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The MyDeal.com.au Ltd (ASX: MYD) share price is falling after the company released its financial year 2021 (FY21) earnings.

Right now, the MyDeal share price is 79.5 cents, 5.36% lower than its previous closing price.

MyDeal.com.au share price slumps on 1,700% drop in profit

Here’s how the online retail store performed during FY21:

• $38.2 million of revenue – 144% more than that of FY20
• Loss of $5.8 million after tax ­– a 1,700% drop from FY20’s $331,632 profit
• Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a loss of $4 million
• Net cash flow from operations was an outflow of $3.9 million
• No dividend

While the company’s FY21 results were pretty lacklustre, it wasn’t all bad for MyDeal.com.au.

The company reported record gross sales of $218.1 million. It also reported its net transaction value was $204.6 million, up from $94.0 million in FY20. Additionally, its FY21 gross profit was $33.3 million, 119% more than that of FY20.

Mydeal stated its EBITDA loss was mainly driven by its increased spending on advertising and promotional activity, which is expected to support its goal of increasing customer acquisitions and investment into its private label business.

It invested $4.9 million into its private label’s inventory in FY21. The private label contributed $8.8 million to the company’s gross sales.

Before its private label inventory investment, MyDeal’s operating cash flow was $1 million.

The company ended the period with $42.7 million cash and no borrowings.

What happened in FY21 for MyDeal.com.au?

FY21 was a big year for MyDeal and its share price with a corporate restructure in September and the company’s debut on the ASX in October.

MyDeal raised $40 million through its initial public offering (IPO).

The company reported that the number of active customers increased 83% year-on-year over FY21. It ended the period with 894,225 active customers.

Repeat business also grew, with 59.4% of transactions in the fourth quarter coming from returning customers.

Customers now shop with MyDeal an average of 1.7 times per year, up from 1.5 times in FY20.

Finally, the MyDeal app represented around 10% of the company’s sales over FY21. It launched in May 2021.

What did management say?

Commenting on the results, MyDeal.com.au founder & CEO Sean Senvirtne said:

FY21 represents a significant moment in MyDeal’s history, a record 10 years in the making and just the beginning of what’s to come… We have put ourselves in the perfect position to capture the increased demand in the market.

Now with over 1,100 active sellers, 6+ million products and a private label business on a steep incline, we continue to entrench ourselves as one of Australia’s prominent online retail marketplaces for home and lifestyle products.

Senvirtne said MyDeal continued to scale by leveraging its proprietary technology across sellers, products and sales and “continuously refining the user experience”.

We invest in efficient customer acquisition and retention strategies to accelerate active customer growth, while attracting marketplace sellers and investing in our private label offering to expand our range of products across in-demand categories.

Promoting and further optimising the app will remain a key feature of our strategy going forward.

What’s next for MyDeal.com.au?

Here’s what might drive the MyDeal share price in FY22:

While MyDeal didn’t provide guidance for FY22, the company pledged to provide regular business updates.

It stated FY22 was off to a good start and noted its soon-to-launch multi-channel brand and advertising campaigns.

MyDeal said it would keep focusing on customer acquisition and its private label business in FY22.

MyDeal share price snapshot

The MyDeal share price has slipped 54% since its first close on the ASX. It is also currently 20.5% lower than its prospectus’ offer price of $1 per share.

The post Mydeal.com.au (ASX:MYD) share price slides 5% on $5.8 million loss appeared first on The Motley Fool Australia.

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• ASX 200 midday update: WiseTech rockets, Afterpay & Zip report
• Lovisa (ASX:LOV) share price leaps 18% higher on FY21 profit boost
• SkyCity (ASX:SKC) share price climbs despite 33% FY21 profit drop
• Why the AMP (ASX:AMP) share price has significantly underperformed the ASX 200 in the last year
• Macquarie Telecom (ASX:MAQ) share price lower on seventh year of EBITDA growth

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 Lovisa Holdings Ltd (ASX: LOV) share price is leaping higher today, up 18.19% at the time of writing to $19.40 per share.

