Dgl Group Limited · ASX:DGL
Dgl — Investor Presentation (February 2025)
28 slides from Dgl's investor presentation, Feb 28, 2025
Slide 1: DGL H1 FY25 Results Presentation
DGL H1 FY25 Results Presentation 28th February 2025
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation is provided for general information purposes only. It is not a prospectus, product disclosure statement, pathfinder document or any other disclosure document for the purposes of the Corporations Act and has not been, and is not required to be, lodged
Slide 3: DGL is a leading provider of chemical logistics and services to essential industries
DGL is a leading provider of chemical logistics and services to essential industries in Australia, New Zealand and further afield 3 H1 FY25 RESULTS PRESENTATION | 28 FEBRUARY 2025
Slide 4: Agenda
Agenda 1. H1 FY25 Overview 2. Financial Results 3. Strategy & Outlook 4. Questions 5. Appendix
Slide 5: H1 FY25 Overview
H1 FY25 Overview Simon Henry (CEO)
Slide 6: H1 FY25 Group Financial Highlights
H1 FY25 Group Financial Highlights Revenue Underlying EBITDA Underlying NPAT $239.1m $26.0m $1.7m H1 FY24 $217.0m H1 FY24 $29.8m H1 FY24 $7.4m +10% -13% -77% Statutory NPAT Cashflow from Operations Net Debt ($2.2m) $18.1m $102m H1 FY24 $5.9m H1 FY24 $19.3m 30 June 2024 $114m -138% -6% -11%
Slide 7: Group Financial Highlights
Group Financial Highlights • Positive volume growth across the divisions now serving over 5,300 customers • Strong performance in manufacturing, with crop protection a highlight • Capacity expansion with two additional manufacturing sites and new fleet with increased capacity and efficiency • Comple
Slide 8: Performance Challenges in H1
Performance Challenges in H1 • Occupancy costs, increased headcount and wage inflation have impacted profitability significantly o An intense focus on costs, site consolidation and productivity has been initiated to rectify the cost overruns • Ongoing weakness in our used lead acid battery (ULAB) re
Slide 9: Strong Focus on Safety
Proactive Safety Initiatives Strong Focus on Safety Safety Improvement Initiatives are making a Positive Impact DGL's Fatal Risk and Severe Consequence Risk Review and the DGL operates a continuously improving Health, ongoing Process Improvement Program are making a difference in Safety, Environment
Slide 10: DGL has a clear focus on delivering chemical logistics and services to essential industries
DGL has a clear focus on delivering chemical logistics and services to essential industries in Australia, New Zealand and further afield MANUFACTURING LOGISTICS ENVIRONMENTAL Manufacturing Warehousing Environmental Key Industries • Classed Dangerous Goods • Waste Removal • General Goods • Liquid Was
Slide 11: Comprehensive Trans-Tasman Footprint Serving All Industries
Comprehensive Trans-Tasman Footprint Serving All Industries DGL's extensive network supports its role as a leading provider of chemical logistics and services to essential industries in Australia and New Zealand. Townsville Darwin Tauranga Mackay Auckland Mt Isa Geraldton Brisbane Perth Pottsville W
Slide 12: Manufacturing Division
Manufacturing Division Key Highlights Actions & Outlook • Strong revenue growth in Crop Protection driven by high • Expanded Qld manufacturing capacity — New site to customer demand be operational in H2 FY25, moving to revenue and • Prior investments in the Crop Protection capacity and earnings gene
Slide 13: Logistics Division
Logistics Division Key Highlights Actions and Outlook • Margin improvement through investment in fleet • Implementation of internal enhancements to Logistics • Increased fleet capability with more efficient and sustainable Management System will be completed in H2, providing trailing equipment natio
Slide 14: Environmental Division
Environmental Division Key Highlights Actions and Outlook • Revenue growth in packaged waste treatment, driven • Managing lead acid battery recycling cost base and by high customer demand and increased pricing throughput volumes to optimise profitability • Margin improvement in mining supply through
