Domino's Pizza, The Reject Shop, Tabcorp, ANZ release earnings results

Crown Resorts, which is backed by Australian billionaire James Packer, has revealed a disastrous 80 per cent profit plunge.

It seems Aussie rich lister James Packer is not immune to the economic fallout from the coronavirus crisis, with his Crown Resorts profits in freefall.

The company's net profits after tax fell by more than 80 per cent to $79.5 million, compared to previous profits of $almost $400 million. 

But Crown is just one of many of high profile companies to release earnings updates today, with Domino's, The Reject Shop, Michael Hill, Crown, Tabcorp and many more on the agenda. 

Follow our live coverage below.

 

Updates

10:28 am August 19, 2020 Highlight

Australia's biggest company hits $2.9b milestone

Biotechnology company CSL has posted a full year profit of $US2 billion ($A2.8 billion) and has increased its sales revenue by 7.2 per cent to $US8.8 billion ($A12.4 billion).

CEO and managing director Paul Perreault said in a note to investors that

“I am pleased to report an exceptional result against a backdrop of complex and unexpected challenges brought about by the coronavirus pandemic," he said.

The company also indicated it had the resources to be at the forefront of the battle against COVID-19 and said it had locked down a partnership to develop a possible vaccine.

"No single vaccine or therapeutic approach is going to solve this health crisis; multiple approaches are essential," the company said.

“CSL has been very active in research and development, focusing our response to the global pandemic by finding adjacencies where we can leverage our capabilities, expertise and technologies..

“There are multiple R&D programs and partnerships aimed at fighting COVID-19, including in the areas of vaccines, monoclonal antibodies and plasma therapies.”

10:14 am August 19, 2020 Highlight

Packer's Crown plunges 80 per cent

James Packer's Crown Resorts has taken a beating as a result of the pandemic and subsequent travel restrictions.

The company's net profits after tax dropped by 80 per cent to $79.5 million after the coronavirus forced the closure of Australian casinos.

CEO and managing director Ken Barton said in an note to investors that Crown's suffering began as early as January, which ramped up after its casinos were shut down in Perth and Melbourne, with 95 per cent of employees stood down.

"As a result of the impact on Crown’s businesses, Crown qualified for the Commonwealth Government’s JobKeeper program, which has helped support thousands of our employees," Mr Barton said.

“In addition, Crown has established a Hardship Fund to provide additional, targeted financial assistance to employees experiencing serious financial hardship as a result of COVID-19.

"This program is in addition to the many other programs Crown has established to support employees during this unprecedented time."

He said the news was brighter when it came to Crown Sydney.

“Despite the challenges of COVID-19, the construction of Crown Sydney has continued throughout this period and it’s a credit to our team that it remains on track for its scheduled December opening," he said.

"Crown Sydney is already providing significant employment for Australian businesses with almost 1300 workers currently employed and expected to remain on site to complete the fit-out.

"Once fully operational, Crown Sydney is expected to employ over 2000 people, providing a significant boost for the New South Wales hospitality industry."

Crown has suffered a 80 per cent profit plunge.

9:43 am August 19, 2020 Highlight

Gaming giant's $870 million loss

Tabcorp has announced a $870 million net loss after writing down its wagering, media and gaming services business by $1.09 billion.

It was set to release its full year results today, but instead requested a trading halt and announced a $600 million equity raising plan.

Tabcorp managing director and CEO David Attenborough said COVID-19 had been "very challenging" and "materially impacted our FY20 results".

“COVID-19 restrictions meant that hotels, clubs and TAB agencies were closed for significant periods of time during FY20. This has heavily impacted our Wagering & Media, Gaming Services and Keno operations. We continue to support our venue partners and have waived more than $100 million in fees to date," he said.

"We are focused on ensuring that together we emerge strongly in the post COVID-19 environment.

“We also recognise that this has been a difficult year for shareholders, with no final dividend as previously announced. We have taken action to reduce costs, preserve cash and ensure we have strength and flexibility in our balance sheet. We have also commenced a three-year, enterprise-wide optimisation program designed to deliver significant cost savings and enhanced operational capability.”

9:32 am August 19, 2020 Highlight

Ambitious plan to 'fix' The Reject Shop

The Reject Shop enjoyed sales of $820.6 million, up 3.4 per cent on the prior corresponding period, while gross profit jumped 0.3 per cent to $335.8 million.

CEO Andre Reich said in a statement the chain was "well positioned" to navigate the "uncertain trading environment" posed by COVID-19, but acknowledged there was now work to do to "fix" the business before it could reset and grow.

