A2 Milk Company Limited (A2M):
Shares in The a2 Milk Company have surged after the fresh milk and infant formula supplier said revenue and profit grew strongly in the first four months of the current financial year. The New Zealand-based company on Tuesday said revenue for the four months to October 31 was up nearly 69 per cent at $NZ262.2 million ($236.7m). The dual-listed dairy firm’s net profit for the same period more than doubled to $NZ52.3m. The news drove a2’s ASX-listed shares (A2M) up 36 cents, or 5.09 per cent, to $7.43 at 12.35pm (AEDT). A changing product mix and increases in raw material costs had put pressure on some product margins, but this had been more than offset by the weaker New Zealand dollar. A2 Milk also said it has a strong platform from which to expand further into new markets and new nutritional categories.
Altona Mining Ltd (AOH):
Copper play Altona Mining will be swallowed by Canadian group Copper Mountain Mining in a deal that will create a new $300 million mining house. Altona, which owns the undeveloped Cloncurry copper deposit in northwest Queensland, has agreed to an all-scrip offer from Copper Mountain that values it at 17c a share, or $93m. The Altona-Copper Mountain union could also be a sign that the surprisingly quiet market for mergers and acquisitions in the resources space is coming back to life. The broader rally under way in mining stocks since early last year has been notable for the shortage of deals. Copper Mountain’s offer represented a 41.7 per cent premium to Altona’s closing price last week. Altona’s major shareholder, Matchpoint, has indicated its intention to accept the offer. Copper prices have been on a strong run in recent months amid an improved outlook for the world economy. From just over $US2 a pound in February last year, copper has now risen to more than $US3 a pound.
Cabcharge Australia Limited (CAB):
The chief executive of Cabcharge says driverless taxis are likely to be operating in Australia by 2026 but they will "comingle" with thousands of traditional cabs that will still be on the roads with a driver for decades to come. Cabcharge expects revenues to return to double-digit growth in 2017-18 as the acquisition of Yellow Cabs in Queensland and heavy investment in new technology and marketing begin to pay off, but it still faces an uphill battle against ride-sharing services like Uber. Mr Skelton said that Cabcharge had also curbed a downward slide in Queensland, where fare turnover had decreased for 24 months. But there had been a turnaround in October, with fare turnover up 3 per cent. The expectation that revenues would be at least 10 per cent higher in 2017-18 brings a glimmer of optimism to the business, where revenues dropped by 10 per cent to $152 million in 2016-17. Cabcharge shares have been steadily falling this year and have lost 50 per cent of their value since early March when the stock was trading at $3.28. They are down another 2.3 per cent today at $1.61.
Graincorp Limited (GNC):
GrainCorp has more than quadrupled its full-year profit following a strong grain harvest, but has warned of a tough year ahead. The bulk grain handler (GNC) posted a $125.2 million net profit after tax for the year to September 30, sharply higher than the $30.9m it booked in 2016. Revenue for the year was $4.58 billion, up from $4.16 billion last year. GrainCorp sharply lifted final dividend to a fully-franked 15 cents per share, up from just 3.5 cents a year ago. GrainCorp shares were down 2.9 per cent to a three-week low of $8.30 in early trading. GrainCorp said Australia’s competitiveness in international markets may be challenged in the year ahead as grain prices remain low and grain remains in oversupply, while ocean freight rates remain cheap. But Mr Palmquist said that global demand for dry grains and oilseeds remains strong. He said consumers are increasingly focused on health and food quality and that GrainCorp is well positioned to benefit from these trends over the medium to long term.
Kathmandu Holdings Limited (KMD):
Kathmandu has reported improved first quarter earnings compared to last year. However in its home market of New Zealand, same store sales have slumped by more than 10 per cent. Kathmandu told the ASX it had started the year with 40 per cent less clearance stock than in 2017, with a lower clearance sales mix and improved gross margins of 240 basis points above last year. In a sales update, the retailer said for the 16 weeks to November 19 total sales were up 0.6 per cent at a constant exchange rate, or 3.6 per cent at actual exchange rate. Group same store sales were down 1.6 per cent at constant exchange rates. In its largest market, Australia, same store sales grew by 2.9 per cent but in New Zealand sales declined by 10.3 per cent. In September Kathmandu unveiled a 13.5 per cent rise in full-year net profit to $NZ38 million ($34.63m), driven by strong sales, innovative products and cost cuts. Revenue for the 12 months to July 31 lifted 4.6 per cent to $NZ445.35 million.
