CORPORATE PROFITS – AUSTRALIA

Cochlear takes long-term view on China

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Original article by Jared Lynch
The Australian – Page: 15 : 23-Feb-22

Hearing implant maker Cochlear has posted a 2021-22 interim net profit of $169.3m, which is 28 per cent lower than previously. However, its underlying net profit rose 26 per cent to $158m and revenue was 10 per cent higher at $815.3m. Shareholders will receive an interim dividend of $1.55 per share, which is 35 per cent higher than previously. Meanwhile, CEO Dig Howitt says the ongoing tensions between Australia and China will not affect Cochlear’s investment plans in China; the company is about to commission a $50m manufacturing plant in China, and Howitt says it is committed to China for the long-term.

CORPORATES
COCHLEAR LIMITED – ASX COH

CBA unveils $2bn share buyback

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Original article by Joyce Moullakis
The Australian – Page: 13 & 24 : 10-Feb-22

The Commonwealth Bank of Australia has posted a 2021-22 interim cash profit of $4.75bn, which is 23 per cent higher than previously. The result was boosted by strong growth in mortgage and business loans and a decline in bad debts. However, the bank’s net interest margin fell by 17 basis points to 1.92 per cent. Shareholders will receive a fully franked interim dividend of $1.75 per share, while CBA will repurchase $2bn worth of its shares. CEO Matt Comyn has flagged the possibility of returning more capital to shareholders.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Atlas maps out iron-clad profit for a third year

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Original article by John Stensholt
The Australian – Page: 18 : 24-Nov-21

Atlas iron has posted a 2020-21 net profit of $938m, which is 146 per cent higher than previously. The junior iron ore miner is owned by Gina Rinehart’s Hancock Prospecting, which paid $427m for the company in 2018. Atlas Iron’s revenue was up 66 per cent to $1.7bn, and its Mt Webber and Sanjiv Ridge mines shipped a combined 9.7 million tonnes of iron ore during the financial year. Shipments from the Sanjiv Ridge mine began in 2020-21. Rinehart’s Roy Hill mine recently posted a net profit of $4.4bn for the financial year.

CORPORATES
ATLAS IRON LIMITED, HANCOCK PROSPECTING PTY LTD, ROY HILL HOLDINGS PTY LTD

Google paid just 7.6 per cent tax on billion-dollar profit in 2020

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Original article by John Rolfe
The Daily Telegraph – Page: Online : 26-Oct-21

Google Australia booked a profit of $186m in 2020, while its gross revenue was $5.2bn. However, Google pays tax on the revenue it generates in Australia via a Singapore-based subsidiary, Google Asia Pacific. This company made a profit of $US1.62bn ($2.17bn) in 2020, but its total tax bill in Singapore was only $US123m ($165m). The effective tax rate was just 7.6 per cent, while Australia and Singapore have corporate tax rates of 30 per cent and 17 per cent respectively. Both countries are signatories to a global deal to introduce a 15 per cent minimum tax rate for multinationals.

CORPORATES
GOOGLE AUSTRALIA PTY LTD, GOOGLE INCORPORATED, GOOGLE ASIA PACIFIC PTE LTD

Lockdowns and supply chain squeeze to lead to earnings reset

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Original article by Richard Henderson
The Australian Financial Review – Page: 29 : 13-Oct-21

Many Australian-listed companies withheld earnings guidance during the August reporting season, citing factors such as uncertainty arising from the COVID-19 pandemic. Investors will be hoping for greater clarity during the annual general meetings season, but Chris Nicol of Morgan Stanley says they are likely to be disappointed. He cautions that factors such as lockdowns and supply chain problems can be expected to weigh on earnings in the first half of 2021-22.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED

Harvey repays JobKeeper

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Original article by Eli Greenblat
The Australian – Page: 15 : 1-Sep-21

Consumer electronics and furniture retailer Harvey Norman has posted a 2020-21 net profit of $841.41m, which is 75.1 per cent higher than previously. Revenue rose by 14.9 per cent to $9.721bn, while its Australian sales were up 12.8 per cent at $6.95bn. Harvey Norman’s stores in seven overseas markets recorded profit growth of 58.3 per cent, to $240.79m. Meanwhile, chairman Gerry Harvey has advised that the group will repay some $6.02m worth of taxpayer support that it received via the JobKeeper wage subsidy scheme. Harvey Norman received about $22m worth of JobKeeper payments in total.

CORPORATES
HARVEY NORMAN HOLDINGS LIMITED – ASX HVN

Investors rewarded with bumper dividends, buybacks

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Original article by John Collett
Brisbane Times – Page: Online : 1-Sep-21

CommSec’s chief economist Craig James is cautious about the outlook for the Australian sharemarket in the wake of the August reporting season. He notes that the recent strong performance of many listed companies has already been priced into sharemarket valuations. Capital management was a key feature of the reporting season, with listed companies announcing some $20bn worth of share buybacks, while investors will receive more than $34bn worth of dividend payments. Peter Warnes of Morningstar says investors should expect lower dividend payouts in 2022.

CORPORATES
COMMONWEALTH SECURITIES LIMITED, MORNINGSTAR PTY LTD

Lockdowns need an exit plan: Ampol

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Original article by Perry Williams
The Australian – Page: 15 & 18 : 24-Aug-21

Fuel retailer Ampol has reported a 2021 interim net profit on a replacement cost basis of $205 million, up 71 per cent. Earnings for its fuels and infrastructure unit rose 85 per cent to $208 million, while Ampol declared an interim dividend of $0.52 per share. Ampol has also unveiled a $1.9 billion bid for New Zealand fuels retailer Z Energy, while CEO Matt Halliday has called for the states to start opening up once the 70 per cent vaccination target is met.

CORPORATES
AMPOL LIMITED – ALD

Lihir mine finally shines for Newcrest

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Original article by Nick Evans
The Australian – Page: 19 : 20-Aug-21

Newcrest Mining has posted a record $US1.16bn profit for 2020-21, with EBITDA of $US2.44bn and revenue of $US4.58bn. Newcrest produced 2.1 million tonnes of gold during the financial year, at an average all-in-sustaining cost of $US911 an ounce. Meanwhile, CEO Sandeep Biswas believes that new mining methods could allow the company to lift production at its Lihir mine in Papua New Guinea to one million ounces per year. Shareholders will receive a final dividend of $US0.40 per share, and a full-year payout of $0.55.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM

Woodside investors cautious on deal

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Original article by Perry Williams
The Australian – Page: 16 : 19-Aug-21

Allan Gray Australia MD Simon Mawhinney says there are a lot of "unknowns" with regard to Woodside Petroleum’s proposed deal to merge with the petroleum division of BHP. He says the biggest question is just what Woodside investors will gain in return for giving BHP shareholders a 48 per cent stake in the oil and gas producer. Meanwhile, Woodside has posted an underlying net profit after tax of $US354m for the first half of 2021, and revenue of $US2.5bn.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP GROUP LIMITED – ASX BHP, ALLAN GRAY AUSTRALIA PTY LTD