Bega Cheese Ltd (BGA):
Bega Cheese is closing its cheddar and mozzarella cheese manufacturing facility in Coburg with immediate effect, with redundancies to follow. It came as the dairy and spreads manufacturer blamed drought-inflated farm gate milk prices and expansion costs for a 74 per cent dive in first-half profit to $5.3 million. Bega did not say how many jobs at the Melbourne facility could go. The facility, located in Melbourne’s northern suburbs, was acquired by Bega in 2009.
Bellamy's Australia Ltd (BAL):
Infant formula maker Bellamy’s has blamed rebranding and delays in Chinese regulatory approval for a 63 per cent dive in first-half net profit, and has warned a worse-than-expected hit is in store for the company’s full-year result. Bellamy’s yesterday said profit for the six months to December 31 fell to $8.4 million from $22.6 million a year ago, after revenue dipped 26 per cent to $130 million. Bellamy’s will not pay an interim dividend. It also flagged a worse-than-expected full-year result, with target revenue revised to between $275 million and $300 million reflecting zero Chinese-label sales during the half. The company had predicted 10 per cent full-year revenue growth to $360 million back in August, but cut its guidance in October following a delay in approval from China’s State Administration for Market Regulation. Bellamy’s shares dived nearly 10 per cent in the opening minutes of trade before recovering to be flat by about 10.20am (AEDT) yesterday.
Blackmores Limited (BKL):
The shock departure of Blackmores chief executive Richard Henfrey after just 18 months in the top job follows talks with the board on the future transformation of the company. Marcus Blackmore, the vitamin maker’s largest shareholder and son of the company’s founder, revealed to The Australian on Tuesday that he had been on the phone with the board and Mr Henfrey for the past few days, and late on Monday the chief executive decided the best option for him was to resign. “He has been with the company for more than 10 years and done some very good stuff for us,” Mr Blackmore said. “The board believes it is time for a substantial amount of transformation in the business. The board sat down with Richard and the end result was that he said it was time for him to move on.”
Costa Group Holdings Ltd (CGC):
Fruit and vegetable grower Costa Group has flagged earnings growth for the full calendar year and positive market and weather conditions, despite booking first-half profit plunge, partly due to an earnings miss in December. Unveiling a first-half net profit after tax of $4.3 million, down from $74.5m in the first half last year, Costa (CGC) chief executive Harry Debney said that several factors had contributed to the lower profit result, including a higher preharvest cost investment and an “off” citrus season in terms of the biennial nature of the crop. Bringing African Blue — its berry joint venture in Morocco — on to its balance sheet had also impacted, after Costa grew its stake in the operation.
MG Unit Trust (MGC):
Murray Goulburn has posted a $17.6 million first-half loss and delayed a move to delist from the ASX while it firms up potential cost savings. The fallen dairy co-operative, whose remaining assets were bought by Canadian giant Saputo last year, says it has delayed a vote on the proposal from February or March while it clarifies the impact on operating costs that include future insurance premiums. Murray Goulburn (MGC), which expects combined shareholder class actions over alleged breaches of continuous disclosure obligations to to go to trial in February 2020, says it will likely give more details about the proposed delisting of its unit trust in April.
Michael Hill International Ltd (MHJ):
New Michael Hill chief executive Daniel Bracken has touted the “significant” opportunities ahead and vowed to establish the brand as a contemporary retailer despite challenging conditions, as the company’s shares surged more than 10 per cent after it delivered a bumper first-half result, having shut most of its Emma & Roe stores and exited its loss-making US business. For the half year through December, net profit after tax attributable to members rose 124.6 per cent to $19.5 million, compared to $8.7m the prior year when deteriorating business conditions in the US weighed on earnings. Michael Hill declared an unfranked interim dividend of 2.5 cents per share, in line with last year. The company (MHJ) said it had seen a strong improvement in sales momentum in the lead up to Christmas, after it shifted away from a high frequency of deep discount event days, which drove revenue weakness between July and October.
