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The Link Administration Holdings Ltd (ASX: LNK) share price is sliding in opening trade on Thursday.

This follows the release of the superannuation fund’s FY21 annual financial report earlier this morning.

Just after the market open, the Link share price is down 4.5% trading at $4.91.

Link share price sinks on revenue and net tangible assets drop

Highlights of the company’s FY21 results include:

• Revenue of $1.16 billion down 6% year on year from $1.23 billion
• After tax net loss of $163 million, versus a loss of $102.5 million the year prior
• Operating EBIT down 21% from FY20 at $141 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) of $208 million, a 16% decrease year on year
• Operating net profit after tax and amortisation (NPATA) of $113 million, down 18% on the previous year
• Fully franked dividend of 5.5 cents per share, paid on 20 October 2021.

What happened in FY21 for Link?

The Link share price is in focus today as the company recognised a 6% drop in its revenue from FY20.

Link also saw headwinds across the park in its FY21 results, with a 21% decrease to earnings before interest and tax (EBIT) and a net loss that blew out to $163 million, compared to $102.5 million a year ago.

As such, EBITDA of $208 million came in 16% behind the same time last year, even though amortisation increased by 11% to about $47 million. Link advised that this came from the “prior year’s acquisitions reaching the end of their useful lives in FY20 and FY21”.

The net loss was underscored by lower operating income and a “higher income tax expense”. Link also recorded an 8% decrease in net operating cash flow to $293 million.

In addition, recurring revenue in its retirement and superannuation solutions business, which accounts for almost 90% of this segment’s sales, was down $4.5 million on the year.

This was compounded by the fact that non-recurring revenue (which makes up the remainder of sales in this part of Link’s business) also came in 10.4% behind FY20.

Link left the quarter with $395 million in cash, an almost 50% gain from the year prior. The company said this was due to the “$200 million of cash proceeds received… as a partial repayment of PEXA shareholder loans” prior to the PEXA initial public offering (IPO) on 1 July 2021.

Under this IPO, Link received $180 million in cash and retained a 42.8% equity interest in PEXA. In addition, PEXA contributed about $33 million to “Link Group’s operating NPATA in FY21”.

In addition, Link declared a 5.5 cents per share dividend in its FY21 annual report. This brings the total dividends for FY21 to 10 cents per share, on par with the previous year.

Finally, the company also started the transition of Vivek Bhatia as the new Group managing director and CEO in FY21.

What did management say?

Link’s new managing director and CEO Vivek Bhatia said:

With the repositioning and resetting of the business underway, Link Group is well placed to return to medium-term growth. The markets we operate in have attractive macro fundamentals and our proprietary technology platforms and experienced people capabilities are supporting an increasing number of large clients.

Moving to FY22, Bhatia said:

Our focus for FY22 is to further our Simplify, Deliver and Grow strategy by progressing the global transformation program and enabling reinvestment in key technology and people initiatives.

This investment, together with continued positive markets and the benefits of the global transformation
program, is expected to underpin an increased growth in revenues and a return to earnings growth in FY23 and beyond.

What’s next for Link Administration?

Link Group expects “low single-digit” revenue growth in FY22 and that operating EBIT will be “broadly in line” with FY21.

The company also expects to achieve $75 million in gross annualised savings from the completion of its global transformation program next year.

Moving beyond FY22, the group expects to “deliver stronger revenue growth” in FY23 versus the year prior.

Growth in operating EBIT is expected to resume in FY23 as the company completes this global transformation program.

The Link Administration share price has had a choppy year to date, posting a loss of 7.2% since January 1. Despite this, Link shares are up 17% over the last 12 months.

These returns have both lagged the S&P/ASX 200 index (ASX: XJO)’s return of about 25% over the past year.

The post Link (ASX:LNK) share price down as revenue slides 6% in FY21 appeared first on The Motley Fool Australia.

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• Appen (ASX:APX) share price tanks after 55% profit fall
• The Wesfarmers (ASX:WES) share price fell 10% last time the company reported
• Qantas (ASX:QAN) share price on watch following $2.35 billion pre-tax loss

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration 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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The Appen Ltd (ASX: APX) share price has dropped by more than 17% in early trading on Thursday.

This follows the annotated dataset provider releasing its FY21 first-half results this morning.

Appen share price slides after reporting steep earnings fall

• Group revenue down 2% to US$196.6 million
• Annual contract value increased 16% to US$119.6 million
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) down 14.3% to US$27.7 million
• Interim dividend of AUD4.5 cents per share 50% franked declared, flat on 1H20 dividend.
• Net profit after tax down 55.1% to US$6.7 million
• Appen to acquire location data provider Quandrant for US$25 million upfront
• Outlook: higher confidence in the pipeline supported by a stronger order book

What happened in FY21 for Appen

Investors seem to be squeamish this morning after the company dished out its half-year result.

