There will be a number of key local earnings results this week from a small group of companies.
Retailer and investor, Premier Investments is expected to reveal its half-year figures this week – possibly today and investors will be watching for more good news on the rapid growth of its Smiggle chain here and offshore.
Premier also owns a 10% stake in Myer, and chair, Solomon Lew has been curiously quiet since Myer surprised with better than interim expected earnings 10 days ago. The value of its 26% holding in Breville has soared this year as well.
Sigma Healthcare reports its full-year figures on Thursday and they will be messy as the company prepares for life after the loss of the huge My Chemist/Chemist Warehouse supply contract later this year.
Sigma last week rejected a takeover approach from rival Australian Pharmaceutical Industries (API) after considering the approach (first made last October) and the results of a review of the company’s future in the wake of the loss of the Chemist Warehouse contract.
In an update on February 11, Sigma said the review had identified, over $100 million a year of cost savings, confirmed FY19 Underlying EBIT guidance of around $75 million, a target 2020 underlying EBITDA of $55-$60 million and the retention of a high dividend payout ratio.
Crop protection group, Nufarm will report this week and reveal the growing impact on its business from the drought across much of eastern and central Australia. Good growing seasons in Brazil and parts of Europe might provide an offset though.
New Hope, TPG Telecom, Brickworks, and Washington H Soul Pattinson have linked companies via shareholdings and board seats (Soul Patts and brickworks are the key companies).
TPG’s results tomorrow will include the $228 million impairment of the now abandoned mobile phone network assets and spending.
Fonterra’s results this week could include the results of a review of the company with more details of asset sales and the fate of the future dividend. Dividends to holders in the listed trust were suspended last month. It also cut its full-year earnings outlook but lifted its farmgate milk solids price.
