Reporting season 2022: How BHP and Adore set a new record
Reporting season is underway with investors gaining a snapshot of how businesses are actually performing.
On another major day for reporting season, Australia's largest business gave its market update, a healthcare company points to supply issues, and we find out if the great resignation is helping to lift an online employment marketplace.
Here is what you need to know about the market today:
Major increases in commodity prices have seen mining giant BHP smash dividends estimates for shareholders.
As part of its announcement, BPH said it will pay shareholders US$1.50 (AUD$2.10) per share interim dividend, with the company redistributing US$7.6 billion in capital.
Perhaps unsurprising to markets, the strong profit was off the back of core commodity iron ore, which has seen a resurgence following an upbeat outlook for the Chinese economy.
During today's announcement the company said revenue from continuing operations is up 27% to US$30,527 million, while underlying earnings before interest, tax, depreciation and amortisation (EBITDA) are up 46% to US$21,381 million.
BHP's Chief Executive Officer, Mike Henry, was quick to highlight that the company is executing its strategy.
"We unified the BHP corporate structure with strong support from shareholders, we announced and advanced the proposed merger of our petroleum business with Woodside, we progressed our divestments of certain coal assets and we announced the final investment decision for our Jansen Stage 1 potash project," he said.
"We have also secured further growth options in future facing commodities. BHP is well positioned for the future."
Following the strong results, shares in BHP are up 1.98% to $48.28.
It has been a volatile month for healthcare manufacturer Ansell.
The company continues its slide today after announcing further weakness in demand and in its margins for its Exam/SU products.
However, it points to green shoots in surgical, life science and mechanical sectors which all deliver growth for the company.
Overall reported sales growth was up 7.6% while organic growth increased by 7.5%, leaving the company's earnings before income tax of $111 million, down 24.3% on a reported and 30.6% on a constant currency basis.
As such, earnings per share has fallen 26.5%.
Today's results follow a market update last month in which the company warned of a weakening quarter. On that day shares fell nearly 20%.
Commenting on Ansell's FY22 H1 results, managing director and CEO Neil Salmon remains upbeat despite the challenging environment.
"Sales growth was encouraging across most of our portfolio as we successfully executed on our long-term strategic plans," Salmon said.
"Surgical and Life Sciences grew above market rates showing the benefit of some important new business wins. Mechanical achieved respectable growth in a mixed industrial demand environment, delivering very strong results in emerging markets and success with new products."
Shaking off a challenging environment, Ansell's shares are up 1.34% to $26.10.
While the great resignation mightn't be happening like it is in the United States, it has failed to slow down online jobs marketplace Seek.
The business's latest reports show Seek's ANZ revenue is up 72%, while Seek Asia revenue grew 42%.
These record volumes in ANZ combined with yield improvements led to overall revenue of $517.2 million, which is up 59% on this time last year.
EBITDA is up 83% to $250.6 million.
This strong growth is leading to Seek's highest dividend payment in 3 years, with shareholders pocketing an interim dividend of 23 cents per share.
"Market conditions across our ANZ and Asia businesses were favourable for revenue growth. Businesses continued to rehire following COVID-related cuts, and in many cases restarted investment," said SEEK chief executive and managing director Ian Nerev.
"Whilst candidate activity on our sites remained high, application rates were weaker, which in turn drove greater depth adoption. Previous investments, in particular the flexibility of our new ANZ contract and pricing model, positioned us well to capture these opportunities."
After announcing strong results the share price is lifting, with investors now paying $29.04 per share.
Online cosmetics retailer Adore Beauty is reporting strong revenue growth and active customers increasing.
According to its latest announcement revenue is up 18% to $113.1 million, while active customers are up 13% to 876,000.
This is leaving Adore with an EBITDA of $3.8 million.
Commenting on the company's H1 FY22 performance, Adore Beauty CEO Tennealle O'Shannessy said: "Adore Beauty has delivered another strong financial result with record revenue, active customers and multiple record trading days, one of which was achieved post lockdown.
"Valuable returning customers were the key growth driver in H1 FY22, growing 56% on the prior period and delivering 71% of revenue. These loyal returning customers become more valuable the longer they are with us, increasing their basket size and order frequency every year they spend on our platform."
Shares have appreciated 3.7% to $2.80 following the record breaking announcement.
Seven West Media
Media giant Seven West is highlighting favourable conditions for advertising as it has a bump in profits according to its latest results.
The group's earnings before interest and tax increased by 34% to $204 million.
This was off the back of robust growth in both its metropolitan, regional and broadcast video on demand segments.
As such, Seven West Media Limited is reporting a statutory net profit after income tax of $120.5 million on group revenue of $819.5 million. Underlying net profit after tax (excluding significant items) was $128.7 million, an increase of 48% on the previous year.
Seven West Media managing director and chief executive officer James Warburton said: "This result reflects the successful execution of our strategy over the past 30 months.
"We have a television network that has returned to the #1 position in a robust advertising market; a fast-growing digital business that now makes up 35% of earnings; a turnaround at WAN; and a team focused on growth."
At the time of writing shares are up 2.3% to 76 cents.
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