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Summary
- Despite growth pattern observed in the ASX 200 index, the individual companies showcased mixed results in the august earnings season
- ASX Limited’s statutory profit rose 1.4% from last year to $498.6 million while Pro Medicus announced $23.08 million profit after tax which is an increase of 20.7% YoY
- South32 strengthened its balance sheet and announced dividends for the investors while Domain brokerage company, Domain holdings declared no dividend along with a net loss after tax of A$227.7 million.
- Coca-Cola Amatil declared decline in revenues in 1H FY20 because of negative impacts stemming from Australian bushfires, Indonesian floods, and COVID-19 pandemic.
- For the year ended 30 June 2020, Orora sold its Australasian Fibre business, reduced its debt, and returned A$600 million to shareholders.
The Australian share market has been experiencing quite a rally post the March bear Market. The representative index, ASX200, which rebounded spectacularly since the March low, closed at 6,111.20 on 21 August, down 0.14% from the previous close. Similar to the index, many individual companies have followed the same growth pattern, with the earnings season adding zest to the share price trajectory.
On that backdrop, let us glance over on latest earnings releases of few ASX 200 companies.
ASX Limited (ASX:ASX)
ASX Ltd operates Australia's primary national stock exchange and equity derivatives market. The company operates through four business segments – Listing and Issuer’s services, Derivatives and OTC markets, Trading Services, and Equity Post-trade services. ASX had recently launched S&P/ASX All Technology Index on 24 February 2020.
The company recently announced to continue to provide substantial financial returns to its shareholders. It is set to distribute a final dividend of 122.5 cents per share, fully franked, up 7.2%, bringing total FY20 dividends to 238.9 cents per share, 4.5% higher than last year.
Source: ASX update
ASX Limited’s operating revenue in FY20 ending June 2020 grew 8.6% YoY to A$938.4 million, and EBIT grew by 8.5% YoY to reach A$652.2 million. The company’s statutory profit rose 1.4% from last year to A$498.6 million, which is an increase of A$6.6 million. The underlying profit increased by 4.4% to A$513.8 million, a lift of A$21.8 million.
ASX's all four main businesses grew with an overall excellent performance supported by cash market trading. A growing appetite from ASX's customers for technical connections and information services came as a catalyst.
On 21 August 2020, Shares of ASX last traded at A$88.180 with a market capitalisation of A$17.41 billion.
Also read: Market Update: S&P/ASX200 Ended in Red; IDP Education Limited Rose by 28.485%
Pro Medicus Limited (ASX:PME)
Healthcare IT specialist Pro Medicus suffered a small setback in its share price on 20 August 2020 despite the steady profit growth it reported in FY20 ending June over the last financial year. The company announced A$23.08 million profit after tax which is an increase of 20.7% from the previous year.
Group's full-year revenue increased to A$56.82 million in FY20, an increase of 13.4% from A$50.11 million in FY19. The preliminary final report stated as the group's costs are relatively fixed, it had a significant impact on profitability with an increase in sales. The improvements in revenue from North America, as well as increased Pro Medicus products (RIS) sales in Australia, were the critical drivers for profit increase. The underlying operations results for the year was a pre-tax profit of $30.24 million, compared to an underlying pre-tax profit of $22.66 million from the same previous period.
A commendable achievement is that despite its entire global operations full transition to "work from home" in mid-March 2020, it ensured successful continuity of all R&D and client support services. The report said a franked final dividend of 6.0 cents per share would be paid on 2 October 2020. In 2019, the company paid 4.5 cents per share.
On 21 August 2020, shares of PME last traded at A$26.120 with a market capitalisation of A$2.57 billion.
Also read: PME, BTI and S32 Announce Dividend Distribution for H1 FY2020
South32 Limited (ASX:S32)
South32 operates in Australia, Southern Africa and South America as a , a globally diversified mining and metals company.
