Bisalloy Steel Group (BIS) H2 2024 earnings summary

Executive summary

• Profit after tax attributable to members rose 23% year-over-year to $15.7m, driven by strong pricing discipline, improved product mix, and lower input costs in H2, despite flat revenue at $152.9m due to offsetting growth in Australia and declines in Indonesia.

• Distribution subsidiaries in Indonesia and Thailand remained profitable, and the Chinese joint venture contributed $2.4m profit after tax.

• No net debt at year-end, with a net cash position of $5.6m, and a strong safety and environmental record maintained.

Financial highlights

• Revenue was $152.9m, down 0.2% year-over-year; gross profit increased 18.5% to $38.7m.

• Net profit after tax rose 19.9% to $16.2m; basic EPS increased to 33.0 cents from 27.0 cents.

• EBITDA reached $26.7m; gross margin improved due to higher average sales prices and favorable product mix.

• Operating cash flow was $22.0m, up from $11.1m in FY23.

• Net tangible asset backing per share increased to 151.8cps from 142.0cps.

Outlook and guidance

• Management remains optimistic for FY25 despite global steel price risks and geopolitical uncertainties, with continued investment in core and adjacent products, and focus on innovative solutions for extreme environments.

• Ongoing trials of patented wear monitoring sensors in mining, with no significant revenue expected in the next 12 months.

• Continued focus on expanding processed product capability in Indonesia and growing the armour and protection steel business, including North American defense supply chain opportunities.