of US$147.9 million, a substantial decrease of US$311.7 million
compared to this same time last year.

Management commentary

Speaking on Brambles’ 1H22 result, chief executive Graham Chipchase said:

Brambles delivered a resilient performance in the face of unprecedented supply chain disruptions and operating cost inflation. Our teams across the world have worked tirelessly to support our customers through significant COVID-19 disruptions including port congestions, container capacity constraints and shortages in transport, raw materials and other critical inputs. While Brambles is not immune to the pressures across global supply chains and pallet industries around the world, our scale, network advantage and the supply chain investments we have been making across our businesses have helped us respond to a range of cost and supply challenges in the first half.

What’s next for Brambles?

Brambles management upgraded the company’s FY22 sales and underlying profit guidance today. It now expects sales revenue growth of 6-8%, up from previous guidance of 5-7%.

Meanwhile, management anticipates an underlying profit growth of 3-5% up from a range of 1-2% previously. It also notes that underlying profit should include approximately US$50 million of short-term transformation costs.

Backing these out, management sees underlying profit growth to fall in a range of 8-10%, around 1–2 percentage points above previous estimates.

It also forecasts free cash flow after dividends to be another net outflow of US$350 million, ahead of a previously outlined US$200 million.

“If the lumber prices and supply chain dynamics that are currently impacting pallet availability and the capital
cost of pallets persist, Brambles expects FY23 Free Cash Flow after dividends to also be a net outflow”, it remarked.

Brambles also estimates the FY22 dividend payments to remain in line with its policy of maintaining a payout ratio of 45-60% of net underlying profit.

Brambles share price snapshot

In the last 12 months, the Brambles share price has slipped 1% into the red and continued the trend into 2022 by sliding another 8%. In fact, Brambles is in the red across all major time frames, including today.

The post Brambles (ASX:BXB) share price melts away despite 8% FY22 revenue upgrade appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Why Aussie Broadband, BHP, Brambles, and Champion Iron shares are dropping
• Leading brokers name 3 ASX shares to sell today

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 Bruce Jackson.

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If you’re wanting to invest in the small side of the Australian share market, then the small caps listed below could be worth a closer look.

Both of these shares have been named as buys and tipped for big things in the future. Here’s why these small cap ASX shares could be worth adding to your watchlist:

Catapult Group International Ltd (ASX: CAT)

The first small cap to look at is Catapult. It is a global sports analytics company that provides elite sporting organisations and athletes with real time data and analytics to monitor and measure athletes.

Catapult’s products are used by many of the biggest and most successful sports teams in the world. This includes all 32 NFL teams, Chelsea FC, Bayern Munich, Real Madrid, and Cricket Australia, to name just a few.

The company has rebounded strongly since the height of the pandemic. This led to Catapult reporting a 13% increase in revenue to $37.5 million during the first half of FY 2022. This was driven by 29% growth in subscription revenue, which reflects Catapult’s strategic shift to a focus on high quality recurring revenue SaaS deals.

Jefferies is very positive on Catapult. It currently has a buy rating and $3.00 price target on the company’s shares.

Hipages Group Holdings Ltd (ASX: HPG)

Another small cap ASX share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies.

In FY 2021, it was on form and delivered a 22% increase in revenue to $55.8 million. Pleasingly, it has built on this in FY 2022, with the company reporting a 12% increase in half year revenue to $30.1 million. This was despite Hipages battling lockdowns during the period.

Another recent positive has been the strengthening of its ANZ market leadership position with the acquisition of New Zealand-based Builderscrack and the strategic investment in Bricks + Agent. This has increased its total addressable market (TAM) to ~$136 billion.

Goldman Sachs is bullish on its future and has a buy rating and $3.60 price target on its shares.

It commented: “We believe HPG presents a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia.”

The post High risk, high reward: Analysts tip 2 small cap ASX shares for big things appeared first on The Motley Fool Australia.

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• Brokers name 3 ASX shares to buy today

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

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ASX shares have had a volatile start in 2022, whipsawed by the spectre of rising interest rates and simmering tensions on the Ukraine-Russia border. Tensions that have now boiled over into a Russian invasion of Ukrainian territory.

Despite ASX shares largely delivering strong earnings, those twin forces have seen the S&P/ASX 200 Index (ASX: XJO) slide 7.8% in the new year.

Of course, those are very short-term moves.

Longer-term the ASX 200 remains up 22.2% over 5 years. And that’s not including any company dividend payouts.

That should come as good news to the cohort of Australian female investors who intend to invest for a decade or longer.

And, according to a new global survey by online multi-asset investment platform eToro, fully 32% of women respondents plan to do just that.

