Australian companies rise and fall, as reporting season nears end

As reporting season comes to end, there have been Australian companies reporting big profit losses, and some with significant profit gains. Analysts say profits on average are up 2% in Australia’s top 20 small companies. 

ASX

Wednesday’s company earnings reports show Australian cheese company Bega at 79% loss in annual net profit, while building materials company Boral’s full year profit jumped to 49%, one of the better performers this reporting season.

Bega Cheese LTD (ASX:BGA)

Bega’s annual net profits are down 79% to $28.8 million after an acquisition with the Mondelez grocery business and Peanut Company of Australia.

The company’s revenue for the year to June 30 was up 17 % to $1.44 billion, largely due to Bega Foods and higher international sales. 
Bega Cheese will issue a 5.5 cent final dividend, up 5 cents from last year.

Boral LTD  (ASX:BLD)

Australian building products provider Boral Ltd reported a full-year net profit of $441 million, up $144 million the previous year.

The company said it expects “high single-digit” growth from its Australian sector, which rose 15% in full-year core earnings.

Chief executive Mike Kane said, ‘While our business is not immune to unfavourable weather impacts and operational disruptions, the full year results confirm that our transformation strategy is progressing well, and that Boral can deliver significant earnings with highly attractive margins,’

Boral will pay a 50-per cent franked final dividend of 14 cents, up 2 cents from the previous year.

Cabcharge Australia LTD (ASX:CAB)

Australian taxi service provider, Cabcharge reported a net loss after tax of $1.9 million, a significant fall from last year’s $13.7 million. Cabcharge reported a 22% increase in revenue to $185.5 million.

On Wednesday the company’s share prices dropped to $2.09. The company cut its final dividend to 4 cents per share, down from 10 cents last year.

But despite the loss, the company believes the taxi industry isn't dead yet, and taxis will take on companies like Uber and Taxify.

Managing Director and CEO, Andrew Skelton said Australia is still seeing a strong demand for personal transport.

‘Notably, we initiated a major rebrand of our 13cabs Taxi Network which is creating a stronger identity, aligning our national operations and improving engagement levels with drivers in the process.’ Mr Skelton Said.

With only a few days of reporting season left, analysts say overall, we’ve seen a good season for Australian companies.

Companies like Harvey Norman, and Get Swift are yet to report, with their numbers announced on Friday. 

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