Earnings Report Card for ASX Stocks: PMV, FLT, AGL, QBE, GMG, AMP, BRG, WPL

Summary

  • Several ASX-listed companies have released their earnings report giving market players an idea about which of them struggled and which sailed through this difficult journey.
  • Premier Retail’s impressive online sales and EBIT growth have led to record earnings.
  • AGL Energy noted an increase in statutory NPAT by 12% to A$1,015 million driven by limited to no disruption in essential services.
  • QBE Insurance Group reported a net loss of US$712 million in 1H FY2020 impacted by a high number of catastrophe claims.
  • Goodman Group’s operating profit up 12.5%; witnesses a growing demand across multiple industry segments.

A financial report acts as a mirror that shows how a Company performed during the time frame. It also tells about the drivers and deterrents of the performance. Every year in August, most ASX-listed companies publish their financial results, either full-year, half-yearly or quarterly.

GOOD READ: Get the Most from Reading an Annual Report

The journey of most of the companies was akin to a roller coaster ride since July 2019. First, the Australian economy faced the wrath of the bushfires and then by the COVID-19 pandemic, which continues to torment the globe. In this period, it may be of interest to know how the companies performed and which companies managed to sail through this ordeal.

Below is the list of companies which declared that financial results. We would be looking at their result and how their respective stock performance.

Source: ASX

Premier Investments Limited (ASX:PMV)

Premier Investments seeks to use its skill and strong capital position to own as well as operate a variety of retail, consumer products & wholesale businesses.

On 13 August 2020, the Company provided a trading update after Premier Retail’s record 1H20 result.

Due to COVID-19 impact, Premier Retail global sales for 2H FY2020 were down A$106.5 million to A$484.2 million, as compared to the previous corresponding period. Despite the headline drop in sales and the associated drop in gross profit, Premier Retail’s online sales and EBIT growth have continued to speed up to provide record earnings.

Image Source: PMV's report

The Company expects its EBIT in the second half to range in between A$58.7 million and A$59.7 million. The value represents growth in between 9.7% and 11.7%. Based on EBIT performance in 2H FY2020, PMV anticipates its full-year EBIT in the range A$184.8 million - A$185.8 million.

Flight Centre Travel Group Limited (ASX:FLT)

Flight Centre Travel Group Limited is amongst the largest travel groups in the world. On 13 August 2020, the Company announced that it had developed a longer liquidity runway to assist it to beat the difficulties caused by COVID-19 & the restrictions that have been imposed to slow the virus’s spread.

As on 30 June 2020, the Company had a cash balance of A$1.9 billion. In July 2020, net cash outflow was A$53 million, which was below the A$65 million monthly targets. It includes A$17 million in revenue. There was another A$43 million cash outflow with the benefit of JobKeeper subsidy included.

The corporate business of the Company was profitable during the period and won numerous new accounts. This represents the business’s resilience.

FLT expects the FY2020 underlying loss in the range A$475 million - A$525 million.

AGL Energy Limited (ASX:AGL)

AGL Energy Limited, the leading integrated energy business announced its FY2020 results for the period ended 30 June 2020.

  • Statutory profit after tax increased 12% to A$1,015 million.
  • Underlying profit after tax dropped 22% to A$816 million as compared to the previous corresponding period (pcp).
  • Net cash from operating activities for FY2020 was A$2,156 million on pcp.
  • Reported consistent growth in the total services to customers to 3.95 million.
  • The Company announced a final dividend of 51 cents per share. Thus, taking the total dividend for the year to 98 cents per share.
  • In FY2021, the Company expects its underlying PAT to range in between A$560 million to A$660 million.

DO READ: AGL Energy: Powering Australia through thick and thin

QBE Insurance Group Limited (ASX:QBE)

QBE Insurance Group is amongst the top 20 general insurance and reinsurance companies in the world.

On 13 August 2020, the Company declared its 1H FY2020 results and reported a net loss of US$712 million. This includes a pre-tax investment loss of US$90 million compared with a US$755 million gain in the previous period.

Image Source: QBE's report

Appointment of Two New Non-Executive Directors:

The Company on the date of the FY2020 result announcement also announced the appointment of Ms Tan Le and Mr Eric Smith as Non-Executive Directors.

Ms Le is a technology innovator, entrepreneur, and business executive while Mr Smith holds over 40 years’ experience in insurance and financial services.

On the appointment of the two non-executive directors, QBE’s chairman said that the appointment of Ms Tan Le, would bring invaluable insight and perspective to the strategic discussions. In contrast, Mr Smith will further deepen the insurance expertise of the QBE Board.

Did You Know: QBE Insurance Group Announces Vivek Bhatia to Leave the Insurer this month

Goodman Group (ASX:GMG)

Goodman Group is an integrated property group and its operation span across various regions like Australia, New Zealand, Asia, Continental Europe, the UK, North America & Brazil. The Group has benefitted from the e-commerce boom in 2020.

On 13 August 2020, the Company announced its FY2020 results for the period ended 30 June 2020.

The Group delivered an operating profit of A$1,060.2 million, up 12.5% on pcp and operating EPS of 57.5 cents. EPS grew up by 11.4% on pcp. Statutory profit of the Company in FY2020 was A$1,504.1 million.

In FY2021, the Company expects its operating profit of A$1,165 million, up 9.9% on FY2020 and EPS of 62.7 cents per security. Further, the Company expects a full-year distribution of 30 cents in FY2021.

AMP Limited (ASX:AMP)

AMP Limited is the provider of life insurance, superannuation, pensions and other financial services in Australia and New Zealand.

On 13 August 2020, the Company announced its 1H FY2020 results for the period ended 30 June 2020. During the period, the Company reported a decline in its underlying profit from A$256 million in 1H FY2019 to A$149 million in 1H FY2020. The net profit attributable to the shareholders of the Company was A$203 million.

The operating earnings of the Business unit in 1H FY2020 impacted the COVID-19 pandemic.

  • Australian wealth management: A$59 million (-43%)
  • AMP Capital: A$72 million (-40%)
  • AMP Bank: A$50 million (-30%)
  • New Zealand wealth management: A$18 million (-18%).

At present, the Company is well positioned to benefit from disruption and deliver value to customers and shareholders.

Image Source: AMP's report

Breville Group Limited (ASX:BRG)

Breville Group Limited is engaged in Design, development, marketing, and distribution of small electrical appliances.

In the full-year results declared by the Company on 13 August 2020, the Company reported a growth of 25.3% in revenue to A$952.2 million. Normalised EBIT (excluding AASB16 impact) grew 14.3%. The Company declared a dividend of 41 cents, up 10.8% on pcp.

Image Source: BRG's report

Woodside Petroleum Ltd (ASX:WPL)

Woodside Petroleum Ltd is a significant player in the LNG industry in Australia and the largest Australian natural gas producer.

In 1H FY2020 results released by the Company on 13 August 2020, the production volume increased from 39 MMboe in 1H FY2019 to 50.1 MMboe in 1H FY2020.

  • Operating revenue declined from US$2,260 million in 1H FY2019 to US$1,907 million in 1H FY2020.
  • In 1H FY2019, the Company which delivered an underlying NPAT of US$303 million provided a net loss of US$4,067 million.

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