August is the start of reporting season – what does it mean for you?

1st August each year is not only every horse’s birthday, it’s also the unofficial start of reporting season. This is when ASX-listed companies report their performance in the last financial year. Some companies give full year results, while others report on the 4th quarter of the financial year (April-June).

Now, you may think this doesn’t impact you but it likely does, especially if you have superannuation in managed funds or index funds with exposure to Australian shares.

Yesterday the NAB reported it had benefited from an increase in home and business loans, as well as higher interest rates. Its CEO also said, “approximately 70 per cent of customer home loan repayments are ahead of schedule.” 


This morning the CBA announced an 11% increase in profit, which was better than expected. Investors should be happy with the $2.10 dividend, which is 10 cents higher than previous year’s end. 

A2 Milk failed to get FDA approval to export baby formula to the US and its shares are now down just under 10% at $4.74, down from its high of almost $20 two years ago. Another milk producer, Camperdown Dairy, has said it’s set to stop producing fresh milk as rising costs push it towards milk powder products that attract higher margins.

RIO goes ex-dividend tomorrow and full year reports include Telstra and Woodside. I’m keen to see what Telstra delivers given recent buying has pushed its share price back up above $4.

Also tomorrow morning, keep an eye out for US inflation data. The report is expected to show a slight slowdown in inflation in July, thanks in part to a fall in oil prices, which could inform the market about the next steps for the Federal Reserve. The market is expecting the CPI to rise by 0.2 per cent on a monthly basis, or 8.7 per cent year-on-year.