Tag: Motley Fool

The Sandfire Resources Ltd (ASX: SFR) share price is on the rise in morning trade. At the time of writing, shares in Sandfire Resources are up 7.35% to $5.99. 

We take a look at Sandfire’s results for the financial half-year ending 31 December (H1 FY21) below.

What financial results did Sandfire report?

Sandfire’s share price is moving higher today. This comes after the ASX copper and gold producer reported a 13.6% lift in sales revenue to $355.6 million. Up significantly from $313.1 million in H1 FY20.

It was reported that cash flow from the company’s operating activities increased by 26.3% year-on-year to $137.8 million.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for its DeGrussa Operations segment came in at $238.0 million, a 30.6% increase on the $182.2 million reported in the prior corresponding period.

Additionally, Sandfire reported a 78% increase in net profit after tax (NPAT). This equated to $60.8  million, up from $34.2 million in H1 FY20. Basic earnings per share increased 65% year-on-year to 34.1cents.

As at 31 December, the company had $335.8 million cash. In particular, Sandfire had no debt and a global investment portfolio close to $90 million. The company credited the strong balance sheet with production and cost management at its DeGrussa Operations in Western Australia along. Additionally, the Sandfire also credited a big rise in copper prices.

Management commentary

Commenting on the results, Sandfire’s managing director, Karl Simich, said:

This has been another standout performance, with our low-cost, high-margin Western Australian mining operations capitalising on the improving copper price and the Company taking important steps towards its vision of creating a diversified, multi-operational mining house…

The announcement of a Final Investment Decision for the US$259 million development of the T3 Motheo Mine in Botswana is a significant milestone for the Company and represents our first mine development outside DeGrussa – and one of the few significant new copper mines currently being developed anywhere in the world.

Due to this performance, Sandfire will pay an interim dividend of 8.0 cents per share (cps) fully franked. This is up from 5.0 cps paid in H1 FY20.

Share price snapshot

Taking today’s intraday gains into account, Sandfire shares are up 27% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is down 0.4% at that same time.

Year-to-date the Sandfire Resource’s share price is up 8.5%.

More reading

• Sandfire (ASX:SFR) share price hits year high on profit result and supercycle hopes
• Oz Minerals (ASX:OZL) share price hits 13-year high as profit jumps 30%

Motley Fool contributor Bernd Struben 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.

The post Here’s why the Sandfire Resources (ASX:SFR) share price is soaring appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2ZKyVGu

The Silk Laser Australia Ltd (ASX: SLA) share price has been a strong performer on Thursday.

In late morning trade the laser, skin care, and cosmetic injections company’s shares are up 6% to a record high of $4.55.

This means the Silk Laser share price is now up 32% since its IPO in December.

Why is the Silk Laser share price shooting higher?

Investors have been buying Silk Laser shares this morning following the release of a very strong half year result.

For the six months ended 31 December, the company reported a 62% increase in network sales to $44.9 million and a 78% lift in revenue to $30.6 million.

Management advised that favourable consumer trends aligned with its successful execution of sales campaigns, resulting in strong like-for-like growth across its core offerings. These include laser hair removal, cosmetic injectables, skin treatments, body contouring, and skincare products.

In addition to this, the result was supported by the expansion of its clinic network. Silk Laser added 4 new clinics, bringing its total to 56.

Positively, margin expansion underpinned even stronger earnings growth. Silk Laser reported a 166% increase in pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) to $10.6 million.

On the bottom line, net profit after tax came in 305% higher than the prior corresponding period at $4.7 million.

“A busy and highly successful period”

Silk Laser’s Managing Director and Co-Founder, Martin Perelman, was rightfully pleased with the half.

He said: “The first half of this financial year has been a busy and highly successful period for SILK, and I am very proud of our first results delivered as a publicly listed company. All of SILK’s service categories performed in line or above expectations and the Company is well positioned for a strong second half.”

Outlook

Speaking of the second half, the company is expecting a strong period and has upgraded its guidance to reflect this.

On the basis that there are no significant COVID disruptions to second half trading, Silk Laser now expects network sales in the range of $82 million and $86 million. This compares to previous guidance of $81 million.

And pro forma EBITDA is now expected in the range of $15 million and $16 million. This is up from $14 million previously.

More reading

• These ASX shares are helping this fund manager smash the market
• Add these exciting small cap ASX shares to your watchlist right now
• 3 growing small cap ASX shares to watch

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Silk Laser (ASX:SLA) share price hits record high on stellar first half growth appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3bAG2GV

PointsBet Holdings Ltd (ASX: PBH) shares are languishing today following the company’s release of its FY21 first-half (1H21) results. At the time of writing, the PointsBet share price has slumped 1.8% to $15.24.