ASX shares top Aussie women’s investments

While the survey was global, we’ll stick to the local results.

Atop the propensity for a longer-term horizon, ASX shares topped the list of investments for Aussie women at 48%.

Did you take a guess at what came second?

If you answered cryptocurrencies, give yourself a gold star.

Cryptos came in a close second to ASX shares at 45%. The safety of cash also holds allure at 26%. International shares, while popular, trailed ASX shares at 21%.

Asked whether they view investing as part of their household budget, 74% of Australian women answered yes.

Meanwhile 64% said they’d like to see more female role models who talk about investing; and 57% would like more education, both in schools and on the internet. 31% of Aussie women cited “know what to invest in” as the biggest hurdle about investing.

How are women planning to invest in 2022?

Asked where they believed are the best investment opportunities over the next 3 months, Australian women said:

• Technology – 39%
• Green energy and renewables – 39%
• Healthcare – 32%
• Real estate – 32%
• Financial services – 18%

As for why they invest in ASX shares, cryptos and other assets, 22% of Australian women said it’s for long-term security. 22% also want to achieve financial independence while 10% are looking to supplement their basic income.

Commenting on the survey results, eToro’s deputy CEO, Hedva Ber said:

Female investors are using investing as a powerful lever to secure their futures, boost income, and/or to build net wealth. It is clear from the research that female investors are carving out their own future, and building for the long-term, something which is to be celebrated.

The post Survey: ASX shares top Aussie women’s investments. Guess what came second appeared first on The Motley Fool Australia.

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• High risk, high reward: Analysts tip 2 small cap ASX shares for big things
• Why is the Blackmores (ASX:BKL) share price tumbling another 10% today?
• Australian Strategic Materials (ASX:ASM) share price surges 9% on Hyundai deal
• Own Westpac (ASX:WBC) shares? Here’s the latest on the bank’s cost-cutting crusade
• Why did this ASX cannabis share burn 10% today?

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

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The Blackmores Limited (ASX: BKL) share price has plunged for the second day in a row.

At the time of writing, the Blackmores share price is down 10.23% trading at $75.90, after hitting an intraday low of $72.26 early this afternoon. The S&P/ASX 200 Consumer Staples (ASX: XSJ) is also ending the trading day among the worst-performing sectors on the ASX.

So, what’s going on with the natural health company?

What did Blackmores reveal?

Yesterday, the company announced its half-year results for FY22.

The company revealed a 14.3% increase in group revenue to $346 million, a 21.2% increase in underlying earnings before interest and taxes (EBIT) to $38.3 million, and an underlying net profit after tax (NPAT) increase of 9.6% year on year at $20.8 million.

Looking at its operations, Blackmores saw a 49.8% increase in revenue from a number of its international arms — including India, Indonesia and Thailand — totalling $116.2 million. Revenue in China increased by 8.5%.

However, the company noted that Australia and New Zealand did not perform as well, with revenue for the region falling 1.2% to $145.9 million.

What else happened?

Despite feeling the pinch of COVID-19, Blackmores said in its release the company did its best to avoid discounting:

Our strategy to price Blackmores at a premium position to the market was deemed a success in driving higher earnings relative to some of our competitors who use short term deep price discounting to buy market share.

The Blackmores share price dropped by 6% yesterday despite the largely positive results. The timing coincided with the wider S&P/ASX 200 Index (ASX: XJO) falling 3% yesterday to 6,990.6 points in the fallout of Russia’s invasion of Ukraine.

What next?

Looking ahead, Blackmores said in its half-yearly report:

Our investments in supply chain capabilities have made Blackmores more resilient and underpin our ability to meet customer demand.

Given the ongoing uncertainty due to COVID-19 across our markets and its impact on global supply chains, these improvements will help us manage what we believe will continue to be a challenging environment throughout the remainder of FY22.

The company also gave investors something to look forward to, — an upcoming dividend (fully franked) of 63 cents per share to be paid on 12 April.

Blackmores share price snapshot

In the last 12 months, the Blackmores share price has dropped 6.7%. Shares in the company fell as low as $63.17 in May last year and climbed as high as $103.97 in November.

The company has a market capitalisation of $1.8 billion and a price-to-earnings ratio (P/E) of 61.1, trailing 12 months.

The post Why is the Blackmores (ASX:BKL) share price tumbling another 10% today? appeared first on The Motley Fool Australia.

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• ‘Ongoing uncertainty’: Blackmores (ASX:BKL) share price falls 6% on cloudy future

Motley Fool contributor Alice de Bruin 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 Blackmores Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Australian Strategic Materials Ltd (ASX: ASM) share price zoomed ahead today to finish the session at $7.89, up 9.58%.

