Report Card: Half-Yearly Results Of 7 Stocks- FWL, DGL, HMY, SPK, MHJ, NZK, ENS?

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Interim financial results of a company play an instrumental role in communicating the financial strength to its shareholders, investors, management and the public at large. These half-yearly results provide a foundation for future annual reports and effects the market trends.

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Let us glance through some NZX-listed stocks which have released their Interim Results on 24 February 2021.

Foley Wines Limited (NZX:FWL)

On 24 February 2021, Foley Wines announced its half-yearly results ended 31 December 2020.

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Some of its highlights are as follows:

  • The Group’s after tax profit saw 5.8% reduction amounting to $2,566k.
  • Due to COVID-19 related restrictions, causing shut down of eateries, hotels and flights the total case sales decreased to 281k, down 7%, whereas, in New Zealand, the case sales increased to 92k, up 8%.
  • During the reported 6-month, operating earnings were lowered by 8.7%, amounting to $3,564k as compared to pcp.
  • Reported PAT was reduced by 5.8% i.e., $2,566k.
  • Further, operating EBITDA as reported at $7,131k down 5.1%
  • The operating cash flows for six months significantly reduced to $1,987k from the $4,346k noted in the year before.
  • A dividend payment of $1,972k was made during the half-year period, same as the year before.

Mark Turnbull, Foley Wines CEO, stated that though the past year 2020 was challenging, the Company remains focused on building the brand, enhancing its value for its stakeholders, and evolving new market routes.

MUST-READ: Take a Peek at NZ Wine Industry and Related Stocks- DGL, FWL, MWE

On 24 February 2021, at the time of market close, FWL stock was down by 2.44% at $2.000.

Delegat Group Limited (NZX:DGL)

One of NZ's leading wine Company, Delegat Group Limited announced impressive interim results for the period ended 31 December 2020 on 24 February 2021.

  • The Group saw a significant increase of 7% in its global case sales of 1,862k, increasing by 7% on pcp.
  • Remarkable increase of 25% in operating NPAT was noted at $43.1 million vs $34.4 million in pcp.
  • Further, there has been a record growth by 19% in operating EBITDA, amounting to $76.1 million as compared to previous year.
  • DGL reported $42.9 million cash flows from operations in the current half-year, higher by 21% on pcp.
  • Growth of 9% was recorded in the operating gross profit on the same period last year due to a rise in case sales and the right influence of market and product mix.

Outlook

  • Jim Delegat, Executive Chairman, stated that in 2021, DGL is focused on achieving an operating profit of $67 million, up 10% on previous year.
  • The Company aims to accomplish global case sales target of 3,391k, up 3% on year before.

MUST-READ: DGL Reports NPAT Growth of 20%

On 24 February 2021, at the time of market session, DGL stock was up by 5.85% at $15.20.

Harmoney Corp Limited (NZX:HMY)

On 24 February 2021, one of the largest online personal lenders across the country, Harmoney Corp, declared its 1H21 results ended 31 December 2020.

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Some of the highlights of the half-year report are as follows:

  • The Company witnessed an Increase of $4 million of cash NPAT amounting to $1.2 million on 1H20.
  • It documented a total income of $42 million for 1H21, which was the same as 1H20.
  • It is noted that neither dividends were paid nor proposed for the six months ended 31 December 2020.
  • HMY saw a considerable reduction from 17% to 14% in its marketing expenditure to total income in the said period.
  • Also, two new entities were established under the Group in December 2020, namely, Harmoney Warehouse No.2 Trust and Harmoney Collections Trust.
  • The net lending margin of 7.2% on the entire portfolio for the period was up by 33% on pcp.

The Road Ahead

The Group continues to grow and the Q2 report reflects a strong rebound in lending demand and a remarkable rise in new customer originations, up 127% on Q1.

On 24 February 2021, at the time of market close, HMY stock was down by 5.06% at $2.250.