Pental Limited (PTL):
Household goods manufacturer Pental has issued a profit warning, as its earnings are savaged by rampant price deflation driven by intense competition between consumer brands and supermarket rivalry. Pental (PTL) warns price cutting and competition in the sector will crunch its first half profit by nearly 50 per cent. Pental is now forecasting net sales of around $38.4 million, down from $41.7 million in the first half of 2017, and EBITDA of around $3.5 million, against $4.9 million for the same time last year. Net profit after tax of roughly $1.2 million would be down from the first half profit of $2.3 million in 2017. In August, Pental unveiled a 3.9 per cent rise in net profit for fiscal 2017 to $5.85 million, with the company achieving solid sales growth in Australia and New Zealand, and continuing to build its sales channels in Asia. Group net sales rose 7.4 per cent to $85.124 million.
Region Express Holdings Ltd (REX):
Airline Regional Express says that expectations the economy will continue on its “modest” recovery will translate to a continued growth in the number of passengers. In an address to today’s annual general meeting, Rex deputy chairman John Sharp said the group’s rise in operating profit for the 2016-17 financial year was due to Western Australia routes, lower fuel prices and slight improvement in the USD exchange rate.” During the 2016-17 financial year, there is a 3 per cent recovery in passenger. The airline’s statutory profit after tax was $12.6 million, compared to a loss of $9.6m the year before. Its profit before tax, the carrier’s preferred measure, was $17.8m for the 2017 financial year, a quadrupling of the result the year prior. For 2016-17, the company paid a final dividend of 10c a share fully franked, the first distribution in five years. At 2.57pm (AEDT), Rex shares were trading 14 cents, or 9.9 per cent, higher at $1.55.
(Source: AIMS)
Shares in The a2 Milk Company have surged after the fresh milk and infant formula supplier said revenue and profit grew strongly in the first four months of the current financial year. The New Zealand-based company on Tuesday said revenue for the four months to October 31 was up nearly 69 per cent at $NZ262.2 million ($236.7m). The dual-listed dairy firm’s net profit for the same period more than doubled to $NZ52.3m. The news drove a2’s ASX-listed shares (A2M) up 36 cents, or 5.09 per cent, to $7.43 at 12.35pm (AEDT). A changing product mix and increases in raw material costs had put pressure on some product margins, but this had been more than offset by the weaker New Zealand dollar. A2 Milk also said it has a strong platform from which to expand further into new markets and new nutritional categories.
Altona Mining Ltd (AOH):
Copper play Altona Mining will be swallowed by Canadian group Copper Mountain Mining in a deal that will create a new $300 million mining house. Altona, which owns the undeveloped Cloncurry copper deposit in northwest Queensland, has agreed to an all-scrip offer from Copper Mountain that values it at 17c a share, or $93m. The Altona-Copper Mountain union could also be a sign that the surprisingly quiet market for mergers and acquisitions in the resources space is coming back to life. The broader rally under way in mining stocks since early last year has been notable for the shortage of deals. Copper Mountain’s offer represented a 41.7 per cent premium to Altona’s closing price last week. Altona’s major shareholder, Matchpoint, has indicated its intention to accept the offer. Copper prices have been on a strong run in recent months amid an improved outlook for the world economy. From just over $US2 a pound in February last year, copper has now risen to more than $US3 a pound.
