Codan Releases 1h23

[Lynk]

The stock traded up 18% on the release with the communications segment beating guidance.  Interesting to all of us is that the Minelab segment's revenue missed at $74mm. Guidance was $75-80mm. 

Codan maintained its Minelab margin guidance, so pricing was stable. It just sold fewer units.  Always hard to say what caused the miss, but competition has obviously heated up and production seemed delayed.

The management call is February 16th. Analysts generally ask about product releases on that call. 

 

ASX RELEASE 24 January 2023 Trading Update Codan Limited (ASX:CDA) (Codan) is pleased to provide the market with a trading update for the half year ended 31 December 2022 (H1 FY23). At the AGM in October 2022, the Codan Board expected that revenue for H1 FY23 would be in the range of $198 million to $215 million and this would generate a net profit after tax between $25 million and $30 million.  The unaudited revenue achieved in H1 FY23 was $212 million and the net profit after tax may now approach $31 million.

Highlights:

• Minelab unaudited revenue was slightly below the guided range at $74 million, however the business is still expected to deliver a segment profit margin of 30%, in line with guidance.

• Communications unaudited revenue was $137 million, slightly exceeding expectations and the segment profit margin will improve to 25%.

• Communications orderbook as of December 2022 has increased 16% from 30 June 2022 to $173 million.

 

[phrunt]

They're doing quite well out of the war going on with the communications equipment and also anti mine stuff.  Good to see a bounce in the shares however temporary so those who want to get out can get out without as much of a loss with it being down so much over the past year.

Still down 40% from a year ago, and the slight gains might be temporary.