Dyno Nobel (DNL) H2 2024 earnings summary

Executive summary

• Record underlying earnings 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 AUD 64 million EBIT uplift in FY24, exceeding expectations, with strong progress toward becoming the leading global explosives player and separating the fertilizers business within 6–12 months.

• Record performance in Dyno Nobel Asia Pacific and Fertilisers Distribution, driven by technology and operational improvements.

• Safety performance below target, with a TRIFR of 1.08, but no significant environmental incidents for the third consecutive year.

Financial highlights

• Statutory net loss after tax of AUD 311 million, mainly due to AUD 712 million after-tax impairments 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; NPAT (excl. IMIs) $401m; earnings per share (excl. IMIs) 20.7c.

• Final dividend of AUD 0.063 per share (unfranked), total ordinary dividends for FY24 at AUD 0.106 per share; capital return program of $1.4bn underway, with $649m completed.

• Net debt/EBITDA at 0.8x, reflecting a strong balance sheet and improved from 1.2x.

• Capital expenditure of AUD 379 million, down 23% from prior year, with focus on capital-light, high-ROIC projects.

Outlook and guidance

• FY25 earnings to benefit from transformation program, but impacted by planned turnarounds (AUD 45–55 million earnings impact); transformation benefits to deliver 40–50% of program by FY25 exit.

• Dyno Nobel earnings expected to be 40% H1, 60% H2; Americas business more skewed to H2; supported by price discipline, technology, and new contracts.

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

• FY26 earnings expected to reflect further transformation progress and lower turnaround impacts.