A2 Milk Company Ltd (A2M):
A2 Milk Company has reported a 64.5 per cent increase in net profit to $NZ86 million in the first four months of the financial year, underpinned by continued growth in its Australian, Chinese and American markets. A2 said this morning the result was struck on a 40.5 per cent increase in revenue to $NZ368.4 million and forecast revenue growth would continue over the rest of the year “but at a slightly more moderate rate than in the first four months”.
Australian Agricultural Company Ltd (AAC):
First-half earnings for beef producer Australian Agricultural Company have been hit by a decline in the market value of livestock, due to an increase in global beef supply. For the six months through to September, the company (AAC) booked a net loss after tax of $68.4 million, compared to a loss of $37.7m the prior period. The company said challenging conditions that have impacted operating costs during the period look set to continue into the near term. Station operating expenses increased due to deteriorating seasonal conditions during the period, resulting in increased feed, supplement and freight costs.
BHP Billiton Limited (BHP):
BHP will pay $529 million in back taxes to the Australian Taxation Office and will face tens of millions of dollars a year in additional taxes after the ATO had a major win in its ongoing fight over the use of offshore trading hubs.The mining giant has also agreed to change the ownership structure of its controversial Singapore trading hub as part of its settlement, which is likely to intensify pressure on the other major international companies that have caught the ATO’s attention through their use of overseas marketing arms.
Brambles Limited (BXB):
Speculation is mounting that pallet giant Brambles has batted away private equity suitors to instead forge ahead with the demerger of its IFCO crates unit that it purchased eight years ago for $1.3 billion. Despite much hype about the strong level of buyer interest in the division, it is understood the company is more likely to be moving forward with its demerger plans, according to sources. Apparently, the unit has been a strong performer and the logic for the decision is that Brambles has not been in need of the cash and is not a forced seller. The company delivered a strong net profit increase of 308 per cent last year to $US747.1 million ($1.02bn). A Brambles spokesman said there had not been any update from the company’s statement in August, when it told the market that it had launched a dual track process for the unit.
Domain Holdings Australia Ltd (DHG):
Domain chairman Nick Falloon says current trading remains “broadly inline” with last month’s trading update, which disappointed investors who dumped the stock. Australia’s second biggest online property listing company (DHG) counts Fairfax Media as its biggest shareholder with a near 60 per cent stake, and issued a trading update on October 12, along with Fairfax and Nine Entertainment as a result of their $4 billion merger. The Fairfax scheme booklet was released on the same day after the close of trading on the ASX. Domain last month reported a 1 per cent fall in revenue for the first 15 weeks of the 2019 financial year, and a 6 per cent rise in digital revenue.
James Hardie Industries plc (JHX):
US-exposed Australian home building materials companies, Boral and James Hardie shares remain vulnerable after weak US NAHB home builder sentiment data last night. The NAHB index dived to a two-year low of 60 points versus 67 expected and 68 previously, its biggest fall in four years. NAHB said “customers are taking a pause due to concerns over rising interest rates and home prices” and “the decline of builder confidence should be noted by policymakers … given that housing leads the economy”. Boral in particular may need to update the market after its October 30 warning that its first-quarter earnings were below its expectation due to bad weather in the US. It bounced to $5.75 from there as Citi and Credit Suisse upgraded their ratings on the view that the stock was oversold on peak cycle concerns.
Medibank Private Ltd (MPL):
Medibank has failed to win a new contract to provide healthcare services to the Australian Defence Force - and is now waiting to find out why. Shares in Medibank, which was government-owned until its 2014 privatisation, were initially paused from trading on Monday after the ADF told the insurer it would not extend its current arrangement with Medibank's Garrison Health Services past June next year.
Nine Entertainment Co Holdings Ltd (NEC):
After decades where Packer’s Nine television empire coveted Australia’s oldest newspaper publisher, Fairfax Media, the deal finally received the green light from shareholders yesterday. At times during yesterday’s proceedings, it almost seemed like the ghost of Packer was watching over the vote. The late media mogul, one of the world’s great high-rollers of his day, would have particularly liked that shareholders sealed the deal across the road from Sydney’s Star City casino. Those with long memories recalled that Packer made an unsuccessful bid with US gaming group Showboat to control the Star City casino license. That was not the end of the Packer coincidences. The man who presided over yesterday’s Fairfax shareholder vote on the $4 billion union, Nick Falloon, was once chief executive of Packer’s TV and magazine empire. If the deal proceeds, it will result in some very unusual bedfellows.
Wesfarmers Ltd (WES):
Wesfarmers says John Merakovsky has been appointed chief executive Officer of loyalty and data company flybuys. Mr Merakovsky is currently CEO of ASX-listed Integrated Research. Flybuys is owned and operated by a stand-alone company in which Wesfarmers and Coles will continue to each own a 50 per cent shareholding following this week’s Coles demerger.
