What made these ASX 200 stocks jump on ASX? - COH, CGC

During the month of February, most companies on ASX release their financial results. On 22 February 2022, Cochlear Limited (ASX: COH) and Costa Group Holdings Limited (ASX: CGC) released their financial results and noted a surge in their share price post the release of their financial results. Cochlear Limited (ASX: COH) and Costa Group Holdings Limited (ASX:CGC) were the top two gainers on ASX.

On this backdrop, let us look at these two stocks and see how they performed in their financial results and the development during the period.

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Cochlear Limited, the global leader in implantable hearing solutions, released its 1H FY2022 results (period ended 31 December 2021).

The Company’s sales revenue increased by 12% to AU$815 million. The increase in the sales revenue was driven by the robust demand for sound processors and new acoustic implant products.

• Cochlear implant units grew 7% to 18,598. 
• The statutory NPAT for the period was AU$169 million. It includes $12m in innovation fund gains after‐tax.
• Underlying NPAT increased by 26% to AU$158 million. The performance was driven by solid sales growth coupled with improved gross margin and some benefits from lower‐than‐expected operating expenditures.
• It declared an interim dividend of AU$1.55 per share, up 35% compared to the previous corresponding period.

Operational highlights:

• The Company made strong progress against its strategic priorities. During the period, COH’s 9 new products and services got FDA approval over the past 2 years.
• COH is also providing the latest technology to its existing clients.
• COH family membership increased by 20% to ~240K.

Outlook:

The Company expects its dividend payout to be ~70% for the full year. Its FY2022 underlying net profit guidance range would be in between AU$265-AU$285 million.

Australia’s leading grower, packer, and marketer of fresh fruit and vegetables, Costa Group Holdings Limited, released its FY2021 results for the period ended 31 December 2021. FY2021 was a record year for the Company’s international segment with 30% revenue growth.

• Revenue during the period was AU$1,220.6 million.
• EBITDA increased by 10.6% to AU$218.2 million.
• NPAT improved by 16.2% to AU$64 million.

CGC highlighted that the acquisition of quality citrus assets over the period, comprising 2PH farms, was transformative for the business. Further, there was a solid second-half momentum across its domestic portfolio. However, there was a downside seen in its avocado category.

Outlook:

The Company highlighted that the early season China yields & demand was beyond anticipation. It’s Moroccan berry harvest building against a robust demand setting. Further, its domestic segment started FY2022 on a positive note with solid berry volumes as well as favourable pricing, tomato volumes are ahead of CY2020. Its mushroom production volumes have considerably improved compared to CY2020.

CGC believes that significant earnings growth drivers would help deliver improved ROIC in CY2022.

Both Companies have delivered solid results and have a positive outlook. Thus, it would be interesting to see how these companies perform in the coming period.

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