The United Malt Group Ltd (ASX: UMG) share price was the second-best performer in the S&P/ASX 200 Index (ASX: XJO) today.

United Malt shares hit a high of $3.75 today, up 5.6% amid investors reacting positively to news delivered at the annual general meeting (AGM).

The commercial maltster finished the session on Friday at $3.72, a gain of 4.79%.

The ASX 200 benchmark itself finished down 0.8% to 7,433.7 points.

So, what did the chair of United Malt Group tell shareholders today?

Dividends are back!

United Malt Group chair Graham Bradley AM told shareholders the company expected to recommence paying dividends in FY23.

The ASX 200 share did not pay a final dividend in FY22 due to the company's poor financial performance.

Bradley said:

Looking ahead, your Board expects a progressive recovery in earnings during FY23 and we expect
to resume dividend payments …

While certain challenges remain, several of these headwinds are expected to abate as FY23 progresses.

FY22 net profit after tax (NPAT) came in at $11.6 million, which was 20% down on FY21.

The company blamed resurgent COVID-19 impacts, a severe drought affecting the Canadian barley crop, significant disruption to ocean and rail supply chains, and increased freight and energy costs.

United Malt paid an interim dividend of 1.5 cents per share in FY22. This was equivalent to 40% of the full-year underlying NPAT.

This is well short of the company's dividend payout ratio of approximately 60%.

What is United Malt doing to improve its financial performance?

Bradley said the company was progressing with several initiatives to streamline operations and rejig contracts after "a challenging year" in FY22.

United Malt is progressively re-negotiating prices and improving commercial terms with its largest customers.

Bradley explained that this "will reduce our risk exposure to barley supply, quality and prices and to additional energy costs and freight surcharges".

He said the new pricing terms had been coming into effect since 1 January.

The impact "will flow through to our results from the second, third and fourth quarters of FY23".

He added:

Our first half FY23 results (which we will report in May) will, therefore, reflect a half year when we combine two very different quarters and we will seek to highlight the improvement in the second quarter.

What's the outlook for this ASX 200 share?

Bradley said the company expected "a further step-up in earnings in FY24".

He said the North American crops were good, and the company did not expect to see the same supply or quality problems it experienced in FY22.

He said sea freight and container rates and availability were better, and gas prices were moderating.

The company confirmed earlier guidance of underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) (before SaaS costs) of $140 million to $160 million.

This compares with an FY22 EBITDA (before SaaS costs) of $105.9 million, down 23% on FY21.

A potential headwind in FY23 is the possibility of reduced beer demand due to inflation and fears of a recession. Bradley said the company is "carefully monitoring" this aspect.

The post Why this ASX 200 share smashed the market with a 5% rally today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) ended the week just the way it started it – in the red. The index closed Friday's session 0.76% lower at 7,433.7 points, marking a 1.65% week-on-week fall.

It came as the Reserve Bank of Australia issued its latest Statement on Monetary Policy. The central bank "expects that further increases in interest rates will be needed" in its battle against inflation.

Of course, that was seemingly bad news for the rate-sensitive S&P/ASX 200 Information Technology Index (ASX: XIJ), which dropped 2% today.

The S&P/ASX 200 Energy Index (ASX: XEJ) also struggled, falling 1.7% after energy commodities slumped overnight.

One sector rose above the chaos, however. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) lifted 0.9%, driven by the United Malt Group Ltd (ASX: UMG) share price. It gained 4.8% amid the company's annual general meeting.

But it was outperformed by one of its ASX 200 peers. Let's take a look at the stock posting the index's biggest gain on Friday.

Top 10 ASX 200 shares countdown

The Imugene Limited (ASX: IMU) share price took out the ASX 200's top spot today, rising 7.4% to close at 14.5 cents.

Its gains came on the announcement of a new United States patent.

These shares made today's biggest gains:

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) ended the week on a high – a six-week high that is. The index lifted 0.66% today to close at 7,328.1 points. That marks a 3.07% week-on-week improvement.

Friday's gain came on the back of positive inflation data out of the United States. The nation's consumer price index slipped 0.1% in December, bringing its annual inflation rate down to 6.5%. That's good news for anyone hoping interest rates will ease.

Back home, the S&P/ASX 200 Energy Index (ASX: XJO) led the way on Friday. It rose 1.5% after oil prices lifted more than 1% overnight.

S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) shares also had a good day. The sector gained 1.4%.

Though, it wasn't such a good session for S&P/ASX 200 Consumer Staples Index (ASX: XSJ) stocks, with the sector bringing up the rear, falling 0.4%.

So, with all that in mind, let's take a look at which ASX 200 shares posted the biggest gains on Friday.

Top 10 ASX 200 shares countdown

Today's top-performing ASX 200 share was Blackmores Ltd (ASX: BKL). It lifted 6.2% to close at $81.27 despite the company's silence.

These shares made today's biggest gains:

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) has started the week in the red. The index slumped 0.21% on Monday to close at 7,133.6 points.

Fortunately, that was a relatively tame tumble compared to that posted by New York indices on Friday. The Dow Jones Industrial Average Index (DJX: .DJI) fell 0.8%, the S&P 500 Index (SP: .INX) slumped 1.1%, and the Nasdaq Composite Index (NASDAQ: .IXIC) dumped 1% amid recession concerns seemingly spurred by hawkish comments from US Federal Reserve officials.