This comes following the release of the ASX jewellery retailer’s financial results for the year ending 30 June (FY21).

Lovisa share price leaps on FY21 profit results

• Revenue of $288 million, up 18.9% from FY20
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 34.6% year on year to $60.2 million
• Net profit after tax (NPAT) of $27.7 million, up 43.3% from the $19.3 million reported in FY20
• Net cash of $35.6 million, up from $20.4 million in FY20
• Declared a final dividend of 18 cents per share (cps); no final dividend was paid in FY20

What happened during the reporting period for Lovisa?

Like most ASX retailers, Lovisa reports that it was “heavily impacted” in the first quarter of the financial year by COVID-19 restrictions. It pointed to store closures in Victoria and weakness in most of its global markets as hampering operations in Q1.

Things turned around in the second quarter with Lovisa’s Victorian stores reopening and “most other markets showing improved performance.” This led to positive comparable store sales through the second quarter. However, more closures later in the year, particularly in the United Kingdom, continued to impact operations.

COVID also slowed sales in its Asian markets, with tourism numbers way down. And it added to costs, with “significantly higher freight costs due to COVID surcharges on freight rates.”

The company’s beeline acquisition (of a European retail store network) in November aided its cash flow position. It benefitted from the receipt of 11.8 million euro cash as part of the acquisition.

During the financial year, Lovisa opened 22 stores in its existing markets and 87 stores in Europe as part of its beeline acquisition. That brings the total number of stores to 544.

The final dividend lifts the full-year dividend payout to 38 cps.

What did management say?

Lovisa managing director Shane Fallscheer commented on the results:

We are pleased with the performance of the business for the year, in particular with the sales performance we saw across most markets since the end of Q1FY21 with solid trading despite the continued global challenges we face with the impact of COVID.

The strength of our balance sheet and the current global footprint puts us in a great position to take advantage of future opportunities as they arise.

What’s next for the Lovisa share price?

Lovisa said it will continue to focus on expanding its physical and digital store networks.

With the resurgent pandemic, it cautions that “logistics capacity challenges” will hinder bricks and mortar store openings.

Management did not provide guidance on future dividend levels. It said “profitability, cash flows, and future growth capex requirements” will determine this. The company said that due to the uncertain outlook for the global economy, it could not provide further guidance.

The Lovisa share price is up 150% over the past 12 months.

The post Lovisa (ASX:LOV) share price leaps 18% higher on FY21 profit boost appeared first on The Motley Fool Australia.

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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 SkyCity Entertainment Group Limited (ASX: SKC) share price is on the rise in lunchtime trade on Wednesday.

This follows the gaming and entertainment company releasing its FY21 annual report. At the time of writing, SkyCity shares are up 3.34% to $3.09.

SkyCity share price gains despite earnings hit

Here are the highlights from the Group’s results:

• Revenue down 15.4% to $951.9 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 8.9% to $317.3 million
• Reported net profit after tax dropped 33.7% to $156.1 million from FY20
• Earnings per share (EPS) down 41.7% to 20.6 cents per share
• FY21 dividend of 7 cents per share, down from 10 cents per share in FY20

What happened in FY21 for SkyCity

The SkyCity share price is moving higher on Wednesday after releasing its annual report. Fair warning to any investors planning to peruse its document, it is spread across two parts with a total of 291 pages. As such, it is probably fair to say it is not exactly ‘light reading’.

The report shows it was certainly a challenging financial year for the company. Throughout FY2021, SkyCity suffered impacts from restrictions due to the pandemic.

This resulted in the temporary closure of SkyCity Auckland and SkyCity Adelaide. However, conditions improved enough for the company to declare a final dividend payment after having suspended its dividends from FY20.

According to the release, SkyCity pulled in $951.9 million in revenue during the year — representing a 15.4% reduction from FY20.

It appears investors had braced for poorer performance during the period, with the SkyCity share price rising today.

The extent of impacts from closures and the New Zealand International Convention Centre fire are demonstrated by the company’s normalised results.

