A2 Milk Company Ltd (A2M):
A2 Milk reported a record net profit in the six months to December 31 to $NZ153 million ($147 million), up 55 per cent. Shares have jumped 92 cents, up 8.4 per cent, in early trading to $13.37, the highest price ever. The net profit was 11.7 per cent better than Morgan analysts' estimates. Company revenue grew by 41 per cent to $NZ613 million while earnings before interest, tax, depreciation and amortisation (EBITDA) was up 53 per cent to $NZ218 million. A2 said its total sales in the Australia-New Zealand market jumped 37 per cent to $NZ418 million, in China and Asia sales grew by 33 per cent to $NZ117 million, and in the UK and USA 30 per cent to $NZ23 million. Chief executive Jayne Hrdlicka said the company was not expecting revenue in China to dip at all in the face of new e-commerce laws that were introduced to the country last month. A2 is not paying a dividend.
APA Group (APA):
Australia's biggest gas pipeline company, APA Group, has resumed its search for a US acquisition, after putting the move on hold last year while it dealt with a takeover offer. A APA managing director Mick McCormack said the company, which has a market value of $11 billion, had identified a few opportunities to potentially acquire a US gas transmission or distribution business. "We want to buy something that's meaningful, worth the effort, diversifies our assets geographically, but not so big that it would cause indigestion to APA," McCormack told Reuters in an interview. APA last year agreed to a $13 billion takeover offer at $11 a share from Hong Kong-based CK Group, but the deal was blocked by the Australian government on national interest grounds, amid concern about foreign ownership of the country's biggest gas transporter. APA's shares rose 0.7 per cent to $9.47 after the company reported a 4.3 per cent rise in earnings to $788 million. APA said it expected full year earnings to land within the upper-end of its forecast range of $1.55 billion to $1.575 billion.
Domino's Pizza Enterprises Ltd. (DMP):
Shares in Domino’s have plunged more than 8 per cent in early trade after the company said it was likely to hit the lower end of its full-year guidance as it unveiled a lower first half profit, partly due to costs and fees associated with its domestic industrial relations review. For the six months through December, net profit attributable to members fell 9.2 per cent to $53.3 million after it was with $14.9m in nonrecurring costs. That figure was impacted by $10.9m in profession fees, legal and settlement costs in its industrial relations review in Australia, as well as $12.6m in conversion and integration costs relating to its Hallo Pizza acquisition.
Fortescue Metals Group Ltd (FMG):
Fortescue Metals Group has reported a 5 per cent dip in half-year profit, but blew past estimates as it won higher prices for its iron ore, pushing its shares to a two-year high. The world's fourth-biggest iron ore miner rewarded shareholders with a 19 Australian cents per share interim dividend, up from 11 cents per share last year, as well as special dividend of 11 cents per share. Net profit for the six months to December 31 came in at $US644 million, down from $US681 million a year ago, but handily beat the $US544 million average of two estimates by UBS and Goldman Sachs. "The half year results demonstrate Fortescue's continued ability to generate strong cashflows from its highly efficient Pilbara operations," the company said in a statement.
Woolworths Group Ltd (WOW):
Woolworths plans to return up to $1.7 billion to shareholders after selling its petrol business and is reviewing strategies for Big W and Dan Murphy's after delivering a weaker than expected 1 per cent increase in net profit to $979 million in the December-half. Net profit from continuing operations excluding petrol rose 2.1 per cent to $920 million in the six months ended December 30, compared with market expectations around $980 million, while earnings before interest and tax rose 1 per cent to $1.4 billion, falling short of consensus forecasts of about $1.51 billion. Modest profit growth in Australian supermarkets offset weaker earnings at Endeavour Drinks and New Zealand supermarkets and further losses at Big W.
Lovisa Holdings Ltd (LOV):
Shares in jewellery retailer Lovisa are up 22 per cent to $9.48 It reported a 12 per cent increase in revenue to $133 million with a 2.7 per cent increase in post-tax profit to $25.5 million today. It is paying an interim dividend of 18 cents fully franked, 5 cents higher than the 2017-18 first half. However, comparable store sales are down nearly 2 per cent. "We have not seen the same strong fashion trends through the half year that we saw in prior years, which has impacted our ability to cycle the particularly strong Christmas and Boxing day period from prior year," the company tells shareholders. Lovisa is in expansion mode, opening 40 stores during the six months. Sales in Europe are up 111 per cent and sales in the US up 837 per cent. Lovisa closed four stores in Singapore, opened 12 in the UK and 7 in the US, and moved its logistics from Hong Kong to Qingdoa, China.
