With earnings season now over, we reveal nine ASX shares that delivered some of the best profit boosts.

You can review all our articles covering the earning reports of hundreds of ASX companies here.

9 ASX shares that revealed major profit increases

Here is a selection of ASX companies that reported some of the biggest profit growth of the season.

NIB Holdings Limited (ASX: NHF)

In its FY24 report, the health insurer revealed a net profit after tax (NPAT) of $181.6 million, up 67.4%. This failed to impress investors, with the NIB share price diving 17.74% on the day the report was released.

Inghams Group Ltd (ASX: ING)

The poultry producer revealed an NPAT of $101.5 million, up 68% in its FY24 results. This also received a rough reception from investors, with the ASX consumer staples share tumbling 20.16% on the day.

Macquarie Technology Group Ltd (ASX: MAQ)

In its FY24 results, Macquarie Tech reported an NPAT of $33 million, up 86.5%. On the day of the release, the ASX technology share fell by 5.98%.

Nuix Ltd (ASX: NXL) 

In its FY24 results, the company reported a statutory net profit of $5 million, up more than 100% year over year. The Nuix share price rocketed 25.5% on the day of the news.

QBE Insurance Group Ltd (ASX: QBE)

In its half-year results, QBE reported an NPAT of US$802 million, which was 100% higher than last year. But investors were unenthused. The QBE share price fell 1.71% on the day of the report.

Latitude Group Holdings Ltd (ASX: LFS)

Latitude also reported half-year results last month. It revealed a cash NPAT of $27.4 million, up 140% on the prior corresponding period. The ASX financial share lost 1.71% in value on the day of the news.

McMillan Shakespeare Ltd (ASX: MMS) 

The company reported a statutory net profit spike of 158.5% to $83.5 million. But that wasn't enough to keep investors happy. The McMillan Shakespeare share price lost 3.77% in value on the day of the news.

RPM Automotive Group Ltd (ASX: RPM) 

In its FY24 results, the auto parts company revealed a 275% leap in net profit to $4.6 million, which was a record for them. Investors rewarded RPM Global with a 14.29% share price bump.

Bailador Technology Investments Ltd (ASX: BTI)

The technology-focused investment company reported an impressive 282% surge in NPAT in FY24 to $20.7 million. Enthusiastic investors pushed the Bailador Technology share price 2.56% higher on the day.

The post These 9 ASX shares revealed some of the biggest profit rises this earnings season appeared first on The Motley Fool Australia.

RPM shares are currently trading more than 9.8% higher at 7.8 cents per share as investors react positively to the update.

Let's see what the auto parts company posted.

ASX small cap share climbs on solid full-year results

Key highlights from the results include:

• Revenue increased by 3.7% year over year to $121 million.
• Gross profit was up 12.0% to $41.4 million.
• Earnings before interest, tax, depreciation and amortisation (EBITDA) surged 41.2% to $12.5 million.
• Operating cash flow jumped to $7.6 million.
• Net profit skyrocketed 275% to $4.6 million, a record for the company.

What else happened in FY24?

The ASX small-cap share delivered a strong set of growth numbers in FY24. Sales were up 4%, but this grew EBITDA by 41%, highlighting the company's operating leverage.

Part of this came from a 250 basis points growth in gross profit to 34.2%, meaning more than 34 cents on every dollar in revenue was recognised as gross profit in FY24.

This drove a triple-digit expansion in net profit to $4.6 million, a company record for any quarter.

RPM also completed the acquisition of Chapel Corner Tyres with the aim of strengthening its wholesale tyre division.

Revenues in the company's wholesale segment, particularly in wheels and tyres, were up 30%, underlined by higher demand from the trucking, agricultural, and mining sectors.

The performance and accessories division also expanded, delivering an 11.8% increase in revenue to $26.4 million.

Additionally, RPM's Motorsports division reinforced its market leadership in soft parts and safety categories, with revenue growing by 9.5% to $9.4 million.

What did management say?

RPM Automotive Group CEO Guy Nicholls was notably pleased with the company's performance:

During FY24, we demonstrated the resilience and diversity of our business with strong earnings performance while launching several strategic initiatives to create new revenue streams and leverage our extensive footprint.

Despite economic headwinds in the retail and consumer markets, we delivered earnings growth across the business, once again showing our resilience. Our wholesale segments, particularly wheels and tyres, performed exceptionally well, significantly contributing to our growth.

With our focus on higher-margin parts of the business, our underlying fundamentals have continued to strengthen, reflecting our commitment to increasing profitability. We've invested in our people, ensuring we have the right talent and culture to drive growth.