Cabcharge Australia Limited (CAB):
The chief executive of Cabcharge says driverless taxis are likely to be operating in Australia by 2026 but they will "comingle" with thousands of traditional cabs that will still be on the roads with a driver for decades to come. Cabcharge expects revenues to return to double-digit growth in 2017-18 as the acquisition of Yellow Cabs in Queensland and heavy investment in new technology and marketing begin to pay off, but it still faces an uphill battle against ride-sharing services like Uber. Mr Skelton said that Cabcharge had also curbed a downward slide in Queensland, where fare turnover had decreased for 24 months. But there had been a turnaround in October, with fare turnover up 3 per cent. The expectation that revenues would be at least 10 per cent higher in 2017-18 brings a glimmer of optimism to the business, where revenues dropped by 10 per cent to $152 million in 2016-17. Cabcharge shares have been steadily falling this year and have lost 50 per cent of their value since early March when the stock was trading at $3.28. They are down another 2.3 per cent today at $1.61.
Graincorp Limited (GNC):
GrainCorp has more than quadrupled its full-year profit following a strong grain harvest, but has warned of a tough year ahead. The bulk grain handler (GNC) posted a $125.2 million net profit after tax for the year to September 30, sharply higher than the $30.9m it booked in 2016. Revenue for the year was $4.58 billion, up from $4.16 billion last year. GrainCorp sharply lifted final dividend to a fully-franked 15 cents per share, up from just 3.5 cents a year ago. GrainCorp shares were down 2.9 per cent to a three-week low of $8.30 in early trading. GrainCorp said Australia’s competitiveness in international markets may be challenged in the year ahead as grain prices remain low and grain remains in oversupply, while ocean freight rates remain cheap. But Mr Palmquist said that global demand for dry grains and oilseeds remains strong. He said consumers are increasingly focused on health and food quality and that GrainCorp is well positioned to benefit from these trends over the medium to long term.
Kathmandu Holdings Limited (KMD):
Kathmandu has reported improved first quarter earnings compared to last year. However in its home market of New Zealand, same store sales have slumped by more than 10 per cent. Kathmandu told the ASX it had started the year with 40 per cent less clearance stock than in 2017, with a lower clearance sales mix and improved gross margins of 240 basis points above last year. In a sales update, the retailer said for the 16 weeks to November 19 total sales were up 0.6 per cent at a constant exchange rate, or 3.6 per cent at actual exchange rate. Group same store sales were down 1.6 per cent at constant exchange rates. In its largest market, Australia, same store sales grew by 2.9 per cent but in New Zealand sales declined by 10.3 per cent. In September Kathmandu unveiled a 13.5 per cent rise in full-year net profit to $NZ38 million ($34.63m), driven by strong sales, innovative products and cost cuts. Revenue for the 12 months to July 31 lifted 4.6 per cent to $NZ445.35 million.
Pental Limited (PTL):
Household goods manufacturer Pental has issued a profit warning, as its earnings are savaged by rampant price deflation driven by intense competition between consumer brands and supermarket rivalry. Pental (PTL) warns price cutting and competition in the sector will crunch its first half profit by nearly 50 per cent. Pental is now forecasting net sales of around $38.4 million, down from $41.7 million in the first half of 2017, and EBITDA of around $3.5 million, against $4.9 million for the same time last year. Net profit after tax of roughly $1.2 million would be down from the first half profit of $2.3 million in 2017. In August, Pental unveiled a 3.9 per cent rise in net profit for fiscal 2017 to $5.85 million, with the company achieving solid sales growth in Australia and New Zealand, and continuing to build its sales channels in Asia. Group net sales rose 7.4 per cent to $85.124 million.
Region Express Holdings Ltd (REX):
Airline Regional Express says that expectations the economy will continue on its “modest” recovery will translate to a continued growth in the number of passengers. In an address to today’s annual general meeting, Rex deputy chairman John Sharp said the group’s rise in operating profit for the 2016-17 financial year was due to Western Australia routes, lower fuel prices and slight improvement in the USD exchange rate.” During the 2016-17 financial year, there is a 3 per cent recovery in passenger. The airline’s statutory profit after tax was $12.6 million, compared to a loss of $9.6m the year before. Its profit before tax, the carrier’s preferred measure, was $17.8m for the 2017 financial year, a quadrupling of the result the year prior. For 2016-17, the company paid a final dividend of 10c a share fully franked, the first distribution in five years. At 2.57pm (AEDT), Rex shares were trading 14 cents, or 9.9 per cent, higher at $1.55.
(Source: AIMS)
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