For example, on a normalised basis, SkyCity reported a 36.3% increase to its earnings after adjustments. This compares to a 33.7% fall in earnings without accounting for adjustments.

Furthermore, the board advised it intends to progressively increase dividends over time as earnings grow.

What did management say?

Commenting on the result, the Chair and CEO, Rob Campbell and Michael Ahearne, said:

Despite the ongoing disruption and volatility, SkyCity has maintained a strong financial position over the period, delivered credible operating performance when open and protected the health and wellbeing of our people.

Critically, the SkyCity Board and management team recognise the importance of protecting our casino licences and enhancing our social licence to operate. Moreover, maintaining a strong balance sheet, meeting the interests of all stakeholders and keeping a disciplined allocation of capital to provide appropriate risk-adjusted returns to shareholders over the long term remain key priorities.

Additionally, regarding the company’s outlook, management said:

In terms of outlook for FY22, given the current unpredictable operating environment and uncertain near-term outlook due to COVID-19, SkyCity is unable to provide detailed earnings guidance at this time, but this will remain under regular review. Our performance over the next year will be underpinned by the ongoing recovery of local gaming, optimising SkyCity Adelaide post-expansion and robust cost control across all activities

What’s next for SkyCity?

As stated by management, SkyCity has not provided guidance for the year ahead due to the pandemic. However, the results discussed the outlook more broadly.

The New Zealand gaming businesses are expected to perform well once there are no restrictions. Meanwhile, businesses with exposure to tourism are expected to experience an ongoing impact.

Furthermore, SkyCity committed to a 60% to 90% payout policy for dividends.

SkyCity share price snapshot

Despite the challenging environment, the SkyCity share price has performed strongly in the past year. At the time of writing, shares have gained 33% over the past 12 months. For context, the S&P/ASX 200 Index (ASX: XJO) gained 22%.

As a result of its solid share price performance, SkyCity now holds a market capitalisation of $2.34 billion.

The post SkyCity (ASX:SKC) share price climbs despite 33% FY21 profit drop appeared first on The Motley Fool Australia.

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• Lovisa (ASX:LOV) share price leaps 18% higher on FY21 profit boost
• Why the AMP (ASX:AMP) share price has significantly underperformed the ASX 200 in the last year
• Macquarie Telecom (ASX:MAQ) share price lower on seventh year of EBITDA growth
• Wisetech (ASX:WTC) share price soars 23% as profit doubles in FY21
• Zip (ASX:Z1P) share price sinks despite 150% increase in revenue

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 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 AMP Ltd (ASX: AMP) share price has continued to head south over the past 12 months. This comes as the financial services company came under pressure over a series of negative updates.

At the time of writing, AMP shares are fetching for $1.105, up 1.84%. It’s worth noting that the company’s share price is nearing its all-time low of $1.04 reached on 30 July.

What’s happened to AMP recently?

2021 has been a time to forget for AMP shareholders, watching their wealth dwindle to record lows. The company’s share price has been hit heavily, despite the company reporting a rebound in its full-year results this month.

AMP achieved a Net Profit After Tax (NPAT) of $181 million, up 57% on the prior corresponding period. This was largely driven by an increase in Australian wealth management assets under management (AUM) of $121 billion, up 8%.

However, in a positive light, Australian wealth management net cash outflows hit $2.7 billion. A massive improvement compared to the $4 billion in net cash outflows registered in H1 FY20.

Nonetheless, the AMP share price has been trading at near basement prices since ASIC commenced proceedings against the company in May.

According to ASIC, AMP wilfully deducted life insurance premium and advise service fees from superannuation accounts of deceased customers.

The company stated that action has since been taken to correct the error. It has been conducting a thorough review of its policies and processes. The matter was later covered in the financial services royal commission.

How does the AMP share price compare to the ASX 200?

Over the last 12 months, the AMP share price has fallen more than 25%, with year-to-date also down around 30%. The company’s shares have lost about 80% of its wealth since early 2018, reflecting negative investor sentiment.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has gained 22% from this time last year and is up 14% year-to-date. The ASX 200 also reached a record high of 7,632 points in mid-August.

