Earnings Season: 8 NZX Stocks Reports Half-Year Results

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The half-yearly results of any company are of prime importance, for they give a peep into the company's financial health and performance. Further, these results form the basis of the annual reports and influence the stock market behaviour.

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Let us peep into the half-yearly results of some of the NZX listed stocks that have declared their interim results on 25 February 2021.

NZ Windfarms Limited (NZX:NWF)

Wind farm developer NZ Windfarms announced its interim results for H1 FY2021 ended 31 December 2020.

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Some of the highlights from the 6-month results are as follows:

  • The Company's total revenue has shown a negligible decline from $7 million in HY20 to $6.9 million in HY21.
  • NPAT has slightly decreased to $0.32 million in HY21 from $0.51 million in HY20.
  • NWF’s EBITDAF for H1 FY21 stood at $3.2 million as compared to $5 million on pcp.
  • Its HY21 electricity generation was 64.9GWh low on pcp with 67.7GWh.
  • Operating cash flows reduced from $4.7 million recorded in HY20 to $3.1 million noted for HY21.
  • NZ Windfarms was able to maintain its debt repayment capacity $0.47 million in HY21, which was the same on pcp.
  • The Group paid a final unimputed dividend of 0.70 cps on 22 September 2020. Further, having a cash buffer at the year-end, NWF on 31 December 2020 paid an unimputed dividend of 0.40 cps to its shareholders. Moreover, the Group on 25 February has announced an unimputed interim dividend of 0.15 cps which will be paid on 9 April 2021.

Shift in Management

Christine Spring will join the Board as Director from 1 March 2021 following the retirement of Phil Lennon.

EBITDAF guidance

The Group is aiming for maintaining the range of $5.7 million to $6.3 million as EBITDAF guidance for FY21.

Outlook

The Company is focused on becoming a dependable, sustainable, and pellucid yield generator for all its stakeholders. It will remain steadfast on improving its business operations and maintaining margins.

On 25 February 2021, at the time of market close, NWF stock was down by 9.50% at $0.181.

Cavalier Corporation Limited (NZX:CAV)

NZ's leading carpet and flooring manufacturers, Cavalier Corporation Limited, has declared its preliminary half-year results for FY21 ended 31 December 2020.

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The highlights from the interim results are as mentioned below:

  • The Group purported a robust year as it has significantly benefitted from increased sales of woollen carpets and the gain on the sale of its Auckland property.
  • Rise in YOY NPAT was noted to stand at $5.5 million. This was attributed to the enhancement of underlying business performance of $3 million and gain on sale of property amounting to $2.5 million.
  • CAV's revenue went down marginally by 6%, amounting to $60.3 million in 1H21.
  • EBITDA was reported at $6.2 million for 1H21.
  • The Group has maintained a strong position with substantial cash and cash equivalents worth $26.3 million at the end of 1H21 after the repayment of borrowings.

Outlook

Cavalier Corporation Limited will be launching a new Bremworth marketing campaign in 2H21. The Group will continue to expand its retail markets and increased investments in R&D. Further, efforts are being made to make improvements effectively and efficiently in business operations.

On 25 February 2021, at the time of market close, CAV stock was up by 26.15% at $0.410.

Precinct Properties New Zealand Limited (NZX:PCT)

Precinct Properties New Zealand announced its half-year results ended 31 December 2020. 

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The Company delivers the strong first half results, which included of the following:

  • Percinct’s total comprehensive income after tax stood at $167.9 million, up 213% on pcp.
  • AFFO stands at 3.34 cps for 1H21, up 7.4% as compared to 3.11 cps in 1H20.
  • It has maintained a strong capital management position. Gearing has increased to 29.9% at the year-end with 28.8% in June 2020, reflecting a strong balance sheet position. It will further reduce to 26% following the sale of ANZ Centre.
  • PCT declared Q2 dividend amount of 1.625 cps to its shareholders, which will be paid on 26 March 2021.

Dividend Guidance

The Company has maintained FY21 dividend guidance of 6.5 cps.

On 25 February 2021, at the time of market close, PCT stock was up by 0.64% at $1.570.

Comvita Limited (NZX:CVT)

Amid the challenging and tough times in the world due to the pandemic, Comvita Limited aims to work in consonance with nature and bees and boost health with its natural honey.

