ASX reporting season: All the latest news from companies releasing financial results to the market today
Well, that was epic. Yesterday was insane. So many reports. But we’re easing into the weekend with a more manageable list of companies reporting their results today.
Well, that was epic. Yesterday was insane. So many reports. But we’re easing into the weekend with a more manageable list of companies reporting their results today.
Stepping up will be Inghams, TPG, Guzman Y Gomez and Latitude Group.
Stay with us as we bring you all the latest throughout the day.
Inflation clips Ighams wings
Inflationary pressures continue to weigh on chicken supplier Ighams, which took a big bite out of a marginal rise in revenue for the last financial year.
Revenue rose just 2.4 per cent to $3.23 billion. Underlying earnings before tax and interest tumbled 30 per cent to $153.6 million.
Net profit fell 61.5 per cent to $34.6m.
But that was more than offset by a $170m rise in costs - a 6.2 per cent leap from a year earlier which reflected growth in production volumes, cost inflation and production inefficiencies.
“This reflects inflationary pressures across packaging, ingredients, cooking oil, freight, labour, and repairs and maintenance, while the impact of the current Middle East conflict contributed additional costs of $13.2m, partially offset by the group’s cost reduction program which delivered $82.3m of savings, and $27.6m oflower internal feed costs,” the company said.
Australian costs increased 8.1 per cent, reflecting higher volumes and inflation across key input categories, while costs in New Zealand rose only 1.3 per cent.
Inghams said FY27 has started against a challenging external backdrop including input cost inflation, continuing geopolitical disruption and softer Australian wholesale market conditions.
Perenti offloads parts and equipment business for $100m
Perenti will bank $100 million after agreeing to offload its equipment rental and parts sales business to Beetle industries.
The mining contractor’s deal for BTP Group comprises an initial cash payment of $80m and a deferred payment of $20m due 12 months after completion, which is expected by the end of October.
The deferred payment is not subject to any performance hurdles or conditions.
Beetle is an investment vehicle established by a private consortium led by Cratus Group, a resources, logistics, structural capital and infrastructure supply company that operates in Australia, Indonesia, China, Hong Kong and Singapore.
Perenti boss Vanessa Torres said the sale followed a strategic review of its portfolio.
“The transaction reflects our continued focus on actively managing our portfolio and allocating capital to businesses aligned with our competitive strengths in a way that maximises the group’s total shareholder returns,” she said.
“While BTP’s performance has been impacted by market headwinds in recent years, its team has remained committed and worked diligently to support the profitability of the business.
“We believe the new ownership structure will provide a strong platform for BTP to pursue future opportunities and long-term success.”
US misadventure sends GYG to big full-year loss
Guzman y Gomez’s failure to launch in the tough US market has cost the Mexican fast food chain dearly.
The company on Friday reported a huge full-year loss of $26.7 million — down from a profit of $14.5m the previous year.
GYG announced in May it would close its three Chicago stores after they failed to gain a foothold in the already crowded Mexican food market in the US.
It booked a non-cash charge of $30.6m for the writedown of plant, property and equipment. Further costs of $15.3m against the short-lived misadventure also blew out the bottom line.
In a letter to shareholders that accompanied the results, GYG founders Steven Marks and Hilton Brett said the decision to shutter the US stores was a difficult one.
“While we believe it was the right one, we acknowledge the significant impact it has had both financially and on our US team,” they said.
“Notwithstanding the progress made by the team, the financial performance did not meet those targeted hurdles and were not expected to without significant further investment and time.
“The exit from our US operations is now complete. While we take with us many learnings, our conviction in the success of GYG outside Australia.”
Away from the US disaster, GYG delivered record underlying earnings of $85m, up 28.7 per cent from a year earlier. Network sales leapt almost 18 per cent to $1.38 billion.
Underlying net profit, stripping out the one-off US costs, was up almost 30 per cent to $53.4m.
Read more here ...
While you were sleeping ...
The three main US equity indices have closed lower as rising Treasury yields dented risk appetite while disappointing results from retail bellwether Walmart soured investors on the consumer sector and rallying oil prices fanned inflation worries.
Walmart shares tumbled 9.2 per cent after the world’s largest traditional retailer missed Wall Street expectations for quarterly comparable sales as rising petrol prices had shoppers reining in spending.
The report dragged down the S&P 500 consumer staples and consumer discretionary sectors, which were among the weakest of the benchmark’s 11 major industry indexes.
The increase in US crude oil above $US87 compounded concerns about the health of the US consumer, according to Mona Mahajan, head of investment strategy at Edward Jones.
She noted that investors were already anxious after recent weaker-than-expected retail sales and labour market data for July.
“There is some question about how resilient the consumer can be with ongoing elevated gas prices and inflationary pressures,” Mahajan said.
Read the full overnight report ...
ICYMI
Yesterday was a massive reporting day. In case you missed it, here’s everything you need to know ...
Originally published on The West Australian