Spark New Zealand Limited (NZX:SPK)

On 24 February 2021, Technology giant Spark New Zealand Limited announced its H1 FY21 results ended 31 December 2020.

The key highlights are as following:

  • There has been a slight increase of 0.4% in EBITDA, amounting to $502 million from H1 FY20.
  • NPAT of $148 million decreased by 11.4% on pcp.
  • A n increase in cash flow was noted by 126% on H1 FY20 to $113 million in H1 FY21.
  • The Group declared 12.5 cps as a dividend for H1 FY21, payment of which will be made on 9 April 2021.
  • However, the revenue totalling to $1,796 million witnessed a slight decrease of 1.5% from H1 FY20.

Dividend Guidance

The Group stays focused on sustained growth and aims to carry on with its investment and partnership goals and confirms dividend guidance for FY21 at 25 cps. It has retained its Dividend Reinvestment Plan with 2% discount.

MUST-READ: Spark’s (NZX:SPK) generates interest after spelling out a 3-year strategy

On 24 February 2021, at the time market close, SPK stock was down by 0.43% at $4.660.

Michael Hill International Limited (NZX:MHJ)

The dual listed (ASX/NZX) retail jewellery company, Michael Hill International Limited, declared its FY21H1 Results ended 27 December 2020 on 24 February 2021.

  • During the 6-month period, there has been a substantial increase of 102% in digital sales of the Company, amounting to $18.5 million as compared to FY20H1.
  • Statutory NPAT rose by 82.1% to $39.0 million on pcp. Similarly, Statutory EBIT witnessed growth by 66.9% to $58.9 million from FY20H1.
  • However, the operating revenues decreased by 2.9% to $319.9 million on pcp, owing to the loss of 3,709 store days because of the pandemic.
  • Further, MHJ’s gross margin rose to 62.7%, in contrast to the previous 61.7% of FY20H1.
  • The Company announced an interim dividend for FY21H1 at AU 1.5 cps payment of which will be made on 26 March 2021.

Outlook for FY21H2

  • Daniel Bracken, CEO, Michael Hill International stated that Company remains confident of the business operations and strong financial position. MHJ will continue focusing on the health and safety of its staff and customers amid the pandemic.

On 24 February 2021, at the time of market close, MHJ stock was up by 1.32% at $0.770.

New Zealand King Salmon Investments Limited (NZX:NZK)

One of the biggest salmon suppliers, New Zealand King Salmon Investment, announced its 1H21 results on 24 February 2021.

  • NZK’s revenue decreased to $82.4 million from $84.2 million in 1H20, due to COVID-19 impact on both the domestic, as well as export markets.
  • There was a reduction in pro forma operating EBITDA from $16.5 million to $10.5 million in 1H21.
  • Statutory NPAT was recorded low at $4.3 million on pcp.
  • However, the sales volume was identical at 3,441 tonnes in 1H21.
  • The Company has not declared an interim dividend for the said period.

John Ryder, Chairman, New Zealand King Salmon Investments Limited, opined that despite a tough year for NZK owing to the pandemic, the sales volume was stable. The Company is determined to increase its revenues and evolve its aquaculture model amid the current scenario.

On 24 February 2021, at the end of market session, NZK stock was down by 0.68% at $1.470.

Enprise Group Limited (NZX:ENS)

On 23 February 2021, Enprise Group declared its half-year report ended 31 December 2020.

A few pointers form the same are as follows:

  • The Company's revenue increased to $7.447 million from $3.718, as reported in September 2019.
  • Net profit rose from $0.208 million in September 2019 to $0.603 million for the half-year period.
  • There has been a considerable rise in cash, amounting to $2.493 million in 1H20.
  • Further, there has been a significant decrease in borrowings from $0.47 million in September 2019 to $0.174 million for six months period ended 31 December 2020.
  • The Group has declared a dividend of 2 cps, payment of which will be made on 16 March 2021.

On 24 February 2021, at the time of market close, ENS stock traded flat at $1.030.

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