Silk Logistics Holdings (SLH) H2 2024 earnings summary

Executive summary

• Revenue reached $556.4 million (AUD 556.4 million), up 13.9% year-over-year, driven by organic growth, new business wins, and the Secon acquisition, which contributed $59.5 million in 10 months.

• Underlying EBITDA increased 11.0% to $95.4 million, while underlying EBIT declined to $34.8 million due to higher depreciation and amortization.

• Statutory NPAT fell 54.8% to $7.4 million, impacted by significant items related to M&A and restructuring, while underlying NPAT was $11.5 million.

• Strong cash generation and disciplined cost management supported resilience amid challenging economic conditions.

• Seamless CEO succession and improved Net Promoter Score to +20, reflecting enhanced customer satisfaction.

Financial highlights

• Underlying EBITDA margin was 17.2%, and underlying EBIT margin was 6.3%, both slightly down year-over-year.

• Free cash flow conversion (post-capex) was 101.2% of underlying EBITDA after lease payments.

• Final dividend declared at 1.42cps, totaling 4.24cps for the year, with a 3.1% annualized yield.

• Net assets stood at $82.4 million, with a cash balance of $27.1 million as of June 2024.

• Lost Time Injury Frequency Rate improved to 1.65, a 45.2% year-over-year improvement.

Outlook and guidance

• FY25 expected to deliver continued revenue and EBITDA growth, focusing on organic growth, technology investment, and integrating recent acquisitions.

• Targeting $1 billion in revenue by FY30, based on current organic growth run-rate and no further acquisitions.

• Anticipated increase in lease costs in FY25 due to market rate renewals, with management confident in recovering costs through contracts.

• Strategic focus on customer service, operational efficiencies, and cross-selling opportunities.