Many in retirement are travelling comfortably, with three key factors contributing to their happiness – good physical and mental health and enough money to enjoy life.
Perhaps the assumption that markets are still anchored by predictable economic policies needs to be challenged. For the first time since the fall of the Berlin Wall, political volatility – once background noise – is potentially reshaping investment risk at a structural level.
Jeweller delivers dividend gold, hearing aids impacted by shutdown
Lovisa delivers a great result and reinstates dividend
Lovisa Holdings (ASX: LOV) – Shares in the jewellery retailer surged 19% following a bumper profit result. While revenue was down 9.8% and comparable-store sales down 4.5% for the period, the company continued its store rollout with 29 new stores built. Gross profit decreased 11.7% to $113m due to restocking. It was, however, the interim dividend of 20 cents that was best-received by investors, having been cancelled in 2020. Total online sales grew by 335% for 1H21, compared to +311% during FY20. The company said it continues to support the team and infrastructure to deliver an improved digital customer experience.
The overall message was a great result, with a much-needed dividend. Despite the COVID-19 interruptions, Lovisa bunkered down and reduced costs. While not providing guidance, Lovisa said “initial trading figures for the second half were promising, with comparable store sales up 12% per cent despite “challenging” conditions in the northern hemisphere”.
Cochlear to restart dividends
Cochlear (ASX: COH) – Shares in the hearing implants manufacturer are up almost 8% in today’s trade following a better-than-expected result. Underlying net profit was down 4% in constant currency terms with improving momentum across the first half. Statutory profit included $111m in one-off gains, after tax. The company says it has improved trading and cash flow generation which resulted in the declaration of a $1.15 per share dividend – a 60% payout of underlying net profit. This was significantly lower than the $1.60 paid at the same time last year, but after no final dividend in FY20, investors were happy to see the payout resume.
The company is in a strong capital position, with $45m in net cash. Because Cochlear’s sales generation was good, it elected to repay $24.6m in pre-tax COVID-related government assistance it received in the first half, the vast majority of which was related to JobKeeper. FY21 guidance provided for underlying net profit to fall to between $225 millionâ€$245 million, down 46â€59% on FY20.
