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 $225.2 million, down 5.8% year-over-year, with underlying EBITDA at $24.7 million, down 5.0%.

• Focus shifted to organic growth, productivity, and maximizing returns from the existing asset network, with centralized administration and ERP implementation.

• Strong demand continues in agricultural chemicals and logistics, but environmental services faced challenges from plant delays and battery supply constraints.

• Net debt reduced by $16.4 million to $78.2 million through asset sales and operating cash flow.

Financial highlights

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

• Operating cash flow fell 42% to $10.5 million, with cash conversion at 72% versus 95% prior year.

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

• Net tangible assets per share increased to $0.74.

• No dividends declared; all earnings reinvested for growth.

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; fertilizer price and supply remain uncertain.

• New liquid waste treatment plant expected to be commissioned by end of FY26, contributing to FY27 earnings.

• CapEx for the next 12 months expected to be $8–10 million, focused on growth and efficiency.