Vitamin maker Blackmores says Chinese consumers are turning off Australian products, a key factor behind its 24 per cent profit drop for the year, with sales to the market dropping 15 per cent. The company posted net profit after tax of $53 million, down 24 per cent on the prior year, but a slight uptick in revenue to $610m. Excluding one-off costs to streamline the business, underlying net profit was $55m. It said China ecommerce changes, effective from January 2019, had prompted a shift in consumption patterns away from Australian retailers to more direct purchasing from e-commerce platforms in China. The board declared a final dividend of 70 cents per share, taking total dividents for the year to 220cps. It said challenging conditions in China were expected to continue during the first part of FY20, but that the second half was likely to benefit from operational efficiencies from recent business improvement initiatives.
Breville Group Ltd (BRG):
Strong demand for coffee makers and juicers in North America and Europe helped appliance maker Breville Group lift net profits by 15.2 per cent to $67.4 million in the 12 months ending June. While the net profit result was in line with consensus forecasts, group sales rose 17.5 per cent to $759.9 million, beating forecasts around $741 million, fuelled by better than expected growth in Europe and the stronger US dollar. The 87-year-old appliance maker, whose products are sold in 57 countries, has been investing heavily in R&D to accelerate sales and margin growth. Over the past nine months it has launched a benchtop pizza oven, a compact espresso machine, a Nespresso-style coffee maker, a quiet "super" blender and a tea maker.
Evolution Mining Ltd (EVN):
Gold producer Evolution Mining recorded a 17 per cent fall in annual profit mainly because higher operating costs and taxes combined with lower revenue from the copper and silver by-products it sells. The Australian miner on Thursday reported a net profit of $218.2 for the 12 months through June. That was down from $263.4 million a year earlier. Still, directors declared a year-end payout of 6 cents a share, up from 4 cents a year ago. That reflected a new policy aimed at paying shareholders roughly 50pc of free cash flow, the company said. “With the current spot price around $450 higher than the $1,760 per ounce gold price achieved in FY19, we remain focused on maintaining our low cost base to bank every additional dollar and return excess funds to our shareholders,” said Executive Chairman Jake Klein.
InvoCare Limited (IVC):
Funeral services provider InvoCare has posted what it calls “promising” first-half results as the number of deaths reverts to the long-term trend. The company’s half-year results, released today, show that its operating sales revenue increased 7 per cent to $241.5m, while its operating EBITDA was 16.9 per cent higher at $53.7m. InvoCare, the largest provider of funeral services in Australia, New Zealand and Singapore, also reported a 97 per cent lift in its net profit after tax to $41.4m. The company said that figure was driven mainly by the over-performance of the funds under management for pre-paid funerals. Despite the positive numbers, shares in the company are down 7 per cent to $14.13 in a market that is following the negative lead set by Wall Street on fears of a US recession.
Orora Ltd (ORA):
Packaging manufacturer Orora experienced tough operating conditions in North America that offset by stronger local growth, as it reported a 4 per cent rise in after tax profit for the past financial year. Orora announced its full year results to the market on Thursday morning. The company posted a $217 million profit for the 2019 financial year, driven by a 6.2 per cent increase in earnings from its Australasian division, compared to the 2018 fiscal year. This took Australasian earnings before income and tax to $246.6 million. Meanwhile, Orara's North American earnings fell 3.6 per cent to $116.6 million in the 2019 financial year compared to the previous financial year. The company will pay a 6.5¢ dividend.
QBE Insurance Group Ltd (QBE):
Global insurer QBE Group posted a 35 per cent lift in its half-year cash profit to $520 million, helped by lower claim costs, better investment returns and rising insurance premiums. The insurer, which has been rebuilding after a period of poor performance, reaffirmed its profit guidance on Thursday, and declared an interim dividend of 25c a share, 14 per cent higher than last year. The dividend will be franked at 60 per cent and paid on October 4. "The Group's half year financial performance reflected a further significant improvement in attritional claims experience across all divisions coupled with materially stronger investment returns," chief executive Pat Regan said. "These were partly offset by an anticipated increase in the net cost of large individual risk and catastrophe claims following the successful renegotiation of the Group's reinsurance program."
