Reporting Season Wrap 2 Sep 21: Larger profits, bigger dividends & takeovers feature

[vc_row][vc_column][vc_video link=""][/vc_column][/vc_row][vc_row][vc_column][vc_column_text][/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text][MUSIC PLAYING] STEVEN DAGHLIAN: The Augustnprofit reporting season is now behind usnwhich means that most companies on the Aussienmarket have told investors how they've done over the 12nmonths to the 30th of June. Now very brieflynand broadly it was considered to be an improved andnsolid profit reporting season. However companies werenvery cautious to provide really specific goals,nreally specific expectations for the future becausenof the uncertainty surrounding the lockdown. But overall largernprofits, bigger dividends, plenty of buybacks, andnalso plenty of takeover offers being thrown around somenstock and some were rejected. So let's take a look at some ofnthe different sectors starting with the mining sector. Now it was an interestingnmonth in particular for iron ore miners becausenon the one hand, there were actually some ofnthe worst performing stocks on the market in Augustnbecause of a recent decline in commodity prices. But on the other that was somenof the biggest earners because over a 12 month period ironnore prices more than doubled. So Fortescue Metalsnmade over $10 billion US in a year, Rio and BHP arenalso equally impressive results and all they've come out withnbigger dividends as well. In fact, in BHPnand Rio this case, they've tripled their dividends,nFortescue more than doubled it. The big deal out ofnthe month in that group though was BHP andnWoodside agreeing to essentially mergentheir oil and gas assets and in turn create angiant energy group. So for BHP this reduces andnsimplifies the organisation. It essentially means that he cannbetter focus on its key assets. For Woodside it makesnit a larger energy group with a greaterncash flow and this could help it pay fornsome of its key projects. Now for retailersnon the other hand, there were somencompanies that were just well-placed to serve asncustomers during the pandemic and examples of this includenHarvey Norman and JB Hi-Fi. Both of course, sellnconsumer electronics and also appliances. They both saw their profitsnlifting by more than 60% in a year. Wesfarmers similar situationnwhere Bunnings Officeworks and Kmart were in high demand. So we'd actually hadna lift in profits but also plans to return aboutn$2 billion back to investors. And super retail group which isnbehind Super Jeep auto, Rebel Mac pack BCF, againnproducts and brands that were in high demandnover the course of the year. What was the commonndenominator across all four though was that they were quitencautious about the months ahead because of the pandemic. Temple &amp; Websternon the other hand didn't have the same concerns. This is a pure online retailernthat just sells furniture online. And with peoplenstaying at home longer they're wanting to prettynout their properties furniture was a keynbeneficiary here. Revenues were up 85% fornthe group over the year. Now in the consumernstaples space A2Milk came under a lot of pressure,nit fell 12% in one day after saying that its profitsnfell by 80% in a year. Now blame that on threenthings in particular. A drop in demand in Chinanbecause of a lower birth rate, internationalnborders being closed and more competitionnin China as well. Woolworths had a 22% liftnin profits over the year, it increased its dividend, itnalso is paying a $2 billion buyback was announcedntoo but both of these also quite cautiousnoutlooks moving forward. In the travel relatednsector no surprises that these were some of thencompanies that have really been bleeding a lot ofnmoney because of all the lock downs, the border closures,nthe planes being grounded. So Qantas lost about $2nbillion, Flight Centre lost about $500 million. But in Flight Centresncase it actually announced some green shoots with somengrowth and a bit of a recovery in the US, Canada, and Europe. Now in health carenagain companies-- some companies were wellnplaced to service people during the pandemic andndealing with COVID rather. So and so Ansellnwas one of them, it had a 57% lift in profits itndeclared a record dividend as well. And that's becausendemand for PPE, all that protective equipmentnlike masks and also gloves were really up there. But it did also warnednthat in the coming months. It's a little cautious becausenof supply chain issues in South East Asia becausenthe temporary closure of some of its key factories. And CSL will the largestncompany the health care sector had improved revenuenand profit result but it is actually flaggingna lower outcome in 2022. And this is a company that cannbe split into the flu vaccine business, which has seen thenstrongest growth and the blood products business,nnot so much because of issues collectingnenough plasma that it needs for its highestnearning products. And finally tech. Now two of the bestnperforming companies on the market in Augustnwere both in the tech space. Wisetech, the logistics softwarengroup and Afterpay, the by now pay later group. Now both rose though fornvery different reasons. Wisetech rose almostn60% in a month, that was straight after releasingnits profit results essentially where it's had a liftnin revenue, profits, and flagged a biggernprofit in 2022. Afterpay's profits gainsnrather came through in two days and this was straightnafter US payments group square launched antakeover for the company.<br><!-- wp:image {"id":1776,"sizeSlug":"large","linkDestination":"none"} -->rn<figure class="wp-block-image size-large"><img class="wp-image-1776" src="" alt="Reporting Season Wrap 2 Sep 21: Larger profits, bigger dividends &amp; takeovers feature" /></figure>rn<!-- /wp:image -->[/vc_column_text][/vc_column][/vc_row]

Reporting Season Wrap 2 Sep 21: Larger profits, bigger dividends &amp; takeovers feature


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