Today’s release marks the company’s first interim result following its transformational media partnership with NBCUniversal. 

PointsBet share slumps on triple-digit growth

The PointsBet share price is failing to respond today despite the company delivering a group net win of $82.8 million, up 177% on the prior corresponding period (pcp). Net win is defined as the total amount of gaming income after prizes or winnings have been paid out. At the revenue level, which is typically close to the net win, the group recorded a 174% increase from $27.4 million to $75.1 million. 

From a geographic perspective, a record net win was delivered in Australia of $84.8 million, up 211%. Meanwhile, PointsBet’s United States presence continued to scale, with a 345% increase in betting turnover to $819.1 million. The region’s net win came in at a loss of $2.0 million. 

The number of active clients on the platform also continued to grow, with users in Australia and the US doubling to 211,000 from 102,000 in 1H20. 

US sports betting, a runway for growth 

Sports betting in the US was illegal up until May 2018, when the Supreme Court ruled that the 1992 federal ban on sports betting in most states violated people’s rights. 

The US sports betting market is seen as a land grab opportunity for bookmakers to rapidly grow their customer bases and revenue. Morgan Stanley and JP Morgan are bullish on the sector, estimating the US sports betting and iGaming industry to be a US$12 billion opportunity by 2025.

PointsBet currently has operations in New Jersey, Iowa and Indiana. Operations in Illinois are scheduled to commence in September 2020 with Colorado commencing in November. 

The continued strong performances in the US has seen PointsBet grow its online handle market share to 10.8% in New Jersey, 8.9% in Illinois, 3.8% in Indiana, 2.4% in Iowa and 1.0% in Colorado. 

The company is pulling on its NBC Sports media assets to continue targeted marketing activities in New Jersey, Indiana and Illinois. 

The significant growth opportunity does come at a cost of significant marketing expenses and a string of net losses in the short to medium term. For the half, PointsBet delivered an earnings before interest, tax, depreciation, and amortisation (EBITDA) loss of $69.0 million. Its sales and marketing expenses surged from $20.6 million in 1H20 to $62.9 million in 1H21. Despite the losses, the company had $388.3 million in cash and cash equivalents to support its growth story moving forward. 

What’s next for PointsBet? 

PointsBet is focused on the development and launch of its iGaming product as consumers move away from in-person casino gambling to mobile apps. The company is running this product in-house, with complete control over its product roadmap, unlike some competitors which are reliant on third parties.

PointsBet is targeting an inaugural launch in Michigan in 2H21, followed by New Jersey. Elsewhere, the company hinted at a potential launch in New York and Canada.

Based on the current PointBet share price, the company has a market capitalisation of around $2.85 billion.  

More reading

• Why Computershare, IAG, Northern Star, & PointsBet shares are pushing higher
• Here’s why the PointsBet (ASX:PBH) share price is surging 6% higher
• Why the PointsBet (ASX:PBH) share price is jumping higher

Kerry Sun owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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.

The post PointsBet (ASX:PBH) share price falls despite 174% revenue growth appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2ZLiBFt

Youfoodz Holdings Ltd (ASX: YFZ) has delivered its inaugural earnings report this morning. The food delivery company has given investors a first post-float look at its numbers for the first half of the 2021 financial year (1H21).

After surging 2.62% to a high of 98 cents per share in early trade, the Youfoodz share price has retreated to 96 cents at the time of writing, up 0.52%.

What did Youfoodz report this morning?

Youfoodz had delivered a gross revenue metric of $100 million (on the dot) for 1H21. That’s a 16.5% increase on the company’s revenue of $85.8 million for the same period last year (1H20). Meanwhile, net revenues were also up 15.3% from $63.6 million in 1H20 to $73.4 million in 1H21.

That helped push gross profits up 20.1% to $23.4 million, up from $19.4 million in 1H20.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $0.5 million versus $1.7 million in 1H20 and a $4.4 million loss in 2H20.

Net profits after tax were $2.5 million for the period, which contrasts nicely with the loss of $1.9 million that the company posted in 1H20. No dividends will be paid for the period.

Meanwhile, Youfoodz reported some pleasing numbers in terms of customer growth. The number of orders the company received during the period was 644,265, a 34.5% rise over the prior corresponding period. New customers were up 89.6% to 87,895, while active customers increased by 47.8% to 197,563.