OZ Minerals Limited (OZL):
Oz Minerals says annual net profit fell by 3.8 per cent because of higher depreciation and one-time charges, as underlying earnings held steady aided by higher production. Oz Minerals reported a net profit of $222.4 million for 2018, down from $231.1 million for 2017. The miner recorded a 4.5 per cent increase in net depreciation and amortisation expenses and $5.9 million in non-underlying items net of tax. Still, directors of the company declared an interim dividend of 15 cents per share, taking the full-year payout to 23 cents a share. That is up from 20 cents the year earlier. Oz Minerals in August, alongside its half-year result, said it had revised its capital management strategy to balance returns to shareholders with capital required for its growth projects.
Prime Media Group Limited (PRT):
Prime Media boss Ian Audsley says the regional broadcaster is struggling to sell property across the country, blaming a dearth of buyers. Asked on Prime’s investor interim earnings call yesterday morning if the group had considered releasing some capital via the sale and leaseback of property, Mr Audsley said it had, but that it was proving to “very difficult”. “Over recent years, we’ve sold a bit of property. We still have some that we’re trying to sell. But unfortunately in regional Australia there’s not a lot of interest in property of the scale and size that we have, and not a lot of interest in paying the amount of money that we want for it,” Mr Audsley said. Prime owns about $6.7 million worth of land and buildings, according to its financial report for the half-year ended December 31.
Reliance Worldwide Corporation Ltd (RWC):
Reliance Worldwide chairman Jonathan Munz will step down from the firm his family founded after selling $367m worth of stock in the company. A term sheet obtained by Dataroom shows that Mr Munz will hand over control of the company “after an orderly handover to a new chairman” once the sale of the shares is complete. Macquarie is tonight finalising the sale of the stock which are being offloaded at $4.65 per share, a 4.7 per cent discount to the company’s Tuesday closing price of $4.88.
Rio Tinto Limited (RIO):
Global miner Rio Tinto on Wednesday posted a 2 percent rise in underlying earnings for calendar 2018, coming in well ahead of market estimates on robust commodity prices. Underlying earnings for the 12 months ended Dec. 31 rose to $8.81 billion, from $8.63 billion a year earlier. The figure was significantly higher than a consensus estimate of $8.47 billion compiled by Vuma Financial. Rio declared a final dividend of $1.80 per share and special dividend of $2.43 per share.
Ruralco Holdings Ltd (RHL):
A deal likely to be tabled shortly by the Canadian group Nutrien will value Australian agricultural company Ruralco at nearly $450m, but already investors are wondering if this is the first step in a strategic battle to play out for the company. Ruralco, its main rival Elders and Nutrien have been dancing around each other for more than a year as speculation persists that one of the parties will buy out the others. Ruralco’s stock was placed in a trading halt on Tuesday at $3.06 a share and there was talk last night the Nutrien bid was still in the final stages of being pieced together. Nutrien said overnight it was in talks for a potential deal involving Ruralco, but no agreement had been reached and there was no assurance that there would be one.
SEEK Limited (SEK):
Online jobs marketplace Seek has pared its annual earnings guidance as it steps up spending on new ventures. Seek said it now expected to invest between $40 million and $45m in early stage ventures, up from a prior range of $35 million-$40m. As a result, management said it now believes net profit for the year through June will fall short of the result for fiscal 2018. Still, Seek stuck with earlier forecasts for annual revenue growth of between 16 per cent and 20 per cent, with EBITDA seen rising by 5-8 per cent. “Given the strong performance in our early stage ventures portfolio we are looking to reinvest more to accelerate their growth strategies,” said chief executive Andrew Bassat.
Vocus Group Ltd (VOC):
Fibre builder Vocus has reported relatively flat revenues for the first half of financial year 2019, as the company continues its turnaround with a refreshed executive team and board. Vocus, which operates consumer brands iPriumus and Dodo, posted revenue of $974.2 million, up 1 per cent on the $967.3m it pulled in a year earlier. The company’s (VOC) profits have plummeted by 29 per cent however, with Vocus posting a net profit after tax of $48.8m compared with $68.6m a year earlier. Underlying earnings before interest, tax depreciation and amortisation (EBITDA) fell by 7 per cent year-on-year to $176.4m. Vocus boss Kevin Russell said the company was still early in its three-year turnaround project.
