Multi-Chem (AWZ) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 9.4% YoY to $342.5m; profit before tax increased to $20.8m from $15.5m and profit after tax rose to $16.4m from $11.4m.

• Growth was led by IT distribution demand and significant transactions; lower inventory obsolescence charges and equipment disposal gains also supported earnings.

Financial highlights

• Gross profit increased 16% to $51.9m from $44.9m; revenue rose 9% to $342.5m from $313.1m.

• PBT rose 34% to $20.8m; net income increased 44% to $16.4m, with income tax expense up 6% to $4.4m.

• Total comprehensive income increased 63% to $18.9m, including $2.5m of foreign currency translation gains.

• Operating cash flow was an outflow of $5.8m versus a $16.5m inflow in H1 2023, mainly reflecting receivables growth and supplier payments.

Outlook and guidance

• IT outlook remains exposed to political and economic events, inflation, interest-rate movements and geopolitical conflict; ongoing IT security needs support demand prospects.

• Priorities include best-of-breed IT products, selective product ranges, regional expansion and closer work with key partners.

• The H1 2024 result was largely in line with the previously shared prospect commentary.