Our focus on optimising resources and leveraging our diverse product portfolio has led to improved operational efficiencies and increased cross-selling opportunities. During FY24 margin expansion was driven by strategic pricing and more effective procurement and stock management.

What's next for RPM?

Looking forward, RPM says it is poised to continue its growth trajectory into FY25. This is underscored by "several new initiatives aimed at delivering sustainable growth throughout FY25 and beyond".

The company plans to launch a tyre recycling program in Q2 FY25, utilising its established wholesale infrastructure.

Additionally, new products and partnerships with WHG and Yokohama are expected to drive further growth and enhance margins.

CEO Nicholls said the company was constantly pursuing new opportunities:

In addition to continuing to develop our existing businesses, we remain focussed on the pursuit of new growth opportunities and expect this will position the Company for continued success in the evolving automotive aftermarket.

ASX small cap share snapshot

RPM Automotive Group's share price has shown positive momentum in recent weeks and is up more than 14% in the past month.

Shares are down 25.7% in the past 12 months.

The post ASX small-cap share jumps 10% on strong FY24 profit growth appeared first on The Motley Fool Australia.

But there are plenty of ASX All Ords shares that are doing even better than that. In fact, no fewer than seven of these stocks have clocked a new 52-week high this session. Let's check them out.

ASX All Ords shares at new 52-week highs today

First up we have RPMGlobal Holdings Ltd (ASX: RPM). RPM shares opened at $2.28 each this morning, and are currently up 2.6% at $2.33. But earlier this morning, this mining services company rose as high as $2.38 a share, RPM's new 52-week and all-time high.

There's been no fresh news out of the company today that might explain why investors are pushing this stock higher though.

Next, we have Monash IVF Group Ltd (ASX: MVF) to discuss. Monash shares opened at $1.49 each this morning and are currently up 201% at $1.52 each. But Monash hit $1.53 a share soon after market open – the company's new 52-week high.

Again, there are no fresh developments out of this company either that might easily explain this new benchmark for Monash.

Link Administration Holdings Ltd (ASX: LNK) is another ASX All Ords share smashing out a new high today. Link shares are currently trading at $2.24 apiece, up 0.22% for the day thus far. But Link opened at $2.25 this morning, which is the financial services stock's new 52-week high.

Yesterday, Link released an update regarding the acquisition offer from Mitsubishi UFJ Trust & Banking Corporation, which told investors that "all regulatory approvals which are Conditions Precedent to the Scheme have been satisfied, waived or will not be required". Perhaps this is still feeding into positive sentiment for Link stock today.

Then we have ASX All Ords building products stock CSR Ltd (ASX: CSR). CSR shares are currently flat at $8.87 each. But earlier this morning, those shares climbed as high as $8.89 – CSR's new 52-week high – after opening at $8.86 each.

With CSR, there has also been no news or announcements out of the company that might conceivably explain this new high watermark.

More stocks at new highs

ASX All Ords real estate investment trust (REIT) Unibail-Rodamco-Westfield (ASX: URW) is next. This REIT's units opened at $6.31 each this morning and are currently up 2.1% at $6.35. But this comes after Unibail-Rodamco-Westfield hit a new high of $6.37 earlier in the session today.

Investors seem to have been taking another look at this REIT ever since the 11 April update on the Westfield Hamburg project.

Another ASX All Ords stock hitting new highs today is Steamships Trading Company Ltd (ASX: SST). Steamships stock is currently enjoying a 1.23% boost at $16.50 a share.

However, this morning, those same shares opened at $17, which was, and is the company's new 52-week high. But this is another benchmark that has occurred today without any obvious catalyst.

Finally, let's discuss ASX All Ords chemical and explosives manufacturer Orica Ltd (ASX: ORI). Orica shares opened at $18.30 each this morning and are presently trading at $18.39, up 0.6% for the day thus far. But Orica explored as high as $18.45 a share earlier today, which is the company's new 52-week high.

There haven't been any fresh developments or announcements out of Orica in recent weeks. But investors have been flocking to this stock all year, with Orica shares now up a rosy 15.4% in 2024 to date.

The post 7 ASX All Ords shares smashing new 52-week highs on Tuesday appeared first on The Motley Fool Australia.

In some cases, these mega profit gains led to significantly increased dividends for ASX investors, too.

Which ASX shares delivered the biggest profit increases?

Here is a selection of companies that delivered significant profit surges.

Neuren Pharmaceuticals Ltd (ASX: NEU)

The ASX biotech revealed a $157 million profit after tax in FY23, up from just $184,000 in FY22. Last year was a huge year for Neuren, which licenced its first drug, Daybue, to US partner Acadia Pharmaceuticals following FDA approval. The company does not pay dividends.