The significant reduction in profits will no doubt be a point of interest for shareholders as Appen continues to navigate a challenging environment. In addition to this, ongoing regulatory scrutiny and a changing privacy landscape were mentioned as impactful factors.

According to its release, Appen recorded group revenue of US$196.6 million in 1H21 — representing a 2% reduction compared to 1H20. The company noted this was expected with its project delivery skewed to the second half of the year.

Additionally, global services revenue was impacted during the period as global customers allocated resources to new and non-advertising related projects.

However, Appen reported further growth from its new markets revenue segment. In 1H21, new markets revenue jumped 31.5% to US$47.8 million as the business pushes forward with its new ‘product led’ approach. As a result, new markets now make up 24% of total revenue.

Moving towards the bottom line, underlying profits were down 35% following the realisation of increased amortisation expenses associated with investment in product development.

Despite the weaker earnings result, Appen declared an interim dividend of 4.5 cents per share — in line with the previous year. Based on the current Appen share price, the interim dividend alone presents a yield of 0.32%.

Acquisition

In addition to its half-year result, Appen also announced the acquisition of location data provider Quadrant today. This acquisition is slated to expand the company’s capabilities and product offering in the global location intelligence market.

Quadrant was founded in 2014 and provides location data services to enterprise customers to perform location analytics. Similar to Appen’s core products, Quadrant’s Geolancer provides point-of-interest data that is manually verified by crowdsourced workers.

Moreover, Appen plans to acquire 100% of Quadrant with an upfront cash consideration of US$25 million. An additional US$20 million payment in Appen shares will be conditional on revenue milestones in 2022 and 2023.

What did management say?

With the Appen share price in focus, Appen Chief Executive Officer Mark Brayan said:

As expected, our first half results were impacted by our global technology customers’ focus on new AI products and applications, as they broaden their revenue base outside of digital advertising and respond to data privacy changes. This resulted in lower ad-related services revenue, but higher product revenue as Global customers used our market-leading annotation platform and tools for new AI use cases.

Additionally, regarding the company’s acquisition of Quadrant, Mr Brayan said:

The acquisition of Quadrant enables Appen to increase our addressable market and to expand our product and service offering to our customers to include more mobile location and POI data capabilities.

We already have the broadest AI training data offering in the industry, and we see an opportunity to grow in the mobile location and POI data space. With Quadrant’s Geolancer and our global crowd, we will be strongly positioned to serve our customers’ scale, speed and quality requirements.

What’s next for Appen?

Looking ahead, Appen reduced its full-year underlying EBITDA guidance due to the impact of the Quadrant acquisition. Specifically, the market expansion is expected to reduce its EBITDA range by US$2 million to between US$81 million and US$88 million.

Additionally, year-to-date revenue plus orders in hand for delivery in FY21 is now roughly US$360 million. This represents a 10% increase on the August 2020 guidance.

Overall, Appen anticipates full-year revenue growth for global services to be mid to high single digits. Meanwhile, new markets revenue is expected to be circa 25%.

Appen share price snapshot

It has been a disappointing 12 months for the Appen share price. Over the period, shares in the dataset provider have dropped 68%.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has gained 23%. Multiple downgrades to guidance shifted investor sentiment during the year.

The post Appen (ASX:APX) share price tanks after 55% profit fall appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns shares of Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen 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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The Wesfarmers Ltd (ASX: WES) share price has surged 25% higher since the beginning of the year. This comes as the retail conglomerate has experienced improved trading conditions despite COVID-19 challenges.

At Wednesday’s market close, Wesfarmers shares finished the day at $63.22. It’s worth noting its shares reached a new all-time high of $67.20 last week before pulling back.

What happened to Wesfarmers shares last earnings season?

During the time when Wesfarmers reported its half-year results for FY21, its shares plummeted 10% within a matter of days. This came as investors appeared initially concerned about the company’s second-half expectations.

However, the share price quickly rebounded in the following month, with the company touching new all-time highs thereafter.

Looking back at the results, Wesfarmers delivered revenue of $17,774 million, a 16.6% increase over the prior corresponding period. This came on the back of strong earnings from Bunnings, Kmart Group, and its chemicals, energy and fertilisers businesses.

Wesfarmers achieved earnings, before interest and tax (EBIT) of $2,137 million, up 23.2% compared to H1 FY20.

