Reporting Season Round Up: Most ASX companies reported a solid FY21, but have their fingers crossed for lockdowns to end
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Today’s list of ASX companies releasing results mostly reported solid performances in FY21, but were being impacted by lockdowns and hopeful they would be ending soon.
The $71.5 billion conglomerate, which has assets in retail as well as in chemicals, energy and fertilisers, made a profit of $2.4 billion – up 16% from FY20.
Wesfarmers said restrictions had some impact on sales growth in its retail assets, but other product categories saw strong demand due to people being stuck at home.
The company also reported a solid performance in the energy and fertilisers businesses, which was enough to make up for lower earnings in its chemicals business.
Nevertheless, FY22 thus far has been a mixed bag – with sales growth varying considerably across regions of Australia.
It’s been a rough trot of late for MYX, which is dealing with an investor class action launched earlier this month.
In its results today, the company reported declining revenue and earnings which it blamed on COVID-19 and a weakening US dollar.
Revenues fell 12% from $457 million to $400.8 million, while underlying earnings fell 34% from $95.6 million to $63.5 million.
Nevertheless it said better times were ahead, having made significant progress on its pharmaceutical assets. Most notably it was proud of the FDA approval of NEXTSTELLIS – its oral birth control pill – and its launch to market in late June.
The beauty and wellness product business had a bumper year, boosting its profit by 60.9% to $23.7 million.
BWX shareholders were also informed of the company’s latest acquisition. It’s forking out $85 million to buy just over 50% of Zoe Foster Blake’s Go-To-Skincare brand.
This company is in the diagnostic imaging space — evidently far from the worst ASX sector to be in amidst COVID-19, at least with only “soft” lockdowns.
Integral Diagnostics grew its revenue and profit by over 25% to $348.8 million and $38.1 million, respectively.
It credited acquisitions made during the year, as well as the average fee per radiology exam which increased by 3.3% from July 1 2020.
Like its peers, it also noted FY22 had been impacted by COVID-19 restrictions but unlike others noted New Zealand’s lockdown as the key concern.
This is because under Stage 4 restrictions scanning is only to be done “to preserve life or limb only”, and trading numbers were down 75% across the ditch – similar to the last nationwide NZ lockdown in April last year.
The ASX’s newest BNPL player booked record Gross Merchandise value of $85 million and $12.2 million in income – both up 24% from FY20.
While the company has struggled from a share price perspective, it has continued to claim it is different because it focuses on higher value transactions – with its average size coming in at $3,558.
“Our position in the market as a high-value BNPL provider is becoming increasingly clear and the world we have done over the past 12 months positions us well to capitalise on the growing opportunity,” said co-CEO Myles Redward.
Payright also flagged a number of new retailers added to its portfolio, platform upgrades and – subsequent to the end of FY21 – signing a deal with payments processor Mint Payments (ASX:MNW) to integrate its solution into Mint’s system.
The drilling company reported $294.6 million in revenue and a profit of $35.2 million, both gains of nearly 18% on its prospectus forecast.
It reported strong demand thanks to the commodities boom and it now boasts a total of 98 rigs with a further 8 to be added in FY22.
DDH1 CEO Sy van Dyk said the result was a milestone moment in the company’s history.
“We listed on the ASX with a vision to enhance DDH1’s status as Australia’s premier drilling company and these maiden results as a listed company are just reward for all our shareholders,” he said.
This company sells home fragrance products and it has both an online platform as well as retail stores.
Dusk’s sales grew 47% to $148.6 million and its profit grew 225.5% to $26.8 million. The company grew its membership program by 31% to 688,000 and reached 121 stores, a number which has grown by 10 in FY21.
Dusk said top line sales dropped 28% to start FY22 thanks to lockdowns, but told its ASX shareholders it expected the impact to be temporary.