Lindsay Australia (LAU) H2 2024 earnings summary

Executive summary

• Operates across refrigerated logistics and rural merchandising, with a workforce of ~1,800–1,853 across 43 unique sites and reported FY23 group revenue of ~$680m.

• Handles 15% of Australia's horticulture freight annually, with a diversified network and significant presence in key horticulture regions.

• Achieved record underlying EBITDA of $92.1 million, up 2.1% year-over-year, despite significant disruptions from adverse weather and rail outages.

• Like-for-like operating revenue grew 6.0% to $717.0 million, driven by strong metro transport operations.

• Recent asset transformation includes expansion into rail, enhancing multi-modal logistics and ESG outcomes.

Financial highlights

• FY23 reported group revenue of ~$680m, with horticulture contributing 60% and commercial 40%.

• Operating revenue reached $804.4 million, up 18.9% year-over-year.

• Underlying EBITDA of $92.1 million, up 2.1%; underlying NPAT decreased 17.0% to $30.4 million due to higher finance and depreciation charges.

• Rail revenue has grown from $10m in FY19 to $126m in FY23.

• Lindsay Rural reported FY23 revenue of ~$160m, with the Hunters acquisition contributing ~$100m pro-forma.

Outlook and guidance

• Trading conditions expected to remain similar to FY24, with improved rural sales and positive momentum in transport division.

• Enterprise-wide transformation program launched in Q4 FY24 to drive efficiency and cost reduction, with benefits expected from late FY2025.

• Continued investment in facilities and fleet to support long-term sustainable growth.

• Ongoing diversification of customer and product mix to reduce geographic and sector concentration risks.

• Positioned for continued growth, leveraging scale, network, and refrigerated asset portfolio.