DGL Group Limited (DGL) H2 2024 earnings summary

Executive summary

• FY24 revenue was flat year-over-year at approximately $465–466.1 million, balancing commodity price declines with volume growth across divisions.

• Underlying EBITDA was $63.7 million, flat or down 1% YoY, while statutory NPAT declined 19% to $14.1 million due to higher finance charges, depreciation, and reinvestment in shared services.

• Gross margin improved 6 percentage points to 43.1%, driven by procurement benefits, raw material price decreases, and improved product mix.

• Cash flow from operations declined 37% to $37.3 million, mainly due to higher interest rates, working capital, and inflationary pressures.

• Five bolt-on acquisitions completed in FY24 contributed to growth, with a focus on integration and operational efficiencies.

Financial highlights

• Revenue reached $465.1–466.1 million in FY24, flat YoY; gross margin rose 16% to $200.4 million (43.1% margin, up 6 points YoY).

• Underlying EBITDA was $63.7 million, flat or down 0.6–1% YoY; statutory NPAT was $14.1 million, down 18.9–19% YoY.

• Operating cash flow was $37.3 million, down from $59.3 million in FY23; cash conversion remained steady at 86%.

• Net assets increased to $342 million, up $13 million YoY.

• No dividend declared for FY24, with all earnings reinvested for growth.

Outlook and guidance

• Strong demand expected across divisions, with early FY25 showing stronger volumes in crop protection and stable demand in automotive manufacturing.

• Focus on extracting value from recent capacity and acquisition investments, with significant profitability contributions expected from acquired companies in FY25.

• Emphasis on organic growth, integration, and cost control, with less reliance on future acquisitions.

• New wastewater and liquid waste treatment facilities expected online in 2H FY25.

• Trading update to be provided at AGM in November 2024.