The ASX reporting wrap-up: A2 Milk, Woolworths, Appen

Just what the investor ordered. Here's a recap of the companies that reported on Thursday…

Mitchell Lawler

Mitchell stumbled upon the concept of investing when in high school, devotedly urging his parents to put some money into a handful of technology companies with increasingly popular products among his demographic – many of which have gone on to great success. It wouldn’t be until 2017, some five years later, that Mitchell became an investor of his own money. Having studied and worked as a mechanical engineer in the building services industry, Mitchell takes a methodical and analytical approach to evaluating businesses. Rather than relying purely on numbers, Mitchell drills beyond a company’s metaphorical mantle to unearth obscure patterns or competitive advantages that would go otherwise unnoticed. His expertise resides within areas such as software, consumer goods, and building services equipment. However, his quest to find quality companies that set the industry standard and flex some degree of an impenetrable position has no limits – small cap to mega cap, cosmetics to healthcare – if it’s an exceptional business it’s on his radar.

Published August 26, 2021 5:09 pm AEST

Well, what a mammoth day for reporting on the ASX. Investors were inundated with full-year report after full-year report — we don't blame you if you're still working your way through some of those announcements.

Unfortunately, the higher number of earnings released did not coincide with a better outcome for the broader market.

Out of the companies listed in the S&P/ASX 200 Index (ASX: XJO), only 72 rose or remained flat — the remaining 128 slipped lower.

We'll quickly unpack today's results and then wrap things back up for tomorrow:

A woman studying share market stats on a computer while writing a report. — Image Source: Getty Images

Those that reported on the ASX today

A2 Milk Company Ltd (ASX: A2M)

Shares in A2 Milk took the elevator downwards after the company reported its FY21 full-year results. As border closures continue to impact the daigou sales channel, the infant formula maker incurred significant damage to its revenue and earnings.

The takeaway points:

Revenue down 30.3% to NZ$1.21 billion
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 77.6% to NZ$123 million
Stock write-downs of NZ$109 million
Net profit after tax down 79.1% to NZ$80.7 million
Cash balance of NZ$875.2 million
Board decides against capital return
Outlook: Tough year ahead in FY 2022

The A2 Milk Company share price finished the day down 12.32% trading at $6.01.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price was a more positive performer following its reporting of full-year results for FY21.

Shares in the supermarket giant inched 0.42% higher to $40.99 on the back of a major jump in earnings. The company also announced a $2 billion buyback and a bumper dividend to boot.

The takeaway points:

Group sales rose 5.7% to $67,278 million
e-Commerce sales surged 58.1% to $5,602 million
Group earnings before interest and tax (EBIT) increased 13.7% to $3,663 million
Group net profit after tax up 22.9% to $1,972 million
Final dividend of 55 cents per share

Appen Ltd (ASX: APX)

Lastly, the Appen share price plummeted on the ASX today after reporting its earnings fell more than 50% in its FY21 result. Investors were clearly rattled by the decrease, resulting in the tech company's shares falling 21.4% to $10.86 by the end of the session.

The takeaway points:

Group revenue down 2% to US$196.6 million
Annual contract value increased 16% to US$119.6 million
Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) down 14.3% to US$27.7 million
Interim dividend of AUD4.5 cents per share 50% franked declared, flat on 1H20 dividend.
Net profit after tax down 55.1% to US$6.7 million
Appen to acquire location data provider Quandrant for US$25 million upfront
Outlook: higher confidence in the pipeline supported by a stronger order book

ASX shares reporting next week

We might have reached the peak of the ASX reporting mountain today. However, tomorrow we embark on the journey back down with a handful of companies dispensing their results.

Some of the big-name companies set to release their financials tomorrow include BWX Limited (ASX: BWX), Freedom Foods Group Ltd (ASX: FNP), Wesfarmers Ltd (ASX: WES), Bega Cheese Ltd (ASX: BGA), and Pointsbet Holdings Ltd (ASX: PBH).

To see the full line-up, check out our ASX Reporting Season Calendar.

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.