More pleasing company results but market little moved - Market close

Sanford was up 5c to $4.03 after reporting steady revenue of $275.98m and a 45.41 per cent increase in net profit to $16.15m, for the six months ending March.

Heavyweights Fisher and Paykel Healthcare and Mainfreight made gains with pleasing annual results but they weren’t enough to lift the New Zealand sharemarket higher.

The S&P/NZX 50 Index had a sharp fall in the end-of-day matching session and closed at 11,678.68, down 3.83 points or 0.03 per cent after reaching an intraday high of 11,757.9.

There were 58 gainers and 75 decliners over the whole market on volumes of 32.63 million share transactions worth $139.11 million.

Across the Tasman, the S&P/ASX 200 Index had fallen 1.18 per cent to 7675.4 points at 6pm NZ time after the latest inflation rate, at 3.6 per cent, was higher than the expected 3.4 per cent and dimmed hopes of an interest rate cut this year.

Fisher and Paykel Healthcare increased $1.09 or 3.94 per cent to $28.75 on trade worth $19.22 after reaching an intraday high of $29.73.

The medical devices supplier told the market it has “returned to a trajectory of growth … all the right foundations are in place for future success.”

Fisher and Paykel reported a 10 per cent increase in revenue to $1.742 billion and net profit of $132.6m, down 47 per cent, for the year ending March. Underlying profit was $264.4m, up 5 per cent. It is paying a final dividend of 23.5c a share on July 10.

The net profit fell on the revaluation of its Karaka land, deferred tax on the removal of building depreciation, and $20m provision for a product recall.

Revenue for the hospital product division increased 6 per cent to $1.1b and homeware was up 18 per cent to $652.3m. Gross margin improved 1.16 per cent to 61.1 per cent.

Fisher and Paykel forecast revenue of $1.9b-$2b and net profit of $310m-$360m for the 2025 financial year.

Matt Goodson, managing director of Salt Funds Management, said there were no shocks in the Fisher and Paykel result. The stock is driven by global investors and “some of them must have been bullish, thinking the company will get to the upper end of its forecast.”

Mainfreight was up $1.60 or 2.35 per cent to $69.60 after reporting full-year revenue of $4.72b, down 17 per cent and net profit of $395m, down 33 per cent. It is paying a final dividend of 87c a share on July 19.

The result was as expected but Mainfreight told the market: “We should have performed better.” Trading improved in New Zealand and Australia during the second half but Asia, United States and Europe continued to be weak.

Revenue for the Americas division was down 33.4 per cent to US$639.1m and profit fell 75.6 per cent with USD$21.8m.

Goodson said the company’s outlook was typically cryptic – “its current trading is satisfactory” - and the strength of the business will outweigh the challenging background.

Fonterra Shareholders’ Fund rose 12c or 3.23 per cent to $3.83 after the dairy co-operative lifted its farmgate milk price for the 2024-25 season to $8 per kg/MS, from the present $7.80, as supply and demand remain finely balanced and China imports stagnate.

Fonterra reported nine-months net profit of $1.013 billion, up $20m on the previous corresponding period, and lifted its full-year earnings range to 60-70c a share, up from 50-65c.

Sanford was up 5c to $4.03 after reporting steady revenue of $275.98m and a 45.41 per cent increase in net profit to $16.15m, for the six months ending March. Gross margin improved to 25 per cent, from 21 per cent, and Sanford is paying an interim dividend of 5c a share on June 1.

Comvita gained 4c or 2.21 per cent to $1.85; PGG Wrightson rebounded 4c or 2.56 per cent to $1.60; Eroad improved 2c or 2.06 per cent to 99c; and Serko increased 11c or 3.62 per cent to $3.15.

Rakon shed 2c or 2.3 per cent to 85c after reporting full-year revenue of $128m, down 29 per cent, and net profit of $4.51m, down 81 per cent. Rakon was affected by the slowdown in 5G deployment by mobile operators.

The retail sector was weaker following the news that Auckland department store Smith & Caughey was closing. Briscoe Group declined 13c or 2.92 per cent to $4.33; Hallenstein Glasson was down 9c to $5.54; KMD Brands shed 1.5c or 3.41 per cent to 42.5c; and Michael Hill decreased 2.5c or 4.9 per cent to 48.5.

There was profit-taking in a2 Milk, down 31c or 3.9 per cent to $7.64; Fletcher Building eased 6c or 1.95 per cent to $3.02; Ryman Healthcare declined 10c or 2.7 per cent to $3.61; Oceania Healthcare decreased 3c or 5.08 per cent to 56c; and Skellerup shed 11c or 2.85 per cent to $3.75.