Top two losers on ASX 200 today- NHF and BSL

Key Takeaway:

• nib holdings and BlueScope Steel were the top losers today, with a significant drop in their share prices.
• nib holdings shares were impacted by the weak outlook pointed out by its CEO.
• BlueScope Steel shares dropped following weak 1H FY2023 and guidance.

February month is a crucial period for most investors on ASX as many players listed start releasing their half-year or full-year results. It is an important period for investors as they can track how their companies have performed and how they navigate the existing environment. It gives investors an idea of what management did during the entire financial period and their outlook for the coming period. Based on some of these points, these investors take buying or selling decisions.

On 20 February 2023, two ASX 200 stocks plunged significantly. Both these companies have released their 1H FY2023 results. In this article, we look at the results of these companies and identify the reasons impacting their share performance.

nib Holdings Limited (ASX: NHF)

Private health insurer nib holdings limited (ASX: NHF) announced 1H FY2023 results and noted an increase in underlying operating profit by 13.3% to AU$125.1 million. The Group’s underlying revenue grew 9.3% to AU$1.5 billion. The Company’s major businesses all performed well. It witnessed strong results from the Australian Residents Health Insurance and New Zealand businesses and a recovery in the International Inbound Health Insurance business and nib Travel. The Company announced an interim dividend of AU 13 cents, which was AU 11 cents per share in the previous corresponding period.

The Company delivered strong results. Still, the Company’s stock dropped after the Company’s CEO and Managing Director, Mark Fitzgibbon, highlighted that inflation, rising interest rates, and slowing economic growth suggest some level of caution. He said that the claims are still lower than expected and expect volume to improve at some point.

The Company’s outlook is positive. However, it feels that there still exists noise around COVID-19, deferred medical treatment, and claims exposure. Although the Company’s provisioning is prudent at present. Still, it will take some time to settle.

BlueScope Steel Limited (ASX: BSL)

Steel manufacturer BlueScope Steel Limited shares dropped following its weak 1H FY2023 results and guidance. BlueScope today reported 1H FY2023 net profit after tax (NPAT) declined AU$1,045 million to AU$599 million.

• Underlying EBIT Return on Invested Capital decreased from 43.7% in 1H FY2022 to 23.4% in 1H FY2023.
• Underlying EBIT declined 55% to AU$ 74 million on 2H FY2022.
• Free Cash Flow was AU$751 million, up AU$63 million on the previous corresponding period.
• Net cash increased from AU$367 million at 30 June 2022 to AU$606 million.
• The Board has approved a fully franked interim dividend of AU25 cents per share.
• During the period, BSL continued to progress various decarbonisation initiatives, projects, and collaborations to optimize its current assets as well as investigate & prepare for emerging and breakthrough technology.

The Company’s underlying EBIT in 2H FY2023 is expected to be in between AU$480 million to AU$550 million mainly because of softer Asian and Midwest steel spreads. However, it would depend on the spread, foreign exchange, and market conditions.

Stock Information:

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