Stocks of the Hour: A2 Milk, Reliance Worldwide, Nib

Company News

by Lauren Evans

Thanks for tuning in, I’m Lauren Evans for the Finance News. Lets take a look at the companies reporting today.

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A2 Milk’s (ASX:A2M) profit has halved in the first six months of the financial year as China’s demand for infant-formula fell amid the country's declining birth rate. The company’s revenue fell by 2.5 per cent to $616.4 million (NZ$660.5 million), while profit declined 50.3 per cent to $55.6 million (NZ$59.6 million). EDITDA tanked 45.3 per cent to $91.1 million (NZ$97.6 million). A2 Milk did not declare an interim dividend. Shares are trading 5.3 per cent higher at $5.58.

Reliance Worldwide (ASX:RWC) released its half year results for the six months ending December 31. Its net profit after tax fell by 3.3 per cent to $88.3 million (US63.7 million), while its revenue rose 12.4 per cent to $727.3 million (US 521.8 million) and its adjusted EBITDA lifted 5 per cent to $174.9 million ($US125.5 million). The company said strong demand was driven by high levels of home remodelling and buoyant residential construction markets. However, Covid-19 challenges like supply chain constraints still restricted volume growth. Reliance will pay an interim dividend of 6.3 cents per share (US4.5 cents). Shares are trading 2.5 per cent lower at $4.96.

Nib (ASX:NHF) also delivered its half year results for the six months ending December 31. The company’s revenue rose 7 per cent to $1.4 billion, while profit climbed 25 per cent to $81.4 million. The health insurer said ongoing Covid-19 lockdowns and restrictions on non-urgent elective surgery disrupted healthcare treatment during the first half. However, some treatments are likely to have been postponed to future periods and not cancelled entirely. Nib declared an interim dividend of 11 cents per share. Shares are trading 1.7 per cent lower at $6.53.

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