Slide 1: FY24 Results Presentation
FY24 RESULTS PRESENTATION August 2024 REDOX LIMITED (RDX.ASX)
Slide 2: Presenting today
Presenting today Raimond Coneliano Chief Executive Officer & Kim Yap Managing Director Chief Financial Officer 29 years tenure 35 years tenure 2
Slide 3: Agenda
Agenda 1 FY24 Highlights 2 FY24 Financials 3 Strategy & Outlook 4 Q&A 5 Supplementary information 3
Slide 4: FY24 Highlights
FY24 Highlights Raimond Coneliano Chief Executive Officer & Managing Director 4
Slide 5: 2024 Highlights
2024 Highlights $94.8m 23.4% 12.2% $115.9m Underlying NPATFX Gross Profit Margin Underlying EBITDAFX Margin Cash Flow from operations 11.4% growth vs PCP 2.6 ppts above PCP 0.8 ppts above PCP (Net Cash position $177m) 11.8% 19.1% 6.5cps 30.8% Proforma Basic Earnings Per Underlying after tax Return O
Slide 6: FY24 performance highlights
FY24 performance highlights • Final Dividend declared 6.5cps (12.2cps for FY24). Full year payout ratio of 73% of Statutory Net Profit • NPATFX increased by $9.7m (up 11.4%) to $94.8m • 23.4% Gross Profit Margin achieved due to positive product mix improvements, larger proportion of smaller transact
Slide 7: Key drivers of revenue in FY24
Key drivers of revenue in FY24 Sales team North American Share of Wallet Portfolio growth expansion Customer Wins Initiatives Redox 4% 20% +71 +30,548 control Growth to 181 reps. Increase in active customers Growth in active Product Increase in sales opportunities Arizona & Ohio by end CY24 in North
Slide 8: FY24 performance by segment
FY24 performance by segment Volume Revenue Growth vs FY23 Growth Growth FY24 volume growth Animal Health & Nutrition - • Animal Health & Nutrition – supplemental feeding due to dry conditions Crop Production & Protection supported volume gains particularly in 1H FY24 • Crop Production & Protection –
Slide 9: FY24 performance by region
FY24 performance by region Asia Pacific volumes grew strongly in 1H FY24 but the rate of growth slowed in 2H FY24 as customer demand reduced due to the tougher macro- Growth vs FY23 Volume Revenue economic environment Asia Pacific Region North American volumes grew strongly throughout FY24 with a 36
Slide 10: Delivering on our M&A strategy
Delivering on our M&A strategy • Acquisitions add products, customers, suppliers, expertise and capabilities which will drive future growth in line with stated acquisition strategy • Optigen Ingredients & Element Raw Materials transactions completed in FY24 • Oleum’s portfolio now available to large
Slide 11: 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 key driver of price for customers • Containerised freight made up roughly 10% of selling prices during the COVID supply chain crunch • Due primarily to COVID suppl
Slide 12: FY24 Gross Profit
FY24 Gross Profit • Strong Gross Profit Margin of 23.4%, beating PCP by 2.6 percentage points • Margins have been particularly resilient in Australia due to improvements in product portfolio mix, larger proportion of smaller more profitable transactions and diligent margin control • Due to global pr
Slide 13: FY24 Financials
FY24 Financials Kim Yap Chief Financial Officer 13
Slide 14: Profit & Loss overview
Profit & Loss overview FY24 FY23 Change 1.5% Revenue $m 1,137 $m 1,258 -9.6% % Increase in Gross Profit vs PCP due to disciplined Gross profit 266 262 1.5% margin management Gross margin 23.4% 20.8% 2.6ppts 12.2% Underlying EBITDAFX 1 Underlying EBITDAFX 1 margin 139 12.2% 143 11.4% -2.9% 0.8ppts EB
Slide 15: Net Profit Before Tax bridge FY23 to FY24
Net Profit Before Tax bridge FY23 to FY24 Higher profit margin has more than offset the decline in sales during FY24 Improvement in net working capital and cash position provided a positive contribution to FY24 15
Slide 16: Revenue and Gross Profit
Revenue and Gross Profit FY24 FY23 Change 2.6% Revenue – Australia $m 965 $m 1,063 % -9.2% Revenue improvement in North America driven by new customer conversion and strong volume growth Revenue – New Zealand 87 107 -18.7% -12.5% Revenue – North America Revenue – Other 78 8 76 11 2.6% -27.0% Decreas
Slide 17: Cash flow
Cash flow FY24 FY23 Change $116M $m $m $m Cash from operations. $120m invested in short term Cash from operations 116 135 -19 deposit Capex and acquisitions -5 -3 -2 87.6% Net cash flow 111 132 -21 Lower free cash flow conversion due to normalisation Free cash flow conversion 1 87.6% 98.5% of Net Wo
Slide 18: Dividend & Dividend Policy
Dividend & Dividend Policy Final Dividend Dividend Policy Final Dividend for FY24 of 6.5 cents per share Dividend payout ratio is 60%-80% of NPAT Full Year Dividend payout of 12.5cps representing a full year payout ratio of 73% of NPAT within our dividend policy Final dividend to be paid on the 20th
Slide 19: Strategy & Outlook
STRATEGY & OUTLOOK Raimond Coneliano CEO and Managing Director 19
Slide 20: 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 7,000+ 5,000+ geographic expansion ACTIVE CUSTOMERS SKU’S 100+ 1,000+ STOCK LOCATIONS ACTIVE SUPPLIERS Largest 30-year
Slide 21: Diverse client, industry, product and supplier base
Diverse client, industry, product and supplier base Sales by Country FY24 • Largest customer represents ~1.8% of FY24 sales • Top 10 customers represent ~14.1% of FY24 sales • Largest individual supplier accounted for ~3.1% of FY24 sales • Broad geographical supply base that reduces supply risks • S
Slide 22: Outlook
Outlook During FY25 Redox will continue to expand our geographic footprint in North America, bolster our product portfolio, increase our share of wallet and grow our client base We remain focused on driving organic revenue growth and anticipate strong volume growth at or above historical average in
Slide 23: Summary
Summary Leading position in APAC and growing North American presence Highly cash generative business 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 payout ratio Growing impor
Slide 24: Q&A
Q&A Raimond Coneliano CEO and Managing Director Kim Yap Chief Financial Officer 24
Slide 25: Supplementary information
Supplementary information 25
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 Silver Medal for Sustainability received from Ecovadis in 2023 Redox is committed to ethical sourcing, seeks to adhere to the
Slide 27: Profit & Loss FY24
Profit & Loss FY24 FY24 FY24 FY23 Change Change Prospectus $m $m $m $m $m Revenue 1,137.3 1,257.5 -120.2 1,328.2 -190.9 COGS -871.4 -995.5 124.1 -1,052.8 181.4 Gross profit 265.9 262.0 3.9 275.5 -9.6 Gross Profit increased by $3.9m Operating expenses -127.0 -119.0 -8.0 -127.3 0.3 vs PCP due to impro
Slide 28: Operating costs
Operating costs FY24 FY23 Change $m $m $m Administration expenses 62 61 -1 Increase in admin expenses due to salary inflation Distribution and storage 51 49 -2 and growth in headcount offset by lower bonus expenses payment Other expenses 22 17 -5 Total underlying operating 135 127 -8 expenses1 Incre
Slide 29: 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 30 June 2024. The information in the Presentation is of a general
Slide 30: Redox
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