On the bottom line, the group posted a net profit after tax of $1,390 million, a 23.3% improvement.

Wesfarmers’ Managing Director Rob Scott said:

Bunnings, Kmart Group and Officeworks delivered strong trading results for the half, reflecting their ability to adapt to changing customer preferences and provide a safe environment for customers and team members.

In line with Wesfarmers’ objective of delivering superior and sustainable long-term returns, the retail divisions continued to invest in building deeper customer relationships and trust by providing greater value, service and convenience for customers during a period in which many Australian households faced significant challenges and uncertainty.

Is the Wesfarmers share price a buy?

A recent broker note released by Swiss investment firm UBS initiated Wesfarmers shares with a neutral rating at $62.00. Macquarie, on the other hand, raised its price target by 9.2% to $63.45.

Based on the current Wesfarmers share price, this is in line with both broker estimates.

Wesfarmers commands a market capitalisation of roughly $71.6 billion, with more than 1.1 billion shares on its books.

The post The Wesfarmers (ASX:WES) share price fell 10% last time the company reported 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 owns shares of and has recommended Wesfarmers 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 Qantas Airways Limited (ASX: QAN) share price is in focus this morning after the company released its earnings for the 2021 financial year (FY21).

The Qantas share price finished yesterday’s session trading at $4.87 after climbing 5.41% for the day.

Qantas share price in focus on massive loss

Investors will be keeping an eye on the Qantas share price when trading resumes on Thursday after the airline released the following key performance results for FY21:

• Statutory loss before tax of $2.35 billion.
• $12 billion revenue impact from the COVID-19 crisis in FY21.
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) was $410 million. That’s in line with Qantas’ guidance.
•  $5.93 billion of revenue.
• Operating cash flows came to an outflow of $386 million.

Qantas’ underlying loss before tax, which didn’t include one-off costs such as redundancies and aircraft write-downs, was $1.83 billion.

Additionally, its statutory loss after tax came to $1.72 billion.

Combined, Qantas and Jetstar’s underlying EBITDA from domestic travel was $304 million. Excluding non-cash depreciation and amortisation, the two airlines’ earnings before interest and tax (EBIT) came to a loss of $669 million.  

Qantas’ international segment, including freight, posted an underlying EBITDA loss of $157 million. When removing non-cash depreciation and amortisation from the equation, its international leg’s EBIT reached a $1 billion loss.

However, due to the trans-Tasman bubble, Qantas’ international capacity reached around 40% of its pre-COVID-19 levels in the fourth quarter. That was before Greater Sydney entered lockdown.

Qantas received $3.76 billion of revenue from passengers over FY21. It also brought in $1.31 billion from freight services.

Jetstar saw $1.14 billion of revenue and ended the period with an EBIT loss of $129 million.

Qantas Loyalty generated $1 billion of income for the airline. Its underlying EBIT was $272 million.

The airline’s net capital expenditure for FY21 was $693 million, which mostly went towards maintaining its fleet.

Qantas ended the period with $2.2 billion of cash and cash equivalents and $5.9 billion of debt.

What happened in FY21 for Qantas?

Here’s some of what impacted the Qantas share price in FY21:

The capacity of Qantas’ domestic flights fell to as low as 19% in July 2020 and peaked at 92% in May 2021.

In May, demand for corporate travel had increased to 75% of what it was before COVID-19.

Qantas states it saw bookings increasing whenever Australia’s domestic borders reopened.

It also introduced 46 news routes throughout the pandemic.

95% of the group’s domestic flights ended up cash positive and Qantas Freight offset some of its international segment’s losses. Qantas said Australians’ love of online shopping bolstered its bottom line in FY21.

The company’s restructuring program, a part of its recovery program, is ahead of target. It delivered $650 million of cost benefits in its first year.

Qantas has also operated nearly 400 repatriation flights since the start of the pandemic, as well as maintaining links to the Pacific and Timor-Leste on behalf of the Australian Government. These flights are continuing into FY22.

It also put out an expression of interest to sell up to 14 hectares of land in Mascot.

Finally, Qantas Frequent Flyers have helped negate some of the airline’s losses. The loyalty program saw nearly 200,000 new members in FY21. Members also redeemed large numbers of points while grounded. Qantas saw a record number of points go towards Qantas Wine and the Qantas Store. And when borders were open, Frequent Flyers’ demand increased exponentially. Between January and lockdowns in June, redemption levels on domestic flights were 30% above pre-COVID levels.

