Bubs (ASX:BUB) posts record half year profit: ASX tracking 2.3% lower at noon

The Australian share market dropped at the open and continued to fall through mid morning trade and is now tracking 2.3 per cent lower at noon. Polynovo (ASX:PNV) shares dropped after reporting a net loss for the half year of $2.42 million, that’s 26 per cent increase from last year. Healius (ASX:HLS) shares are on the rise after the news of the Partners Group proposal. The best-performing sector is Real Estate Investment Trust while the worst performing sector is Infotech.

The S&P/ASX 200 index is 154 points down at 6,712. On the futures market the SPI is 144 points lower.

Local economic news

The trend estimate for total construction work done fell 1.4 per cent in the December quarter 2019.

Broker moves

Credit Suisse has upgraded HUB 24 (ASX:HUB) to an Outperform from a Neutral. Despite missing first half earnings, they found many positive aspects including strong growth in funds under administration, slower revenue margin contraction and further earnings margin expansion. Target is reduced to $12.80 from $13.00. Shares in HUB 24 (ASX:HUB) are currently trading 2.1 per cent higher at $10.65.

Company news

Bubs Australia (ASX:BUB) saw gross revenue of $28.75 million, up 37 per cent on the same period last year. Bubs® Infant Formula was the key driver of growth with attributable gross revenues up 77 per cent compared to the prior corresponding period (pcp). Revenue of adult goat milk powder have also increased 30 per cent over the same period. Sales of fresh milk products were down 49 per cent, following the deliberate deletion of yoghurt products due to poor profitability. Shares in Bubs Australia (ASX:BUB) 1.7 per cent lower at $0.71

Best and worst performers

The best-performing sector is Real Estate Investment Trust, adding 1.6 per cent, while the worst performing sector is Infotech at 3.6 per cent lower.

The best performing stock in the S&P/ASX 200 is Healius (ASX:HLS) rising 17.4 per cent to $3.24, followed by shares in Invocare (ASX:IVC) and Nine Entertainment (ASX:NEC).

The worst performing stock in the S&P/ASX 200 is Polynovo (ASX:PNV), dropping 16.2 per cent to $2.53, followed by shares in Appen (ASX:APX) and Jumbo Interactive (ASX:JIN).

Commodities and the dollar

Gold is trading at US$1,644 an ounce.
Iron ore price is 1.1 per cent lower at US$90.83.
Iron ore futures are pointing to a rise of 0.1 per cent.
One Australian dollar is buying 65.93US cents.