The company also announced that next day deliveries are now available in Queensland, New South Wales and Victoria. 70% of the company’s customers can now order next day delivery.

Youfoodz says that it “remains confident” it will achieve the growth targets set out in its initial public offering (IPO) prospectus, which include gross revenue of $199.8 million, net revenue of $149.9 million and EBITDA of $2.9 million for the 2021 financial year.

About the Youfoodz share price

Youfoods only hit the ASX boards on its IPO back on 8 December last year. It was a disappointing debut at the time, with the Youfoodz share price crashing 25% lower from its IPO price of $1.50 a share to $1.12. The company has not touched $1.50 since but did go as high as $1.32 last month.

However, on the current share price, Youfoodz is more than 15% off those highs. As recently as last Friday, the company was touching a new all-time low of 87 cents a share.

On the current Youfoodz share price, the company has a market capitalisation of $131.75 million.

More reading

• PointsBet (ASX:PBH) share price falls despite 174% revenue growth
• Dicker Data (ASX:DDR) share price lower despite record-breaking result
• Flight Centre (ASX:FLT) share price climbs higher on first-half results
• TPG (ASX:TPG) share price seesaws on full-year results
• The Ardent (ASX:ALG) share price dips as half-year losses steepen

Motley Fool contributor Sebastian Bowen 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.

The post Youfoodz (ASX:YFZ) delivers its first earnings report appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/37KpGuk

The Dicker Data Ltd (ASX: DDR) share price has come under pressure on Thursday following the release of its full year results.

At the time of writing, the technology hardware, software, and cloud distributor’s shares are down 5% to $10.31.

However, despite this decline, the Dicker Data share price is still up over 64% since this time last year.

How did Dicker Data perform in FY 2020?

Dicker Data was on form again in FY 2020 and delivered further solid revenue and profit growth.

For the 12 months ended 31 December, the company reported a 12.8% increase in revenue from ordinary activities to $2 billion.

This was driven by strong demand for remote working solutions and virtual capabilities and the accelerated digital transformation of businesses as a result of the COVID-19 pandemic.

The addition of a number of new vendors over the past few years has supported its growth. This has increased the breadth of products on offer.

In respect to earnings, Dicker Data recorded a profit before tax of $81.9 million. This represents a 27.7% increase on the prior corresponding period.

Whereas on the bottom line, net profit after tax rose 5.3% to $57.2 million. However, it is important to note that FY 2019’s profit after tax includes profit from the sale of property. This profit has been excluded from the above-mentioned profit before tax metric.

Adjusted underlying earnings per share increased 19.6% year on year to 33.95 cents per share.

In light of this strong form, the Dicker Data Board paid out quarterly dividends totalling 35.5 cents per share during the 12 months.

Management commentary

Dicker Data’s Chief Executive Officer and Chairman, David Dicker, commented: “Our FY20 result represents over 42 years of experience and a significant growth trajectory. Since being listed on the ASX on 24 January 2011 at an initial market cap of $25 million, today shares have recently traded around $12 with a market cap of just under $2 billion.”

“Over a decade, an original shareholder’s stake of 10,000 shares at $2,000 would now be worth around $120,000. This solidifies the company’s status as a true Australian success story and a fast growing and high-returning stock.”

Outlook

Although no guidance has been provided for FY 2021, Mr Dicker spoke positively about the company’s outlook.

He said:

“Moving into the new year, 2021 presents significant opportunity for the technology sector with digital transformation accelerating, businesses becoming digital natives and the evolving hybrid workforce driving the need for smarter, faster and collaborative technology solutions.”

“There is no doubt cybersecurity will continue to be a key focus for all sectors in 2021, with intelligent solutions like Zero Trust enabling secure, compliant, and protected technology environments. We saw an unprecedented spike in demand for devices throughout 2020 and expect this to continue this year. We are anticipating a high level of growth in automation, machine learning and data capture and analysis tools as businesses and governments prioritise efficiency and productivity within their operations.”

“Another key catalyst for growth in the next 12 months, is the Company’s recent partnership with VMware (NYSE: VMW). Not only will this unlock the direct VMware business, but an entire ecosystem of market-leading technology solutions through the large number of VMware’s strategic and technology alliance vendors we already work with.”

More reading

• Why the Dicker Data (ASX:DDR) share price almost hit a record high today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Dicker Data (ASX:DDR) share price lower despite record-breaking result appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3aVQrhv

The Flight Centre Travel Group Ltd (ASX: FLT) share price is climbing higher following the release of its first-half results for FY20. At the time of writing, the travel agent’s shares are up 7.10% to $17.50.

