Reporting Season Round Up: CBA, UMG and Nufarm all released results, but failed to impress investors
This morning any news was bad news for shareholders of companies releasing results, the biggest of which was CBA (ASX:CBA).
CBA released its results for the first quarter of FY22 and it made a profit of ~$2.3 billion, which was up 20% from the first quarter of FY21.
But arguably what concerned investors was the drop in its net interest margin – essentially the difference between interest banks pay out on deposits and receive from loans.
The bank blamed higher liquid asset balances and home loan price competition for the result there. Nevertheless, CEO Matt Comyn said it had been a positive quarter for the bank.
“We continue to make good progress on our strategic agenda differentiating our customer proposition with reimagined products and services that help us deliver on our purpose to build a brighter future for all,” he said.
Another two companies reporting their results this morning were agricultural stocks, one being United Malt Group (ASX:UMG) provides malt to beer brewers and scotch whisky makers.
The company’s momentum improved as North America and the UK re-opened but other markets – specifically the pubs in those markets – were hit by COVID-19 restrictions.
Revenues were down 4% to $1.2 billion, where earnings dipped 21% to $123.3 million.
However, United Malt Group said its transformation program was on track and it expected FY22 to see a pickup in activity in markets where demand was down.
Nufarm (ASX:NUF) meanwhile is an agricultural chemical company and it reported positive results.
It grew revenues by 10% to $3.2 billion and its earnings by 51% to $370 million.
Just like its peer Incitec Pivot (ASX:IPL), Nufarm credited the positive cropping conditions and commodity prices, especially in Australia.
CEO Greg Hunt declared the year had been a successful one and there was a lot to look forward to for the rest of the year with a positive start in the first few weeks.
“Our core objective for FY22 is to continue to drive our long-term growth plans whilst at the same time focusing on optimising trading, improving margins and lifting cash generation,” he said.
“This underpins the strength of the business and enables us to pursue additional growth opportunities.”
However, investors were looking for more, as Nufarm shares fell this morning along with UMG and CBA.