Today also saw the ASX 200's latest quarterly rebalance take effect. Only two stocks were involved in the December shakeup. St Barbara Ltd (ASX: SBM) was booted from the iconic index, and replaced by Monadelphous Group Limited (ASX: MND).

The S&P/ASX 200 Energy Index (ASX: XEJ) and the S&P/ASX 200 Materials Index (ASX: XMJ) were today's top-performing sectors. They gained 0.5% and 0.4% respectively.

Meanwhile, the S&P/ASX 200 Utilities Index (ASX: XUJ), the S&P/ASX 200 Health Care Index (ASX:  XHJ), and the S&P/ASX 200 Real Estate Index (ASX: XRE) were among the worst performers. They dropped 0.8%, 0.8%, and 1.1% respectively.

But which ASX 200 share dodged today's carnage to post the strongest start to the week? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today's top performer was none other than Nickel Industries Ltd (ASX: NIC). Its stock rose around 5% despite the company's silence.

Today's biggest gains were made by these shares:

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

When ASX share United Malt Group Ltd (ASX: UMG) was spun out of Graincorp Ltd (ASX: GNC) a couple of years ago, it listed with high hopes.

After all, the company instantly became the fourth-largest malt producer in the world with a multinational operation.

Listing on the ASX at the trough of the COVID-19 panic crash, investors were optimistic that its enviable market position, plus global beer and whiskey consumption, would spur growth.

But after opening its first day on the bourse at $3.60, the stock price has largely gone sideways.

United Malt shares closed Thursday at $3.40, which is 5.55% down from that debut price.

'Beer demand remains resilient'

But for Fairmont Equities managing director Michael Gable, now is the time to buy into United Malt in preparation for a rally.

"Despite inflationary cost pressures, UMG said beer demand remains resilient. Importantly, premiumisation trends remain intact and consumers continue to trade up," Gable said on the Fairmont blog.

"Malt whiskey production is also expected to continue its upward trend and demand for distilling continues to grow given customers lay down spirits for +10 years for aged whiskey."

The ASX stock has already rallied 18.6% since 21 October.

But Gable remains bullish because it still hasn't returned to "normal" earnings and the market has not yet factored in the "the full benefit from improved pricing and commercial terms" due in the 2024 financial year.

"We continue to see potential for further upside in UMG shares," he said.

"The FY24 multiple of ~16.5x is still at a discount to the average [price-to-earnings] multiple over the last two years."

Share price heading up

The other sign that encourages Gable is that United Malt shares seem to have bounced back from a recent trough.

"UMG had been in a downtrend all year, but it is now breaking it."

The analyst thought any dip in the ASX consumer share from here is a buying opportunity.

The business is also reducing its debts. 

United Malt management has said in the past that it targets its gearing at a range of 2.5 to 3 times earnings. But as of the end of September, this figure had blown out to 5 times.

"The higher gearing position reflects additional inventory financing associated with importing barley, given the North American drought and the intake of barley for its UK expansion," said Gable.

"Gearing metrics were made worse by a lower AU dollar on US dollar debt on translation."

According to Gable, United Malt is expected to return to the target range during the current financial year.

The post A buying opportunity coming for this much-maligned ASX share: expert appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) ended the week in the green. The index closed Friday's session 0.23% higher at 7,151.8 points. That marks a week-on-week fall of 0.09%.

That was despite a weak performance from the S&P/ASX 200 Energy Index (ASX: XEJ). It slumped 0.4% amid tumbling oil prices.

The Brent crude oil price fell 3.3% to US$89.78 a barrel overnight and the US Nymex crude oil price dumped 4.6% to trade at US$81.64 a barrel.

Fortunately, the energy sector's suffering was offset by gains across the S&P/ASX 200 Industrials Index (ASX: XNJ), the S&P/ASX 200 Communications Index (ASX: XTJ), and the S&P/ASX 200 Utilities Index (ASX: XUJ). They lifted 0.9%, 0.8%, and 0.7% respectively

Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) traded flat amid news OZ Minerals Limited (ASX: OZL) will likely accept BHP Group Ltd (ASX: BHP)'s increased takeover bid.

All in all, seven of the ASX 200's 11 sectors closed in the green. But which share outperformed all others to close the week on a high? Keep reading to find out.

Top 10 ASX 200 shares countdown

It might come as no surprise that the stock topping the lot on Friday was OZ Minerals.

It returned to trade this morning after a two-day trading halt on news BHP upped its bid for the company to $28.25.

Today's biggest gains were made by these shares:

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) slipped on Tuesday as lithium stocks weighed on the market. The index closed 0.07% lower at 7,141.6 points.

It followed a weak session on Wall Street overnight in which the Dow Jones Industrial Average Index (DJX: .DJI) fell 0.6%, the S&P 500 Index (SP: .INX) slumped 0.9%, and the Nasdaq Composite Index (NASDAQ: .IXIC) dropped 1.1%.

Today's worst-performing ASX 200 sector was the S&P/ASX 200 Materials Index (ASX: XMJ), recording a 1% fall. Its worst performers were, in turn, lithium shares. Many stocks involved with the battery-making material tumbled following their broadly brilliant day on Monday.

