McPherson’s Ltd (ASX: MCP) shares climbed 7% yesterday after it released its results for the financial year ending June 30, 2019. Below is a summary of the results with comparisons to the prior year.
- Statutory profit before tax $19m, up 165%
- Adjusted net profit for continuing businesses $13.7, up 35%
- Sales revenue from continuing ops $210.3m, up 7%
- Underlying earnings per share 13c, up 33%
- Final fully franked dividend of 6cps, full year dividends of 10cps
- Net debt reduced to $7.2m on gearing of 7.2%
- Forecast for 10% profit before tax growth in FY 2020
McPherson’s Managing Director, Mr. Laurence McAllister said: “We are particularly pleased with the performance of our owned brands, which helped drive total group sales revenue up 7% on previous year. Of note was the stellar result from Dr. LeWinn’s which delivered 125% growth in revenue.”
The group sells skincare, beauty and household goods products under a variety of different brands with the strong growth of its Dr LeWinn brand into China likely to excite investors.
At $1.99 shares only trade on 15.3x FY 2019’s earnings whereas other consumer goods companies with any kind of sales into China like Blackmores Limited (ASX: BKL), Bellamy’s Ltd (ASX: BAL) or Treasury Wine Estates Ltd (ASX: TWE) trade on far higher multiples.
The group is also forecasting double-digit profit before tax growth in FY 2020 and sports a 5% trailing yield alongside a reasonable balance sheet. As such it could interest the value investors.
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