Although earnings season is drawing to a close, a good number of companies have released their full-year results today.
Three which you may have missed are summarised below:
The Australian Vintage Limited (ASX: AVG) share price fell 9% to 43.5 cents after the wine company posted a full-year net profit before one-off items of $4.3 million. This was a disappointing 38.5% decline on last year’s result and was largely down to weakness in the British pound since the Brexit. Although Australian Vintage attempted to combat this through price increases, it wasn’t ultimately enough to offset the unfavourable currency movements. However, management expects net profit after tax growth of 10% in FY 2018. This could make it an opportune time to consider an investment.
The Boral Limited (ASX: BLD) share price ended the day down 3% to $6.63 despite posting a 28% increase in underlying profit after tax before significant items to $343 million. Key to the strong result was the company’s Boral Australia division which delivered an 11% lift in EBIT to $349 million. This was driven by volume and margin improvements thanks largely to strong east coast residential markets and growing infrastructure activity. Today’s decline may be related to the company’s increase in debt. Boral ended the year with net debt of $2.3 billion, up from $893 million last year.
The MotorCycle Holdings Ltd (ASX: MTO) share price tumbled 3% to $4.10 despite the motorcycle retailer posting a record net profit of $9.3 million. This was a 16% increase on FY 2016 and was driven by a series of acquisitions and strong sales of new motorcycles. The company’s New Motorcycle segment saw a 21% increase in sales volumes to 9089 units, compared with market growth of just 2%. As strong as the result was, management has advised that trading conditions remain subdued. This may have investors concerned that the strong result will not be repeated next year.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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