The S&P/ASX 200 Energy Index (ASX: XEJ) also had a challenging day, falling 0.9% amid lower oil prices. The Brent crude oil price fell 3% to US$93.14 a barrel overnight while the US Nymex crude oil price dropped 3.5% to trade at US$85.87 a barrel.

But it wasn't all dire on the market. The S&P/ASX 200 Information Technology Index (ASX: XIJ) posted a 1.7% gain while the S&P/ASX 200 Health Care Index (ASX: XHJ) lifted 1.4%.

All in all, seven of the ASX 200's sectors closed higher on Tuesday. But which share came out on top? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today's top-performing ASX 200 stock was Imugene Limited (ASX: IMU). It posted a 7.7% gain.

Interestingly, the only word released by the biopharmaceutical company today was a non-price-sensitive investor presentation. However, it did drop news of its onCARlytics oncolytic virus yesterday.

Today's biggest gains were made by these shares:

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) gained on Tuesday as the Reserve Bank of Australia (RBA) hiked interest rates once more. The index closed 1.65% higher at 6,976.9 points.

The RBA lifted the nation's cash rate by 0.25% to 2.85% at its November meeting in a bid to crush soaring inflation. That was in line with the more dovish prediction thrown around by analysts, with others tipping a 0.5% hike.

The Australian consumer price index (CPI) rose to a 32-year high of 7.3% in the September quarter.  

And the RBA doesn't appear to be done yet. It flagged further rate hikes in coming months while inflation is forecast to peak at around 8% later this year.

Back to the market, the S&P/ASX 200 Materials Index (ASX: XMJ) led the way today, gaining 2.6%.

The S&P/ASX 200 Energy Index (ASX: XEJ) was hot on its tail, lifting 2.1% despite falling oil prices.

The Brent crude oil price fell 1% to US$94.83 a barrel on Monday while the US Nymex crude oil price dropped 1.6% to US$86.53 a barrel.  

The S&P/ASX 200 Utilities Index (ASX: XUJ) and the S&P/ASX 200 Real Estate Index (ASX: XRE) both also outperformed, lifting 2.5% and 2.1% respectively.

At the end of Tuesday's trade, all 11 of the ASX 200's sectors were higher. But which share outperformed all others? Keep reading to find out.

Top 10 ASX 200 shares countdown

The top-performing ASX 200 share today was none other than Imugene Limited (ASX: IMU).

Stock in the healthcare favourite jumped another 11% today, adding to the 6% surge it posted on Monday on the back of a clinical trial update.

Today's biggest gains were made by these shares:

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

When board directors spend bucketloads of their own money buying more ASX shares in the companies they run, it's a pretty clear sign of confidence.

To reiterate, we're not talking about the exercising of options or rights issues. Nor director's remuneration (where the issuing of new shares forms part of a director's salary package). We're talking about on-market trades using personal cash savings, super funds, or monies held within companies they own or control.

Who's been buying shares in the ASX companies they run?

Listed companies are required to publicly advise the ASX when a director has purchased shares.

In a statement this week, Straker Translations Ltd (ASX: STG) told the ASX that director Steve Donovan had acquired 40,000 shares in an on-market trade worth more than $1.7 million on 3 August.

On Friday, the Straker share price closed at $1.13, up 7.1% for the day and down 29.4% year to date.

Eagers Automotive Ltd (ASX: APE) director Nicholas Politis AM has also made a series of share purchases through his companies, WFM Motors Pty Ltd and NGP Investments (No 2) Pty Ltd.

Politis has been buying more ASX shares in Eagers for several weeks. In July, he spent $1.5 million buying Eagers shares. By the end of the month, he held more than 70.33 million shares.

He's bought another 100,000 Eagers shares in August, the latest being a 10,000 parcel bought on Thursday.

On Friday, Eagers closed at $13.10, making his stake in the ASX 200 company worth about $922 million.

Eagers has a market capitalisation of $3.47 billion with approximately 257 million shares on issue.

The Eagers share price dipped 3.1% on Friday and is down 6.1% year to date.

Also this week, United Malt Group Ltd (ASX: UMG) told the ASX that three directors had bought shares.

Independent chair and non-executive director Graham Bradley AM purchased 75,000 shares on the ASX between 3 and 8 August. The average price was $3.04 per share for a total consideration of $227,994. He now directly owns 196,395 shares in the company.

United Malt CEO and managing director Mark Palmquist purchased 50,000 shares on 4 August at an average price of $2.95 per share for a total consideration of $147,625. He now directly owns 543,222 shares in the company.

Independent non-executive director Gary Mize purchased 17,317 shares on 4 August at an average price of $2.85 per share for a total consideration of $49,353. He now owns 48,200 shares in the company.

The United Malt share price closed Friday's session at $3.29, up 1.9%. It's down 27.2% year to date.

The post 5 ASX directors loading up on their companies' shares in August appeared first on The Motley Fool Australia.

So interest rates have spiked up for the fourth consecutive month this week.

This means Australians will be locking up their wallets and cutting out any unnecessary spending.

In such times, investors understandably turn to ASX shares of companies that produce consumer staples.

And the very prototypes of necessities are food and drinks.

But Shaw and Partners portfolio manager James Gerrish warns that one can't just blindly buy all consumer staple ASX shares and expect success.

You still need to look at the company's performance and prospects.

Firstly, the stock to stay away from

Gerrish took United Malt Group Ltd (ASX: UMG) as an example.

