Multi-Chem (AWZ) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 3.8% YoY to $683.7M; PBT increased 6.3% to $38.8M and net profit rose 13.6% to $30.8M.

• IT distribution contributed 99% of revenue; PCB revenue declined 9.6% to $1.6M.

Financial highlights

• FY2024 revenue was $683.684M versus $658.421M; gross profit reached $97.479M versus $94.791M.

• FY2024 PBT was $38.819M versus $36.528M; net profit was $30.818M versus $27.123M.

• 4Q2024 revenue fell 2.2% YoY to $167.9M; PBT was $8.7M versus $9.8M, while PAT rose to $7.3M from $6.5M.

• Excluding net FX differences, 4Q2024 PBT was $9.9M versus $9.7M; reported results included a $1.2M FX loss versus a $52K gain in 4Q2023.

• Operating cash flow increased to $36.6M from $25.2M; cash and cash equivalents ended FY2024 at $83.8M versus $73.0M.

Outlook and guidance

• IT distribution is expected to remain the main business; cybersecurity demand is expected to benefit from continued investment in security infrastructure.

• FY2025 growth priorities include best-of-breed products, selective portfolio additions, deeper regional operations and closer work with key partners.

• Mature regional offices are expected to contribute positively in 2025; PCB division revenue is expected to decline in 2025.

• The near-term IT outlook remains exposed to political and economic events, inflation, rising interest rates and geopolitical conflict.