Origin Energy Ltd (ASX: ORG)

Origin Energy reported an underlying profit of $747 million in 1H FY24, up by almost 1,600% on the $44 million reported for 1H FY23. Earnings in the electricity and natural gas segments increased due to the recovery of higher wholesale costs from previous periods, plus lower fuel costs. Origin shares will pay ASX investors a fully franked interim dividend of 27.5 cents per share, up 66% on 1H FY23.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre reported a 565% lift in its underlying profit before tax to $106 million in 1H FY24. Revenge travel and historically low cost margins of just under 10% contributed to the profit surge. Flight Centre announced its first interim dividend since 2019. It will pay 10 cents per share, fully franked.

AGL Energy Limited (ASX: AGL)

Australia's largest electricity generator reported $399 million in underlying profit after tax, up 358.6% for 1H FY24. AGL said a more stable market and higher wholesale electricity pricing from prior periods flowed through to the bottom line. The ASX utilities share will pay an interim dividend of 26 cents, up 225%.

MMA Offshore Ltd (ASX: MRM)

The marine services provider reported a massive 339% jump in underlying net profit after tax (NPAT) to $39.5 million in 1H FY24. The company said there was stronger demand for its vessels and services. No dividend will be paid.

Inghams Group Ltd (ASX: ING)

Poultry producer Inghams reported a 107.5% increase in underlying net profit to $69.3 million in 1H FY24, driven largely by net selling price growth and operational performance improvements. Inghams shares will pay a fully franked interim dividend of 12 cents per share, up 167%.

Corporate Travel Management Ltd (ASX: CTD)

The corporate travel manager reported an underlying NPAT of $57.9 million, up 162% in 1H FY24 due to new customer accounts, improved efficiency, and better cost controls. The ASX travel share will pay an interim unfranked dividend of 17 cents per share, up 183% on 1H FY23.

Boral Ltd (ASX: BLD)

The building materials company reported an underlying NPAT surge of 143% to $138.6 million for 1H FY24. This was driven largely by strong price realisation, higher revenue and rigorous cost management. The board decided not to pay a dividend because of the company's low franking credit balance.

QBE Insurance Group Ltd (ASX: QBE)

The insurance company reported a 105% rise in adjusted cash NPAT to US$1,362 million for FY23.
This was underpinned by strong premium growth and targeted new business growth. QBE will pay its ASX shareholders a final dividend of 48 cents per share, up 60%.

RPM Automotive Group Ltd (ASX: RPM) 

RPM Global reported a record half NPAT, up 74% to $2.2 million. The company said the change from perpetual to subscription licensing continued to provide both operating and financial leverage to the business. No dividend will be paid.

Macquarie Technology Group Ltd (ASX: MAQ)

The company reported an NPAT of $14.8 million, up 74% on 1H FY23. Macquarie Technology attributed the profit bump to increased earnings, lower interest costs, and lower depreciation and amortisation. No dividend will be paid by this ASX tech share.

Australian Ethical Investment Ltd (ASX: AEF)

The ethical funds manager reported an underlying NPAT of $8.5 million, up 71% in 1H FY24 due to increased customer numbers and net inflows. Funds under management rose 15% to $9.67 billion. Australian Ethical shares will pay an interim dividend of 3 cents per share, up 50%.

The post Which ASX shares delivered the biggest profit jumps of the earnings season? appeared first on The Motley Fool Australia.

The S&P 500 Index (SP: .INX) rose a modest 0.73% whilst the Nasdaq Composite (NASDAQ: .IXIC) index gained just over 1%. The ASX 200 is making headway in afternoon trade on Wednesday, with Block (ASX: SQ2) shares the biggest gainer, up 8.3%, but still down 41% over the past 12 months. 

The softer-than-expected US inflation print gives the green light to US Federal Reserve chair Jerome Powell to raise interest rates by 50 basis points overnight Wednesday.

The main game in town now for stock market watchers is predicting the terminal interest rate and when the Fed will start cutting interest rates.

Quoted on Bloomberg, Jason Katz, managing director and private wealth adviser at UBS, expects interest rates will stay higher for longer.

If they cut rates in the latter part of next year, that's going to be because they broke things along the way and things are ugly. So it's our view that the terminal rate lands anywhere between 5%-5.25% and remains there for the full calendar year.

Such an outcome would likely continue to put pressure on global stock markets, certainly for the first half of next year. Although the ASX 200 has had a good year, certainly when compared to the double-digit losses widely seen on Wall Street, you'd imagine there would be some comeuppance should US markets continue to fall.

