Multi-Chem (AWZ) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 6.7% to $658.4M; profit before tax increased 42.7% to $36.5M and net profit rose to $27.1M.

• IT distribution generated 99% of revenue, supported by higher customer demand and significant transactions; PCB revenue declined 11.6% on weaker demand.

• Financial statements received a qualified audit opinion over $2.137M of marketing payments routed through employees’ personal accounts; an independent inquiry was commissioned.

Financial highlights

• FY2023 revenue was $658.4M, up 6.7% YoY; gross profit was $94.8M versus $87.0M in FY2022.

• EBITA was $39.6M versus $28.7M; PBT was $36.5M versus $25.6M; net profit was $27.1M versus $20.0M.

• Basic and diluted EPS rose to 30.10 cents from 22.20 cents; gross margin was 14.4% versus 14.1%, and PBT margin was 5.5% versus 4.1%.

• 2H2023 revenue increased 9.6% YoY to $345.3M; PBT was $21.0M versus $12.6M and PAT was $15.7M versus $10.3M.

• Cash and bank balances were $73.0M at year-end versus $69.5M; operating cash flow was $25.2M versus $12.1M.

Outlook and guidance

• 2024 IT outlook remains tied to economic and political conditions, inflation, interest rates and geopolitical developments; ongoing cybersecurity needs support demand.

• Priorities include best-of-breed IT products, selective range expansion, regional growth, and closer work with key partners; mature regional offices are expected to contribute further.

• PCB revenue growth is expected to remain limited in 2024.

• A final tax-exempt dividend of 15.50 cents per share was recommended for FY2023, subject to shareholder approval.