Reporting Season – ASX companies update

The ASX reporting season is well underway with many companies delivering strong results and increased dividends. Below is a summary of some of the notable results and announcements thus far:

 

JB Hi Fi announces off-market buybackJB Hi Fi has announced it will buy back stock of up to $250 million through an off-market tender.  The opening date for the offer is 7 March 2022 and we will be contacting impacted clients in due course.

The half yearly results announcement handed down on 14 February 2022 included fairly flat revenue and profit for the half year but detail that revenue is up 21.7% over the past two year period and Net profit up 68.8% over the same timeframe.  Interestingly, Online sales have grown 62% to now total in excess of $2 billion annualised.

Dividend: JBH will paid an interim fully franked dividend of $1.63 per share on 11 March 2022.

 

BHP Half Yearly report strongBHP Billiton (BHP) delivered its 31 December 2021 half yearly numbers on 15th February reporting a 27% increase in revenue from continuing operations to US $30.5 billion.  Profit after-tax was up 144% on the prior period to US $9.4 billion.

A key message from the company at the earnings announcement is that it will consider new investment and acquisition opportunities, yet be much more disciplined in its capital allocation than previous investment cycles when BHP at times misallocated capital by overpaying for assets at the top of a cycle.

Dividend: BHP will pay an interim fully franked dividend of US $1.50 per share on 28 March 2022.

 

Sydney Airports takeover final and SYD delists from the ASXeffective 9 February 2022 Sydney Airports was suspended from official quotation on the ASX following the successful completion of the Sydney Airports Alliance Pty Ltd (consortium of institutional investors) takeover of Sydney Airports.

Settlement of the scheme consideration (payout of $8.75 per share to investors) is set to occur Wednesday, 9 March 2022.

 

Carsales  – results released on 14 February 2022 were solid with a reported uplift of 22% to Net Profit to $75 million for the half year driven by a very noticeable shift in consumer behaviours post Covid with car useage now the preferred method of transport (up 26% on pre covid levels) and public transport useage down 13% on pre covid levels.

Carsales makes clear it is “investing in moving more of the buying and selling journey online” and it has been very successful here in Australian in achieving this and has added growth options in various markets abroad.  The company outlook statement included the expectation of continued growth in revenues over the next 12 months driven by the Australia, Korea, Brazil and United States businesses.

Dividend: CAR reported an increased fully franked interim dividend of $0.255 per share payable on 19 April 2022.

 

Ansell result shows moderation after Covid induced boom  the ANN results delivered on 15 February 2022 was another solid one with reported sales up +7.6% for the half year, albeit with some volatility in underlying earnings as a result of intermittent shutdowns at some facilities due to covid, customers having pulled forward orders during the height of the pandemic now maintaining high stock levels and some persistent inflationary forces.

Earnings guidance of $1.25-$1.45 for FY22 was maintained.

Dividend: ANN declared an unfranked interim dividend of US $0.2425 per share payable on 9 March 2022.

 

Commonwealth Bank of Australia remains Australia’s leading home loan bank  – Statutory Net Profit was up 26% for the half year to $4.75 billion with home lending up 8.5% to $40 billion of home loans for the 6 months period to 31/12/21. The all important Net Interest Margin (spread a bank makes on lending money out) was down 14 basis points to 1.92%. This remains a common theme across the Australian banking sector with record low interest rates, however a change to a rising interest rate environment is likely to allow for improvement in the Net Interest Margin of banks broadly speaking.

Dividend: CBA announced a fully franked interim dividend of $1.75 per share to be paid 30 March 2022.

Authors: Samuel Adams and Glen Orbell

 

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