Two of Australia’s biggest companies, BHP and CSL, have impressed investors with earnings results that matched or beat expectations, and have set the companies up for a strong period ahead.
BHP announced a nine per cent jump in net profit to almost $10 billion, driven mostly by a rise in copper prices, but also improved returns for iron ore and coal.
Its dividend payout – a focal point this reporting season given the CGT changes – was a highlight with the total dividends for the last financial year hitting $US1.72 a share, 57pc higher than last year. BHP’s share price finished up more than three per cent.
Healthcare leader CSL reported a near $3.7 billion annual loss, thanks to a massive $10 billion write-off at its Vifor kidney treatment subsidiary, which it acquired in 2022.
Notwithstanding it was one of the biggest write-downs in Australian corporate history, CSL’s share price jumped 18 per cent and is now up 70pc since early June. Its market capitalisation of $64 billion is still way below its peak of nearly $150 billion in 2020.
Economy-wide insolvencies dropped 11.6% from June to July, according to CreditorWatch. The result partly reverses the broader upward trend in business failures, although businesses are still feeling cash flow pressures, and the number of businesses closing remains elevated.
Fear & Greed Q+A today
On the company's bumper full-year result, with copper becoming BHP's biggest source of earnings for the first time:
“We are very deliberate, Sean, in terms of starting with: are we in the right commodities? Because you want to invest in commodities which have these mega demand increases for decades to come, and in which we can have really tier-one assets which produce a lot of cash for decades again.
So on that count, we really like copper.
Copper is ubiquitous. It is used in many, many value chains, and not just the traditional demand drivers of urbanisation, living standard increases. Demand comes for copper, but now that’s getting amplified because of data centres, digitalisation, infrastructure and electrification and power networks, which is the non-traditional way in which copper is getting used.”
North American PE giant Brookfield has made a $4.1 billion bid for Reliance Worldwide, its fourth crack at the plumbing supplies group. The new bid is at a 31 per cent premium to Reliance’s share price close on Monday.
The ALP has made 16 amendments to its gambling reform legislation to win the support of the Coalition, including longer blackout periods, a national opt-out register paid for by bookmakers, and curbs on commissions to VIP account managers.
Consumer sentiment picked up sharply this month, though overall people remain pessimistic about the outlook for the economy, according to the Westpac - Melbourne Institute survey.
Commonwealth Bank will also expand its loyalty points beyond credit card and customers will accumulate “Yello” points, based on the use of the bank’s products.
A badly stuffed “fox” head bought at a UK antiques fair has sold for £62,000 ($118,000) at auction after being identified as the head of an extinct Tasmanian Tiger.The seller bought the head on impulse for £50 three months ago after being amused by its “novelty googly eyes.”
Image: Facebook (Auctioneum Bristol & Bath)
Fear-o-meter
National Australia Bank on household spending:
Australians continue to prioritise leisure and entertainment experiences despite ongoing pressure on household budgets, according to NAB’s latest Consumer Spend Trend report. During the past year, total spending rose more in discretionary spending, than non-discretionary spending.
Recreation and personal services spending rose 7.1 per cent over the past year … reflecting continued demand for activities including cinemas, sports, arts and other leisure experiences.
For NAB customer Moving Story Entertainment, which owns Classic Cinemas, Lido Cinemas, Cameo Cinemas and Ritz Cinemas, attendance across its network is now exceeding pre-pandemic levels … thanks to the strength of younger audiences.
NAB Consumer Spend Trend is based on aggregated electronic transaction data from more than 4 million transactions per day.
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