“During the COVID-19 pandemic, new and existing customers have shopped with us for their everyday essentials. We quickly responded to this demand by pivoting towards more consumable-based products while finding ways to keep our team members and customers safe," he said.

“The Reject Shop is repositioning itself as a place for customers to shop first and save. As Australia enters into uncertain economic conditions, The Reject Shop will help all Australians save money every day. The future product range will appeal to a wider group of people, particularly those that want to save money on branded products at low prices and private labelled brands at lower prices.”

“The discount variety sector is currently under-represented in the Australian retail landscape relative to major comparable overseas markets. This imbalance suggests that significant latent opportunity exists for the Australian discount variety sector to achieve material sales growth over the medium to long term. As Australia’s largest discount variety retailer, The Reject Shop is ideally positioned to capture this opportunity.”

The Reject Shop is in the middle of an ambitious growth plan.

9:15 am August 19, 2020 Highlight

China's baby formula frenzy

a2 Milk Company's profits are up by more than a third after baby formula sales more than doubles and the company expanded into the Chinese market.

Total revenue reached $1.73 billion, an increase of 32.8 per cent, while net profit after tax was $385.8 million, an increase of 34.1 per cent.

The company also announced strong growth in China label infant nutrition, with sales more than doubling to $337.7 million and distribution expanded to more than 19,000 stores.

"Our revenue in the third quarter was well above expectations due to the impact of changes in consumer purchase behaviour arising from the COVID-19 situation. This included an increase in pantry stocking particularly via online and reseller channels," the company said in a statement.

"Through these unprecedented times, we have been fortunate to continue experiencing strengthening levels of consumer demand and worked closely with our strategic partners and customers to ensure supply chains remained open and consumer needs continued to be met."

a2's expansion into China has helped the company achieve a bumper year.

9:03 am August 19, 2020 Highlight

Michael Hill battered by virus

The Michael Hill jewellery chain announced coronavirus-led store closures had an estimated impact on revenue of "at least $80 million".

The company, which has branches across Australia, New Zealand and Canada, revealed revenue of $492.1 million this fiscal year, down 13.6 per cent from $569.5 million last time.

It posted a statutory profit of $3.1 million, a staggering 81.5 per cent drop from its 2019 financial year result of $16.5 million.

CEO Daniel Bracken said the company had been well placed before the virus – which has particularly affected the retail industry – took hold.

“While the COVID-19 closures had a severe impact on headline sales and profit, I was particularly proud of the determination, resilience, and agility of our team across the business through the shutdown and temporary closure periods,” he said.

“The reopening of our store network saw pleasing sales recovery despite lower foot traffic and a return to strong margin performance against prior year.”

Store closures have wiped millions off Michael Hill's revenue.

8:48 am August 19, 2020 Highlight

ANZ's $1.3 billion rebound

The banking giant recorded an unaudited cash profit of $1.5 billion for the June quarter and a statutory profit of $1.33 billion.

"Our performance during these difficult times demonstrates the strength of our portfolio as we balance the need to support customers and our staff through this global pandemic while also providing a fair return for shareholders," CEO Shayne Elliott said.

"During the quarter we have grown home loans in Australia well above the rest of the market. We are also pleased with the strong deposit growth, demonstrating customers are taking a prudent approach in shoring up their personal finances."

The major bank also revealed it would pay shareholders a 25¢ a share fully franked interim dividend despite the challenges posed by the pandemic.

8:40 am August 19, 2020 Highlight

'Right decision' behind Domino's Pizza's record year

As the hospitality industry suffered through the coronavirus outbreak, Domino's Pizza has managed to score record profits.

The chain's revenue hit $1.9 billion last financial year, with net profit reaching $138.4 million.

In an investor update released on Wednesday morning, the company revealed it had purchased more than 15 million items of PPE and other safety materials, donated more than 220,000 pizzas to those in need, advertised more than 13,000 new jobs, and seen no franchisees exit the business due to the pandemic during the "extraordinary period".

Group CEO and managing director Don Meij said the whole company had been affected by the devastating pandemic.

“No-one in the Domino’s family has been untouched by COVID-19; all of us know a family affected by this virus, through losing their job, their health, or their life,” he said.

“We invested $14.1m into supporting stores, have kept our people safe and welcomed a record number of new team members to our business; it is possible for Domino’s both to do good, and to do well."

The company said while COVID-19 was unprecedented, its long term strategy had anticipated a "global shift to food ordered online and delivered" and Domino's decade-long investment in that area meant it could sail through the crisis.

CEO Don Meij said the company's decade-long investment paid off during the coronavirus crisis.