2) Of course, not everyone shares the same views as Jason Katz – the divergence of opinion and thoughts is what makes a market.

"The coming year for investing may turn out to be better than many expect for stocks even though a recession appears likely," pros at Natixis Investment Management said Wednesday on MarketWatch.

"I'm bullish because everybody is bearish," said Jack Janasiewicz, portfolio manager and lead portfolio strategist at Natixis Investment Management Solutions. "The downside is already reflected in the market."

Simple is often best, especially given how hard it is to predict what might happen to the economy, to the consumer, to interest rates, to unemployment, to inflation, and more.

3) Writing in their November monthly update, the Surrey Australian Equities Fund said they "are positive on the outlook for Australian equities over the medium term".

Our view remains that inflation has been materially impacted by supply chain issues and as these normalise and higher interest rates take effect, inflation could ease and with it the recent sharpness of interest rate increases… Should rates increases start to slow and the US 10-year bond yield settles, we are positive on equity valuations.

The fund also notes, when it comes to small-cap stocks, positive recoveries often follow down years. 

In 2022, huge gains in resources stocks have helped offset massive losses in growth stocks, such that the S&P/ASX Small Ordinaries Index (ASX: XSO) is down "only" 19% so far this year. Adopting the simple technique of being bullish because everyone else is bearish, I'd guess a basket of beaten-down small-cap growth stocks will outperform in 2023.

I own more than my fair share of small-cap "dogs of 2022", although thankfully I haven't owned them all year, somewhat limiting my losses. 

Moving into 2023, I'm holding out recovery hopes for these dogs, with their one-year share price performance noted. In alphabetical order…

BlueBet Holdings Ltd (ASX: BBT) – down 73%

Field Solutions Holdings Ltd (ASX: FSG) – down 51%

Marley Spoon (ASX: MMM) – down 81%

Plenti Group Ltd (ASX: PLT) – down 64% 

RPM Automotive Group Ltd (ASX: RPM) – down 44%

Swoop Holdings Ltd (ASX: SWP) – down 77%

Hydration Pharmaceuticals Co Ltd (ASX: HPC) – down 72%

Touch Ventures Ltd (ASX: TVL) – down 64%

It's a motley group of companies, with little in common, apart from the devastating falls experienced by shareholders over the past 12 months.

That said, apart from Touch Ventures, which is an investment vehicle trading at a significant discount to its net asset value, they are all growing quickly, mostly have cash or little to no debt, and are either profitable or trade around break-even.

Here's hoping for a happier 2023 and beyond for these dogs, and to the micro-cap (and fun but risky, so please don't try this at home) portion of my portfolio. I look forward to reporting back on progress come this time next year. 

The post "Bullish because everybody is bearish" – here are 8 dogs of 2022 I'm backing for the win in 2023  appeared first on The Motley Fool Australia.

At the time of writing, RPM shares are up 11.48% to 34 cents

RPM receives investor backing

According to its release, RPM advised it has executed an agreement with strategic investor and fund manager, Collins St Value Fund (CSVF).

An equity placement of $2.5 million will see CSVF invest in RPM for 30 cents per share. This reflects a 5% discount to the last closing price of 30.5 cents on 18 August 2021.

In addition, CSVF agreed to provide a 3-year $5.5 million unsecured convertible note at 35 cents per share. This is subject to shareholder approval which will be sought at a general meeting in the near future.

The convertible note will pay a coupon rate of 3.5% per annum in quarterly instalments. The payment can be in the form of either cash or RPM shares.

In total, the $8 million funding will be used to support RPM's growth plans without the need to raise additional capital.

RPM co-founder and managing director, Clive Finkelstein commented:

Over the next 12 months RPM intends to continue its strategy of growth via strategic acquisitions. This funding package has been set on attractive terms to our shareholders and provides RPM with the capital necessary to take advantage of attractive M&A opportunities while introducing a well-respected institutional investor onto our register.

CSVF founder and chief investment officer, Vasilios Piperoglou added:

As a concentrated fund we don't back many teams. RPM have proven that they possess the right entrepreneurial management team and maintain a sustainable and scalable business model. Especially in today's markets, we are thrilled to have identified and invested in RPM, a company that offers a great growth strategy, and appears to offer clear value.

RPM share price snapshot

Setting aside yesterday's 7.02% gain and today's 11.48% rise, RPM shares were on a decline since April 2021. Nonetheless, the company's share price has jumped 40% over the last 12 months, and 65% year-to-date.

RPM commands a market capitalisation of roughly $41.9 million, with 123.2 million shares on its registry.

The post Why the RPM (ASX:RPM) share price is racing 11% higher today appeared first on The Motley Fool Australia.