It has declared impressive half-year results ended 31 December 2020, few points from the same are as follows:

  • Its reported NPAT stands strong at $3.5 million on pcp.
  • Reported EBITDA in 1H21 is $10.6 million showing a remarkable improvement of $19.4 million on pcp.
  • The Company witnessed an increase in revenue in 1H21 $98.9 million, up 5.5% on pcp

Guidance

  • The Company is aiming for maintaining the range of $20 million -$23 million as full-year EBITDA guidance for the period ending 30 June 2021.
  • Further, at the end of this financial year, CVT has assured resuming of dividend payouts.

On 25 February 2021, at the time of market close, CVT stock was down by 3.61% at $3.200.

Genesis Energy Limited (NZX:GNE)

NZ's energy company, Genesis Energy, announced its half-year results ended 31 December 2020. The highlights of the report are as follows:

  • The Group saw a substantial increase in Net Profit standing at $53 million, up by $44 million on HY20.
  • Net debt of GNE reflects down of 5.5% to $1,182 million and an increase in free cash flow up 69% to $159 million for the half-year ended December 2020.
  • GNE announced an EBITDAF worth $217 million for 1H21, with a rise of 30% on pcp.
  • The Company has declared an interim dividend of 8.6 cps, 80% of which is imputed and will be paid to shareholders on 1 April 2021.
  • Further, 1.2141 cps as a supplementary dividend will be paid to non-resident shareholders.

Outlook & Guidance

The Company had issued an EBITDAF guidance in the range of $415 million - $425 million for the full year ended 30 June 2021.

Capital expenditure guidance for FY21 remains stable at $95 million

On 25 February 2021, at the time of market close, GNE stock was up by 1.75% at $3.480.

Vital Healthcare Property Trust (NZX:VHP)

The healthcare real estate company, Vital Healthcare Property Trust, declared interim results ended 31 December 2020.

The Company saw the appointment of Graham Stuart, Independent Chair, to lead a majority Independent Board.

Few points from the 6-month report are as following:

  • There were sale proceeds of 3 Australian hospitals of $100.4 million, up 14.7%. Gearing decreased to 32.4%, thus, making the balance sheet strong.
  • AFFO rose by 20.2%, from 4.88 cpu in the first half of FY20 to 5.87 cpu. The Company witnessed a considerable growth of 7.1% in net tangible assets i.e. from $2.38 to $2.55 since June 2020.
  • VHP’s expenses decreased to $25.9 million from $26.3 million, down by 1.4% on pcp.
  • 2Q distribution of 2.1875 cents per unit, would be paid to all its unitholders on 25 March 2021.

In spite of tough COVID 19 related challenges, Vital Healthcare Property Trust remains focused and well-poised for enhanced earnings and effectively and efficiently upgrade its diversified portfolio.

On 25 February 2021, at the time of market close, VPH stock was up by 1.97% at $3.100.

The a2 Milk Company Limited (NZX:ATM)

The infant formula entity, The a2 Milk declared its half-yearly results ended 31 December 2020.

The highlight from the 6-month report are as follows:

  • The Company witnessed a reduction in its revenue by 16% amounting to $677.4 million. EBITDA too was on a low of $178.5 million, down by 32.2%.
  • However, on the balance sheet front, ATM was strong and poised. It’s closing cash reserves amounted to $774.6 million with no debt liabilities.
  • Inventories stood at $198.6 million at the end of the said period, up $51.2 million on pcp.
  • On the outlook front, ATM is now focused on maintaining the group revenue of $1.4 billion for FY21 and is aiming at 24%-26% of the group EBITDA margin for FY21.

On 25 February 2021, at the time of market close, ATM stock was down by 16.08% at $9.340.

Vital Limited (NZX:VTL)

The national provider of infrastructure and communications services, Vital announced its 1H FY21 interim results. The highlights from the same are as follows:

  • The Company declared a substantial increase of 5.7% in its revenues, amounting to $17.85 million and NPAT stood at $0.506 million compared to $0.522 million on pcp.
  • Its capital expenditure was at $4.654 million for the said period ended 20 December 2020 vs $4.424 million on pcp.
  • There was a sharp 48% increase in the orders amounting to $8.576 million in 1H FY21.

Roger Sowry, Chairman, Vital Limited, stated that the Company remained focused on sustained growth and aimed at enhancing its profitability.

Outlook

Vital Limited is focused on maintaining FY21’s NPAT in sync with FY20.

On 25 February 2021, at the time of market close, VTL stock was up by 1.28% at $0.790.

 


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