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ASX50 financial reporting insights: July-December 2015

ASX50 financial reporting insights: July-December 2015

KPMG has analysed the financial reports of the ASX50 through the latest reporting season (1 July 2015 to 31 December 2015).

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Julian McPherson

Partner, Audit, Assurance & Risk Consulting

KPMG Australia

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The report provides review and analysis of key trends, with a focus on:

  • considering the financial performance of the ASX50 group of companies as an indicator of the economy in general
  • analysing trends by eight industry sectors, with specific focus on the contribution of mining companies and the ‘Big 4’ banks
  • comparing and analysing profits reported under statutory and non-statutory (underlying) measures.

All amounts are in Australian dollars, unless otherwise stated.

Key findings

Key findings in the six months to 31 December 2015 include:

  • Annual impairments of $41 billion are the highest of any period since the start of the survey. This includes the period post the Global Financial Crisis. Total statutory profit for the 6 months of $68 billion is also the lowest it has been since the start of the survey period in December 2008.
  • Record low profitability driven by impairments and the impact of low commodity prices. BHP Billiton, South 32, Rio Tinto and Origin Energy experienced a combined $24 billion reduction in revenue and $43 billion reduction in statutory profit before tax (including $24 billion of asset impairments).
  • Companies not exposed to commodity prices reported mostly positive results. Thirty-six companies reported growth in annual revenue and 30 companies reported growth in statutory profit before tax.
  • Alternative measures of profit exceeded annual statutory profit for 24 (65 percent) of the 37 companies that reported an alternative profit measure. The non-statutory results for all 37 companies exceeded annual statutory pre-tax profits by $36.7 billion mainly due to the exclusion of $31.4 billion of impairment charges.

ASX50 financial reporting insights

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