Reporting season recap: All the latest news from the ASX as companies deliver their financial reports

Australian jewellery store chain Lovisa has seen its share price tank despite recording a $102 million dollar increase in sales for 2023/24.

The fast fashion retailer on Tuesday said its sales for the 12 months to June 30 increased by 17.1 per cent to $698.7 million, largely due to it opening 128 new stores globally during that time. Same-store sales were down two per cent.

Lovisa’s net profit after tax was up 20.9 per cent to $82.4 million.

The retailer failed to deliver on ambitious projections from the last full-year reporting season, which projected store rollout to be at 914 stores at the end of 2023/24.

It fell short with 900 locations globally after opening new markets in Ireland, mainland China and Vietnam, and new franchise markets in Ecuador, Senegal, Guadeloupe and Gabon.

RBC Capital Markets analyst Wei-Weng Chen said the result was largely in line with expectations for key financial metrics, but its sales so far in 2024/25 have been below consensus expectations.

AAP.

The local share market was treading water at midday, with gains by Woodside, Santos, BHP and Coles balanced by losses from the big banks, Johns Lyng and Lovisa.

At noon AEST on Tuesday, the benchmark S&P/ASX200 index was down 2.1 points at 8,082.4, while the broader All Ordinaries was down 2.2 points at 8,309.3.

A finish in the green would be the ASX’s 12th day of gains in the past 13 sessions.

Overnight Brent crude prices hit a week and a half high of $US81 a barrel after the government of Libya ordered all of the country’s oil fields closed amid a flare-up of tensions over the leadership of Libya’s central bank.

Domestically, a weekly consumer confidence survey by ANZ and Roy Morgan found that confidence eased slightly last week, but renters were expressing their highest confidence since March 2023.

Five of the ASX’s 11 sectors were higher at midday and six were lower.

Energy was the biggest gainer, rising 3.2 per cent amid the jump in oil prices and as Woodside reported earnings.

AAP.

Almost 90 per cent of Coles customers have changed what they buy in response to persistent cost-of-living pressures, as many look to cook and eat at home rather than eating out.

The retailer, in reporting full-year results on Tuesday, noted inflation for fresh food, including bread and dairy, was easing, which was providing some relief at the register.

“To minimise spend, customers continue to eat more at home, cut back on treats (and) eat less red meat,” Coles chief executive Leah Weckert said.

Read the full story here.

Shares of Guzman y Gomez slumped after the Mexican-themed fast-food chain reiterated its full-year guidance, disappointing investors who were betting on an upsized outlook following the stock’s blockbuster debut.

The Sydney-based company expects to achieve its prospectus forecasts for the current financial year, it said in a statement on Tuesday.

Its shares dropped as much as 9.2 per cent, on track to snap a five-day winning streak after closing on Monday at the highest price since their June 20 listing.

The stock’s decline “reflects the recent, very strong run” into the results, according to Barrenjoey analyst Tom Kierath.

Management’s decision to retain rather than upgrade its targets despite a strong start to the financial year is also weighing on shares, he added.

GYG shares have climbed more than 50 per centsince their Sydney debut. They were sold at $22 apiece in an initial public offering and rocketed 36 per cent on the first day of trading, posting the biggest gain for an Australian IPO debut larger than $100 million since 2021, according to data compiled by Bloomberg.

Bloomberg.

Lovisa shares were down 12.3 per cent before midday to $32.66 seemingly disappointing investors with a trading update.

Revenue growth of 17.1 per cent took total takings to $699 million and lifted net profit after 20.9 per cent to $82.4m.

Its full-year dividend will be 37 cents, 6 cents higher than last year.

Lovisa has also been moving on a big global expansion, taking the Australian brand to Ireland, China and Vietnam.

The business opened 13 new stores during the year to take its total shopfronts in Australia to 178.

Global storefronts are at 900 driven by growth in the US where is has 207 stores and 50 new stores opened during the year in various countries in Europe.

Lovisa said store sales for the first eight weeks of FY25 was up 2 per cent on this time last year.

Barrenjoey’s Head of Metals & Mining Research, Glyn Lawcock said The Big Australian’s operations had been largely as expected, and net profit had come in slightly ahead of estimates.

Net debt was $US1 billion lower than anticipated.

He observed that unit costs were largely in line, and noted a US50 cent per tonne uplift in cost guidance at WA iron ore operations.

Mr Lawcock said labour costs were “remaining sticky” for BHP.

The Burkina Faso gold miner stepped backwards on gold sales but secured higher revenues amid high prices.

Net profit after tax was up 12 per cent for West African Resources for the half year to $92 million and produced 107,644 ounces of gold at US$1,223 ($1806) per ounce.

An ounce of gold fetched an average $3,339 compared with $2,848 last year. Sales were down from 108,173oz to 101,954oz.

The company will stick to guidance of at 190,000 –210,000 ounces of gold and keep AISC at less than US$1,300/oz ($1920).

WAF’s flagship is the Sanbrado operation which it owns alongisde the Burkina Faso Government. Another project, Kiaka, is expected to pour first gold in the third quarter of 2025.

The Meg O’Neill-led oil and gas giant booked a lower underlying profit for the first half of 2024 amid lower oil and gas prices.

Net profit was up 11 per cent, but underlying profit was down 14 per cent from $US1.9b to $US1.6b.

Woodside made $US910m by selling 10 per cent of its joint venture in the Scarborough project to LNG Japan.

Ms O’Neill said Scaborough was about two-thirds of the way through being built and was on track for first LNG cargo in 2026.

Woodside declared a 69 US cents per share dividend and has held its full-year production target of between 185MMboe and 195 MMboe.

Austal is facing a profit wipeout after agreeing to pay a $US24 million ($35m) fine to settle a long-running fraud investigation involving the government-anointed defence shipbuilder in the US.

The settlement with the Securities and Exchange Commission and the US Department of Justice in its biggest market avoids a damaging prosecution as the Forrest family-backed Austal awaits potentially billions of dollars of new contracts to build the Royal Australian Navy’s new generation of warships.

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The mining giant’s profit fell 39 per cent to US$7.9 billion ($11.6b), with chief excecutive Mike Henry expecting volatile commodity markets in the “near-term”.

Revenue climbed 3 per cent to $US55.7b ($82.2). Iron ore production was within guidance at 260 million tonnes, beating last year’s 257mtpa. A tonne of iron ore fetched US$101.04/wmt.

BHP said it was also expecting “a small improvement” in global steel production over the next two years which it says will be spurred by growth in India but that iron ore consumption “is experiencing a modest decline”.

“China’s demand for iron ore is expected to be lower than it is today.”

Studies to get WAIO to 330mtpa are expected in 2025.

BHP also copped a $US2.7b ($3.9b) impairment on its Nickel West assets, which were shut this year amid sinking prices.

BHP will pay a final franked final dividend of 74 cents (US) per share ($1.09), taking its full year payout to $US1.46 ($2.16) per share.

“In the near term, we expect volatility in global commodity markets, with China experiencing an uneven recovery among its end-use sectors,” CEO Mike Henry said.

The company also took a swipe at Australia’s regulatory environment saying they would add to the mining behemoth’s labour costs.