Let’s see how the company performed for the H1 FY20 period.

What were the financial highlights?

The Flight Centre share price is on the move as investors digest the company’s latest results.

According to its release, Flight Centre advised that it is continuing to weather the difficult trading conditions caused by COVID-19. However, an eventual recovery is on the horizon once the pandemic subsides.

It noted that for the six months ending 31 December 2020, the total transaction value (TTV) stood at $1,533 million. This was a stark but expected fall compared to the $12,399 million recorded in H1 FY20. In essence, the TTV metric represented 12% of the prior corresponding period (pcp).

Total group revenue came to $160 million as opposed to the $1,546 million achieved at the same time last year. Overall revenue margin reduced from 12.5% in H1 FY20, reflected upon heavier domestic and corporate travel weightings. The margin is expected to increase when international air travel resumes.

As a result, Flight Centre recorded an underlying loss of $247 million for the first-half period. Management improved the overall bottom line through cost reductions strategies along with the government’s JobKeeper stimulus program.

Net operating cash flow came at a loss of $30 million primarily attributed to putting the business in hibernation mode.

The company closed the calendar year with a very strong cash balance of $1,670 million. This is almost double of what Flight Centre reported in the H1 FY20 term.

Unsurprisingly, the board again moved against declaring a dividend in light of the current economic situation.

Management commentary

Flight Centre managing director, Graham Turner, touched on the company’s tough operating market. He said:

The conditions we have encountered since March last year have undoubtedly posed the greatest challenge that our industry and many others have faced. Rather than enter a holding pattern ahead of future domestic and international border re-openings, we are taking steps to ensure we are well placed for the eventual recovery.

We have become a leaner and more efficient business with a long liquidity runway, which has been crucial during this challenging and uncertain period.

Outlook for Flight Centre

Looking ahead, Flight Centre stated that recovery is largely dependent on the government’s travel policies and the vaccines’ success. With this uncertain future, the company could not provide guidance for the remaining period of the 2021 financial year.

The company revealed that sales began to drop off last month due to tightened domestic border restrictions along with international still remaining closed. The group is targeting to break-even in both leisure and corporate travel during the 2021 calendar year.

The Flight Centre share price is has fallen heavily in the last 12 months, down 44%.

More reading

• Can ASX travel shares stage a comeback?
• Share prices of travel shares soar, Corporate Travel (ASX:CTD) and Webjet (ASX:WEB) report
• Why ASX travel shares were smashed on Friday
• Here’s a bargain ASX share in a sea of expensive stocks
• GameStop frenzy: 3 shorted ASX shares that could shoot up

Motley Fool contributor Aaron Teboneras 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.

The post Flight Centre (ASX:FLT) share price climbs higher on first-half results appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3kxmE1P

TPG Telecom Ltd (ASX: TPG) shares are moving around this morning following the company’s release of its full-year results for the period ended 31 December 2020. At the time of writing, the TPG share price is down 0.85%, trading at $6.96. TPG shares opened slightly lower this morning before leaping to $7.15 only to retreat again.  

Here’s a wrap of the company’s annual update.

TPG releases first post-merger results

The TPG share price is up and down today after the company’s directors noted that comparing the latest results with prior periods is complex due to its merger in 2020.

On 30 June 2020, TPG announced that the company (previously named Vodafone Hutchison Australia) was officially admitted to the Australian Securities Exchange.

Following this, TPG Telecom Ltd merged with TPG Corporation Ltd on 13 July 2020.

Keeping these merger activities in mind, the company reported that its annual revenue for FY20 jumped 24% to $4.35 billion.

Earnings before interest, tax, depreciation and amortisation (EBITDA) also shot up 18%, reaching $1.39 billion.

Earnings per share (EPS) hiked up to 64 cents, compared with negative 68 cents in FY19.

Operating cash flow for FY20 was $1.2 billion compared to $1.3 billion in FY19.

In other news impacting the TPG share price, the board resolved to pay a final 2020 dividend of 7.5 cents per share.

CEO comments

Reflecting on annual performance, TPG chief executive officer and managing director Iñaki Berroeta said:

In 2020, we completed the merger and delivered on our promises to customers and shareholders in the most trying year for Australia’s economy and society in decades, while managing a number of significant regulatory challenges…”

As we move into 2021, we are building on momentum gained in the final quarter of 2020, continuing our merger integration plans, our 5G mobile network is on track to reach scale in the top six cities by the end of the year, and we will begin offering 5G fixed wireless services in the first half.

