Cedar Woods Properties Limited

Forecasting a better second half of FY17: Cedar Woods Properties Limited (ASX: CWP) stock came out with a decent first quarter of FY17 results. The group’s Pre-sales (including lots settled in the first quarter) surged to $230 million in first half of fiscal year of 2017 as compared to $184 million in FY2016. This performance was driven by improving market conditions from Victorian projects coupled with better demand at Ellendale, QLD as over 50% are sold in the first stage. The group forecasted net profit of tax for fiscal year of 2017 to be similar to $43.6 million of FY16 and expects a better second half of FY17 performance as compared to the first half. CWP new development program comprises construction activities at Millars Landing (WA), Bushmead (WA), Ellendale (Qld), St.A (Vic), Jackson Green (Vic) and in the Williams Landing Town Centre (Vic). The group is positioning itself on a long-term basis while Glenside (SA), Wooloowin (QLD) and Mangles Bay (WA) moving towards development.

Harvey Norman Holdings Limited

Lower than estimated performance: Harvey Norman Holdings Limited (ASX: HVN) reported that their overall sales reached $1.69 billion for the September quarter of 2016, which is an increase of 6.6% as compared to the prior year corresponding period. Overall Comparable Sales rose 6.5% year on year (yoy) in the first quarter of FY17. Sales made by franchisees are not made by Harvey Norman Holdings Limited or controlled entities. The appreciation in the New Zealand dollar drove the Aggregated Sales by 6.2% while devaluation in the Euro hurt them by 4%. Devaluation in the UK Pound, Singaporean dollar and Malaysian Ringgit negatively impacted the sales by 18.9%, 1.6% and 4.3% respectively.

 
First quarter of FY17 performance (Source: Company Reports) 

Virgin Australia Holdings Ltd

Ongoing performance pressure: Virgin Australia Holdings Ltd (ASX: VAH) came out with a weak performance wherein the Underlying Loss before Tax declined 12.1 million to $3.6 million for the first quarter of the 2017 against the prior corresponding period. Ongoing industry trading conditions’ pressure especially in the domestic market, has impacted the performance. The group’s Statutory Loss after Tax reached $34.6 million during the quarter which included restructuring charges related to the group’s Better Business program. This program is expected to boost net free cash flow savings to $300 million per annum by the end of the 2019 financial year (on an annualized basis). Overall Available Seat Kilometres fell 0.5% and total sectors flown declined 2.3% as compared to the earlier corresponding period. Overall revenue passengers surged 4.8% while revenue load factor enhanced 2.0 points against the same period of last year. The group has accelerated its hedging program to withstand the potential rise in fuel prices and plans to hedge over 90% of its fuel consumption for the 2017 financial year.
 

Performance for the group and domestic business (Source: Company Reports)

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