Live updates: Coles shares surge despite fall in half-year profit and rising supermarket revenue, ASX lower, Wall Street flat
Shares in Coles have surged despite its profit falling in the six months to December when its supermarket revenue was rising.
Meanwhile, the ASX is trading lower after the major Wall Street indices finished flat.
Follow the day's financial news and insights from our specialist business reporters on our live blog.
Disclaimer: this blog is not intended as investment advice.
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By Daniel Ziffer
A reminder that the stock market isn't all billions and private jets. Tiny companies are listed on the stock exchange too!
Perth-based car-park construction firm PARKD has dropped its annual results, with revenue up 70% to $1 million.
It has $362,000 cash in the bank and is building a car park for an Audi dealer in Perth.
By Michael Janda
Prices current around 11:05am AEDT.
Live updates on the major ASX indices:
By Daniel Ziffer
Shares in supermarket Coles have rocketed +6.8% in early trade on the Australian stock market today, after positive news on profits.
The index of the 200-largest-listed companies is currently down -0.2% at 7,638.6 points.
Plumbing supplier Reece is the big mover, jumping +11% in the first half hour of trade.
By Daniel Ziffer
NSW and ACT-based tiny house, "granny flat" and home extension company Cubitts has entered administration.
The company has been in business for three decades.
In a statement, the Cubitt family said it had informed staff and entered voluntary administration.
"Due to bank lending conditions, supply prices, taxation changes, insurance prices, COVID recovery and lengthy weather events, Cubitt's company has suffered more than it can shoulder."
"Cubitt's made the decision in 2021 to honour fixed price contracts and not pass on price rises to their customers, bridging the shortfall and completing projects with significant loans to the company by the owners, Ian Cubitt, Kim Cubitt and Kate Cubitt, using their personal assets."
But that hasn't been enough.
"Unable to bridge the gap entirely, the directors have today appointed Richard Stone and Brett Lord from RSM Australia Partners as Administrators with the objective of finding a buyer for this truly special and iconic business, building affordable housing that Australians can be proud to live in."
A media release says enquiries regarding Cubitt's voluntary administration or the sale of the business should be directed to [email protected]
By Daniel Ziffer
The ASX 200 index of listed companies is down -0.26% in early trade to 7,632.8 points.
The biggest losers so far are Johns Lyng Group (-11%) Alumina (-6.6%) and TGP Telecom (-4.8%)
More to come …
By Michael Janda
Coles has reported an 8.4% fall in its statutory net profit after tax, to $589 million for the six months to December 31.
However, Coles sold off its service station business to Viva Energy last year, meaning profits from its continuing operations dipped a smaller 3.6%.
Underlying profits from continuing operations eased an even smaller 0.3% to $626 million.
The fall in Coles' profit comes despite a rise in revenue — 3% overall and 6.7% excluding the Coles Express business it no longer owns.
Supermarket revenue was up 4.9% to $19.8 billion, while liquor sales rose 1.8% to just under $2 billion.
The underlying gross margin rose 7 basis points to 26.6%, while the company's underlying cost of doing business was up 10 basis points to 21.3%, leaving its underlying profit margin relatively unchanged at 5.3%.
Investors were clearly pleased with the result, with Coles shares jumping 5.6% to $16.77 in the first 20 minutes of trade.
Coles said inflation had slowed only slightly in its grocery division.
"In the second quarter, total Supermarkets price inflation of 3.0% moderated slightly compared to 3.1% in the first quarter," Coles noted in its ASX announcement.
"Inflation excluding tobacco and fresh was 4.0% in the second quarter (5.7% in the first quarter) and was largely driven by
dairy due to higher farmgate milk prices and commodity prices including cheese and eggs.
"Within the fresh category(which includes fresh produce, meat, deli & seafood, and bakery), fresh produce and meat were in deflation across the half, reflecting cycling of seasonal events to the previous corresponding period and falling livestock prices.
"This was offset by inflation in bakery where wheat commodity prices and labour input costs continue to generate cost price increase requests from suppliers."
Four Corners last week examined the claims of price gouging and profiteering surrounding the two big supermarkets.
By Daniel Ziffer
Plenty of readers will have their minds focused on the potential for interest rates to change, so a note from Westpac this morning discussing the bond yields is interesting.
Because they're essentially a promise to pay in future, they give a sense of what markets think economic conditions will be.