"As an investor it's easy to use the old throwaway line 'people have to eat' when considering some defensive positions within a portfolio," he said in a Market Matters newsletter.

"But like all stocks a company needs to grow earnings to deliver results to shareholders."

United Malt has been a bitter disappointment to shareholders in recent times.

"UMG has failed to deliver, resulting in its shares trading well below its panic COVID lows whilst the S&P/ASX 200 Index (ASX: XJO) has rallied ~60% over the same period."

The malt maker put out an earnings upgrade on Monday that saw its share price plunge a painful 13% that morning.

"The company has struggled with poor quality/high-cost North American barley which is flowing down into higher production costs and falling margins — never a good combination," said Gerrish.

"The business is optimistic about an improvement in H2. But hope doesn't pay the bills!"

The Market Matters team would avoid United Malt shares like the plague.

So which are the consumer staple stocks that they would go for?

Chicken dinners for everyone

Shares for chicken producer Inghams Group Ltd (ASX: ING) haven't performed that much better recently than United Malt.

The stock has plunged more than 20% year to date, and has lost 14.5% over the past five years.

But it's a winner winner for Australians about to tighten their belts, according to Gerrish.

"Poultry business Inghams fell to fresh all-time lows in June courtesy of rising fuel and feed costs plus labour shortages have also weighed on the cost and scale of production," he said.

"We like the company's position into tougher economic times with chicken providing a cheaper protein alternative to say steak. Plus a forecasted yield in excess of 5% fully franked over the next 12-months is attractive in most interest rate environments."

His team suggests accumulating Ingham shares on dips.

Some drinks to forget tough times

Gerrish went cold on winemaker Treasury Wine Estates Ltd (ASX: TWE) earlier this year, but his team is having second thoughts.

"In hindsight this move is starting to feel average to wrong especially as the alcohol industry usually enjoys tough economic times."

Treasury Wine went through a difficult period in 2020 as Australia's request for an investigation into the origins of COVID-19 triggered a diplomatic spat with China.

"China has been the thorn in the company's side courtesy of heavy-handed tariffs out of Beijing but this has forced the company to reposition itself which we feel leaves it well-structured for the coming years."

The share price remains well below its pre-pandemic high, but Gerrish feels this could attract some merger interest.

"The stock is not overly cheap but solid year-on-year growth looks achievable to justify an FY23 PE of 22x," he said.

"We like Treasury Wine Estates plus it remains a potential takeover target although tight money markets may delay any action out of Europe."

Gerrish's team suggests buying into Treasury Wines at around the $12 mark. The stock closed Wednesday at $12.27.

The post Winner winner chicken dinner: Expert names 2 ASX shares to buy now appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) broke a six-session-long winning streak on Wednesday, closing in the red for the first time since last Monday. The index was 0.32% lower at 6,975.90 points as of today's close.

Consumer shares were today's worst performers, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) and the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) falling 1.2% and 0.9% respectively.

ASX 200 banks also had a shocking day after the Reserve Bank of Australia upped interest rates for a fourth consecutive month yesterday.

It wasn't all bad though. The S&P/ASX 200 Information Technology Index (ASX: XIJ) lifted 2.2% today despite a disappointing session on Wall Street overnight.

The Nasdaq Composite Index (NASDAQ: .IXIC) sunk 0.2% in Tuesday's session while the Dow Jones Industrial Average Index (DJX: .DJI) fell 1.2% and the dropped S&P 500 Index (SP: .INX) 0.7%.

At the end of Wednesday's session, two of the ASX 200's 11 sectors were recording gains.

But which share took out the top spot among the market's biggest names? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today's best-performing ASX 200 share was Pinnacle Investment Management Group Ltd (ASX: PNI).

The financials stock has been on a roll lately, gaining more than 50% over the last 30 days. Find out what the company's been up to here.

Today's biggest gains were made by these ASX shares:

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price is down over 17% to $3.00. This is despite the broadband provider advising that it expects to deliver on the top end of its EBITDA guidance range of $38 million to $39 million in FY 2022. Management also revealed higher than expected synergies from its Over the Wire acquisition. Investors appear to have been expecting even better.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price has sunk 12% to $4.67. Investors have been selling off the online furniture seller's shares despite there being no news out of it. However, it is worth noting that a number of tech shares have come under pressure today.

United Malt Group Ltd (ASX: UMG)

The United Malt share price has crashed 16% to $3.08. This commercial maltster's shares have come under pressure today after it downgraded its earnings guidance. United Malt now expects to report underlying EBITDA of $100 million to $108 million before software-as-a-service costs. This represents a 22% drop on the top end of its previous guidance. Management blamed the North American barley crop, supply chain issues, and high energy costs.

Zip Co Ltd (ASX: ZIP)

The Zip share price is down 6% to $1.07. This morning the team at Citi downgraded this buy now pay later provider's shares to a sell rating and slashed the price target on them to 70 cents. Citi isn't particularly optimistic on the company's outlook and suspects that its cash burn will continue due to cost inflation and slower growth.

The post Why Aussie Broadband, Temple & Webster, United Malt, and Zip shares are dropping appeared first on The Motley Fool Australia.

The United Malt Group Ltd (ASX: UMG) share price is tumbling after the company downgraded its earnings guidance for the year ending 30 September 2022 (FY22).