Undoubtedly, AMP shares and the ASX 200 have moved in completely opposite directions.

Based on today’s price, AMP presides a market capitalisation of roughly $3.5 billion, with approximately 3.2 billion shares on issue.

The post Why the AMP (ASX:AMP) share price has significantly underperformed the ASX 200 in the last year 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 Macquarie Telecom Group Ltd (ASX: MAQ) share price has opened lower on Wednesday after the company released its FY21 full-year results.

Macquarie Telecom share price lower despite continued track record of growth

Macquarie Telecom was pleased to announce its seventh consecutive year of EBITDA growth and in line with guidance. Key highlights for FY21 include:

• Revenue increased 7.1% to $266.2 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 13% to $73.8 million
• Net profit after tax (NPAT) decrease 7.4% to $12.5 million
• Capital expenditure of $139.1 million (FY20: $64.1 million)

What happened to Macquarie Telecom in FY21?

The Macquarie Telecom share price has surged 40% since mid-July. This major rerate came about on 14 July, when the company announced plans to build a new data centre at Macquarie Park Data Centre Campus.

The company said that the new data centre will be called “IC3 Super West” and will be the largest data centre on the campus.

IC3 Super West will add 32MW of IT load to bring the total campus IT Load to 50MW over time. It is designed to seamlessly interconnect with its IC3 East asset.

According to today’s results, the company’s state significant development application is expected to shorten the planning cycle, likely to run until early 2022.

Macquarie Telecom said that construction and funding remain subject to final board approvals.

In terms of financial performance, Macquarie Telecom delivered a 7.1% increase in revenue, underpinned by strong growth in cloud services & government and data centre divisions.

The company’s 7.4% decline in NPAT reflects the increase in depreciation and amortisation as a result of increased levels of capital expenditure in FY20 and FY21.

Management commentary

Macquarie Telecom chief executive David Tudehope commented on the company’s strong track record of growth, saying:

The 2021 full year results delivered the seventh consecutive year of EBITDA growth underpinned by our strategy of investing in Data Centres, Cloud & Cyber Security, including the recent announcement of our new IC3 Super West development, which will provide significant customer growth opportunities in the future.

In addition, Tudehope said that the company will increase investments in cyber security to meet rising demand.

We have decided to increase our investments in Cyber Security, people and technology, to benefit from the increasing demand for business and government to uplift their security defences.

What’s next for Macquarie Telecom?

Looking ahead, Macquarie Telecom expects EBITDA to continue to grow in FY22, underpinned by investments made in data centres as well as cloud services and government.

The company said it will continue to develop public cloud capability to enhance its current hybrid cloud offering.

This is in addition to “making significant investments in FY22” to realise the strong demand for cyber security in its government and cloud services business.

Macquarie Telecom share price snapshot

At the time of writing, the Macquarie Telecom share price is down 1.53%, trading at $74.85 a share. However, it’s enjoyed a good run so far in 2021, increasing 43% year to date and up almost 63% over the last 12 months.

The company has a market capitalisation of $1.6 billion.

The post Macquarie Telecom (ASX:MAQ) share price lower on seventh year of EBITDA growth 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 Wisetech Global Ltd (ASX: WTC) share price has jumped out of the starting blocks in early trade on Wednesday.

Wisetech shares are on the move as the company reported its FY21 earnings before the market open.

Let’s investigate further.

Quick recap on WiseTech Global

WiseTech provides cloud based software to the logistics industry on a domestic and global scale. Its leading product is CargoWise One, which is an end to end logistics solution.

The company now operates in over 150 countries worldwide and has over 12,000 logistics companies using its software.

At the time of writing, WiseTech has a market capitalisation of $11.7 billion.

WiseTech beats FY21 guidance, doubles net profit

WiseTech recorded an 18% increase in revenue to $507 million and a 63% jump in EBITDA to $206 million in FY21.

Whilst revenue came in at the top end of guidance, the company beat its EBITDA guidance of $165 million to $190 million by a country mile.

