The S&P/ASX 200 Index (ASX: XJO) rose by 0.7% today to 6,042 points.
There was a slight reprieve in Melbourne for some meat production. Poultry processors can operate at 80% capacity whilst abattoirs with less than 25 employees and seafood processors with fewer than 40 staff will not be required to reduce their operations.
ResMed Inc (ASX: RMD) share price drops 7.4%
ResMed's FY20 result didn't do enough to impress investors today.
For FY20 the healthcare business grew revenue by 13% to US$3 billion, with revenue growth of 9% to US$770.3 million in the final quarter.
ResMed reported that its non-GAAP gross margin improved by 80 basis points to 59.8% for FY20. The fourth quarter gross margin was 59.9%.
The ASX 200 share's FY20 net operating profit rose by 40% to US$809.7 million with non-GAAP operating profit growing by 24% to US$890.9 million. Fourth quarter non-GAAP operating profit rose by 24%.
ResMed's CEO Mick Farrell said: "Our fourth quarter results reflect the strength and resiliency of our business in today's uncertain environment. We finished fiscal year 2020 with double-digit revenue growth to $3 billion and operating profit up 24% on a non-GAAP basis.
"Throughout our fiscal fourth quarter, we continued to support the COVID-19 pandemic response through increased manufacturing of our ventilators, including bilevels, and ventilation mask systems while also supporting our customers with digital health solutions and other innovative tools to enable remote care for patients.
"Looking ahead, we are confident in our ability to navigate through the ongoing challenging clinical and economic environment to deliver for all our stakeholders. Sleep laps and physician practices are reopening across many geographies, and we're seeing accelerated adoption of digital health solutions which supports our long-term strategy. We remain vigilant and thoughtful about the outlook for our business as we continue to serve our customers, and we believe our strong foundation will accelerate our growth over the longer term."
Nick Scali Limited (ASX: NCK) share price jumps 14.6%
The furniture retail announced a good FY20 result and an impressive outlook.
Sales revenue only dropped by 2.1% despite COVID-19. Operating profit margins improved, leading to net profit after tax (NPAT) being flat at $42.1 million.
The board of Nick Scali decided to increase the final dividend by 12.5% to 22.5 cents per share.
Nick Scali revealed that trading during the month of July continued to be strong with written sales orders rising by more than 70%, following on from May and June where sales orders were also up more than 70%.
The retailer said that the orders will be delivered in the first quarter of FY21 and contribute to revenue in FY21. Revenue will be much higher in the first half of FY21 than last year and management are expecting profit to be up by at least 50% compared to the prior corresponding period.
Myer Holdings Ltd (ASX: MYR) update
The department store business announced an update today after the market had closed.
The ex-ASX 200 business said that it has amended and extended its debt facility to August 2022. The amended facility is $20 million lower at $340 million. No covenant testing will be required at the end of FY20 due to COVID-19. But covenants will be tested quarterly in future periods.
Myer's sales were severely impacted during the lockdown period and there was lower footfall after the stores had reopened. However, strong online sales growth has mitigated some of that impact.
Management said that the combination of disciplined cost control, government support via jobkeeper and other payment deferrals, rent relief and deferrals has meant the company expects to report a small positive net cash position at the end of FY20 despite the loss of revenue and earnings. This compares to $39 million of net debt at the end of FY19.
Melbourne Myer stores have closed due to the new restrictions, however click and collect will be available at a limited number of stores.
