Reporting Season Round Up: These two Kiwi companies were winners this morning
The companies are dual listed on the ASX and NZX but use the New Zealand financial year of April 1 to March 31 — meaning their half yearly results are due by the end of November.
And shareholders were not left disappointed by either of AFT – which is a pharmaceutical developer and distributor – or Turners which is a car dealer but also offers credit and insurance products.
AFT reported a 14% jump in revenue to NZ$55.5 million and a profit post-tax that more then tripled in 12 months, from $1.2 million to $4.2 million.
While the company saw subdued growth in a number of markets, it converted bottom-line gains through out-licensing its pain relief oral drug Maxigesic in the US to Hikma Pharmaceuticals.
“COVID-19 has represented a continuing headwind to our progress over the half year. Nonetheless, we have still delivered a strong improvement in revenue and earnings,” said chairman David Flacks.
“We see these conditions as a temporary setback. We are seeing broad improvements in global markets as most countries around the world move to living with COVID-19, and we are confident of an acceleration of growth in the traditionally stronger second half of the financial year.”
Turners (ASX:TRA), like its Australian peers in the used car market, managed to grow through the pandemic — aided by low interest rates and spending re-diverted from travel.
Its normalised pre-tax profit grew 55% to $24.5 million and its revenue by 13% to $166.8 million.
Auto Retail accounted for $115.1 million of this which represented a 20% gain. It’s finance division contributed $25.2 million, up 9%, insurance $20.8 million, down 2% and credit management $5.7 million which was down 19%.
The company is tipping its FY22 profit to be between $40 and $42 million, assuming New Zealand’s current restrictions eased.
In relation to its its credit management business, Turners said demand for debt collection services would rise in the wake of a pickup in debt defaults in Auckland this year.