The company advised that strengths here were underscored by increasing market penetration and growth in the number of users adopting its software.

In another positive for the WiseTech share price, the bulk of its sales growth came from recurring revenue. In other words, out of the entire $101.4 million in revenue gained for FY21, just over $97 million of that was recurring.

Looking down the income statement, the company also doubled net profit after tax (NPAT) to $105 million. This came through a free cash flow of $139 million, up 149% from the year prior.

As a result, WiseTech increased its final dividend by 141% to 3.85 cents a share. That brings the total FY21 dividend to 6.55 cents per share.

Management also upgraded FY22 guidance, forecasting 18%–25% revenue growth, and for EBITDA to expand a further 26%–38%. This calls for a range of $600 million to $635 million in sales, and $260 million to $285 million at the EBITDA line.

Speaking on its FY21 performance, WiseTech CEO Richard White said:

Our top line revenue growth, coupled with our ability to implement organisation-wide efficiencies and extract acquisition synergies, has enabled us to achieve a marked step change in operating leverage that is evident in our strong FY21 financial performance.

WiseTech share price snapshot

The WiseTech share price has gained 42% since January 1 this year, extending the previous 12 month’s climb of 51%.

These results have outpaced the S&P/ASX 200 index (ASX: XJO)’s return of about 25% over the last year.

The post Wisetech (ASX:WTC) share price soars 23% as profit doubles in FY21 appeared first on The Motley Fool Australia.

More reading

• WiseTech (ASX:WTC) share price on watch after smashing FY 2021 earnings guidance
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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 WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. 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 Zip Co Ltd (ASX: Z1P) share price is in the red this morning. This comes after the company released its FY21 full-year results just before market open today.

Zip shares sank 3.96% to $7.03 apiece in early morning trade, before making up some ground to settle at $7.20 at the time of writing.

Let’s take a closer look to see how the buy now, pay later provider performed for the period.

Zip share price slides despite record growth across key metrics

The Zip share price is in reverse regardless of the company’s record result for the 12 months ending 30 June 2021. Here are some of the key highlights:

• Revenue of $403.2 million, up 150% year on year (FY20 $161 million)
• Transaction volumes of $5,8 billion, up 178.5% (FY20 $2.1 billion)
• Transaction numbers of 41.3 million, up 293% (FY20 10.5 million)
• Active customers at 7.3 million, up 247.5% (FY20 2.1 million)
• Active merchants at 51,300, up 109.4% (FY20 24,500)
• Cash gross profit of $198 million, up 147% (FY20 $80.1 million)

What happened in FY21 for Zip?

Investors are selling off Zip shares despite the company signalling a transformational year that saw it emerge as a global BNPL player.

Zip successfully expanded its presence across 12 international markets, including the United States, Canada, the United Kingdom, and Mexico. This led the business to deliver a strong financial performance by capturing new market share.

The US retail market alone is estimated to be worth $5 trillion, representing attractive growth opportunities.

In addition, Zip added new merchant partners onto its network, with notable inclusions such as JB Hi-Fi Limited (ASX: JBH) and Newegg Commerce Inc. It also established key partnerships with payment service providers (Stripe) and e-commerce platforms (BigCommerce).

Lastly, the company brought new BNPL payment innovations (Tap & Zip, Subscriptions, Chrome Extension) to market. This effectively allowed customers to easily access Zip’s integrated platform to make purchases both online and in-store.

What did management say?

Zip managing director and CEO Larry Diamond commented on the milestone achievement:

This has been a truly transformational 12 months as the business has continued to deliver, despite the most exceptional global economic conditions. We fearlessly started the year with a clear strategy for both local growth and global expansion, and pleasingly, 12 months later, we are delivering on this plan, with record growth across all metrics in all jurisdictions, with Zip now operating in 12 countries across five continents.

The trend and shift away from the unfriendly world of credit cards that was the genesis of the Australian business has proven to be a global phenomenon, and Zip continues to accelerate in all our key markets.

