Big River Industries (BRI) H2 2024 earnings summary

Executive summary

• FY24 revenue declined 7.7% to AUD 414.7 million, mainly due to a soft residential market and site delays, partially offset by commercial market strength.

• EBITDA before significant items fell 36% to AUD 32.6 million, with margin at 7.9% as gross margin and volumes declined.

• NPAT was AUD 8.1 million, a 63.8% decrease from the prior period; NPAT before significant items dropped 62.8% to AUD 8.4 million.

• Cash conversion remained strong at 98.2%, supporting a total dividend of AUD 0.075 per share at a 78.1% payout ratio.

• Acquisition and integration of Specialised Laminators Queensland in May 2024 expanded capabilities and contributed to increased intangibles and fixed assets.

Financial highlights

• Gross profit was AUD 108 million, down 12.4%, with gross margin falling by 142 basis points to 26%.

• Operating expenses rose 4.1%, with like-for-like costs up 1.3% amid inflationary pressures.

• Net debt increased to AUD 27.6 million, mainly from acquisition funding and contingent consideration payments.

• Gearing ratio rose to 18.8%, within historical range.

• Working capital to revenue ratio stable at 16.6%; debtor days reduced from 43 to 42.

Outlook and guidance

• Residential market expected to remain soft for the next 12 months, with recovery anticipated towards end of 2025 and medium-term outlook more positive due to demand, low vacancy rates, and government initiatives.

• Commercial segment outlook remains strong, with solid project pipelines.

• Focus on growth in Queensland, Western Australia, and South Australia, leveraging market and regional diversity.

• Continued pursuit of value-accretive M&A and operational synergies to offset margin pressures.

• Ongoing investment in people, systems, and processes to drive growth above market.