(Source: AIMS)
A2 Milk Company has reported a 64.5 per cent increase in net profit to $NZ86 million in the first four months of the financial year, underpinned by continued growth in its Australian, Chinese and American markets. A2 said this morning the result was struck on a 40.5 per cent increase in revenue to $NZ368.4 million and forecast revenue growth would continue over the rest of the year “but at a slightly more moderate rate than in the first four months”.
Australian Agricultural Company Ltd (AAC):
First-half earnings for beef producer Australian Agricultural Company have been hit by a decline in the market value of livestock, due to an increase in global beef supply. For the six months through to September, the company (AAC) booked a net loss after tax of $68.4 million, compared to a loss of $37.7m the prior period. The company said challenging conditions that have impacted operating costs during the period look set to continue into the near term. Station operating expenses increased due to deteriorating seasonal conditions during the period, resulting in increased feed, supplement and freight costs.
BHP Billiton Limited (BHP):
BHP will pay $529 million in back taxes to the Australian Taxation Office and will face tens of millions of dollars a year in additional taxes after the ATO had a major win in its ongoing fight over the use of offshore trading hubs.The mining giant has also agreed to change the ownership structure of its controversial Singapore trading hub as part of its settlement, which is likely to intensify pressure on the other major international companies that have caught the ATO’s attention through their use of overseas marketing arms.
Brambles Limited (BXB):
Speculation is mounting that pallet giant Brambles has batted away private equity suitors to instead forge ahead with the demerger of its IFCO crates unit that it purchased eight years ago for $1.3 billion. Despite much hype about the strong level of buyer interest in the division, it is understood the company is more likely to be moving forward with its demerger plans, according to sources. Apparently, the unit has been a strong performer and the logic for the decision is that Brambles has not been in need of the cash and is not a forced seller. The company delivered a strong net profit increase of 308 per cent last year to $US747.1 million ($1.02bn). A Brambles spokesman said there had not been any update from the company’s statement in August, when it told the market that it had launched a dual track process for the unit.
Domain Holdings Australia Ltd (DHG):
Domain chairman Nick Falloon says current trading remains “broadly inline” with last month’s trading update, which disappointed investors who dumped the stock. Australia’s second biggest online property listing company (DHG) counts Fairfax Media as its biggest shareholder with a near 60 per cent stake, and issued a trading update on October 12, along with Fairfax and Nine Entertainment as a result of their $4 billion merger. The Fairfax scheme booklet was released on the same day after the close of trading on the ASX. Domain last month reported a 1 per cent fall in revenue for the first 15 weeks of the 2019 financial year, and a 6 per cent rise in digital revenue.
James Hardie Industries plc (JHX):
US-exposed Australian home building materials companies, Boral and James Hardie shares remain vulnerable after weak US NAHB home builder sentiment data last night. The NAHB index dived to a two-year low of 60 points versus 67 expected and 68 previously, its biggest fall in four years. NAHB said “customers are taking a pause due to concerns over rising interest rates and home prices” and “the decline of builder confidence should be noted by policymakers … given that housing leads the economy”. Boral in particular may need to update the market after its October 30 warning that its first-quarter earnings were below its expectation due to bad weather in the US. It bounced to $5.75 from there as Citi and Credit Suisse upgraded their ratings on the view that the stock was oversold on peak cycle concerns.
Medibank Private Ltd (MPL):
Medibank has failed to win a new contract to provide healthcare services to the Australian Defence Force - and is now waiting to find out why. Shares in Medibank, which was government-owned until its 2014 privatisation, were initially paused from trading on Monday after the ADF told the insurer it would not extend its current arrangement with Medibank's Garrison Health Services past June next year.
Nine Entertainment Co Holdings Ltd (NEC):
After decades where Packer’s Nine television empire coveted Australia’s oldest newspaper publisher, Fairfax Media, the deal finally received the green light from shareholders yesterday. At times during yesterday’s proceedings, it almost seemed like the ghost of Packer was watching over the vote. The late media mogul, one of the world’s great high-rollers of his day, would have particularly liked that shareholders sealed the deal across the road from Sydney’s Star City casino. Those with long memories recalled that Packer made an unsuccessful bid with US gaming group Showboat to control the Star City casino license. That was not the end of the Packer coincidences. The man who presided over yesterday’s Fairfax shareholder vote on the $4 billion union, Nick Falloon, was once chief executive of Packer’s TV and magazine empire. If the deal proceeds, it will result in some very unusual bedfellows.
Wesfarmers Ltd (WES):
Wesfarmers says John Merakovsky has been appointed chief executive Officer of loyalty and data company flybuys. Mr Merakovsky is currently CEO of ASX-listed Integrated Research. Flybuys is owned and operated by a stand-alone company in which Wesfarmers and Coles will continue to each own a 50 per cent shareholding following this week’s Coles demerger.
(Source: AIMS)
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