To help its customers through the pandemic, Qantas extended its Frequent Flyers status expiration dates, offered unlimited date changes on all Qantas domestic and international fares through to at least February 2022, and supported the national COVID-19 vaccine rollout.  

Qantas employee struggles

Over FY21, Qantas employees faced a tough slog of stand-downs.

Qantas states that a total of 9,400 staff members have now left the airline. That’s 900 more than Qantas previously estimated.

Around 6,000 of its employees who normally work on the airlines’ international legs have been stood down, while another 2,500 have been stood down due to domestic restrictions.

The Federal Government has provided all Qantas Australian-based employees who have been stood down with income support.

Of the company’s restructuring program cost-saving initiatives, $297 million came from “people restructuring costs”.

What did management say?

Qantas CEO, Alan Joyce, commented on the results:

This loss shows the impact that a full year of closed international borders and more than 330 days of domestic travel restrictions had on the national carrier. The trading conditions have frankly been diabolical.

It comes on top of the significant loss we reported last year and the travel restrictions we’ve seen in the past few months. By the end of this calendar year, it’s likely COVID will cost us more than $20 billion in revenue…

Despite the uncertainty that’s still in front of us, we’re in a far better position to manage it than this time last year. We’re able to move quickly when borders open and close. We’re a leaner and more efficient organisation. And our requirement for all employees to be vaccinated will create a safer environment for our people and customers.

What’s next for Qantas?

Qantas today released a detailed plan of its pathway back to international travel.

The airline expects Australia to reach key vaccination targets by the end of 2021, resulting in increased domestic demand.

It expects international travel to begin again in December 2021, with destinations having achieved high vaccination rates to be its initial focus. These include North America, the United Kingdom, Singapore, and Japan. Qantas is organising for the return of five A380s to meet the demand to Los Angeles and London from mid-2022.

Flights to New Zealand will be on sale from mid-December. Flights to Hong Kong are expected to restart in February, with the rest of the Qantas and Jetstar international network expected to open from April 2022.

The airline believes it is in a better spot to deal with FY22 than it was at the start of FY21.

Qantas’ COVID recovery plan aims to deliver permanent annual savings of at least $1 billion from FY23.

After delivering $650 million in benefits in FY21, the airline hopes to deliver another $200 million of cost benefits by the end of FY22.

Australia’s current COVID-19 outbreaks are expected to have a $1.4 billion impact on Qantas’ underlying EBITDA for the first half of FY22.

That estimate assumes borders in Victoria and New South Wales will re-open in early December.

Qantas expects its net debt to be in its target range by the end of FY22. Its capacity is expected to increase from 38% of pre-COVID-19 levels in the first quarter of FY22 to 53% in the second, and rise to around 110% in the second half of FY22.

Qantas’ international flights are expected to be at 15% of pre-COVID levels in the first half of FY22. They are expected to be between 30% and 40% by the third quarter, and 50% to 70% in the fourth.  

Qantas share price snapshot

The Qantas share price has slipped 0.8% year to date. However, it is 28% higher than it was this time last year.

The post Qantas (ASX:QAN) share price on watch following $2.35 billion pre-tax loss 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 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 Ramsay Health Care Limited (ASX: RHC) share price could be on the move today.

This follows the release of the private hospital operator’s full year results.

Ramsay share price on watch after strong profit growth

• Revenue increased 3.9% to $12,435.5 million
• Earnings before interest and tax (EBIT) lifted 29.1% to $1,132.6 million
• Statutory profit jumped 58.1% to $449 million
• Earnings per share up 47.6% to 192.6 cents
• Free cash flow down 14.8% to $852.3 million
• Fully franked final dividend of 103 cents per share, bringing full year dividend to 151.5 cents (up 142% year on year)

What happened in FY 2021 for Ramsay?

For the 12 months ended 30 June, Ramsay reported a 3.9% increase in revenue to $12,435.5 million. This reflects a 7.8% increase in Asia Pacific revenue, a 6.9% lift in European revenue, and a 21.3% reduction in UK revenue. Some of the latter’s decline was offset by revenue from government agreements. This includes payments for the use of its facilities and services to assist with COVID outbreaks. Ramsay also received payments in some regions for the additional costs associated with operating in a COVID environment.

Things were even better for Ramsay’s earnings, which could bode well for the Ramsay share price today. The company reported a 29.1% increase in EBIT to $1,132.6 million thanks to strong earnings growth across all three of its geographic segments. This was broadly in line with the market’s expectations. For example, Goldman Sachs was forecasting EBIT of $1,137.9 million.

Ramsay’s EBIT was driven by Asia-Pacific EBIT increasing 18.9% to $636 million, European EBIT jumping 38.3% to $403.8 million, and UK EBIT surging 83.4% to $92.8 million in FY 2021.

