Trajan Group (TRJ) H2 2024 earnings summary

Executive summary

• FY 2024 revenue reached AUD 155 million, within 5% of the prior year and guidance, with underlying EBITDA at AUD 17.2 million, slightly above guidance; H2 saw growth and improved net revenue and nEBITDA over H1, despite industry-wide destocking and pharma sector slowdown.

• Net debt reduced by over AUD 4.7 million, strengthening the balance sheet and returning net debt to EBITDA ratio to the target range of 2:1.

• Commercialisation in Disruptive Technologies progressed, with microsampling expected to reach nEBITDA breakeven in FY25.

• Despite headwinds, fundamentals remain strong, with order recovery and margin improvements positioning for FY25 growth.

Financial highlights

• Net revenue of AUD 155 million, down from AUD 162.2 million in FY23, with declines across all segments.

• Normalized EBITDA (excluding disruptive technologies) was AUD 17.2 million, exceeding the top end of guidance.

• Pro forma gross margin for FY24 was 41.1%, with H2 margin improving to 42.6%.

• Operating NPATA decreased to AUD 0.6 million, mainly due to lower normalized EBITDA.

• Free cash flow improved to AUD 9.9 million; cash balance stable at AUD 11.2 million; net debt decreased by AUD 4.7 million.

Outlook and guidance

• FY 2025 revenue expected to exceed AUD 160 million, with group EBITDA forecasted at AUD 17–19 million, consolidating all segments.

• Components & Consumables expected to resume historical growth; Capital Equipment to remain soft in H1 FY25, with recovery expected in CY25.

• Disruptive Technologies nEBITDA expected at approximately AUD -1 million, with microsampling to reach breakeven.

• Gross margin improvement anticipated as stocking/destocking cycles subside and Project Neptune Phase 2 launches.