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ASX 200 drops, Bendigo Bank sinks, JB Hi-Fi rises

The ASX 200 fell today as reporting season continued.
The post ASX 200 drops, Bendigo Bank sinks, JB Hi-Fi rises appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) fell by around 0.6% today to 7,583 points.

Here are some of the highlights from the ASX:

Bendigo and Adelaide Bank Ltd (ASX: BEN)

The ASX 200 bank made two announcements today.

One announcement was that it’s going to buy Ferocia to accelerate the bank’s digital strategy and shape the future of banking for a new generation of customers.

Bendigo Bank said that the acquisition brings “outstanding digital and technical expertise to the bank, internalising Ferocia’s market leading digital capability and consolidating ownership of Up. Up had previously operated under a ‘collaboration model’.

The deal will cost $116 million and it will be paid in shares, with a portion dependent on future performance.

Turning to Bendigo and Adelaide Bank’s performance in FY21, statutory net profit soared 172% to $524 million. Cash earnings after tax increased 51.5% to $457.2 million. On a per-share basis, cash earnings increased 43.4% to 85.6 cents.

The total income growth was a more moderate increase – it grew 4.5% to $1.7 billion.

However, the net interest margin (NIM) declined 7 basis points to 2.26%.

The board decided to pay a fully franked dividend yield of 50 cents per share for the year.

The Bendigo Bank share price fell almost 10% today, it was the worst performer in the ASX 200.

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price went up 2.5% today after the company released its FY21 result.

JB Hi-Fi reported that its total sales went up 12.6% to $8.9 billion. Online sales, which represented almost 12% of total sales, grew by 78.1% to $1.06 billion.

Total earnings before interest and tax (EBIT) grew by 53.8% to $743.1 million, whilst net profit after tax (NPAT) rose 67.4% to $506.1 million.

The ASX 200 retailer decided to grow the final dividend by 18.9% to $1.07 per share. That meant the total dividend was $2.87 per share, an increase of 51.9%.

The incoming CEO of JB Hi-Fi, Terry Smart, said:

Our continued focus on the customer, combined with the strength and competitive advantage of our multichannel offer, be it in-store, online or over the phone, has enabled us to seamlessly meet our customers’ increased demand.

Looking ahead to FY22, JB Hi-Fi said in the first month and a half of this new financial year it had seen a sales decline with two of its businesses compared against the first month and a half of FY21. JB Hi-Fi Australia sales were down 14.9% and The Good Guys sales were down 8.6%. However, JB Hi-Fi New Zealand sales were up 8.4%. All three segments were showing double digit sales growth compared to FY20.

Carsales.Com Ltd.com (ASX: CAR)

The Carsales share price rose by around 4% today after the business announced its FY21 result.

Carsales prefers to report adjusted numbers, which after non-controlling interests and excludes certain non-recurring or non-cash items.

It revealed that adjusted revenue grew by 4%, driven by “strong” international growth particularly in South Korea and Brazil. The Australian business achieved revenue growth of 2%, though the second half revenue was up 8%.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) grew 10% and adjusted net profit after tax rose 11%. This was the company’s highest adjusted net profit after tax growth since 2014.

Carsales said it achieved excellent free cashflow. Combined with a strong balance sheet, this supported a final dividend of 22.5 cents per share.

The ASX 200 share is expecting to deliver “solid growth” of total adjusted revenue, adjusted EBITDA and adjusted net profit in FY22.

The post ASX 200 drops, Bendigo Bank sinks, JB Hi-Fi rises appeared first on The Motley Fool Australia.

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More reading

Here are 3 ASX 200 share investors can’t leave alone today

The ASX reporting wrap-up: Bendigo, Beach, Lendlease

Here are the top 10 ASX shares today

Why Beach, Bendigo & Adelaide Bank, Flight Centre, & Lendlease are tumbling lower

How did the Ioneer (ASX: INR) share price respond last earnings season?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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