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ASX 200 rises, Woolworths falls, Fortescue was flat

The S&P/ASX 200 Index (ASX:XJO) rose today. However, the Woolworths Group Ltd (ASX:WOW) share price felt after its quarterly update.
The post ASX 200 rises, Woolworths falls, Fortescue was flat appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) rose by 0.25% to 7,082 points.

Here are some of the highlights from the ASX today:

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price dropped around 4% after giving its third quarter update to investors.

Woolworths reported that the total group sales was up 0.4% for the 13-week period. The Australian supermarkets division saw sales decline 0.7% to $11 billion because it’s now cycling against high levels of sales in the prior corresponding period due to COVID-19.

New Zealand supermarkets saw a decrease of sales by 10.2% to $1.67 billion. Big W sales jumped 18.3% to $1 billion. Endeavour Drinks sales rose by 6.3% to $2.39 billion. Hotels saw sales go up 11.5% to $390 million.

In terms of a trading update for April, Woolworths said that total sales were broadly flat because of prior year growth rates. Endeavour Drinks saw sales in April remain above last year, but are expected to slow when it cycles against growth of 30% over May and June. New Zealand sales were materially negative, cycling against growth of 20% over the prior year. Big W sales growth has also slowed in April because it’s cycling against growth in April 2020.

Woolworths said that the Endeavour Group demerger remains on target for late June. Key milestones during the quarter include securing financing commitments for Endeavour Group’s proposed debt facilities and finalising board and management appointments.

Woolworths was one of the worst performers in the ASX 200.

Fortescue Metals Group Limited (ASX: FMG)

Iron ore miner Fortescue revealed its FY21 third quarter today. It said that iron ore shipments of 42.3 million tonnes (mt). This was in line with the record third quarter shipments last year. Year to date shipments of 132.9mt were 2% higher than the comparable period in FY20.

Average revenue of US$143 per dry metric tonne (dmt) was up 17% compared to the previous quarter with revenue realisation at 86% of the average Platts 62% CFR Index.

The C1 cost of US$14.90 per wet metric tonne (wmt) increased 16% compared to the second quarter due to seasonally lowered volumes and the strength of the Australian dollar, with year to date C1 cost of US$13.45 per wmt.

The ASX 200 miner said that its net debt of US$1 billion at 31 March 2021 after the payment of the FY21 interim dividend of US$3.5 billion and capital expenditure of US$909 million in the quarter.

Guidance for FY21 shipments and C1 costs remained unchanged. However, the capital expenditure guidance increased to a range of US$3.5 billion to US$3.7 billion.

Fortescue also said that the commissioning of the Eliwana mine has contributed to an increase in both ore mined and processed during the quarter, despite the impact of rainfall.

Sezzle Inc (ASX: SZL)

The Sezzle share price went up more than 3% today after the buy now, pay later business announced a partnership with Market America Worldwide to partner with SHOP.COM.

Sezzle will be providing the global independent distributors, their customers and all online shoppers with the option of buy now, pay later.

For now, this deal is just about SHOP.com. But future plans include making the buy now, pay later platform available to online shoppers on Market America Worldwide’s additional e-commerce websites over time.

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Tristan Harrison owns shares of Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Sezzle Inc. 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, Woolworths falls, Fortescue was flat appeared first on The Motley Fool Australia.

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