TPG share price snapshot

The TPG share price has tumbled by nearly 15% over the past six months. Year to date, TPG shares are also slightly down. Based on the current share price, the company has a market capitalisation of around $13.1 billion with 1.9 billion shares outstanding.

More reading

• Is HyperOne listed on the ASX?

Motley Fool contributor Gretchen Kennedy 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.

The post TPG (ASX:TPG) share price seesaws on full-year results appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2ZN9pQR

It seems now is not the time to be a leisure and entertainment operator. The Ardent Leisure Group Ltd (ASX: ALG) share price is down 60% since its pre-COVID levels, with today’s 1H21 result showing mounting losses and more uncertainty. 

Ardent share price slips on mounting losses

The Ardent share price is currently down a modest 1.59% to 62 cents, perhaps signalling that the losses and uncertainty came as no surprise given current circumstances. 

Ardent’s revenue declined 44.3% to $137.6 million, driven by COVID-19 adversely impacting visitation to both its entertainment and theme park venues. This translated into an $84.6 million net loss before tax, compared to the $34.6 million in 1H20. 

Segment overview 

Ardent’s Brisbane-based theme parks and US indoor entertainment attractions represent its core segments. 

The company’s theme park attractions, notably Dreamworld and WhiteWater World, remained closed until 16 September 2020. This, along with ongoing border restrictions, led to a decline in attendance and revenue compared to 1Ha20.

Despite the 63.6% decline in revenue to $13.1 million, the division recorded a modest earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of $3.6 million, compared to $5.4 million in 1H20. 

Ardent believes its theme parks division is well-positioned to participate in the post-pandemic recovery, focusing on discounted annual pricing and new products for when restrictions ease. 

Ardent’s entertainment division incorporates 44 centres in the US with a unique ‘eat, bowl and play’ experience. This segment saw a 37.7% decline in revenues to US$54.4 million, reflecting lower consumer demand and temporary centre closures during the period. 

A second surge of COVID-19 cases in the US in November and soft corporate event sales during the holidays lead to a decline in performance to close out the first half of FY21.

Despite the headwinds, the entertainment division has proved to be resilient in earnings and recovering at a pace quicker than anticipated. For January 2021, 37 of its 44 centres generated positive EBITDA.

Looking ahead 

The company expects trading in the second half of FY21 to be challenging due to ongoing uncertainty associated with COVID-19 and the end of the JobKeeper subsidy.

While the Australian Government vaccine program provides an optimistic outlook, Ardent believes that uncertainty is likely to prevail for the next 12 months. 

More reading

• Flight Centre (ASX:FLT) share price climbs higher on first-half results
• TPG (ASX:TPG) share price seesaws on full-year results
• Sandfire (ASX:SFR) share price hits year high on profit result and supercycle hopes
• Why the Stockland (ASX:SGP) share price is sliding today
• Here’s why the LiveTiles (ASX:LVT) share price is charging higher today

Motley Fool contributor Kerry Sun 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.

The post The Ardent (ASX:ALG) share price dips as half-year losses steepen appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2NVOXdR

The Sandfire Resources Ltd (ASX: SFR) share price jumped this morning after it posted a big increase in profit and dividend as it supported the theory of a commodities “supercycle”.

Shares in the copper miner surged 4.9% to a 52-week high of $5.86 this morning when the S&P/ASX 200 Index (Index:^AXJO) added 0.6%.

Sandfire it pointed to signs that the recent surge in the copper price to an eight-year high may only be the start of a prolonged bull market for the metal.

Sandfire results fanning supercycle speculation

The run-up in copper and other commodities is fuelling speculation that the world is on the cusp of a commodities supercycle. Not all experts agree, but Sandfire has planted its flag in this debate. I am sure the miner isn’t trying to talk up its own book!

“Many of the global investment banks have recently upgraded their short and medium term price outlooks to US$9,000 –$10,000/tonne, citing what they see as the start of a prolonged copper bull market,” said Sandfire’s chief executive Karl Simich.

“This is certainly reflected in what we see with demand from our key customers, and also in the constrained development pipeline of new copper projects.”

The rising copper price lifts all boats, of course. But the Sandfire share price is outpacing its peers at the time of writing. The OZ Minerals Limited (ASX: OZL) share price advanced 0.8% to $22.59 and the South32 Ltd (ASX: S32) share price added 1.4% to $2.84.

