DGL Group Limited (DGL) investor relations material

Executive summary

• Statutory net profit after tax was a loss of $12.8 million for H1 FY26, mainly due to non-cash impairments, asset write-downs, and one-off audit-related costs.

• Sales revenue for H1 FY26 was $225.2m, down 5.8%–6.2% year-over-year, with underlying EBITDA at $24.7m, down 5.0%.

• Net debt reduced by $16.4m to $78.2m, aided by asset sales and operating cash flow.

• Focus has shifted from acquisitions to organic growth, productivity, and maximizing returns from the existing asset network.

• Strong demand in agricultural chemicals and logistics was offset by challenges in environmental services and external market disruptions.

Financial highlights

• Revenue declined to $225.2m from $239.1m year-over-year; gross margin improved to 43.5%.

• Operating cash flow fell 42% to $10.5m; cash conversion at 72% versus 95% prior year.

• Operating expenses decreased due to cost reductions and headcount rationalization.

• Net tangible assets per share increased 4% to $0.74.

• Debt reduced by $21.2m through property sales; core debt sits around $78.2m–$100m.

Outlook and guidance

• Improved results expected in H2 FY26, but economic and commodity market volatility remains a risk.

• Strong forward orders for chemicals and logistics services through FY 2026; demand for warehousing and transport remains robust.

• Liquid waste treatment plant commissioning expected by end of FY 2026, with profit contribution anticipated in the first half of FY 2027.

• CapEx for the next 12 months expected to be $8–11.9 million, focused on growth and efficiency.

• No dividends declared or planned; all earnings reinvested for growth.