(Source: AIMS)
Bega Cheese is closing its cheddar and mozzarella cheese manufacturing facility in Coburg with immediate effect, with redundancies to follow. It came as the dairy and spreads manufacturer blamed drought-inflated farm gate milk prices and expansion costs for a 74 per cent dive in first-half profit to $5.3 million. Bega did not say how many jobs at the Melbourne facility could go. The facility, located in Melbourne’s northern suburbs, was acquired by Bega in 2009.
Bellamy's Australia Ltd (BAL):
Infant formula maker Bellamy’s has blamed rebranding and delays in Chinese regulatory approval for a 63 per cent dive in first-half net profit, and has warned a worse-than-expected hit is in store for the company’s full-year result. Bellamy’s yesterday said profit for the six months to December 31 fell to $8.4 million from $22.6 million a year ago, after revenue dipped 26 per cent to $130 million. Bellamy’s will not pay an interim dividend. It also flagged a worse-than-expected full-year result, with target revenue revised to between $275 million and $300 million reflecting zero Chinese-label sales during the half. The company had predicted 10 per cent full-year revenue growth to $360 million back in August, but cut its guidance in October following a delay in approval from China’s State Administration for Market Regulation. Bellamy’s shares dived nearly 10 per cent in the opening minutes of trade before recovering to be flat by about 10.20am (AEDT) yesterday.
Blackmores Limited (BKL):
The shock departure of Blackmores chief executive Richard Henfrey after just 18 months in the top job follows talks with the board on the future transformation of the company. Marcus Blackmore, the vitamin maker’s largest shareholder and son of the company’s founder, revealed to The Australian on Tuesday that he had been on the phone with the board and Mr Henfrey for the past few days, and late on Monday the chief executive decided the best option for him was to resign. “He has been with the company for more than 10 years and done some very good stuff for us,” Mr Blackmore said. “The board believes it is time for a substantial amount of transformation in the business. The board sat down with Richard and the end result was that he said it was time for him to move on.”
Costa Group Holdings Ltd (CGC):
Fruit and vegetable grower Costa Group has flagged earnings growth for the full calendar year and positive market and weather conditions, despite booking first-half profit plunge, partly due to an earnings miss in December. Unveiling a first-half net profit after tax of $4.3 million, down from $74.5m in the first half last year, Costa (CGC) chief executive Harry Debney said that several factors had contributed to the lower profit result, including a higher preharvest cost investment and an “off” citrus season in terms of the biennial nature of the crop. Bringing African Blue — its berry joint venture in Morocco — on to its balance sheet had also impacted, after Costa grew its stake in the operation.
MG Unit Trust (MGC):
Murray Goulburn has posted a $17.6 million first-half loss and delayed a move to delist from the ASX while it firms up potential cost savings. The fallen dairy co-operative, whose remaining assets were bought by Canadian giant Saputo last year, says it has delayed a vote on the proposal from February or March while it clarifies the impact on operating costs that include future insurance premiums. Murray Goulburn (MGC), which expects combined shareholder class actions over alleged breaches of continuous disclosure obligations to to go to trial in February 2020, says it will likely give more details about the proposed delisting of its unit trust in April.
Michael Hill International Ltd (MHJ):
New Michael Hill chief executive Daniel Bracken has touted the “significant” opportunities ahead and vowed to establish the brand as a contemporary retailer despite challenging conditions, as the company’s shares surged more than 10 per cent after it delivered a bumper first-half result, having shut most of its Emma & Roe stores and exited its loss-making US business. For the half year through December, net profit after tax attributable to members rose 124.6 per cent to $19.5 million, compared to $8.7m the prior year when deteriorating business conditions in the US weighed on earnings. Michael Hill declared an unfranked interim dividend of 2.5 cents per share, in line with last year. The company (MHJ) said it had seen a strong improvement in sales momentum in the lead up to Christmas, after it shifted away from a high frequency of deep discount event days, which drove revenue weakness between July and October.
