Slide 1: 1H24 Results Presentation
For personal use only 1H24 RESULTS PRESENTATION 27 February 2024 REDOX LIMITED (RDX.ASX) 1
Slide 2: Presenting today
Presenting today For personal use only Raimond Coneliano Chief Executive Officer & Kim Yap Managing Director Chief Financial Officer 28 years tenure 34 years tenure 2
Slide 3: Agenda
Agenda 1 1H24 Highlights For personal use only 2 1H24 Financials 3 Strategy & Outlook 4 Q&A 5 Supplementary information 3
Slide 4: 1H24 Highlights
For personal use only 1H24 Highlights Raimond Coneliano Chief Executive Officer & Managing Director 4
Slide 5: 1H24 Highlights
1H24 Highlights For personal use only $47.7m 23.1% 12.3% $80.3m Underlying NPATFX Gross Profit Margin Cash Flow from operation Underlying EBITDAFX Margin +2.1% growth vs PCP 2.6 ppts above PCP 1.1 ppts above PCP 113.5% 18.1% 6cps 2 Free Cash Conversion Underlying Return On Invested Interim Dividend
Slide 6: 1H24 Acquisitions
1H24 Acquisitions • Two acquisitions in the period add products, customers, suppliers, expertise and capabilities which will drive future growth in line with stated acquisition strategy For personal use only • Redox continue to review several strategic acquisition targets in APAC and North America E
Slide 7: 1H24 Sales Analysis vs PCP
1H24 Sales Analysis vs PCP • 1H24 sales declined by 8.4% due to global price deflation and weaker demand due to prevailing For personal use only economic conditions • Crop Production & Protection sales declined 22.9%, impacted by destocking and export controls • Mining & Explosives segment sales inc
Slide 8: 1H24 Price & Volume
1H24 Price & Volume • Redox’s product mix includes a broad range of product categories, amongst which are high/low priced items each with unique market dynamics For personal use only • Global price deflation in the sector has been widely publicised and has continued through the half as prices declin
Slide 9: Sea Freight Update
Sea Freight Update • As the vast majority of Redox’ product is imported, sea freight and in particular containerised freight rates are a For personal use only key driver of price for customers • Containerised freight made up roughly 10% of selling prices during the COVID supply chain crunch • Due pr
Slide 10: 1H24 Gross Profit
1H24 Gross Profit • Strong Gross Profit Margin of 23.1%, beating PCP by 2.6 percentage points • Margins have been particularly resilient in Australia due to improvements in product portfolio mix and larger proportion of smaller more profitable transactions. For personal use only • Due to global chem
Slide 11: 1H24 Financials
For personal use only 1H24 Financials Kim Yap Chief Financial Officer 11
Slide 12: Profit & Loss overview
Profit & Loss overview Proforma Proforma Statutory Statutory 1HFY24 1HFY23 Change PCP 1HFY23 Change PCP 3.1% For personal use only $m $m % $m % Increase in Gross Profit vs PCP due to disciplined Revenue 582 635 -8.4% 635 -8.4% margin management Gross profit 134 130 3.1% 130 3.1% 1.1 ppts Gross margi
Slide 13: Net Profit Before Tax bridge 1H23 to 1H24
Net Profit Before Tax bridge 1H23 to 1H24 For personal use only Higher profit margin has more than offset the decline in sales during 1H24 Improvement in working capital provided a positive contribution to 1H24 13
Slide 14: Revenue and Gross Profit
Revenue and Gross Profit -8.4% 1H24 Proforma 1H23 Change For personal use only $m $m % Revenue decline due to price deflation. Partially offset by share of wallet gains, product portfolio expansion Revenue – Australia 494 532 -7.3% and new customer wins Revenue – New Zealand 44 57 -22.8% 2.6% Revenu
Slide 15: Operating costs
Operating costs Proforma 1H24 Change 1H23 $m $m $m 1.3% Administration expenses 32 31 -1 For personal use only Distribution and storage 25 24 -1 Increase in admin expenses due to salary inflation and expenses growth in headcount offset by lower bonus payment Other expenses 6 4 -2 Total underlying op
Slide 16: Cash flow
Cash flow 1H24 1H23 Change Change $80M $m $m $m % For personal use only Cash from 80 37 44 118% Cash from operations operations Due to improvement in net working capital Cash flows from -84 -2 -4 investing 1 113.5% Cash before financing Free cash flow -4 35 -39 Free cash flow conversion conversion 2
Slide 17: Dividend & Dividend Policy
Dividend & Dividend Policy Interim Dividend Dividend Policy For personal use only Interim Dividend for FY24 of 6 cents Long term Dividend payout ratio will per share, representing a pay out of be 60%-80% of profits 80% of profits Dividend to be paid on the 20th of March 2024 Record date 4th of March
Slide 18: Strategy & Outlook
For personal use only STRATEGY & OUTLOOK Raimond Coneliano CEO and Managing Director 18
Slide 19: Leading distributor of chemicals, ingredients and raw materials
Leading distributor of chemicals, ingredients and raw materials Primary focus organic Extensive and growing growth complimented customer, supplier by acquisitions & and product base 6,400+ 4,700+ geographic expansion For personal use only Geographical ACTIVE CUSTOMERS SKU’S Diversification expansion
Slide 20: Diversity that has delivered over the long term
Diversity that has delivered over the long term Sales by industry sectors (% 1H24) • Largest customer represents ~2.2% of 1H24 sales 5% 12% 6% Animal Health & Nutrition • Top 10 customers represent ~15.8% of 1H24 sales Crop Production & Protection 10% For personal use only 13% Household & Personal C
Slide 21: Outlook & Guidance FY24
Outlook & Guidance FY24 • In 1H FY24, revenue was impacted by significant global price H1 FY24 H2 FY24 Estimate FY24 guidance Prospectus Forecast deflation and weaker economic conditions. This was partially offset by higher volumes Revenue 582 600 - 660 1,182 - 1,242 1,328 • Based on H1 performance
Slide 22: Summary
Summary Leading position in APAC and growing North American presence Highly cash generative business For personal use only Strong operating margins and ROIC Net working capital has unwound from previous highs Flexible balance sheet which will be used to fund future growth and a 60- 80% dividend payo
Slide 23: Q&A
For personal use only Q&A Raimond Coneliano CEO and Managing Director Kim Yap Chief Financial Officer 23
Slide 24: Supplementary information
For personal use only Supplementary information 24
Slide 25: Profit & Loss 1H24
Profit & Loss 1H24 Proforma Statutory 1H24 Change Change 1H23 1H23 $m $m $m $m $m Revenue 582 635 -53 635 -53 COGS -448 -505 58 -505 58 Gross Profit increased by $4m Gross profit 134 130 4 130 4 due to improvement in margin For personal use only Operating expenses -63 -59 -4 -58 -5 excluding depreci
Slide 26: Corporate Social Responsibility
Corporate Social Responsibility Redox aims to be a good corporate citizen embracing positive societal and industry engagement, responsible operation and practical initiatives For personal use only Silver Medal for Sustainability received from Ecovadis in 2023 Redox is committed to ethical sourcing,
Slide 27: Disclaimer
Disclaimer Important notices This Presentation has been prepared by Redox Limited (ABN 92 000 762 345) (“RDX” or “Company”). Summary information This Presentation contains summary information about RDX and its activities current as at 31 December 2023. The information in the Presentation is of a gen
Slide 28: For personal use only
For personal use only REDOX 0000 RedoxGlobal RedoxTweet Redox Redox_global Limited