In light of this profit growth and strong balance sheet, the Ramsay Board declared a fully franked final dividend of 103 cents per share. This brings its full year dividend to 151.5 cents, which is up 142% year on year.

What did management say?

Ramsay’s CEO & Managing Director, Craig McNally, commented: “Our FY21 financial report is a solid result given the ongoing disruption to the business caused by the pandemic which saw significant restrictions placed on elective surgery and drove a material reduction in demand for non-surgical services.”

“We have worked closely with governments across our regions to relieve pressure on the public hospital and aged care systems. As all our regions emerged from the lock-downs in 4QFY21 we started to benefit from the pent up demand for private healthcare services and we believe we are in a strong position to assist with addressing the public backlog of elective surgeries moving forward. The recovery in volumes has however been disrupted by further lock-downs. Lifting vaccination rates will be the key to the recovery,” he added.

Mr McNally also spoke a little about the big dividend increase in FY 2021.

He said: “The higher than normal dividend payout ratio this year reflects our strong cashflow and financial position allowing the full year dividend to be restored to the FY19 level. The Board recognises shareholder support during what has been the most challenging 18 months in the Company’s history.”

What’s next for Ramsay in FY 2022?

No guidance has been provided for FY 2022 due to the uncertainty it is facing because of COVID-19.

However, it has provided some details on what to expect in the new financial year. This includes the lockdowns in Australia, which negatively impacted its Australian EBIT by $13 million in July.

Another piece of information that could weigh on the Ramsay share price is the surgical restrictions that came into place this week at seven hospitals in Greater Sydney. By way of reference, the estimated EBIT impact of an approximately 90-day restriction on elective surgeries in Victoria in 2020 was $70 million. However, Ramsay’s business in NSW is approximately twice the size of its Victorian business.

Commenting on the year ahead, Mr McNally said: “Our FY22 results will be largely dictated by the effectiveness of global vaccination programs in reducing the number and severity of COVID cases around the world, reducing COVID hospitalisation rates, improving both doctors and the general publics’ confidence in returning to health care settings and allowing the private hospital sector to operate without capacity restrictions.”

“The UK and European businesses have started FY22 on positive trajectories after emerging from long and restrictive lock-downs, although both businesses continue to be impacted by issues associated with the COVID environment. The Australian and Asian businesses will continue to be impacted by lock-downs in 1HFY22 until vaccination rates progressively improve.”

While the near term will be tough, Ramsay’s CEO is positive on the company’s medium term prospects.

“We remain well positioned for strong growth over the medium term addressing the backlog in demand for healthcare services in both the public and private systems and we will continue to support the public health sector where required in the fight against COVID,” he concluded.

Ramsay share price performance

The Ramsay share price has been a bit of a mixed performer in 2021. Although its shares are up a decent 6.3% year to date, they trail the ASX 200 with its gain of 12.7%.

The post Ramsay (ASX:RHC) share price on watch after strong FY 2021 profit growth but cautious outlook appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care 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 Woolworths Group Ltd (ASX: WOW) share price will be in the spotlight on Thursday after the release of the supermarket giant’s FY21 full year results.

Woolworths share price on watch after ‘transformative year’

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

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

What happened to Woolworths in FY21?

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

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

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

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

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

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

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

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

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

Management commentary

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

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

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

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

What’s next for Woolworths?

Woolworths was unable to provide any guidance for FY22 earnings.

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

Investors will receive this dividend on Friday, 8 October.

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

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

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

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

How did CSL shares react this earnings season?

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

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

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

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

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

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

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

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

CSL share price summary

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

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

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

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

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

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

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

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

Pointsbet share price doubles on FY20 report

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

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

Highlights from the company’s FY20 report included;

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

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

How is Pointsbet faring in 2021?

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

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

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

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

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

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

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

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

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

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

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

Pointsbet is scheduled to release its results for FY21 tomorrow.

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

The post The Pointsbet (ASX:PBH) share price rocketed 115% last time the company reported appeared first on The Motley Fool Australia.

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

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Share prices are always changing. Sometimes businesses look good value and sometimes they don’t. There are a few great ASX shares that may be worth considering.

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

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

Pushpay Holdings Ltd (ASX: PPH)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Flight Centre share price on watch after $364 million loss

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

What happened in FY 2021 for Flight Centre?

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

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

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

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

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

What did management say?

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

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

What’s next for Flight Centre in FY 2022?

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

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

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

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

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

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

Flight Centre share price performance

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

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

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

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