Sandfire profit nearly doubled

Investors got excited about Sandfire when it posted a near doubling in interim net profit of $60.8 million compared to 2019’s $34.2 million. It also lifted its first half dividend to 8 cents a share from 5 cents that is paid this time last year.

The lofty copper price helped push Sandfire’s sales revenue to $355.6 million in the six months to end December 2020 even as sales volume dipped to 30,856 tonnes of copper. In contrast, it posted revenue of $313.1 million in 1HFY19 when it sold 33,616 tonnes of the red metal.

The copper price ended 2020 at around US$8,000 a tonne. It climbed further since to around US$9,000 a tonne.

Cashed up and ready to spend

Pleasing performance at Sandfire’s flagship DeGrussa mine in Western Australia also helped underpinned the solid result.

That’s great news for Sandfire’s cash flow. Cash from operating activities jumped $28.7 million to $137.8 million in 1HFY20.

The cash will come in handy as management looks to commit to the US$259m T3 Motheo mine development in Botswana.

“Copper is one of the key ‘future-facing’ metals required to support the world’s transition to a low-carbon future,” added Simich.

“Demand is predicted to soar as global investment in renewable energy continues to grow and the global economic recovery gains momentum.”

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 drops, Appen sinks, Nine jumps
• Here’s why the Clearview Wealth (ASX:CVW) share price rose 3% today
• Why is the Telstra (ASX:TLS) share price falling today?
• Maggie Beer (ASX:MBH) share price surges on 20% sales growth

Motley Fool contributor Brendon Lau owns shares of OZ Minerals Limited and South32 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.

The post Sandfire (ASX:SFR) share price hits year high on profit result and supercycle hopes appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2NuqdK4

The Stockland Corp Ltd (ASX: SGP) share price is sliding, down 2% in morning trade. At the time of writing, the Stockland share price was down 0.88% to $4.49.

We take a look at Stockland’s results for the financial half-year ending 31 December (H1 FY21) below.

What financial results did Stockland report for H1 FY21?

The Stockland share price is sliding after the company reported a 30.4% drop in statutory profits of $350 million for the half year. This was down from $504 million in H1 FY20. Net profits before tax dropped 39.5% from the prior corresponding period (pcp) to $312 million.

Stockland’s earnings before interest (EBIT) of $468 million was down 8.1% from the $509 million reported in the first half of the 2020 financial year.

Funds from operations increased by 0.4% year-on-year to $386 million. That works out to 16.2 cents in funds from operations per security, up 0.6%. However, adjusted funds from operations per security slid 0.7% from the corresponding half year to14.1 cents.

Stockland reported net operating cashflows of $430 million. It credited strong residential settlements and its commercial property rent collection which accounts for 90% of net billings.

Management Commentary

Commenting on the results, Stockland’s CEO, Mark Steinert, said:

We continue to successfully deliver on our strategic priorities divesting non-core assets, increasing our capital allocation to Workplace and Logistics, and restocking our Residential landbank. This is repositioning the Group to deliver more consistent, above-sector average total returns and drive value for our stakeholders.

Stockland’s CFO, Tiernan O’Rourke, added:

As a result of delivering on our strategic priorities and the actions undertaken during the pandemic including the acceleration of Residential production and release levels, and a focus on Commercial Property rental collection, we have reported strong operating cashflow and capital management metrics all of which will support future opportunities.

Stockland will pay a dividend of 11.3 cents, an increase of 6.6% from H2 FY20. For the full year, the company expects dividends to be in line with its payout ratio of 75–85% of funds from operations.

Share price snapshot

The Stockland share price has yet to fully recover from last year’s COVID-driven market rout, which saw shares plummet more than 65% by 23 March. While up 149% from the 23 March lows, Stockland shares remain down 12% over the past 12 months. That compares to a 0.5% loss on the S&P/ASX 200 Index (ASX: XJO).

Year-to-date the Stockland share price is up 5%.

More reading

• Sandfire (ASX:SFR) share price hits year high on profit result and supercycle hopes
• Here’s why the LiveTiles (ASX:LVT) share price is charging higher today
• Why the Ramsay Health (ASX:RHC) share price is up 8% today
• Air New Zealand (ASX:AIZ) share price flies after earnings devastated
• Link (ASX:LNK) share price rises despite earnings fall

Motley Fool contributor Bernd Struben 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.

The post Why the Stockland (ASX:SGP) share price is sliding today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3upT0jz