"Australian 3yr government bond yields (futures) rose from 3.70% to 3.74%, while the 10yr yield rose from 4.11% to 4.17%. Markets currently price the RBA cash rate to be unchanged at the next meeting on 19 March, with a 90% chance of a cut by September".
By Daniel Ziffer
Mega-gas producer Woodside Energy has just dropped its full-year profit result for 2023.
It had a net profit after tax (NPAT) of $1.6 billion and "underlying NPAT of $3.3B when adjusted for exceptional items".
More analysis shortly.
By Michael Janda
Bitcoin, at around $US54,660, is trading at its highest level since December 2021.
I have just spent the better part of the last half hour trying to find out why. The answer … ???
One crypto devotee Clem Chambers, who owns Bitcoin, wrote in Forbes that there was a run-up in value ahead of the "halvening", which is coming up in a couple of months and will reduce the supply of new bitcoin.
He says the price of bitcoin has jumped on each halvening, and the market is front-running the event.
As for why traders decided to do that last night???
There is also some chatter that the risk of a US government shutdown amid continued arguments between the Biden administration and the Republican controlled Congress over budget restraint and priorities might be partly behind the latest surge.
The recent approval of Bitcoin ETFs in the US also appears to have given the cryptocurrency a boost, as it closes in on its record high of just over $US69,000 briefly reached in November 2021.
By Daniel Ziffer
Deputy Leader of the Opposition Sussan Ley has welcomed the Workplace Gender Equality Agency’s publishing of the gender pay gap for employers of 100 or more employees.
"Today women can see clearly which businesses are walking the talk when it comes to paying women their fair share and which are not."
"There are big name brands who make profits off the products they market to women while not meeting gender pay parity in their own workforces. That is unacceptable."
Interestingly, she raises the possibility of examining government contracts to force change at companies with big gaps.
"There are businesses that have built their success from partnering with governments that are not meeting the mark on gender pay parity. That must change."
The deputy leader gets stuck into construction, finance and mining industries, which have larger gaps, and "unions that talk themselves up as champions for workers while failing to live up to their rhetoric when it comes to the gender pay gap".
The release notes that when she began working, Ms Ley was barred from flying as a commercial pilot because of her gender.
Airlines remain the industries with the largest pay gaps.
By Daniel Ziffer
Last night, billionaire miner Andrew 'Twiggy' Forrest had a great in-depth conversation with my colleague Kirsten Aitken.
Check out the full interview here.
By Michael Janda
There's not much immediate relief in sight for those struggling with rising insurance premiums, according to private health insurer NIB, which sees yearly premium increases as now part of the economic landscape.
The ABC's senior business correspondent Peter Ryan spoke with NIB boss Mark Fitzgibbon.
By Daniel Ziffer
We'll have all day to get through the data in the Workplace Gender Equality Agency (WGEA) release, but let's start here with the gender pay gap at some of Australia's biggest brands.
The national average, base salary, is 14.5%.
By Daniel Ziffer
ASX 200 futures: -0.03% to 7,607 points
Australian dollar: -0.35% at 65.3 US cents
S&P 500: -0.26% to 5075.5 points
Nasdaq: -0.04% to 15,990 points
FTSE 100: -0.29% to 7,684 points
EuroStoxx: -0.17% to 4,864 points
Spot gold: -0.2% to $US2,031/ounce
Brent crude: +1.5% to $US82.85 a barrel
Iron ore: -4% to $US115.20 a tonne
Bitcoin: +7% to $AU54,590
Live updates on the major ASX indices:
By Michael Janda
Prices current around 8:20am AEDT.
Live updates on the major ASX indices:
By Daniel Ziffer
Big news today as the gender pay gap at every employer with more than 100 workers is revealed.
It's been a long time coming.
You can now look up where you work, former employers, brands you buy from … keen to hear your reactions through the day.
Here's the list:
By Daniel Ziffer
Good morning,
Daniel Ziffer from the ABC Business team with you here on the blog this morning.
The ASX is looking like it will open flat today, the futures index has it at -0.03% or down 2-points when trading begins at 10am AEDT.
Overnight the Dow Jones index of blue-chip US mega-companies fell -0.06%, the broader S&P 500 lost -0.26% in value and the tech-dominated Nasdaq was down -0.01%.
Big gender pay gap data is out today, so get yourself started and we'll hop in!
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