Reporting season 2022: Baby Bunting lifts dividends, IAG rises post announcement

Posted: 11 February 2022 10:43 am
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Reporting season is underway with investors gaining a snapshot to how businesses are performing.

Today was a slower days on the earnings front.

But shareholders still got a snapshot into baby care, outdoor entertainment and insurance.

Here is what you need to know about the market today.

Baby Bunting

One of Australia's leading nursery retailers, Baby Bunting outlined a self-confirmed "great first half" while highlighting a bright future.

The company reported first-half statutory net photos after tax of $8.1 million, allowing it to pay a 6-cent dividend to shareholders.

While it could be COVID-19 lockdown-induced, the strong sales were headlined by online sales, which increased by 32.6% and now makes up 23.8% of all sales.

Baby Bunting's CEO and managing director Matt Spencer praised his staff who worked through challenging conditions.

"We operate in a less discretionary category supplying the essential needs of new and expectant parents," he continued.

"As such, we were pleased to keep all of our stores open for our customers during the lockdowns that occurred in the first half. Our store performance was supported by our strengthened digital offer, including click and collect and online sales."

Shares in Baby Bunting fell 1.66% to $5.34.

Kathmandu

Even with lockdowns, outdoor travel and adventure apparel company Kathmandu spoke of a rebound in sales.

In its latest ASX announcement, its same-store sales in quarter 2 rebounded 15.1%.

Its Rip Curl brand is "meeting expectations".

Unfortunately, its Oboz brand remains heavily impacted by supply issues, with improvement expected over the quarter.

Overall, the first-half FY earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be in the $9–$11 million range, following a $35 million COVID-related impact and additional brand marketing investment of $14 million.

Commenting on the result, group CEO Michael Daly said he was pleased with the rebound in sales as well as the growth in Rip Curl's brand, but warned of the challenges ahead.

"COVID continues to cause ongoing disruption to our consumers, employees and suppliers globally, most recently from the Omicron variant," Daly said.

"The disruption has resulted in reduced retail footfall, temporary store closures and staffing constraints in many locations. Sales conversion has increased as customers have shopped with purpose, and our online channels continue to grow."

Kathmandu fell after delivering its results.

The share price is currently down 0.62% at $1.29.

IAG Group

Multinational insurance company IAG reported falling revenue in its latest trade update.

In its statement to the ASX, it says half-yearly ordinary activities fell 4.4% to $9.23 billion as of 31 December. As such, the insurer will now pay an interim dividend of 6 cents.

Despite the falls, the company remains profitable, with net profits attributed to shareholders of $173 million.

This is up from a down year in 2021.

As such the company is now trading at it's highest price since November.

The company also notes a brighter future ahead with favourable market environments likely to underpin increasing gross written premiums (GWP).

IAG opened 0.80% higher following the announcement at $4.59 per share.

Interested in Baby Bunting, Kathmandu or IAG shares? Compare share trading platforms to start investing in stocks and ETFs.

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