Pact Group Holdings Ltd (PGH) :
Plastic packaging maker Pact Group is hitting lows again, currently down by 13 cents to $2.98, after reporting a statutory loss of $320 million. This was expected after it warned the market of a non-cash asset impairment a few weeks ago. Pact cancelled its interim dividend. Pact's sales revenue increased 13 per cent to $915 million for the six months ending December 2018, but earnings and profits declined. Profit is $36 million, down from $51 million before the asset writedown is taken into account. Chief executive Raphael Geminder called it "a very challenging start to the year". Pact expects full year earnings to be in the range of $230 million to $245 million. In 2017-18 earnings were $234 million." The range is impacted by uncertainty around the speed with which revenue and efficiency projects can be delivered and the rate with which input cost lags can be recovered," the company told the market this morning." The board will continue to balance the capital needs of the business with shareholder returns in order to make a final assessment regarding reinstating dividends at the appropriate time."
WiseTech Global Ltd (WTC):
Wisetech shares fell heavily Wednesday morning despite unveiling strong earnings and profit growth for the December half after logistics solutions provider's full year forecast failed to meet the market's high expectations. Shares are down 13.6 per cent to $20.16. Wisetech reported a 68 per cent lift in total revenue to $156.7 million compared to the prior first half and a 48 per cent lift in net profit to $23.1 million. It also lifted its interim dividend by 43 per cent to 1.5c per share. But the company forecast revenues for the year will be up to 51 per cent higher at $335 million and earnings before interest tax, depreciation and amortisation (EBITDA) would be between $102 million and $107 million for the year, a rise of up to 37 per cent. According to Bloomberg, market consensus was for revenue of $338 million and EBITDA of $112.7 million.
(Source: AIMS)
A2 Milk reported a record net profit in the six months to December 31 to $NZ153 million ($147 million), up 55 per cent. Shares have jumped 92 cents, up 8.4 per cent, in early trading to $13.37, the highest price ever. The net profit was 11.7 per cent better than Morgan analysts' estimates. Company revenue grew by 41 per cent to $NZ613 million while earnings before interest, tax, depreciation and amortisation (EBITDA) was up 53 per cent to $NZ218 million. A2 said its total sales in the Australia-New Zealand market jumped 37 per cent to $NZ418 million, in China and Asia sales grew by 33 per cent to $NZ117 million, and in the UK and USA 30 per cent to $NZ23 million. Chief executive Jayne Hrdlicka said the company was not expecting revenue in China to dip at all in the face of new e-commerce laws that were introduced to the country last month. A2 is not paying a dividend.
APA Group (APA):
Australia's biggest gas pipeline company, APA Group, has resumed its search for a US acquisition, after putting the move on hold last year while it dealt with a takeover offer. A APA managing director Mick McCormack said the company, which has a market value of $11 billion, had identified a few opportunities to potentially acquire a US gas transmission or distribution business. "We want to buy something that's meaningful, worth the effort, diversifies our assets geographically, but not so big that it would cause indigestion to APA," McCormack told Reuters in an interview. APA last year agreed to a $13 billion takeover offer at $11 a share from Hong Kong-based CK Group, but the deal was blocked by the Australian government on national interest grounds, amid concern about foreign ownership of the country's biggest gas transporter. APA's shares rose 0.7 per cent to $9.47 after the company reported a 4.3 per cent rise in earnings to $788 million. APA said it expected full year earnings to land within the upper-end of its forecast range of $1.55 billion to $1.575 billion.
Domino's Pizza Enterprises Ltd. (DMP):
Shares in Domino’s have plunged more than 8 per cent in early trade after the company said it was likely to hit the lower end of its full-year guidance as it unveiled a lower first half profit, partly due to costs and fees associated with its domestic industrial relations review. For the six months through December, net profit attributable to members fell 9.2 per cent to $53.3 million after it was with $14.9m in nonrecurring costs. That figure was impacted by $10.9m in profession fees, legal and settlement costs in its industrial relations review in Australia, as well as $12.6m in conversion and integration costs relating to its Hallo Pizza acquisition.