What’s instore for Zip in FY22?

Looking ahead, Zip advised that FY22 is expected to be a bumper year. So far, total transaction volume (TTV) is growing 58% in Australia and 240% in the United States year to date compared to FY21. The company noted that global market entries and investments are contributing a meaningful TTV in the new financial year.

Furthermore, Zip continues to onboard more global merchants to drive customer uptake, and essentially, TTV growth. It affirmed a healthy pipeline of enterprise merchants and strategic partnership opportunities.

Whilst COVID-19 has pushed the way businesses transact more towards online, Zip stated it’s well capitalised to take advantage of this. It has allocated significant resources in merchant products to unlock new customer segments and drive referrals to merchant partners.

Zip share price snapshot

Over the past 12 months, the Zip share price has been relatively flat, down 3%. Year to date, the company shares have climbed, up by almost 40%. Based on the current Zip share price, the company has a market capitalisation of around $4.1 billion.

The post Zip (ASX:Z1P) share price sinks despite 150% increase in revenue 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. owns shares of and has recommended ZIPCOLTD FPO. 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 Iluka Resources Ltd (ASX: ILU) share price has fallen more than 6% in early trade. Today’s slump comes after the Aussie resources company’s latest results release.

Iluka share price slumps 6% on half-year results

Iluka provided its operational and financial results for the half-year ended 30 June 2021 (1H21). This morning’s release was punctuated by a number of headline growth figures, including:

• The group reported mineral sands revenue up 61% on 1H20 figures to $735.6 million
• Underlying Group earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 37% to $308.2 million
• Net profit after tax (NPAT) up 14% to $129.0 million
• A 288% increase in free cash flow to $179.3 million
• An interim dividend of 12 cents a share

It’s worth noting that Iluka had already provided a second-quarter update on 22 July. The Iluka share price leapt 4.5% following that announcement which contained many of the key production and earnings figures included in the half-year result.

The Aussie resources company did have several supply and demand concerns in the latest result.

Already strong demand for high-grade titanium dioxide feedstock was “amplified” by increased concerns around future supply and the settlement of a contract dispute with a major customer.

There was also a “significantly reduced” earnings contribution from the group’s Mining Area C royalty after its recent demerger. Iluka retains a 20 per cent stake in the ASX-listed Deterra Royalties Ltd (ASX: DRR) business.

There was also lower production at Iluka’s Jacinth-Ambrosia, South Australia and Cataby, Western Australia sites during the half.

However, Iluka still managed to boost volumes and more than offset foreign exchange impacts on earnings. It wasn’t enough for investors though as the Iluka share price remains under pressure on Wednesday.

Foolish takeaway

The Iluka share price slumped more than 6% early on Wednesday following its latest update. At the time of writing, it had pulled back to $8.66 a share, down 4.42%.

However, Iluka’s share price remains up 33% in 2021. That’s well ahead of the S&P/ASX 200 Index (ASX: XJO)’s year to date return of 12.8%.

The post Iluka (ASX:ILU) share price slumps 6% on FY21 results appeared first on The Motley Fool Australia.

More reading

• Iluka (ASX:ILU) share price on watch as interim dividend returns
• ASX 200 Weekly Wrap: Just like that… ASX back to record highs

Motley Fool contributor Ken Hall 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 Orocobre Ltd (ASX: ORE) share price is down slightly this morning after the company announced its FY21 full-year results and successful merger with Galaxy Resources Ltd (ASX: GXY).

At the time of writing, the Orocobre share price is trading 0.98% lower at $9.09.

Orocobre share price dips despite bullish lithium outlook

FY21 was a breakthrough year for Orocobre, underpinned by a strong recovery in lithium spot prices and demand. Key highlights from its FY21 results include:

• Revenue up 9.9% to US$84.8 million
• Net loss after tax of US$89.5 million impacted by US$74.9 million of Argentine tax rate changes
• Sales of 13,319 tonnes of lithium carbonate (FY20: 10,514 tonnes)
• Average free-on-board (FOB) sales price of US$4,983/tonne (FY20: US$5,520/t)
• Average realised prices of US$8,476/t in the June quarter
• Average production costs down 12% to US$3,860/t

What happened to Orocobre in FY21?

