2 Upcoming Earnings’ Season Results – MPL and WOW

Medibank Private Ltd (ASX:MPL)

Full year result to be out soon

Medibank is set to announce its full year ending June 30, 2018 results on 24 August 2018. Meanwhile, Perpetual Limited and its related bodies corporate have enhanced their stake in the group to 8.44% from 7.37%. One of the directors, Linda Bardo Nicholls, has acquired more shares (around 8000 ordinary shares) of the group.

FY18 expected to witness similar revenue trends as 1H FY18

MPL’s six months ended December 31, 2017 (1H18) results entailed Group NPAT of $245.6 million, representing 5.9% growth over $231.9 million figure reported in 1H17. The interim dividend zoomed up by 4.8% to 5.5 cents per share (fully franked) from 1H17 dividend. Health Insurance business witnessed $2.6 billion under claims paid on behalf of customers. On the other hand, 1.8% growth was noted for Premium revenue. The operating profit surged to $277.3 million while adjusted health insurance profit of $243.5 million was reported. There was a 22% fall in net investment income to $59.7 million, at the back of lower market returns. MPL expects similar revenue trends for FY18 result as seen in first half; however, ancillary utilization growth for the second half may be below the earlier trends. A rise in management expenses has also been flagged in the second half.

The stock traded at $3.270, as at August 17, 2018, 2:00 PM AEST.

Woolworths Group Ltd (ASX:WOW)

Eyeing for convenient shopping solutions

With the opening of WOW’s Racecourse Village Ascot store, Brisbane’s population can experience a fresh and convenient frontier in supermarket shopping. A wide range of new features have been added to Woolworths Queensland stores, and these include flame-roasted chickens, artisan breads, etc. while offering a convenient shopping solution.

Convenience and Loyalty Alliance and new Wholesale Fuel arrangement with Caltex

125 Caltex sites are to be added to WOW’s existing 638 site redemption network, and WOW and Caltex are co-creating a market-leading convenience offering up to 250 sites under the Metro banner. Further, the group has extended fuel supply arrangements with Caltex for another 15 years in view of better terms for the Petrol business. Meanwhile, IPO or for that matter, a potential sale of the Petrol business still stays on the cards.

Development of new, multi-million dollar facility

WOW has planned for the development of a new, multi-million dollar facility slated to store fresh produce along with chilled products. These will then be supplied to Supermarkets. This facility has been designed to suit the new requirements and will replace existing operations at Mulgrave Produce along with Recycling DC. The same has been slated for year 2020.

Half Year Financial Results

Continuing Operations reported sales increase from $28,727 million in the HY17 to $29,807 million in the HY18. EBIT increased from $1,301 million in the HY17 to $1,430 million in the HY18. There was a rise in NPAT which is attributable to equity holders of WOW’s parent entity from $786 million in HY17, to about $902 million in half year of FY18. The group aims to delivering consistently good shopping experiences for all customers every time they shop in-store and online. It is completing the rollout of 1Store and other technology upgrade programs to enable process and efficiency improvement in FY19 and beyond.

WOW stock was trading at $29.615 as at August 17, 2018, 2:00 PM AEST. The group is expected to release FY18 results early next week.

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