ASX 200 drops, Redbubble soars, TWE falls

The ASX 200 fell today. However, the Redbubble share price jumped as it reported.

The S&P/ASX 200 Index (ASX: XJO) fell 0.5% today to 7,465 points.

Here are some of the highlights from the ASX:

share price dipping

Image source: Getty Images

Redbubble Ltd (ASX: RBL)

The Redbubble share price soared around 19% after the company's FY21 result.

Redbubble reported that its marketplace revenue increased by 58% to $553 million, with gross profit rising by 66% to $223 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 930% to $53 million, whilst earnings before interest and tax (EBIT) was $39 million (up from a loss of $9 million).

Redbubble's net profit after tax was $31 million, also up from a loss of $9 million. Operating cashflow increased from $47 million to $55 million.

Artist and customer numbers also increased, rising 54% and 40% respectively.

Redbubble said that it's now cycling against strong prior period comparatives, particularly as mask sales contributed $57 million to marketplace revenue in FY21.

Excluding mask sales, Redbubble is expecting FY22 marketplace revenue to be slightly above FY21 underlying marketplace revenue. Whilst the first half of FY22 is expected to show a decline of sales, the second half is expected to show a "steady return" to year on year growth rates that will meet its medium-term goals.

Redbubble is going to make investments to improve the customer experience and grow the business.

Management said the business remains confident and excited about the medium and longer-term opportunity to grow strongly and extend Redbubble's global market leadership as the largest marketplace for independent artists.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates also reported its FY21 report. The Treasury Wine Estates share price dropped 1.5% in response.

The ASX 200 share revealed that its FY21 net sales revenue fell 3% to $2.57 billion. But that represented 1.3% growth in constant currency terms. FY21 Earnings before interest, tax, SGARA and material items (EBITS) fell 0.4% to $510.3 million, with constant currency growth of 2.8%

Net profit after tax increased 1.8% to $250 million and went up 5.5% in constant currency. Earnings per share (EPS) came in at 34.7 cents, which was also growth of 1.8% in reported terms and 5.5% growth in constant currency.

The Asian division reported a 15% decline in EBITS to $205.4 million and an EBITS margin of 36.3% (a decline of 2.8 percentage points). Shipments to China "significantly" reduced after import duties were imposed on Australian wine. Mainland China EBITS declined $77.3 million in FY21. The impact was partially offset by continued growth across the rest of the region.

Treasury Wine Estates decided on a final dividend of 13 cents per share, an increase of 62.5% on the final dividend.

The Treasury Wine Estates CEO Tim Ford said:

In FY22, we enter a new phase for TWE under our brand portfolio divisional operating model, led by Penfolds, Treasury Premium Brands and Treasury Americas. Whilst it's early days in the change program, it is already very clear to our teams that with each division focused on their unique strategic priorities and performance accountabilities, we are better positioned to take advantage of previously untapped growth opportunities across the globe. This is a truly exciting stage in our journey as we progress deliberately at pace towards our ambitions and goals.

Western Areas Ltd (ASX: WSA)

The Western Areas share price surged 13% after confirmed that it was in the early stages of talks with IGO Ltd (ASX: IGO).

Those discussions are about whether IGO, an ASX 200 share, will put forward a proposal to buy the Western Areas business. But the current talks are about the basis upon which engagement and due diligence between the parties could proceed.

But neither business could provide any assurance that a transaction would occur.

The IGO share price fell by 6% today.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. 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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