Super Retail Group Ltd (SUL):
Super Retail Group has stayed its course for the 2019 financial year even as weak consumer confidence is rattling the retail sector, reporting earnings of $314.7 million and revenue of $2.71 billion in its full-year results. Earnings before interest, tax, depreciation and amortisation (EBITDA) in the year to June 29 were up 7 per cent on the year prior, yet slightly below consensus estimates of 7.7 per cent, the company said in a statement to the ASX on Thursday morning. Net profit rose 8.6 per cent to $139.3 million. The company's revenue was in line with analyst expectations, growing a modest 5.4 per cent. Like-for-like sales across the group were up 2.9 per cent with each division posting positive sales growth. Super Retail Group operates Supercheap Auto, Rebel Sports, BCF and Macpac in Australia.
Sydney Airport Holdings Pty Ltd (SYD):
Sydney Airport has shrunk its workforce and scaled back capital spending as first half net profits slid 90 per cent to $17.3 million due to a hefty expense associated with a tax dispute in Denmark. The airport told investors last week that it planned to expense $182 million for indemnities linked to a tax dispute on the 2011 sale of its holdings in Copenhagen Airport following decisions in the European Union's Court of Justice. It continues to appeal the matter in the Danish High Court. The expense sharply lowered Sydney Airport's first half net profits, which were $173.2 million a year earlier, but the company has reconfirmed its full year dividend guidance of 39¢ per share. It is paying a first half dividend of 19.5¢ per share.
Telstra Corporation Ltd (TLS):
Telstra has suffered a sharp drop in earnings and profit in 2019 and warned shareholders to brace for an even bigger impact next year as a result of the National Broadband Network. Telstra's net profit after tax fell 39.6 per cent in the 2019 financial year to $2.15 billion, with revenue down 2.3 per cent to $25.26 billion, the telecommunication company's 2019 financial year results released on Thursday morning show. Earnings (before interest, tax, depreciation and amortisation) fell 21 per cent to $8 billion. The full-year results are in line with guidance and expectations. Mr Penn revealed a radical turnaround strategy, called Telstra 2022 or T22, in June 2018 after five-year lows in the share price led to a revolt on executive pay and an outcry from shareholders.
Treasury Wine Estates Ltd (TWE):
Increased demand for luxury wine at home and abroad has helped push the net profit of Treasury Wine Estates up by a hefty 16 per cent, to $419.5 million for fiscal 2019. Treasury's results, released before the market opened on Thursday, also revealed a 17 per cent jump in sales to $2.83 billion. "Today's results confirm the positive momentum in our business which is being delivered through our premiumisation strategy, the disciplined investments we have made in our business over recent years and importantly, exceptional execution by our global team," said Treasury boss Michael Clarke. The "strong underlying growth" was achieved even as "competitive and macro-economic" conditions were challenging in some of the company's major growth markets, he said.
Woodside Petroleum Limited (WPL):
Oil and gas producer Woodside Petroleum has suffered a 23 per cent fall in first half profit after taking a hit from maintenance at its flagship Pluto LNG plant and the impact from cyclones. Net profit after tax for the six months ended June 30 fell to $US419 million ($620m) from $US541m as revenue eased five per cent to $US2.26 billion. The Perth producer retained its guidance for production this year at the lower end of 88 million to 94m barrels of oil equivalent and says it remains on track to achieve annual production of 100m boe in 2020. Woodside declared an interim dividend about a third lower on last year at US36c per share compared with US53c per share. The energy operator is preparing for final investment decisions on its Browse gas field in Western Australia next year. The latest development plans for Browse, where gas was found in the early 1970s, focus on a 900km-long pipeline south to the nation’s original LNG plant, the North West Shelf. The gas would be used to backfill the plant as its existing gas fields decline, with Browse eventually producing up to 11.4 million tonnes of LNG a year.
Xero Limited (XRO):
Accounting software Xero has reaffirmed its outlook for the year ahead at its AGM as it told shareholders it was cashed up and scoping out acquisition opportunities. Talking to shareholders in Aukland, chief executive Steve Vamos said its core accounting offering was its biggest immediate opportunity, in existing markets as well as other geographies. That said, he noted the company had $US300m in the bank after issuing convertible notes last October, giving it financial flexibility. “We’re evaluating a range of potential M&A opportunities that we screen based on how they support our strategic priorities,” Mr Vamos said. “Also, as Xero continues to grow, investing to build capabilities that support global scale and innovation include significant focus on growing our talent, and improving all our business processes for operational excellence. ”
(Source: AIMS)
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