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Reporting Season Round Up: Kogan surpasses $1 billion in revenue but shares dive on profit fall
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Headlining today’s results were online retailer Kogan.com, (ASX:KGN) which exceeded $1 billion in gross sales and dentist 1300Smiles (ASX:ONT) which used the opportunity to unveil a takeover offer.
Kogan (ASX:KGN)
The initial disruption from COVID-19 acted a boom for Kogan, and for the full-year the company announced that gross sales surpassed $1 billion for the first time – a figure up 52.7% from the $772.3 million in FY20.
However, markets appeared to dial in on the company’s net profit figures, which fell by 87% to $3.5m.
The company also scrapped its dividend, and investors sent the stock more than 9% lower to $11.90 — off from its October 2020 highs of around $25.
Kogan.com attributed its profit decline to one-off inventory expenses and logistics following a material expansion of its warehouse network, as well as the costs of acquiring Mighty Ape.
Its customer base grew 46.9% to 3.2 million and Mighty Ape consists of another 764,000.
“Over the past 18 months we have witnessed a massive swing towards the eCommerce retail revolution, one Kogan.com has been ready and waiting for, for well over a decade,” declared founder Ruslan Kogan.
“We look forward to continuing our quest to delight our customers by making the most in demand products and services more affordable and accessible.”
Kogan (ASX:KGN) share price chart
1300Smiles (ASX:ONT)
The dental company’s results were headlined with $65.8 million in revenue and a $9.6 million profit – up 35% on the prior corresponding period.
But shareholders would arguably be more excited about a takeover offer from industry peer Abano Healthcare.
The deal is at $8 per share, which values the company at approximately $165 million and the board has decided to back the bid.
“The IBC [Independent Board Committee] is unanimous in its view that the proposed Scheme is in the best interests of shareholders and represents compelling value,” said chairman Robert Jones.
“This transaction clearly validates the company’s strong operational and financial performance and recognises the commitment to high quality dental care displayed by the professionals across our market.”
1300Smiles (ASX:ONT) share price chart
Estia Health (ASX:EHE)
It’s been a difficult time for the aged care sector with the double whammy of COVID-19 and the scrutiny of the Royal Commission. Estia also faced a class action from its shareholders which it finally settled for $12.3 million.
However Estia still managed a profit of $6 million in FY21 – albeit supported by temporary government funding and grants – and reinstated its dividend.
The company said it was a strong result in difficult times.
“The financial result places Estia in a sound position to respond to the Government’s post-Royal Commission reforms which represent a fundamental shift in thinking towards a more transparent and competitive sector,” said CEO Ian Thorney.
Estia also commented on the push to make vaccinations mandatory stating it expects this to happen on a state by state basis although 82.1% of its staff are either partially or fully vaccinated already.
Estia Health (ASX:EHE) share price chart
Pepper (ASX:PPM)
Pepper is another lender that has come to market in 2021 off the back of strong demand for asset finance.
The company’s half yearly profit was $56 million, up 41% from the prior corresponding period period. Its Assets Under Management were $16.0 billion and its loan originations were $3.7 billion – a company record.
“The result reflects Pepper’s strong track record of delivering growth in our chosen segments via innovative lending solutions,” said CEO Mario Rehayem.
“Customers continue to choose Pepper for its service and real-life product offerings, our purpose built digital capabilities set us apart from other non-bank lenders enabling us to approve loans within industry leading timeframes for a wider customer segment of the market.”
Pepper (ASX:PPM) share price chart
Uniti (ASX:UWL)
This telco has grown nearly 15 times since it listed in February 2019.
Its earnings were $93.7 million, compared with $26.5 million in FY21 — a gain of 254%.
It recorded 175% growth in revenue – from $58.2 million to $159.9 million – and a 379% jump in free cash flow – from $13.4 million to $64.2 million.
Uniti (ASX:UWL) share price chart
Aerometrex (ASX:AMX)
The aerial imaging company grew its Annual Recurring Revenue by 189% to $4.8 million and its statutory subscription revenue by 416% to $2.9 million.
Much of this growth came in the second half of FY21 when Australia, for the most part, lived without lockdowns.
Aerometrex said FY22 looked positive for the company as it gained traction in the USA and its MetroMap subscription business continued to grow.
