The S&P/ASX 200 Index (ASX: XJO) went up around 0.3% today. The market responded positively to the economic update by Treasurer Josh Frydenberg.
NSW saw another 19 new COVID-19 cases and Victoria recorded 403 new cases. The Australian budget will have a deficit of $86 billion in the 2019-20 year and $184.5 billion in the 2020-21 year. A combination of huge support and a drop in tax return caused the large deficits. Low interest rates will make the debt manageable, according to Mr Frydenberg.
New leadership for Tabcorp Holdings Limited (ASX: TAH)
The Tabcorp share price went up almost 5% today after announcing leadership succession.
Tabcorp’s board has selected Steven Gregg to succeed Paula Dwyer who will retire at the end of 2020. Mr Gregg is currently a non executive director and chair of the people and remuneration committee.
The ASX 200 gambling business also announced that David Attenborough will retire as Tabcorp’s managing director and CEO in the first half of the 2021 calendar year.
Current Tabcorp chair Ms Dwyer said: “With the integration of Tatts nearing completion, the time is now right for a new chairman to lead the Tabcorp board into the future. The appointment of Steven Gregg will provide continuity of leadership and an orderly transition as the company identifies and transitions to a new managing director and CEO.”
Coca Cola Amatil Ltd (ASX: CCL) share price bubbles
The Coca Cola Amatil share price bubbled higher by more than 5% after a June 2020 trading update and news of impairments.
Coca Cola Amatil’s trading volumes in June 2020 were down approximately 9% compared to June 2019. The quarter to 30 June 2020 saw volumes decline of around 23% compared to the prior corresponding period.
The ASX 200 share said that there has been improvement, but it varies across its geographic markets due to the differences in lockdown restrictions. In New Zealand, volumes were up 4% in June 2020 compared to June 2019. Australian volumes were down 3% for the month. Indonesia, where COVID-19 infection rates remain high, saw a 23% fall in volume despite improving significantly compared to May 2020 and April 2020.
Profit margins, particularly in Australia, have been adversely impacted by changing consumer behaviour due to COVID-19 restrictions. There has been a significant shift to the grocery channel and away from the higher margin ‘on-the-go’ channels.
Coca Cola expects to incur impairments in the range of $160 million to $190 million after tax in its FY20 half-year accounts.
Coca Cola Amatil managing director Alison Watkins said: “It is encouraging to see the improvement in our volumes as the pandemic restrictions were lifted across a number of markets. It has also been pleasing to see that the strength of our brands and strong sales capabilities continue to drive market share gains in Australia and New Zealand. We nevertheless remain cautious, given the reinstatement of lockdown measures from July in Melbourne and the rising COVID-19 infection rate in Indonesia.”
Dicker Data Ltd (ASX: DDR) announces unaudited FY20 half-year result
The company held its annual general meeting (AGM) today, the company announced its final unaudited half year result.
Total revenue was up 18.1% to more than $1 billion. Recurring software revenue increased by 53.1% to $225 million. Net profit before tax jumped 30.4% to $42 million and net profit after tax (NPAT) increased by 23.5% to $29.4 million.
Dicker Data said that it experienced a surge in demand for remote and virtual working solutions with hardware and software due to the increase in remote working.
The company, which is a distributor of hardware, software, cloud and emerging technologies said it saw improved margin as a result of increased focus on mid-market and small and medium businesses.
Dicker Data said that new vendors added during FY19 and the FY20 half-year accounted for $26.3 million of incremental revenue in the half-year result.
The Dicker Data share price rose 7.2% today.
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