Reporting Season Round-Up: Healthco, GQG Partners, Peoplein

Healthco Healthcare and Wellness REIT (ASX: HCW): year-on-year net profits sink despite higher property income

Reports first-half FY23 results:

• EBITDA of $4.3m, down -64% vs 1H 22

• Property income $18.4m, up 84% vs 1H 22

• Statutory NPAT of $1.5m, down -86% vs 1H 22 [$10.8m]

• Interim dividend of 1.875c

• Payable on 24 Feb

• 100% cash rent collection

Outlook:

• Full year FY23 dividend (DPU) of 7.5c

• Funds From Operations (FFO) guidance of 7.1cpu up 15% on FY22 [upgraded from 6.8c]

GQG Partners (ASX: GQG): miss profit expectations, opex jumps $30m

Reports first-half FY23 results:

• NPAT of $238m vs expectations of $242m

• Revenue of $437m vs expectations of $429m

• Net operating income of $332m vs expectations of $328m

• Fourth quarter dividend of 1.87cps

  • Record date 23 Feb

  • Payment 28 March

• Weighted average management fee 48bps vs 49.2bps in 2021

Outlook:

• "GQG continues to see strong business momentum in a variety of geographies and across channels"

• "Less than 3% of our revenues continue to be derived from performance fees, as opposed to asset-based fees, which we believe will be more stable in periods of market volatility.

Peoplein Limited (ASX: PPE): Recruiting big gains year on year but margins down

Reports first-half FY23 results:

• Revenue of $596.7m, up 89% vs 1H 22

• Adjusted EBITDA of $32.5m, up 50% vs 1H 22

• Interim dividend of 7c

• Normalised NPATA of $20.8m, up 50% vs 1H 22

• Normalised EBITDA margin down -20.3% vs 1H 22

Outlook:

• Full year FY23 guidance of Normalised EBITDA between $62m and $66m

• "Organic growth will continue to be driven by client base diversification, cross-selling through owned brands, and further investment in international recruitment"

Deterra Royalties (ASX: DRR): Modest earnings growth

Reports first-half FY23:

• Net profit of $63.4m, up 3% on the pcp

• Analysts expected $64m

• Underlying EBITDA was $91.7m, up 3% but below the $92m expected

• Interim dividend of 12 cents per share, up 2.7% (Ex-dividend on February 27th)

Outlook:

• "Positioned for value accretive growth"

• "The South Flank expansion is BHP’s newest and most technically advanced operation and will make Mining Area C the world’s largest iron ore hub, producing some of the lowest cost and lowest carbon emitting iron ore in the world."

Latitude Financial (ASX: LFS): Momentum building

Reports FY22 results:

• Volumes of $7.95bn, up 8.0% on the pcp

• Momentum noted in the second half, with volumes of $4.24bn, up 15% against pcp

• Statutory net profit of $57.9m

• Cash net profit of $153.5m, down -23% on the pcp

• Net charge-offs of 2.35%, up 2 bps but below long-term levels

• Final dividend of 4 cents per share (ex-dividend on March 21st)

Outlook:

• No guidance

• "While unemployment remains relatively low, Latitude expects the momentum in volumes to continue in 2023, although receivables growth may continue to lag with elevated repayment rates taking longer than expected to normalise."

• "Latitude’s instalments business may continue to benefit as the higher interest rates add to the attractiveness of its ‘interest free’ proposition, households’ cash reserves diminish and with the post-pandemic travel recovery."

QBE Insurance (ASX: QBE): Well-rounded beat

Reports half-year FY23:

• Gross written premiums of $20bn vs. $20.1 expected

• Statutory net profit after tax of $770m, up 2.7% on the pcp

• Adjsuted cash net profit of $847m vs. $691m expected

• Adjusted combined operating ratio of $93.7% vs. 92.4% expected

• Final dividend of 30 cents per share (ex-dividend date of March 7th)

Outlook for FY23:

• Gross written premium growth of mid-to-high single digits

• Full year combined operating ratio of 93.5%

• Experiencing a significant improvement in 2022 exit running yield to 4.1%

Integral Diagnostics (ASX: IDX): Write-backs result in big miss

Reports half-year FY23:

• Revenue of $215.1m, up 19.2% on the pcp

• Operating net profit of $7.8m, down 36.4%

• Statutory net profit of $16.1m, up 58.2%

• Revenue in-line with expectations but operating net profit was $12.2m expected

• Interim dividend of 2.5 cents per share compared to 4.0 cents a year ago (ex-dividend on March 3rd)

Commentary and outlook:

• “The operating environment has been challenging, reflected by a slow gradual recovery of patient volumes, limited price increases and favourable mix impact, offset by significant cost pressures, especially higher labour costs, driven by inflation and labour market supply constraints, together with higher interest funding costs." - CEO Dr Ian Kadish

• No guidance provided

Westpac Bank (ASX: WBC): A quick Q1 update

First quarter FY23 summary:

• CET1 ratio of 11.3%

• Stressed assets to TCE (Tangible Common Equity) of 1.06%, down 1 basis point

• Mortgage 90+ day delinquencies:

  • Australia 0.70%, down 5 bps

  • New Zealand 0.24%, down 2 bps

• Deposit to loan ratio of 84.0%, up 1.1 percentage points

• Impairment charges of $184m

Inghams (ASX: ING): An ongoing business recovery

Reports half-year FY23:

• Notes that while half-year results were below the prior corresponding period, represents a significant improvement on the second-half of FY22

• EBITDA of $197m, down 10.6% on the pcp

• Net profit of $17.2m, down -55.2%

• Underlying net profit of $33.7m, down -29.9%

• Underlying net profit was well-below expectations of $24.5m

• Interim dividend of 4.5 cents per share (ex-dividend on March 16th)

Outlook:

• No guidance provided

• "Healthy growth in poultry demand is being seen as consumer activity returns to pre-COVID patterns, which combined with an industry-wide reduction in the volume of chicken available for sale during the last 6 months has underpinned a favourable pricing environment."