AnAn International (Y35) H2 2023 earnings summary

Executive summary

• FY2023 remained profitable for a fourth consecutive year, with net profit of US$12.56m; lower oil-distribution volumes and heightened competition reduced revenue and gross profit YoY.

• Strategy remains anchored in oil distribution in France and Spain, with expansion into energy services, HVAC and renewables through acquisitions.

Financial highlights

• Revenue fell 19% to US$2.566bn from US$3.186bn; lower sales volumes reflected demand normalizing after the 2022 fuel-price surge.

• Gross profit declined 24% to US$114.456m from US$149.956m; gross margin was 4.5% vs 4.7% YoY.

• Profit before tax was US$18.558m vs US$63.764m; income tax expense was US$6.002m vs US$20.032m, and net profit was US$12.556m vs US$43.732m.

• Profit attributable to equity holders was US$5.628m vs US$21.149m; basic and diluted EPS was 0.133 US cents vs 0.500 US cents.

• Operating cash flow was US$38.067m vs US$51.123m; cash used in investing was US$38.685m, while financing generated US$27.641m.

Outlook and guidance

• Moderate global economic growth, particularly in Europe, was anticipated to support Dyneff’s distribution business in 2024.

• Maintain monitoring of core oil distribution while seeking high-potential business opportunities under a conservative risk-management approach; annual reviews will reshape strategy around profit-generating operations and potential additions.

• Dyneff’s five-year plan targets broader energy distribution and transition toward an energy service provider, including acquisitions in renewable energy and HVAC-related activities.