Slide 15: Financial Results
Financial Results Frank Izzo (CFO)
Slide 16: Trend Financial Performance
Trend Financial Performance Revenue ($m) H1 H2 Gross Margin ($m) H1 H2 • H1 FY25 revenue reflects strong customer demand in the crop protection sector, offset by lower volumes in 248.8 249.0 103.1 the ULAB business and reduced demand in the mining 92.3 sector 239.1 217.2 217.0 103.0 79.4 97.3 • Gros
Slide 17: Group Income Statement
Revenue • Higher revenue driven by strong customer demand in manufacturing, mainly in the crop protection sector Group Income Statement • Offset by reduced demand in the mining sector and ongoing weakness in the lead acid battery recycling market $ millions H1 FY25 H1 FY24 Variance • Upside from acq
Slide 18: Revenue Growth
Revenue Growth Revenue ($m) and Gross Manufacturing Revenue ($m) Margin % H1 H2 Revenue ($m) GM% 271.2 • H1 FY25 revenues1 continuing the upward growth trend 250.0 45% 256.9 43% • 2 acquisitions completed during H1 FY25, following 27 240.0 43% 134.4 144.6 acquisitions completed from FY22 to FY24 230
Slide 19: Divisional Performance
Divisional Performance Manufacturing • Crop protection products benefitted from a strong cropping season recovery • Soft demand impacted AdBlue volumes Underlying Group performance by Division - H1 FY25 vs H1 FY24 ($m) • Margin uplift from acquisitions not in pcp, particularly Flexitech and Australi
Slide 20: Cost Drivers
Cost Drivers Growth in the cost base during the year was broadly driven by increased headcount and inflationary pressures which impacted people and property costs. Operating Expenses - H1 FY25 vs H1 FY24 ($m) People • Acquired employees and investment in people drove headcount 2.8 77.4 increases 7.6
Slide 21: Balance Sheet
Balance Sheet $ millions H1 FY25 FY24 Variance Variance % Cash 18.3 19.6 (1.3) (6.8%) Receivables 62.2 60.2 2.1 3.5% Inventory 46.2 39.5 6.7 16.9% Working Capital Asset held for sale 5.9 20.6 (14.7) (71.6%) • The 2% increase in working capital to $64m was primarily due to increased Other assets 8.0
Slide 22: Capital Allocation & Efficiency
Working capital ($m) at balance date Capital Allocation & Efficiency Receivables Inventory Payables 66.0 63.2 64.2 Working capital 47.2 43.8 46.2 • Cropping season recovery resulted in a normalized working 62.0 55.4 62.2 capital phasing profile, in line with H1 FY23 (43.2) (36.0) (44.3) • Discipline
Slide 23: Cash Flow
Cash Flow Operating cash flows comprised of: $ millions H1 FY25 H1 FY24 Variance Variance % • EBITDA of $26.0m • Working capital movements of ($1.4m) comprised of: Operating cash flows 18.1 19.3 (1.2) (6.2%) • Debtors $4.2m Investing cash flows 2.2 (36.4) 38.6 (105.9%) • Inventory ($6.7m) • Creditor
Slide 24: Strategy & Outlook
Strategy & Outlook Simon Henry (CEO)
Slide 25: Strategic Focus
Strategic Focus DGL is committed to its vision of being the leading provider of chemical logistics and services to essential industries in PURPOSE: Australia and New Zealand and further afield. • DGL has made a fundamental shift in strategy away from acquisitive growth, to focus on leveraging the Gr
Slide 26: Trading Update Outlook for FY25
Trading Update Outlook for FY25 • Strong volumes in crop protection and pest control in H1 • Labour markets are softening in NZ, while continuing to following improved growing conditions are continuing into H2 remain tight across Australia • Our automotive manufacturing continues to see • We expect
Slide 27: Investment Highlights
Investment Highlights Leading supplier of chemical logistics and services to essential industries in Australia, NZ & further afield Operating in highly regulated industries with significant barriers to entry Integrated service offering providing customers with a single source solution Diversified ac
Slide 28: Thank you
Thank you CONTACT Barbara Furci (DGL Group Limited) info@dglgroup.com +61 487 962 595