Reporting Season Wrap 5 Mar 20: Corporate Australia - Split performance

The earnings season ended on Friday. At the close, 140 of the ASX200 index group reported half-year (interim) results while 30 companies with a December 31 reporting date issued full-year results. 

Companies are still reporting profits – 92.1% of companies that have reported interim results did report a profit, above the 88.4% long-term average. But only 50.7 of companies were able to lift profits (long-term average 60.3%). Aggregate statutory profits are up by 3.3%. But if BHP and CBA are excluded, profits are actually lower by 5.6%.

Despite the challenging conditions, more companies are issuing dividends. Overall, 87.1 per cent of the companies reporting interim earnings have issued a dividend (average 86.2% over the 20 reporting seasons covered). 

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399, AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124, AFSL 234945 (the Bank). The Bank and its subsidiaries have effected or may effect transactions for their own account in any investments or related investments referred to in this report. This report is not a recommendation to buy, sell or hold any securities or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. For this reason, any individual should, before acting on the information in this report, consider the appropriateness of the information, having regard to the individual's objectives, financial or taxation situation and needs and, if necessary, seek appropriate professional advice. This report is produced by Commonwealth Research based on information available at the time of publishing. We believe that the information in this correspondence is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report.