OZ Minerals Limited (OZL):
Oz Minerals says annual net profit fell by 3.8 per cent because of higher depreciation and one-time charges, as underlying earnings held steady aided by higher production. Oz Minerals reported a net profit of $222.4 million for 2018, down from $231.1 million for 2017. The miner recorded a 4.5 per cent increase in net depreciation and amortisation expenses and $5.9 million in non-underlying items net of tax. Still, directors of the company declared an interim dividend of 15 cents per share, taking the full-year payout to 23 cents a share. That is up from 20 cents the year earlier. Oz Minerals in August, alongside its half-year result, said it had revised its capital management strategy to balance returns to shareholders with capital required for its growth projects.
Prime Media Group Limited (PRT):
Prime Media boss Ian Audsley says the regional broadcaster is struggling to sell property across the country, blaming a dearth of buyers. Asked on Prime’s investor interim earnings call yesterday morning if the group had considered releasing some capital via the sale and leaseback of property, Mr Audsley said it had, but that it was proving to “very difficult”. “Over recent years, we’ve sold a bit of property. We still have some that we’re trying to sell. But unfortunately in regional Australia there’s not a lot of interest in property of the scale and size that we have, and not a lot of interest in paying the amount of money that we want for it,” Mr Audsley said. Prime owns about $6.7 million worth of land and buildings, according to its financial report for the half-year ended December 31.
Reliance Worldwide Corporation Ltd (RWC):
Reliance Worldwide chairman Jonathan Munz will step down from the firm his family founded after selling $367m worth of stock in the company. A term sheet obtained by Dataroom shows that Mr Munz will hand over control of the company “after an orderly handover to a new chairman” once the sale of the shares is complete. Macquarie is tonight finalising the sale of the stock which are being offloaded at $4.65 per share, a 4.7 per cent discount to the company’s Tuesday closing price of $4.88.
Rio Tinto Limited (RIO):
Global miner Rio Tinto on Wednesday posted a 2 percent rise in underlying earnings for calendar 2018, coming in well ahead of market estimates on robust commodity prices. Underlying earnings for the 12 months ended Dec. 31 rose to $8.81 billion, from $8.63 billion a year earlier. The figure was significantly higher than a consensus estimate of $8.47 billion compiled by Vuma Financial. Rio declared a final dividend of $1.80 per share and special dividend of $2.43 per share.
Ruralco Holdings Ltd (RHL):
A deal likely to be tabled shortly by the Canadian group Nutrien will value Australian agricultural company Ruralco at nearly $450m, but already investors are wondering if this is the first step in a strategic battle to play out for the company. Ruralco, its main rival Elders and Nutrien have been dancing around each other for more than a year as speculation persists that one of the parties will buy out the others. Ruralco’s stock was placed in a trading halt on Tuesday at $3.06 a share and there was talk last night the Nutrien bid was still in the final stages of being pieced together. Nutrien said overnight it was in talks for a potential deal involving Ruralco, but no agreement had been reached and there was no assurance that there would be one.
SEEK Limited (SEK):
Online jobs marketplace Seek has pared its annual earnings guidance as it steps up spending on new ventures. Seek said it now expected to invest between $40 million and $45m in early stage ventures, up from a prior range of $35 million-$40m. As a result, management said it now believes net profit for the year through June will fall short of the result for fiscal 2018. Still, Seek stuck with earlier forecasts for annual revenue growth of between 16 per cent and 20 per cent, with EBITDA seen rising by 5-8 per cent. “Given the strong performance in our early stage ventures portfolio we are looking to reinvest more to accelerate their growth strategies,” said chief executive Andrew Bassat.
Vocus Group Ltd (VOC):
Fibre builder Vocus has reported relatively flat revenues for the first half of financial year 2019, as the company continues its turnaround with a refreshed executive team and board. Vocus, which operates consumer brands iPriumus and Dodo, posted revenue of $974.2 million, up 1 per cent on the $967.3m it pulled in a year earlier. The company’s (VOC) profits have plummeted by 29 per cent however, with Vocus posting a net profit after tax of $48.8m compared with $68.6m a year earlier. Underlying earnings before interest, tax depreciation and amortisation (EBITDA) fell by 7 per cent year-on-year to $176.4m. Vocus boss Kevin Russell said the company was still early in its three-year turnaround project.
(Source: AIMS)
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