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ASX 200 rises 0.7%, Redbubble sinks, BHP dividend jumps

The S&P/ASX 200 Index (ASX:XJO) went up by 0.7%. BHP Group Ltd (ASX:BHP) reported its result and grew the dividend strongly.
The post ASX 200 rises 0.7%, Redbubble sinks, BHP dividend jumps appeared first on The Motley Fool Australia. –

ASX 200

The S&P/ASX 200 Index (ASX: XJO) rose by around 0.7% today to 6,917 points.

We’re now into the thick of reporting season, with results flowing from both the blue chips and some of the smaller ASX shares.

Here are some of the highlights from today:

BHP Group Ltd’s (ASX: BHP) big dividend

The ASX 200’s biggest resource company announced its FY21 half-year result to investors today.

One of the main headline-grabbers was that the BHP board decided to increase its interim dividend by 55% to US$1.01 per share.

BHP reported that its profit from operations rose by 17% to US$9.75 billion. Statutory attributable profit fell by 20% to US$3.9 billion which included an ‘exceptional’ loss of US$2.2 billion predominately relating to the impairments of New South Wales Energy Coal (NSWEC) and the associated deferred tax assets, and Cerrejon.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 21% US$14.7 billion and underlying attributable profit rose 16% to US$6 billion.

Net debt reduced by 7% to US$11.84 billion after net operating cashflow rose 26% to US$9.37 billion. Free cashflow was US$5.2 billion, reflecting higher iron ore prices and copper prices with strong operational performance, according to BHP.

BHP’s management said that the divestment process for its interests in BHP Mitsui Coal, NSWEC and Cerrejon is progressing, with extensive due diligence being undertaken to assess both demerger and trade sale opportunities by the ASX 200 business.

The CEO of BHP, Mike Henry, said: “Our outlook for global economic growth and commodity demand remains positive, with policymakers in key economies signalling a durable commitment to growth and signalling ambitions to tackle climate change. These factors, combined with population growth and rising living standards, are expected to drive continuing growth in demand for energy, metals and fertilisers.”

Redbubble Ltd (ASX: RBL)

The Redbubble share price ended the day lower by around 18% after revealing its FY21 half-year result.

The artist product e-commerce business reported that its marketplace revenue was up 96% to $353 million, whilst gross profit grew by 118% to $144 million.

Redbubble generated $80 million of operating cashflow and $42 million of earnings before interest and tax (EBIT).

The business finished with $130 million of cash on the balance sheet.

Redbubble disclosed that for the month of January 2021, marketplace revenue (paid) grew by 66%, or 82% on a constant currency basis.

The Redbubble CEO, Michael Ilczynski, said: “The strategic priority for the group now is to ensure we extend that market leadership we have established. We intend to invest in both the artist and customer experiences, to improve loyalty and retention and to ensure long-term growth.”

National Australia Bank Ltd (ASX: NAB)

The NAB share price rose by more than 1% today after announcing its FY21 first quarter result.

The big ASX 200 bank said that it generated $1.7 billion of statutory net profit and $1.65 billion of cash earnings. NAB said that cash earnings were 47% higher than the FY20 second half quarterly average. It said that the net interest margin (NIM) declined but was stable excluding the impact of markets and treasury, and higher liquids.

Compared to the prior corresponding period, cash earnings rose by 1%, though cash profit before tax and credit impairment charges fell 6%.

NAB said that its credit impairment charges fell by 98%, compared to the FY20 second half quarterly average, to $15 million.

The big four ASX bank said that its group common equity tier 1 (CET1) ratio was 11.7%, which was an increase from 11.5% on 30 September 2020.

NAB’s CEO Ross McEwan said: “Implementation of our strategy is proceeding well as we invest for the long-term and focus on initiatives that make a real difference to our customers and colleagues. While there is still much to do, it is pleasing to see momentum building in our core businesses as we simplify and streamline our processes and policies and enhance our digital offerings.”

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Motley Fool contributor Tristan Harrison 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.

The post ASX 200 rises 0.7%, Redbubble sinks, BHP dividend jumps appeared first on The Motley Fool Australia.

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