Skellerup Holdings (SKL) H2 2024 earnings summary

Executive summary

• Achieved record EBIT of NZD 72.7 million, marking the 8th consecutive record result, despite a 1% decline in revenue year-over-year.

• Revenue declined 1% to NZD 330.6 million, with growth in North America, Europe, and Asia offsetting Agri division weakness.

• Operating cash flow reached a record NZD 70.8 million, up 31% from the prior year, supporting dividends, investment, and debt reduction.

• Net debt reduced by 43% to NZD 15.4 million, supporting increased dividend payout and future growth investments.

• Dividend per share increased 9% to NZD 0.24, with a payout ratio of 94%.

Financial highlights

• Revenue: NZD 330.6 million, down 1% year-over-year; Industrial division up 4%, Agri division down 10%.

• Gross margin improved to 39% in FY24, up from 36% in FY23, due to operational efficiencies and product mix.

• EBIT margin reached 22% in FY24.

• Reported NPAT was NZD 46.9 million, down 8% year-over-year, impacted by a one-off NZD 3.1 million deferred tax adjustment.

• Underlying NPAT was NZD 50.1 million, down 2% due to higher interest and tax.

Outlook and guidance

• Expect less pronounced seasonality between first and second half results in FY 2025.

• Confident in continued growth, supported by new product launches, operational improvements, and digital investments.

• Industrial division expected to maintain growth with less seasonality than Agri.

• Early FY 2025 has started well, with strong July results and broad-based strength in industrial.

• Continued investment in digital tools, group collaboration, and market presence to drive earnings.