Dyno Nobel (DNL) H2 2024 earnings summary

Executive summary

• Record underlying earnings and EBIT growth in explosives (DNAP) and fertilizer distribution, despite a statutory net loss of $311m due to $712m in non-cash impairments and restructuring costs in fertilizers.

• Transformation program delivered an AUD 64 million EBIT uplift in FY24, exceeding expectations, with a target to double explosives earnings and achieve ROIC above WACC.

• Fertilizers business separation is a top priority, with a sale process for distribution and manufacturing assets underway and a 6–12 month timeline.

• Safety remains a focus, though TRIFR increased due to a fatal incident; environmental and process safety performance recognized with industry awards.

• Transformation activities included the sale of the Waggaman ammonia facility, closure of Gibson Island manufacturing, and leadership changes.

Financial highlights

• Statutory net loss after tax of AUD 311 million, driven by AUD 712 million in after-tax impairments, mainly in fertilizers.

• Underlying EBIT of AUD 580 million, up 18% year-over-year after adjusting for asset sales and closures.

• EBITDA from continuing operations reached AUD 925 million.

• Total ordinary dividends for FY24 at AUD 0.106 per share, with a final dividend of AUD 0.063 per share (unfranked); capital return program of AUD 1.4 billion underway, with AUD 649 million completed.

• Net debt/EBITDA improved to 0.8x from 1.2x, supporting ongoing shareholder returns.

Outlook and guidance

• FY25 earnings to benefit from transformation program, but impacted by planned turnarounds (notably Moranbah, Cheyenne, Lomo), with expected earnings impact of AUD 45–55 million.

• Dyno Nobel earnings expected to be 40% H1, 60% H2; Americas business more skewed to H2.

• Fertilizer distribution earnings expected in AUD 40–60 million range; Phosphate Hill production guidance at 790,000–860,000 tons.

• Transformation program expected to deliver 40–50% run rate uplift by FY25 exit, with further benefits in FY26 as turnaround impacts subside.