The Orocobre share price has rallied 104% year-to-date and surged 228% in the past 12-months thanks to the hype around lithium.

The company delivered a strong financial and operational performance from its flagship Olaroz lithium facility, located in northern Argentina.

The project achieved strong cash flow and pricing momentum in the June quarter, despite the overall decline in FOB sale prices in the full year FY21. The average realised price for its lithium carbonate in the June quarter was US$8,476/tonne, up 45% quarter-on-quarter and 117% on the prior corresponding period (pcp).

Looking ahead

The company said Olaroz’s budgeted FY22 production was fully contracted and substantially subject to variable pricing with exposure to continued price increases. Despite the potential variance in price, management retained its previous guidance of US$9,000/tonne for the first half of FY22.

Orocobre is targeting the completion of an Olaroz Stage 2 expansion in FY22, which is expected to deliver a significant reduction in cash costs and step up in volumes.

Construction is currently underway at Olaroz to produce an additional 25ktpa of lithium carbonate. The company expects the production of primary grade lithium carbonate to ramp up over 2 years to full capacity.

In addition to its FY21 results, Orocobre advised that it has obtained all necessary approvals to complete its merger with Galaxy Resources, effective from today.

The results described the merger as one that “has the potential to be a Top 5 global lithium chemicals company with a highly complementary portfolio of assets delivering geographical and product diversification across brine, hard rock and vertical integration across the supply chain”.

Management commentary

Commenting on the results, Orocobre managing director and CEO Martin Perez de Solay said:

Orocobre has continued to deliver positive operating margins, despite COVID-19 and weaker market conditions throughout the first half of the financial year. This has been achieved through strong sales performance and a focus on costs and operating excellence.

Solay welcomed the new Galaxy shareholders and revealed the company’s plans to rebrand.

I would like to welcome Galaxy shareholders, employees and other stakeholders to Orocobre which subject to shareholder approval we will be rebranding to Allkem Limited and changing the ASX ticker to AKE.

The name Allkem recognises that together we can deliver more for stakeholders. With the merger, we will go further in our commitment to delivering the lithium chemicals that the world increasingly needs to mitigate climate change and carbon emissions.

What’s next for Orocobre?

The bullish outlook for lithium has helped the Orocobre share price break above its 2018 highs.

Looking ahead, the company cited robust demand for lithium in China, “[continuing] to push up global prices with weighted average prices of lithium carbonate and lithium hydroxide up YTD by 64% and 46% respectively according to Benchmark Minerals Intelligence.”

The post Orocobre (ASX:ORE) share price slips amid merger success and FY21 results appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: Miners drag ASX back to earth
• What’s going on with ASX lithium shares today?
• Why the Pilbara Minerals (ASX:PLS) share price tumbled 12% in the last week
• The Galaxy Resources (ASX:GXY) share price slides on half-year results
• It’s been a great month for the Pilbara Minerals (ASX:PLS) share price

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 Seven Group Holdings Ltd (ASX: SVW) share price is in the red this morning following the release of the company’s results for financial year 2021 (FY21).

Right now, the Seven Group share price is $21.93, 4.15% lower than its previous close.

Additionally, Seven Group announced today that Kerry Stokes will be stepping down as chair after the company’s annual general meeting in November. Terry Davis will be taking the top spot on Seven Group’s board following Stokes’ retirement.

Seven Group share price slumps despite $4.8 billion revenue

Here’s how the diversified operating and investment group performed over FY21:

• $4.8 billion on trading revenue – 6.1% more than that of FY20
• Underlying earnings before interest and tax (EBIT) of $792.1 million, up 7.3%
• Operating cash flow of $622.4 million, up 15.6%
• Fully franked final dividend of 23 cents per share (10% more than that of FY20). That brings the company’s full year dividends to 46 cents

The company’s WesTrac segment, one of the largest Caterpillar equipment dealers, was a crown jewel over FY21. The segment brought in $400.2 million of underlying EBIT – 7.9% more than in FY20.

