The ASX 200 rose today, though it was a tough day for Kogan and Ansell.
The post ASX 200 rises, Kogan sinks, Ansell slumps appeared first on The Motley Fool Australia. –
The S&P/ASX 200 Index (ASX: XJO) rose by around 0.2% today to 7,503 points.
Here are some of the highlights from the ASX:
Kogan.com Ltd (ASX: KGN)
The Kogan share price fell around 16% after the e-commerce ASX share announced its FY21 result. It was the worst performer in the ASX 200.
Gross sales rose by 52.7% to $1.18 billion, with revenue growing by 56.8% to $780.7 million. Gross profit rose even quicker, growing by 61% to $203.7 million.
Adjusted net profit after tax (NPAT), which excludes certain expenses like share-based compensation and acquisition costs, saw growth of 43.2% to $42.9 million. Adjusted earnings per share (EPS) increased by 27.2% to $0.41.
But the reported profit saw a major reduction. Net profit fell 86.8% to $3.5 million, reflecting one-off inventory, logistics and Mighty Ape acquisitions costs. EPS dropped 88.3% to $0.03.
Kogan active customers increased 46.9% to 3.2 million. But Mighty Ape active customers went up to 764,000.
Due to ordering too much inventory, it experienced significantly higher storage costs, which saw variable costs rise to $44.9 million, up from $20.1 million in FY20. It also had to spend on marketing to lower its inventory levels to the size relevant for the business.
Kogan also suffered from logistics ‘detention charges’ of $7.7 million incurred as part of its variable costs, as well as COVID-19 related warehousing and supply chain interruptions.
The board decided not to pay a final dividend.
In a trading update for FY22, it said that gross sales were 5.1% above July 2020. The July 2021 gross profit margin was stronger than June 2021, but lower than July 2020. It generated $2.1 million of adjusted EBITDA, which reflected ongoing high operating costs, though this is “gradually reducing”.
In the first 18 days of August 2021, it has seen further improvement, with gross sales 24.5% above July and gross profit 25% above July.
Ansell Limited (ASX: ANN)
The Ansell share price was another of the ASX 200 shares to suffer a big sell-off. It dropped over 9% today.
The glovemaker reported its FY21 result that showed total sales increased by 25.6% to $2.03 billion. This result was driven by organic growth of the healthcare division, with a rise of revenue of 34.8%. There was volume growth for surgical and life sciences, and favourable pricing and mix for the exam and single unit segment.
Total earnings before interest and tax (EBIT) grew by 56% year on year to US$338 million. This was driven by higher production volume and operating leverage.
Net profit increased by 57.5% to US$246.7 million. The board decided to increase the full year dividend by 53.6% to US 76.8 cents.
Whilst Ansell acknowledged that COVID-19 will continue to feature in FY22, it’s expecting lower demand in areas that have benefited the most during the onset of COVID-19, such as chemical body protection and undifferentiated exam/single use gloves. Pricing is expected to feature throughout this financial year, both positively and negatively.
The ASX 200 share also said that there have been more cases in South East Asia, causing disruption to its factories and suppliers in the region, which have hurt operations. It could hurt sales in the first half of FY22. Increased freight costs and shipping delays are also expected throughout FY22.
Nanosonics Ltd (ASX: NAN)
The Nanosonics share price was the best performer in the ASX 200 today, rising by 22%.
It reported in FY21 that revenue went up 3% to $103.1 million, with gross profit increasing 6% to 80.4%.
There was a “significant” recovery in the second half with revenue of $60 million, up 39% compared to the first half.
Full year consumables revenue was up 9% to $76.4 million, with capital revenue of $26.7 million (down 11%).
EBIT fell 7% to $10.8 million, whilst profit after tax declined 15% to $8.6 million. Free cashflow for the year was $5.9 million, with second half free cashflow of $8.3 million.
Management said that there has been a significant increase in the Trophon opportunity in North American, resulting from an increased estimate of the total addressable market. The change was from 40,000 units to 60,000 units, reflecting growth in the ultrasound market over the last eight years.
It’s expecting a return to double digit revenue growth in FY22, driven by an ongoing increase in the installed base globally and increased usage of consumables across all regions.
Nanosonics also launched a new digital product platform called ‘Nanosonics AuditPro’. It is a digital workflow compliance management system with potential applications across a range of medical instruments.
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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. owns shares of and has recommended Kogan.com ltd and Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Nanosonics Limited. The Motley Fool Australia has recommended Ansell Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.