Lynch Group (LGL) Trading Update summary

Australian operations

• Revenue in Australia is up 3% year-to-date compared to FY23, excluding the extra week in the prior year.

• Consumer demand for floral products has remained resilient despite cautious spending.

• Mother's Day event in May saw high sell-through rates with major customers.

• Supermarket floral demand was stable, while potted and florist demand was subdued.

China operations

• Earnings performance in China improved in the second half, but pricing stayed below last year.

• Recovery in consumer confidence and spending in China has been slower than expected.

• China revenue is down 12% year-to-date compared to FY23.

• Operational execution efficiently managed increased production and distribution volumes.

Outlook and guidance

• FY24 full year Group EBITDA is expected to be at least $39 million, below previous guidance of $40m–$43m.

• Year-end results reflect margin recovery in Australia and continued softer trading in China.