This followed an announcement today that the critical metals producer is teaming up with a leading South Korean company, Hyundai Engineering Corporation Co Ltd (KRX: 000720).

The companies will work together on the Australian Strategic Materials’ Dubbo Project in NSW.

Australian Strategic Materials enters contract negotiations

ASX investors were bidding up the Australian Strategic Materials share price after digesting the company’s news today.

In its statement, the company advised that it has signed a Heads of Agreement (HoA) with Hyundai Engineering Corporation (HEC).

This will enable exclusive negotiations to take place for the delivery of a Front-End Engineering and Design (FEED) for the project.

Should all go as planned, this could also progress to HEC winning the Engineering Procurement and Construction (EPC) contract.

Australian Strategic Materials previously requested a proposal process for the FEED, where HEC was identified as a preferred candidate. This was based on Hyundai’s experience and capability in developing such projects.

Under the deal, both companies will have an exclusivity period for the award of FEED by 31 March 2022. If the delivery of FEED is successful, the award of EPC will be valid until 25 February 2023.

Australian Strategic Materials wants the FEED contract awarded in Q1 2022 and delivered in Q4 2022.

The terms of the FEED and EPC price, scope, and schedule are yet to be agreed upon.

Australian Strategic Materials managing director, David Woodall said:

The team at HEC are impressive being at the forefront of providing innovative and sustainable engineering solutions that will enable the successful delivery of our Dubbo Project, a key to our “mine to metal” strategy.

The desire of both HEC and ASM to work in partnership to deliver the Dubbo Project with significant benefits to both Korea and Australia put us in a great position as we continue discussions with Korean financial institutions to fund the development of Dubbo.

What is the Dubbo Project?

According to the Australian Strategic Materials website, the Dubbo Project is a wholly-owned “large in-ground polymetallic resource of rare earths, zirconium, niobium, hafnium, tantalum and yttrium”.

Australian Strategic Materials “intends to develop the Dubbo Project to supply globally significant quantities of zirconium and rare earth materials, as well as contribute to the niobium and emerging hafnium industries.

“These materials are in high demand for a range of existing and future technologies – in particular clean energy and transportation.”

About the Australian Strategic Materials share price

Over the past 12 months, the Australian Strategic Materials share price has rocketed by 50% in value. However, when looking at the year to date, its shares are down 30%.

Australian Strategic Materials commands a market capitalisation of roughly $1 billion.

The post Australian Strategic Materials (ASX:ASM) share price surges 9% on Hyundai deal appeared first on The Motley Fool Australia.

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

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The Westpac Banking Corp (ASX: WBC) share price fell today amid news the company plans to cut jobs within its marketing department.

At the close, Westpac shares were swapping hands at $22.83, down 1.3%. For perspective, the S&P/ASX 200 Index (ASX: XJO) finished up 0.1%.

Let’s take a look at what is happening at this major ASX bank share.

Job cuts at Westpac

Westpac is planning to cut 20% of roles in the company’s marketing department, The Australian reported.

Ninety jobs will reportedly be impacted, with 65 directly cut and 25 phased out gradually via natural attrition.

Earlier this month, Westpac announced a corporate shake-up of its structure and executive. This is a key part of a wider Westpac plan announced in 2021 to reduce the bank’s cost base to $8 billion by 2024.

Chief brand and marketing officer Annabel Fribence, who joined Westpac in November, told The Australian:

We are consulting with our people on these changes and will support affected employees throughout this process, including with redeployment opportunities.

The marketing department cuts are designed to lessen costs, while it will also reduce doubling up between Westpac and its regional brands.

Morgans recently rated the Westpac share price as a “buy”. As my Foolish colleague James reported, the analyst believes the Westpac shares are cheap at the current level, with the potential to provide a generous yield for investors.

Morgans is forecasting Westpac will return a fully franked dividend of $1.19 per share in FY22, with this increasing to $1.60 in FY23

Westpac share price snapshot

The Westpac share price has surged 10% in the past month, but it has descended almost 3% in the past week.

In the last 52 weeks, it has fallen 6%, while it is up almost 7% year to date. In contrast, the S&P/ASX 200 Index (ASX: XJO) has climbed 2.3% over the past 12 months.

Westpac has a market capitalisation of about $80 billion.

The post Own Westpac (ASX:WBC) shares? Here’s the latest on the bank’s cost-cutting crusade appeared first on The Motley Fool Australia.

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• The Westpac (ASX:WBC) share price has gained less than $4 in 10 years. Have the dividends been worth it?
• The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks?
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• This expert says the Westpac (ASX:WBC) share price has 25% upside

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 Westpac Banking Corporation. 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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