Reporting season is really underway now and some ASX dividend shares have been reporting growth.
FY21 has seen a lot of disruption for plenty of ASX shares because of COVID-19 and the associated impacts.
These two businesses reported a lot of growth in FY21:
Nick Scali Limited (ASX: NCK)
This business sells high-end furniture to Australian and New Zealand households.
Coming into reporting season, Nick Scali was rated as a buy by the broker Citi.
In FY21, Nick Scali reported that sales revenue increased by 42.1% to $373 million. Underlying earnings before interest and tax (EBIT) grew by 100.5% to $121.9 million and underlying net profit after tax (NPAT) grew by 100% to $84.2 million.
There were some areas of the business that grew revenue quickly. New Zealand written sales orders grew by 95% and total online written sales grew by 510% to $18.3 million. The online EBIT was $8.8 million.
Nick Scali’s final dividend was increased by 11.1% to 25 cents per share. That brought the full year dividend to 65 cents per share, representing a payout ratio of 63%.
That means that the FY21 grossed-up dividend yield is 7.5%. But the ASX dividend share’s FY22 yield may not be as high.
Nick Scali also noted that July 2021 trading was impacted by lockdowns. Written sales orders were down 27% compared to July 2020, but 24% up on July 2019. Online growth was up 88% for the month of July 2021.
Nick Scali said that the company’s future growth will be primarily be driven by the continuation of the store rollout and increasing online penetration.
Centuria Industrial REIT (ASX: CIP)
This is a business which owns a portfolio of “high-quality” industrial assets which are situated in key metropolitan locations throughout Australia and is underpinned by a diverse tenant base.
Coming into reporting season, the real estate investment trust (REIT) was rated as a buy by the broker Morgan Stanley.
It bought a number properties during FY21 and the valuation of many of its properties increased over the year. It saw a total $587 million valuation increase. This helped increase the net tangible assets (NTA) per unit by 36% to $3.83.
The ASX dividend share’s portfolio has a 96.9% occupancy rate with a 9.6 year weighted average lease expiry.
Centuria Industrial REIT is expecting a slight increase of both the distribution and the funds from operations (FFO) per unit in FY22. It’s expecting FFO per unit of no less than 18.1 cents and a distribution per unit of 17.3 cents per unit. That translates to a future yield of approximately 4.4%.