Woolworths Earnings to Dip | ASX Market Update

  • Jun 23, 2020 AEST
  • Team Kalkine

Global media and marketing company, Crowd Media Holdings Limited (ASX:CM8) has successfully raised $1.5 million via a heavily oversubscribed placement of 62.21 million ordinary shares at 2.5 cps and 31.105 million options with an exercise price of 4 cents and 2-year expiry from issue. Proceeds will be used to strengthen the Company’s balance sheet, hasten scale up, reinforce sales and slash the Billfront facility by up to $500 k. New shares under the Placement are expected to be issued by 26 June 2020.

The import of cars and SUVs has declined significantly during the pandemic and is at the lowest value in nine years, while oil imports are at their lowest value in 15 years, trade figures show. The value of imports in May was $21.9 billion, down nine per cent from April and down 18 per cent from May 2019, preliminary data from the Australian Bureau of Statistics showed on Tuesday. As per the ABS, Petroleum imports in May were at their lowest level since February 2005.

Woolworths expects full year earnings could be 2.7 per cent lower after it outlined one-off charges worth $591 million for restructuring and staff underpayments and incurs additional costs related to COVID-19. The retail giant said it expects full year earnings before interest and tax (EBIT) to be in the range of $3.2 billion to $3.25 billion, compared to $3.29 billion last year. The biggest hit will be sustained in its Endeavour Group hotels and drinks business, with earnings expected to slide more than 50 per cent to between $160 million and $170 million, as venues stayed shut on account of coronavirus lockdowns.

#Woolworths #COVID19 #CMB #Kalkine

 


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