South32 released its FY20 financial results ending June and outlook stating it delivers strong operating results, further strengthening the balance sheet. The group also announces dividends for the investors.
The company reported revenue of US$6,075 million in FY20 ending June, representing a YoY decrease of 16%. Its statutory profit after tax declined by US$454 million to a loss of US$65 million in FY20, which includes the impact of an impairment and restructuring charges totalling US$115 million concerning its equity accounted for manganese alloy smelters. Group earnings decreased by 81% to US$193M because of the volatile macro-economic conditions that impacted the prices of its essential commodities.
South32 mentioned in the report that its strong financial position and disciplined approach to capital management had yielded a return of US$424 million to our shareholders in respect of the year. Its Board decided to release a US 1 cent per share, i.e. a total of US$48 million fully franked final dividend.
On 21 August 2020, shares of S32 last traded at A$2.230 with a market capitalisation of A$10.37 billion.
Related news: Value and Stability in a Bear Market – A Glance at S32, NSR, CTX
Coca-Cola Amatil Limited (ASX:CCL)
Bottlers and distributors of ready-to-drink beverages, Coca-Cola Amatil, released its 1H FY20 financial results ending June with Group Managing Director Alison Watkins stating that the company experienced unique, market-wide challenges in the first half of FY20 stemming from Australian bushfires, Indonesian floods, and COVID-19 pandemic.
Trading revenue reached A$2,185 million in 1H FY20, a decline of 9.2% YoY. Its statutory net profit after tax recorded a loss of A$8.7 million versus a profit in the first half of 2019, which was A$168.0 million. The loss reflected non-trading items of A$120.8 million, relating to Amatil's Indonesian, Fijian and Samoan businesses.
Company's ongoing NPAT was down 35.3% at A$112.1 million in 1H FY20 compared to A$173.3 in 1H FY19. With consumer buying patterns affected by COVID-19 restrictions, Amatil's Australian business saw a dramatic change in consumer behaviour throughout 1H FY20.
Source: ASX Update
Amatil's NARTD (Non Alcoholic Ready to Drink) business experienced a transition of volume to lower margin channels and a shift to lower margin 'at home' consumption packs. Its Alcohol & Coffee businesses were also adversely impacted, as the outlets were closed and trading was restricted in the On-Premise channel. Amatil also announced a first-half 9.0 cent dividend, unfranked, to be paid on 13 October, down from 25 cents a year ago.
On 21 August 2020, shares of CCL last traded at A$9.540 with a market capitalisation of A$6.72 billion.
Also read: Value versus Volume: Not just the stock but assets as well for Coca-Cola Amatil
Domain Holdings Australia Limited (ASX:DHG)
Domain brokerage company, Domain Holdings, announced its 2020 full-year financial results ending June 2020 and reported statutory revenue of A$280.4 million and a net loss after tax of A$227.7 million. It also included a goodwill impairment charge of A$256.1 million. At June 2020, the company's net debt was A$105.8 million, which was a reduction from A$147.9 million in December 2019.
But the company statement said, due to the uncertainty of the outlook, no dividend was declared.
Source: ASX Update
On 21 August 2020, shares of DHG last traded at A$3.500 with a market capitalisation of A$2.08 billion.
Orora Limited (ASX:ORA)
Orora declared the financial results for the full year ended 30 June 2020. The company said it responded to the impacts of COVID-19 during the second half with a sale of its Australasian Fibre business. The company also finalised the review of its strategy, reduced its debt and returned A$600 million to shareholders.
Orora's sales revenue from continuing operations was A$3,566.2 million, up 5.2% on pcp but the underlying earnings before interest and tax were A$224.3 million, down 14.3% on pcp. Orora Australasia operations delivered sales revenue of A$785.9 million in line with pcp FY19, which was A$778.7 million.
On 21 August 2020, shares of ORA last traded at A$2.340 with a market capitalisation of A$2.3 billion.
Related news: Orora Limited Provides Proposed Capital Management and the Trading Update.
