Market commentary
WELLINGTON: The sharemarket fell yesterday, pushed down by Fisher & Paykel Healthcare, which warned firsthalf revenue would drop by 26% and net profit was expected to more than halve as Covidrelated sales continue to fade.
The S&P/NZX 50 index fell 129.5 points, or 1.1%, to 11,684.81. Turnover on the main board was $110.1 million.
Fisher & Paykel Healthcare now expects operating revenue to be $670m in the six months ending September 30, versus $900m in the same period a year earlier. The company’s shares fell 9.6% to $19.11 after the company’s announcement yesterday morning, but were at $19.85 by early evening.
Stock market operator NZX Limited shares jumped 3.1% to $1.35 after its management discussed the recent Kiwi Wealth sale on an analyst call on Friday morning.
The stock market operator reported halfyear revenue up 8.8% at $46.2m, operating earnings up 2.8% to $17.4m, and net profit down 3.2% to $7.8m.
Shares in My Food Bag were up 2.8% to 73 cents after the company’s cofounder Cecilia Robinson was elected to the board at its annual meeting on Friday. Entrepreneur Robinson is also a founder of Tend Health and a Pie Funds board member.
The mealkit company had a weak start to the 2023 financial year as customers reduced orders or shifted to cheaper products within the range.
Its management told investors that earnings and net profit were expected to be lower than 2022.
Genesis Energy reported underlying earnings marginally ahead of guidance at $440.3m off the back of strong hydroelectric generation, despite soft earnings from its Kupe oil and gas field.
It said earnings were expected to be about $455m in the 2023 financial year.
Shares in the company fell 1.2% to $2.95.
Energy companies Mercury NZ and Contact Energy also reported earnings earlier in the week. Today, Mercury was down 0.3% to $6.28, and Contact Energy was down 1.1% to $7.86. Mercury pushed its operating earnings to $581m in the year to June 30, up from $463m the previous financial year.
Contact reported its annual profit had dipped 2.6% in the 12 months ended June 30, compared with the previous period. Net profit fell to $182m, down from $187m in the June 2021 year. Meridian Energy was down 0.8% to $5.26, and Manawa Energy fell 1.6% to $6.25.
Restaurant Brands NZ fell 2% to $9.11. Restaurant Brands — which operates the KFC, Pizza Hut, Carl’s Jr and Taco Bell franchises — warned in July that the company will report a weaker halfyear profit on August 29.
Heartland Group was up 2.4% to $2.16 on light volume while Westpac was down 0.2% to $24.60. ANZ Bank rose 1.8% to $25.61. Rubber manufacturer Skellerup was up 0.5% to $5.95. The company breezed past its previous guidance yesterday and lifted annual net profit by 19% to $47.8m.
Auckland International Airport fell 0.4% to $7.62.
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