Fortescue Metals Group Ltd (FMG):
Fortescue Metals Group has reported a 5 per cent dip in half-year profit, but blew past estimates as it won higher prices for its iron ore, pushing its shares to a two-year high. The world's fourth-biggest iron ore miner rewarded shareholders with a 19 Australian cents per share interim dividend, up from 11 cents per share last year, as well as special dividend of 11 cents per share. Net profit for the six months to December 31 came in at $US644 million, down from $US681 million a year ago, but handily beat the $US544 million average of two estimates by UBS and Goldman Sachs. "The half year results demonstrate Fortescue's continued ability to generate strong cashflows from its highly efficient Pilbara operations," the company said in a statement.
Woolworths Group Ltd (WOW):
Woolworths plans to return up to $1.7 billion to shareholders after selling its petrol business and is reviewing strategies for Big W and Dan Murphy's after delivering a weaker than expected 1 per cent increase in net profit to $979 million in the December-half. Net profit from continuing operations excluding petrol rose 2.1 per cent to $920 million in the six months ended December 30, compared with market expectations around $980 million, while earnings before interest and tax rose 1 per cent to $1.4 billion, falling short of consensus forecasts of about $1.51 billion. Modest profit growth in Australian supermarkets offset weaker earnings at Endeavour Drinks and New Zealand supermarkets and further losses at Big W.
Lovisa Holdings Ltd (LOV):
Shares in jewellery retailer Lovisa are up 22 per cent to $9.48 It reported a 12 per cent increase in revenue to $133 million with a 2.7 per cent increase in post-tax profit to $25.5 million today. It is paying an interim dividend of 18 cents fully franked, 5 cents higher than the 2017-18 first half. However, comparable store sales are down nearly 2 per cent. "We have not seen the same strong fashion trends through the half year that we saw in prior years, which has impacted our ability to cycle the particularly strong Christmas and Boxing day period from prior year," the company tells shareholders. Lovisa is in expansion mode, opening 40 stores during the six months. Sales in Europe are up 111 per cent and sales in the US up 837 per cent. Lovisa closed four stores in Singapore, opened 12 in the UK and 7 in the US, and moved its logistics from Hong Kong to Qingdoa, China.
Pact Group Holdings Ltd (PGH) :
Plastic packaging maker Pact Group is hitting lows again, currently down by 13 cents to $2.98, after reporting a statutory loss of $320 million. This was expected after it warned the market of a non-cash asset impairment a few weeks ago. Pact cancelled its interim dividend. Pact's sales revenue increased 13 per cent to $915 million for the six months ending December 2018, but earnings and profits declined. Profit is $36 million, down from $51 million before the asset writedown is taken into account. Chief executive Raphael Geminder called it "a very challenging start to the year". Pact expects full year earnings to be in the range of $230 million to $245 million. In 2017-18 earnings were $234 million." The range is impacted by uncertainty around the speed with which revenue and efficiency projects can be delivered and the rate with which input cost lags can be recovered," the company told the market this morning." The board will continue to balance the capital needs of the business with shareholder returns in order to make a final assessment regarding reinstating dividends at the appropriate time."
WiseTech Global Ltd (WTC):
Wisetech shares fell heavily Wednesday morning despite unveiling strong earnings and profit growth for the December half after logistics solutions provider's full year forecast failed to meet the market's high expectations. Shares are down 13.6 per cent to $20.16. Wisetech reported a 68 per cent lift in total revenue to $156.7 million compared to the prior first half and a 48 per cent lift in net profit to $23.1 million. It also lifted its interim dividend by 43 per cent to 1.5c per share. But the company forecast revenues for the year will be up to 51 per cent higher at $335 million and earnings before interest tax, depreciation and amortisation (EBITDA) would be between $102 million and $107 million for the year, a rise of up to 37 per cent. According to Bloomberg, market consensus was for revenue of $338 million and EBITDA of $112.7 million.
(Source: AIMS)
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