It now expects to post around $100 million to $108 million of underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) before software-as-a-service (SaaS) costs. That marks a 22% drop on the top end of its previous guidance.

At the time of writing, the United Malt share price is $3.18, 13.35% lower than its previous close.

Let's take a closer look at the latest from the S&P/ASX 200 Index (ASX: XJO) commercial maltster.

United Malt share price falls on earnings downgrade

The United Malt share price is suffering on Monday following the company's latest trading update.

Despite an expected improvement, the company's processing segment continued to be hit with the deterioration of the North American barley crop, supply chain issues, and high energy costs in the June quarter.

The segment's underlying EBITDA (before SaaS costs) for FY22 is now expected to be between $62 million and $66 million.

There's better news about the company's warehouse and distribution segment. Its underlying EBITDA guidance remains at $46 million to $50 million.

The segment is benefiting from the reopening of major markets and renewed demand for craft brewing, as well as business optimisation initiatives.

Meanwhile, the company's corporate costs guidance has been dropped to $8 million.

It also noted its debt to EBITDA ratio will exceed its targeted range of 2 to 2.5 times in FY22. Though, it doesn't expect to have to raise capital to reach its targeted range in FY23.

Speaking of the company's FY23, it anticipates a "material increase" in earnings for the period.

Its underlying EBITDA (before SaaS costs) for FY23 is expected to be between approximately $140 million and $160 million.

The improvement is expected to be driven by better North American barley crops and improved pricing and commercial terms. The competition of the company's Scottish expansion project and the implementation of its technology platform will also play a part.

What did management say?

United Malt chair Graham Bradley commented on the news dragging on the company's share price today, saying:

The board is disappointed with the company's current year performance and outlook. While external conditions have deteriorated dramatically during FY22 … the pace of change in the business needs a material reset to ensure we meet the expectations of our customers and of our shareholders.

Higher energy prices and supply chain issues are likely to remain challenging for the foreseeable future as will the impacts of climate … We are building a more resilient global malting business to better navigate these challenges.

The post United Malt share price plunges 13% on earnings downgrade appeared first on The Motley Fool Australia.

Thankfully, not all shares tumbled with the market. Here's why these were the best performers on the ASX 200 last week:

Ramsay Health Care Limited (ASX: RHC)

The Ramsay Health Care share price was far and away the best performer on the ASX 200 last week with a massive 31% gain. The catalyst for this was news that the private hospital operator has received a takeover approach. According to the release, a consortium led by KKR has tabled a non-binding $88 cash per share offer to acquire the private hospital operator. This will be reduced by any dividends paid. Ramsay has granted the consortium due diligence access.

Brambles Limited (ASX: BXB)

The Brambles share price was some distance behind as the next best performer with an 8.2% gain. Investors were buying this logistics solutions company's shares after it released a trading update. That update revealed that year to date sales were up 7% to US$4,067 million during the first three quarters of FY 2022. This was stronger than the company was expecting, leading to management upgrading its full year sales and earnings guidance.

GrainCorp Ltd (ASX: GNC)

The GrainCorp share price was on form and charged 5.9% higher over the four days. This was despite there being no news out of the grain exporter. Though, it is worth noting that its shares have been on a roll since it upgraded its earnings guidance earlier this month.

United Malt Group Ltd (ASX: UMG)

The United Malt share price wasn't far behind with a gain of 5.2%. Once again, this gain was made despite there being no news out of the world's fourth largest maltster. Though, United Malt, which was part of GrainCorp until it was spun off in 2020, has been touted as a potential takeover target in recent months.

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Perennial Value Management portfolio management director Stephen Bruce explains why he currently loves 3 particular ASX shares.

Hottest ASX shares

The Motley Fool: What are the 3 best stock buys right now?

Stephen Bruce: I just touched on iron ore — we think it'll be potentially a really good trade over the coming 6 months or so. 

Another one would be United Malt Group Ltd (ASX: UMG), the malt company. It's been a terrible laggard the last year or two. It was spun out of Graincorp Ltd (ASX: GNC) and it was meant to be a defensive business. It would be defensive in an economic downturn, but unfortunately, COVID has caused significant disruptions to its business — pubs being closed has affected the types of beer that get drunk in pubs versus drunk in your living room, et cetera. And some of its supply chain issues have hurt them as well.

But we think as we go into next year, some of that's going to start to get resolved and the earnings are going to bounce back. But what's really quite interesting is that the global malting industry is really undergoing a lot of consolidation. And we've seen some transactions at prices that would value UMG sort of closer to $6 than the mid-$4s where it's trading now. 

So that's one where we think [we] could do really well. Simply from our recovery and reopening, but then with the potential of corporate activity on top of it.

MF: I see United Malt's price to earnings (P/E) ratio is reasonably high. Are you guys concerned about that at all?

SB: I guess if you look at the P/E ratio just on this year's earnings, it's still depressed. But if you look out to say 2023 when earnings start to get more normalised, it's starting to look more attractive. When you're thinking about it from a corporate point of view, 12 times EBITDA [earnings before interest, taxes, depreciation, and amortisation] is a level that transactions are being done on and that compares to, I think, UMG's trading about 8 times.

Virgin Money UK CDI (ASX: VUK) is another unusual stock we like. It's the biggest challenger bank in the UK, used to be owned by National Australia Bank Ltd (ASX: NAB) till it was spun out a couple of years ago. It's really well placed to take market share in the UK banking market, we think, and the Virgin brand's attractive to a younger banking consumer cohort.