According to Seven Group, WesTrac was boosted by ongoing strength in mining production and construction.

Seven Group’s equipment hire and solutions provider, Coates, had EBIT of $211.6 million, up 3.8% on the prior corresponding period.

Coates’ activity levels were impacted in the first half due to delayed projects, cancellation of events, and lockdowns.

Construction materials company Boral Limited (ASX: BLD) brought in $38 million of EBIT after Seven Group’s dramatic takeover. Those interested in Boral’s FY21 results can find them here.

The company’s energy segment’s EBIT was $102.3 million, 19% less than in FY20.

Seven Group’s energy segment is made up of SGH Energy and the company’s 30% holding in Beach Energy Ltd (ASX: BPT). Beach Energy’s production and profits both fell in FY21.

Finally, Seven Group’s media segment, made up of its 40% holding of Seven West Media Ltd (ASX: SWM), brought in $57 million of EBIT, 22% more than in FY20.

Seven West Media has a great year, as its own FY21 earnings outlined.

Seven Group ended the period with 160.9 million of cash and $804 million of Interest-bearing loans and borrowings.

What happened in FY21 for Seven Group?

Here’s what drove the Seven Group share price in FY21:

Perhaps the most exhilarating news from Seven Group in FY21 was its extended battle for Boral.

In May, the company offered Boral shareholders $6.50 per share. Seven Group stated it only wished to increase its 23.3% stake in Boral to 30%.

However, after a huge amount of push back from Boral’s board, including claims Seven Group’s bid would undervalue Boral by as much as 40.5%, and a number of increased bids, Seven Group ended up paying $7.40 per share and winning 69.6% of Boral’s outstanding shares.

Seven Group also completed a $500 million capital raise and $33 million share purchase plan in April. The proceeds eventually went towards its bid for Boral.

Finally, it committed to reaching net zero greenhouse gas emissions by 2040 within Seven Group’s operating businesses, WesTrac and Coates.

What did management say?

Seven Group’s managing director and CEO Ryan Stokes commented on the results driving the company’s share price today. He said:

Today’s result reflects the strong performance of our key operating businesses…

Our industrial services portfolio is benefitting from growth of mining production and the substantial pipeline of infrastructure activity… We undertook the takeover of Boral based on our confidence in the value opportunity presented by divesting Boral’s international interests and more focused management to achieve improved margins and returns from a transformation of its Australian operations. The addition of Boral to SGH creates an industrial portfolio second to none in Australia.

The group’s operating businesses and investments are well-placed to capture the available opportunities in their respective markets.

What’s next for Seven Group?

Here’s what might move the Seven Group share price in FY22:

Seven Group released a small amount of guidance for FY22, which assumes current COVID-19 outbreaks are brought under control and restrictions on construction are lifted in the near future.

The company expects WesTrac to deliver low single-digit EBIT growth in FY22. The lessened growth is expected to reflect the impact of the CAT parts price decrease which occurred in July 2021. Meanwhile, Coates is expected to report high single-digit EBIT growth after it continues to focus on costs and delivery of key infrastructure projects.

Additionally, Seven Group will consolidate Boral as a subsidiary in FY22. Seven Group plans to support Boral through its transformation program, refocus on Australia, and ensure Boral can deliver on its full potential with revenue, earnings, and margin improvements.

Finally, Seven Group will release its Sustainability Report next month.

Seven Group share price snapshot

The Seven Group share price has fallen 4% year to date. However, it has gained 17% since this time last year.

The post Seven Group (ASX:SVW) share price drops on FY21 earnings appeared first on The Motley Fool Australia.

More reading

• The Boral (ASX:BLD) share price is down 7% in a month. Here’s why
• Here’s why the Boral (ASX:BLD) share price is falling today
• Boral (ASX:BLD) share price falls as Seven wins takeover and outs chair
• Boral (ASX:BLD) share price struggles as Seven waits to take over

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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