Silk Logistics Holdings (SLH) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY2025 rose 4.1% year-over-year to AUD 287.9 million, driven by integrated service offerings, new business wins, and expansion in port and bulk logistics, despite challenging market conditions.

• Underlying EBITDA was AUD 47.9 million, up 0.4% year-over-year, while underlying EBIT declined 14.3% to AUD 15.6 million, both impacted by AUD 1.8 million in non-recurring items.

• Statutory NPAT was a loss of AUD 2.1 million, with underlying NPAT at AUD 2.4 million, both down significantly year-over-year due to one-off costs.

• No interim dividend declared due to the pending scheme of arrangement with DP World Australia for acquisition at AUD 2.14 per share, a 45.6% premium to last close.

• Workforce grew by 6.2% to 1,919, with a focus on safety and diversity; annualized new business wins reached AUD 31 million.

Financial highlights

• Underlying EBITDA margin was 16.6%–16.7%, slightly up year-over-year, but affected by non-recurring costs.

• Underlying EBIT margin dropped 1.2pp to 5.4%; underlying EPS declined 69.2% to 2.93 cents.

• Underlying finance expense reduced from AUD 7.6 million to AUD 2.4 million year-over-year.

• Free cash flow as a percentage of EBITDA less lease payments after CapEx was 51%, down due to higher lease payments and CapEx.

• Net assets stood at AUD 79.4 million with cash reserves at AUD 22.3 million as of 29 Dec 2024.

Outlook and guidance

• Sales pipeline remains strong, with continued investment in technology, ESG initiatives, and operational efficiencies.

• Awaiting regulatory approvals for DP World Australia scheme; scheme meeting adjourned pending court orders.

• Strategic focus on growing market share, leveraging an agile, asset-right business model, and technology-enabled solutions.