And they've been investing in a pretty slick IT front-end to make them sort of easier to deal with and more efficient. And the UK banking sector we think overall is poised to do really well because the economy — the most recent headlines have been a bit negative — but by and large that economy has come out of COVID very, very strongly. 

Importantly with inflation, where it is there, it looks like the Bank of England is going to be one of the first to start raising rates and that's really good for bank profitability.

MF: And your third ASX share pick?

SB: I suppose Independence Group (IGO Ltd) (ASX: IGO) is an interesting one. It's had a really, really strong run, but if you're a believer in the electric vehicle thematic, then potentially there's still a lot of upside there. 

They just announced that they were trying to acquire Western Areas Ltd (ASX: WSA). And when you look at Independence Group, there's a couple of high-level things [that] make it really attractive. Firstly it's got basically the whole suite of the metals, being copper, nickel, lithium, and cobalt. So pretty much everything you can put into a battery, they make. 

An increasingly important thing [is] simply being located where they are. In Australia, it's just an easy geography where you've got high levels of good regulation, high ESG standards, low levels of political risk and it's easy to get things done. Although it's not the cheapest place to do business, it's a safe place to do business. I think over time that'll become increasingly appreciated by investors.

MF: Is it ironic that in this ESG era that many miners are still quite buoyant because you still need those raw materials to create products like batteries?

SB: Absolutely. I think people have to be pragmatic about what is required, like to say mining is bad as a blanket statement is obviously not right and not practical either.

The post Drinking, banking, and EVs: 3 value ASX shares I'd buy right now appeared first on The Motley Fool Australia.

The S&P/ASX 300 Index (ASX: XKO) is continuing its run into negative territory today following the wrap-up of earnings season.

At the time of writing, the ASX 300 is down 0.71% to 7,475 points. This means the index has almost erased its August gains, sitting relatively flat for the last month.

Let's take a look at which ASX companies are leading the charge today.

Paladin Energy Ltd (ASX: PDN)

The Paladin share price is again topping the charts, surging another 10.17% to a multi-year high of 65 cents.

The uranium producer has not released any market-sensitive news since its full-year results last Friday. However, in the annual report, the company did highlight progress on the Langer Heinrich Mine.

It appears investors are valuing Paladin shares at a bargain considering they have lifted by more than 30% in the past week.

Coronado Global Resources Inc (ASX: CRN)

Another big mover on the ASX 300 is the Coronado share price, up 6.59% to $1.172.

The coal miner also hasn't reported anything new since its half-year results in mid-August. However, the spot price of coal has picked up steam since August 20, reaching a new record high of US$174.60 per tonne.

No doubt, this will translate into bumper profits for the company's second half of FY21.

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price is pushing 4.7% higher to $14.03 following director purchases over the last few days.

This comes after investors were initially spooked by the IT distributor's chair and CEO David Dicker selling his shares. However, the share price weakness has presented a buying opportunity for some board members.

Dicker Data shares reached a record high of $16.60 last Thursday after reporting its FY21 interim results.

And the biggest fallers?

BHP Group Ltd (ASX: BHP)

The worst performer on the ASX 300 today is the BHP share price, down 6.84% to $41.95.

While no market-sensitive news has been released by the company, the share price fall can be attributed to BHP going ex-dividend today.

The board declared a fully franked final dividend of US$2.00 per share, which will land in shareholder accounts on 21 September.

United Malt Group Ltd (ASX: UMG)

Lastly, United Malt shares also crashed on Thursday, declining 6.48% to $4.115.

The commercial maltster released its full-year scorecard to the market late yesterday afternoon, recording significant one-off expenses. This weighed down the overall result along with recent COVID-19 restrictions affecting consumption in Asia and Australia.

The post Which ASX 300 shares are the biggest winners and losers on Thursday? appeared first on The Motley Fool Australia.

With the S&P/ASX 200 Index (ASX: XJO) at all-time highs, it can be a struggle to find bargains.

Sure, there are plenty of quality companies, but are they all fully priced for their potential?

According to four experts, there are still 3 stocks that look like they have plenty of upsides this year.

Nextdc Ltd (ASX: NXT)

The data centre provider's share price has never really taken off consistently in the way its fans would like.

But with the COVID-19 pandemic pushing up demand for computing infrastructure, NextDC shares have gone up more than 23% in the past year. Nothing to sneeze at.

And they've gained 240% in the past 5 years, which is pretty handsome growth.

Morgans head of Asian desk, Raymond Chan, is betting that the coming quarter might see another spike up.

"It's all eyes on… how many of the optional [client] contracts are exercised in the next 3 months," he told SwitzerTV Investing.

"Because those contracts are issued to a number of big players, like Alphabet Inc (NASDAQ: GOOGL), Salesforce.com Inc (NYSE: CRM)."

Chan said June is usually the time when client renewals are announced, but he suspects that's delayed this year due to the pandemic.

"That [delay] may impact the share price, but if we see some contract wins that will be a catalyst for NextDC to move to the next level."

United Malt Group Ltd (ASX: UMG)

One decidedly low-tech stock compared to NextDC is United Malt, which produces malt for alcoholic drink producers.

