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ASX 200 drops, Magellan (ASX:MFG) and Breville (ASX:BRG) sink after FY21 results

The ASX 200 fell almost 1% today as reporting season continues.
The post ASX 200 drops, Magellan (ASX:MFG) and Breville (ASX:BRG) sink after FY21 results appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) dropped by almost 1% today to 7,511 points as reporting season continues.

Here are some of the highlights from the ASX:

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price was one of the worst performers in the ASX 200. It fell by around 10% after releasing its FY21 result.

Magellan reported that management and service fees increased by 7% to $635.4 million. Profit before tax and performance fees of the funds management business increased by 10% to $526.6 million.

However, adjusted net profit after tax and before associates grew 4% to $454.4 million. Adjusted net profit after tax fell 6%. Statutory profit after tax, which includes transaction costs related to strategic initiatives, fell 33% to $265.2 million.

Total dividends were reduced by 2% to 211.2 cents per share. This was weighed down by a large reduction in the performance fee dividend, but the ordinary dividend was increased.

During the year, the business made three investments in FinClear, Guzman y Gomez and Barrenjoey Capital Partners.

Magellan CEO Brett Cairns said:

The 2021 financial year has been a very busy and productive one for Magellan with the completion of a number of important initiatives that we believe will add meaningfully to Magellan’s value, diversity and resilience over time.

Further, we are delighted with Magellan Capital Partners’ three new strategic investments. FinClear, Guzman y Gomez and Barrenjoey Capital Partners have all performed strongly over the year and we are excited by their future prospects.

Breville Group Ltd (ASX: BRG)

Breville was another ASX 200 share to suffer a major selloff today after releasing its FY21 result. The Breville share price fell 9%.

The appliance maker said that revenue grew by 24.7% to $1.19 billion and net profit after tax rose 42.3% to $91 million. However, underlying net profit (which excludes ‘abnormal items’) rose by 25.1% to $91 million.

Breville explained that working from home conditions and successful geographical expansion (France, Portugal, Italy and Mexico) offset the impact of intermittent supply challenges.

However, the board decided to decrease the dividend by 35.4% to 26.5 cents. Breville is holding onto more cash to fund its growth opportunities.

The ASX 200 share is expecting FY22 to be “transitional”. There are challenges relating to supplier costs, parts challenges, logistics delays and costs increases.

It noted that its FY22 financials will be comparing against a COVID-driven spike in FY21. Breville said consumers have pent-up savings, and economies are growing as they open, but consumers will begin spending on services.

Domain Holdings Australia Ltd (ASX: DHG)

The best performer in the ASX 200 today was Domain. The property portal business released its FY21 result today.

Domain reported that its revenue grew by 10.7% to $289.6 million, whilst expenses increased 5.9% to $189 million. This led to earnings before interest and tax (EBIT) rising 44% to $64.5 million and net profit going up 66.4% to $37.9 million.

A dividend of 4 cents per share was declared.

In regards to FY22, Domain said that national listings are up slightly on last year. Lockdowns are impacting listings, particularly in Sydney.

The company is confident in the resilience of the market. It pointed to consistent patterns of sharp rebounds when restrictions eased.

The post ASX 200 drops, Magellan (ASX:MFG) and Breville (ASX:BRG) sink after FY21 results appeared first on The Motley Fool Australia.

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More reading

The ASX reporting wrap-up: Magellan, Breville, Domain

The ASX reporting wrap-up: Magellan, Breville, Domain

Here are the 3 heavily traded ASX 200 shares this Tuesday

Here are the top 10 ASX 200 shares today

Why Breville, CBA, Magellan, & Sezzle shares are tumbling lower today

Motley Fool contributor Tristan Harrison owns shares of Magellan Financial Group. 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 no position in any of the stocks mentioned. 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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