It has been a mixed day of corporate results from Blackmores, Caltex and Downer EDI.
While Blackmores' profit fell sharply, Caltex's reported a solid result, while Downer had just a slight gain (practically flat).
Despite their very different profit results, all three companies' share prices have risen throughout the trading day.
Blackmores profit plunges
Blackmores' full-year profit plunged by 42 per cent to $58 million, compared with its $100 million profit last year.
This result fell short of market expectations, and the company has cut its final dividend by one-third to $1.40, fully franked.
The vitamin maker's profit was affected by a substantial fall in demand from Chinese shopping agents (known as 'Daigou') — who buy goods in large quantities from Australian retailers, which are then shipped to customers based in mainland China.
In the 2017 fiscal year, Blackmores' sales in Australia dropped by 23 per cent to $372 million.
This was due to speculation in April 2016 about potential regulatory changes in China, which resulted in less buying of Blackmores products from Daigou agents.
"The decline in sales to Chinese consumers through Australian retail was significant and came without warning," Blackmores said in a statement to the market.
But outgoing chief executive officer Christine Holgate, who will soon become the new chief of Australia Post, said: "The demand for Blackmores products in China remained strong throughout the year. although the route to serve it has changed significantly."
Blackmores has since shifted its focus to sell directly to China, resulting in $132 million worth of direct exports (up 71 per cent over the previous year).
However, that was not enough to make up for the shortfall caused by reduced demand from Chinese buying agents in Australia.
The company's overall revenue fell by 3 per cent to $693 million.
Despite the result, the vitamin maker's share price had risen by 6.3 per cent to $97.50 (at 1:45pm AEST).
This is a far cry from the company's glory days — back in December 2015 — when Blackmores' share price reached its all-time high of $217.98.
Caltex profit lifts, but sheds 120 jobs
Caltex Australia will cut around 120 jobs as it restructures its operations into two units.
The company's wholesale, refining and import functions will merge into one unit — while the other unit will include its petrol and convenience businesses.
"The first phase of this (company operating model) review has identified initial expected cost savings of approximately $60 million (before tax) per annum," Caltex said in a statement to the ASX.
The petrol retailer reported a drop in profit, but nowhere near as steep as Blackmores'.
Its half-year net profit (on a historical cost basis) fell by 16 per cent to $265 million.
This includes crude oil inventory losses totalling $44 million, and a franchise employee assistance fund which cost $20 million.
But its more closely-watched replacement cost operating profit (RCOP) tells a different story — rising 21 per cent to $307 million, which excludes the impact of crude oil price fluctuations.
This was, in part, due to a rise in earnings from its only refinery, the Lytton plant in Brisbane, which saw a 62 per cent jump in profit — from $92m to $149m.
Caltex also reported its revenue lifted 20 per cent to $10.16 billion.
The company declared a fully franked interim dividend of 60 cents a share, up 20 per cent compared to last year.
At 1:45pm AEST, Caltex's share price rose 0.39 per cent to $33.58.
Downer EDI profit offset by rising expenses
Engineering and infrastructure company Downer EDI's full-year profit was essentially flat at $181.5 million.
Last year, the company reported a net profit of $180.6 million.
The company also declared an unchanged final dividend of 12 cents per share, fully franked.
It reported a lift 6.4 per cent lift in revenue to $7.3 billion in the 12 months to June 30.
However, that was almost entirely offset by its list 6.7 per cent rise in expenses.
The majority of Downer's expenses were due to employee benefits, subcontractor costs, and raw materials — totalling $5.9 billion.
Downer's annual report also reveal its takeover attempts of facilities management company Spotless Group led to $15.2 million in transaction costs, and $13 million in "bid costs written off".
Its $1.3 billion takeover offer for Spotless closed on Tuesday.
Downer offered $1.15 for each Spotless share, which was their price before the Australian share market opened on Tuesday.
This means Downer now has an 87.8 per cent controlling stake in Spotless (which is slightly short of the 90 per cent required to trigger a compulsory acquisition).
Downer's share price lifted 1.9 per cent to $7.00 at 1:45pm AEST.