Wilson Asset Management portfolio managers Matthew Haupt, Catriona Burns and Oscar Oberg reckon this is a major post-COVID recovery play.

"We remain positive on agricultural stocks and have transitioned more into those set to benefit from tailwinds in the re-opening trade," they wrote in a memo to clients.

"[United] is the world's fourth-largest commercial maltster, operating as a network of companies spanning North America, the UK and Australia. It also operates an international distribution business, providing a full-service offering for craft brewers and distillers."

The business' big markets of North America and Britain had been hit hard by drinkers not going out to the pub in the past 18 months.

"Now, the company stands to benefit from increased patronage in restaurants and pubs, as the US and UK economies recover and reopen," the memo read.

"United Malt Group also has a series of initiatives to support growth, including an upgrade and expansion of its malting capacity in the UK and investment in a bespoke craft warehouse and distribution centre in Victoria."

United shares are up almost 9% this year, trading at $4.51 on Friday afternoon.

Wilson funds WAM Capital Limited (ASX: WAM), WAM Research Limited (ASX: WAX) and WAM Leaders Ltd (ASX: WLE) currently hold United Malt.

Computershare Ltd (ASX: CPU)

The Motley Fool reported last week how the share registry provider was perfectly placed to profit from rising interest rates.

It works like this: Computershare temporarily holds dividends and acquisition proceeds that are headed to shareholders. This pool of funds earns short-term interest.

This money-spinner has been struggling the past 18 months with near-zero rates in Australia.

Chan agreed that this situation would turn around soon.

"I would see Computershare as an interesting stock as an inflation hedge," he said.

"Computershare is one of the few that can leverage on the upside of rising interest rates… You can imagine in the future if the interest rates continue to go back up because of inflation, it will earn more money."

Many investors have already locked into Computershare stocks, with the price going up almost 19% this year and nearly 33% in the past 12 months.

But Chan reckons the porridge is still just right.

"The PE [ratio] is not too low, but certainly not too high — around 22 times at the moment."

The post 3 ASX shares ready to go off this year: experts appeared first on The Motley Fool Australia.

The United Malt Group Ltd (ASX: UMG) share price is on the rise today. At the time of writing, shares in the agribusiness are selling at $4.50 – up 1.81%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is a massive 1.52% lower.

Today's price increase comes after the company released its half-year results for the 6-months ending 31 March 2021.

Let's take a closer look at today's report.

Half-year update

In a release to the ASX, United Malt disclosed net profit after tax was down an astonishing 54% on the prior corresponding period (pcp) to $13.2 million. Revenue was 11% lower than the pcp at $589.6 million. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 32% on the pcp to $52.7 million.

Earnings per share (EPS) plunged 41% to 4.4 cents. The company will pay an interim dividend of 2 cents per share, unfranked. That's down 49% from the final dividend paid in December last year. Net debt also increased to $344.1 million from $261.7 million on 30 September 2020

Despite the slide in profits, United Malt says today's results are still higher than the earnings guidance released at its AGM. This is presumably why the United Malt share price is lifting today.

In another statement, the company attributed today's lower numbers to the effects of COVID-19 lockdowns and the prior results being announced when it was not a standalone ASX-listed business. GrainCorp Ltd (ASX: GNC) spun off United Malt Group in March last year. In addition, it says its margins were also affected by an increasing Australian dollar and higher freight and shipping costs compared to the pcp.

Looking forward, United Malt says it expects sales volumes to still be below pre-COVID levels. The company attributes this to the high uncertainty that still exists in the northern hemisphere regarding the pandemic. 

Management commentary

Speaking on today's results, United Malt Managing Director and CEO Mark Palmquist said the following:

Continued COVID-19-related lockdowns in our key markets of North America and the UK affected volumes and mix during the half from the ongoing effects of the reduction in on-premises alcohol consumption.

As we foreshadowed at the AGM, the lockdown impacts on volume and mix, together with the effects of the higher Australian dollar during the period and one-off costs affected the first half result.

While we are seeing emerging signs of reopening in some of our key markets, we remain prepared for the varying impact of the pandemic on customer demand, supply chains and our operations in the short term.

At the same time, we continue to implement our strategy to strengthen the business to capitalise on growth opportunities and sustainability priorities over the medium term.

He added that planned initiatives by the company should result in around $30 million of annualised benefits.

United Malt share price snapshot

Over the past 12 months, the United Malt share price has increased by around 11%. Over the last 3 months, however, it has increased by an even greater 21%.

Given its current valuation, United Malt has a market capitalisation of approximately $1.3 billion.

The post United Malt Group (ASX:UMG) share price jumps on half-year results appeared first on The Motley Fool Australia.

A fund manager has named 2 ASX shares that are "unloved" by the market but have the makings for long-term outperformance.

According to Prime Value Asset Management portfolio manager Richard Ivers, his fund's best investments are those that are misunderstood by a market that can be excessively focused on short-term fortunes.

"We think of it like planting a seed," he posted on Livewire this week.

"We expect that investment to sprout and grow over time. However, the timing of this 'sprouting' is hard to predict as it is dependent on others in the market also recognising value in the underlying asset and bidding up the stock price to reflect it." 

This dependency on other investors to 'wake up' means investment performance will fluctuate over time.

"In some periods, many seeds will be sprouting at once, while at others we are planting many seeds but few are sprouting," said Ivers.

