Lindsay Australia (LAU) Investor Presentation summary

Market and strategic overview

• Macroeconomic challenges have led to lower customer demand, increased competition, and margin pressure, but the refrigerated and horticulture markets remain attractive and fragmented, offering growth opportunities.

• Strategic focus is on network growth, transformation, and performance & sustainability, aiming for consistent growth and a minimum 20% ROIC over the medium term.

• Recent acquisitions, such as GJ Freight in WA and rural stores in Victoria, expand geographic reach and service offerings, targeting significant revenue growth in new regions.

Operational and financial performance

• Group revenue for HY2025 was $432.8m, with underlying EBITDA at $47.3m and underlying NPAT at $15.8m; rural revenue grew 7.4% to $85.1m.

• Transport revenues (excluding fuel) increased 4.5%, but EBITDA declined 7.1% due to higher costs; rail volumes fell 7.9% mainly from lower WA avocado volumes.

• Rural division delivered strong sales growth and EBITDA improvement, driven by demand in key regions and effective inventory management.

• Hunter division sales rose to $50.8m, aided by acquisitions, but like-for-like sales declined 5.2% amid challenging market conditions.

Capital management and investment

• $22.2m invested in 1H25, with $50.2m planned for FY25, focusing on fleet upgrades, facility improvements, and transformation initiatives.

• Net leverage increased to 1.46x due to a soft 2H24 and a $12.9m tax payment, but is expected to improve in the second half.

• Dividend payout ratio increased to 46% with a fully franked interim dividend of 2.3 cps; future dividends to remain fully franked.