Quite a bit of this Covid specific though so probably 4-5% excluding Covid costs.
Can't recall if they mentioned 9% increase inclusive or exclusive of the $1m extra Covid costs but you can see for yourself here on page 19 http://nzx-prod-s7fsd7f98s.s3-websit...708/360534.pdf that the total employee costs are up from $68.3m to $77m a 12.7% increase ! I presume the extra over and about the 9% they were talking about in the call is in regard to the new Waterford village at Hobsonville.
Even if you back out $1m from that $77m (76 / 68.3) = 11.3% increase and back out the 3.7% increase for new employee costs I presume pertain to Waterford that's still a 7.6% increase in employee costs which is consistent with previous years increases...BUT Earl told us the employee cost inflation would ameliorate going forward and go up broadly in line with MOH funding and quite clearly this is not the case.
In effect, while much is made of the increasing DMF revenue over time, the lions share of these gains are being eaten up by employees and up to this point shareholders are just getting the scraps left over. Whether that will change over time going forward remains to be seen but I see no sign yet of the rampant employee cost inflation abating which is a concern.
Last edited by Beagle; 29-11-2021 at 01:33 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Market Screener on OCA
Mean consensus BUY (4 analysts - 3 Buy, 1 Outperform)
Average target price 1,71 NZD
High Price Target 1,90 NZD
Spread / Highest target 47,3%
Forsyth Bar maintain their $1.90 'Outperform' price target from 8/9/21
So much for Guru Analysts ...all four were bullish ...Forbars should be buying now TP 1.91 in few years maybe if patients take care of themselves without staff ..lol
Seriously. Why do you people hold OCA if you are so down on them all the time? You are literally never happy. If you don't believe in the company, just get out (of OCA and this discussion), and give the rest of us some peace and quiet.
Underlying Earnings per share in H1 were 3.9 cents v 3.6 in pcp
8% increase ....suppose many would say that is EPS accretive .... ha ha ha .....but the actual underlying earnings were up 22%
That analyst was right in asking what is going on.
Supposeone more thing we have to hope that Brett and his team deliver on
I've been thinking about this while swimming some lengths. Approximately 80m new shares entered the system 24/3 to raise 100m$. That means this cash has only been in the system for 6 months. I think it would take a little more time than 6 months for the new cash to start making cash. Surely acquisitions require settling in time for the new money to start generating income. Therefore, eps increases may not show massive increases at this point but hopefully come through in the future. I might be wrong of course, will dig deeper.
What is the value in the forum if not to debate the pro's and con's ?
Last edited by Beagle; 29-11-2021 at 02:51 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Reply With Quote
Originally Posted by couta1
Bookmarks