"Consequently, investment performance should be judged over the long term – not monthly or quarterly."

Here are 2 ASX shares Ivers' fund currently holds. The first recently sprouted, while the second is just about to:

Mortgage Choice Limited (ASX: MOC)

A prime example of a sleeper suddenly sprouting was in March when this home loan broking business received a takeover proposal from REA Group Limited (ASX: REA).

Mortgage Choice shares gained 61% that day. 

"This followed from a weak February when the stock was -13% on a reasonable but underwhelming profit result," said Ivers.

"Clearly, a stock price can vary significantly from day to day while the underlying value moves more slowly. This creates opportunities for longer-term investors."

The Mortgage Choice business has a high level of recurring revenue and "very strong cash flow", according to Ivers.

"Prior to the bid, it was yielding 7% fully franked and growing its cash earnings."

Mortgage Choice shares were flat on Wednesday afternoon, trading at $1.92. 

United Malt Group Ltd (ASX: UMG)

United Malt is the world's 4th largest provider of malted barley, which is an ingredient used for beer and whiskey production.

Ivers said it had provided "a moderate return" since his fund's purchase, but has certainly underperformed compared to the rest of the portfolio.

"However, we believe the outlook has improved. That is, UMG appears to be a seed that has not yet sprouted."

With 60% of its revenue coming from the United States, the vaccination rollout there should see alcohol consumption increase as the economy reopens.

"Yet the stock is well below its high of late 2020 and valuation looks appealing."

This unfulfilled potential makes it unique compared to other COVID-recovery ASX stocks.

"[United Malt] contrasts with travel stocks, many of which are above their pre-COVID high and exposed to a slower Australian vaccination program," said Ivers.

"Further, UMG benefits from the longer-term structural growth of craft beer and its demerger from Graincorp Ltd (ASX: GNC), which will deliver efficiencies and higher return on capital. Over time we expect the underlying value to be reflected in the stock price."

United Malt shares were down 0.49% on Wednesday afternoon, trading at $4.06. 

The post 2 sleeping ASX shares ready to break out appeared first on The Motley Fool Australia.

There are some ASX shares that have growth potential and are rated as buys, according to top fund management outfit, Wilson Asset Management (WAM).

One of the key strategies of WAM is to identify undervalued growth companies where there's a catalyst that could increase the valuation.

Livewire's James Marlay recently spoke with lead WAM portfolio manager Oscar Oberg as well as portfolio manager Tobias Yao.

In WAM's opinion, this is one of the best environments for small caps that the investment team have seen for some time because of the reopening of the economy and the fact that there's plenty of ASX shares that are exposed to this.

There are a number of ASX shares that the two WAM managers named as businesses that they liked at the moment including United Malt Group Ltd (ASX: UMG), Ramsay Health Care Limited (ASX: RHC). The WAM managers also said they have been adding to some existing positions like BWX Ltd (ASX: BWX) and Infomedia Limited (ASX: IFM).

WAM is bullish about the agriculture sector

One sector that Mr Osberg was particularly positive about the prospects of was agriculture. The drought has been hard for many farmers across the country. But WAM is bullish because of the rain that has fallen on the east coast of Australia.

He pointed to the fact that the government is forecasting 24.3 million tonnes of crops, which is the biggest forecast over the past 10 years. This forecast could actually be upgraded again because of all of the rain. Mr Oberg said that there's a normally a big crop when there's a lot of rain, and this can extend for a number of years.

Two of WAM's biggest positions are Elders Ltd (ASX: ELD) and Graincorp Ltd (ASX: GNC).

Elders actually recently reported its FY20 result. It revealed that sales revenue increased by 29% to almost $2.1 billion. Underlying earnings before interest and tax (EBIT) rose by 62% to $119.4 million, underlying profit after tax went up 71% to $109 million, statutory profit after tax increased by 80% to $124.2 million and operating cash flow rose by 887% to $110.5 million. It also increased the dividend by 22% to 22 cents per share.

Regarding Elders and Graincorp, Mr Oberg said: "Elders will benefit as more farmers buy crop protection products. GrainCorp is the most  leveraged to an increase in the crop size and we believe that a number of the efficiency gains and cost savings implemented by management over the last few years will be present in the numbers."

However, damaging storms can be something to watch out for and the rain is an important factor, though WAM is expecting a few good years after this.

There was another agricultural ASX share that Mr Oberg named as a potential opportunity, Select Harvests Limited (ASX: SHV), which is one of the biggest growers of almonds in Australia. The Select Harvest share price is still down by around a third from its February 2020 high.

Mr Oberg said: "If we have a vaccine and observe greater support in the almond price we should witness significant upside to Select Harvest's share price." A vaccine could help almond demand from China and India recover. 

Select Harvests itself recently gave an update about its 2021 outlook. Select Harvests managing director Paul Thompson said: "Tree health and crop outlook is positive. Recent rains have resulted in higher annual water allocations and lower water market pricing. At this early stage, the outlook for the SHV 2021 crop is positive. The food division continues in a challenging Australian domestic market has seen a shift from the food service segment to the retail segment. We have continued to invest in the Sunsol and Lucky brands and have just ranged six additionally Lucky cooking products in Woolworths Group Ltd (ASX: WOW) nationally."

The post Exciting ASX shares rated as buys by top fundie appeared first on The Motley Fool Australia.