Adrad Holdings Limited · ASX:AHL
Adrad — H1 2024 Earnings Presentation
25 slides from Adrad's earnings presentation, Feb 26, 2024
Slide 1: Adrad delivers first half growth
ASX Announcement 26 February 2024 Adrad delivers first half growth Adrad Holdings Limited (‘ASX: AHL’, ‘Adrad’ or the ‘Company’) Adrad is an Australian- based business specialising in the design and manufacture of innovative heat transfer solutions for industrial applications and the importation and
Slide 2: 1H FY24 Results and Outlook
“With the senior team now in place and having substantially progressed development of the long-term strategy the Company is positioned to harness the potential of its two business segments and be the 1st choice in Asia Pacific for industrial engine and cooling solutions.” 1H FY24 Results Adrad repor
Slide 3: Contacts and webinar details
Investors can submit questions prior to the webinar to melanie@nwrcommunications.com.au or do so via the Q&A function on Zoom, during the webinar. This announcement is authorised for release by the Board of Directors of Adrad Holdings Limited. Contacts CEO Investor Relations Darryl Abotomey Melanie
Slide 4: 1H FY24 Results Presentation
(ASX: AHL) 1H FY24 RESULTS PRESENTATION 2 6 F e bVisit r u a rNow y 2024 adradholdings.com.au
Slide 5: Disclaimer
Disclaimer This presentation is provided for information purposes only. The information in this presentation is in a summary form, does not purport to be complete and is not intended to be relied upon as advice to investors or other persons. The information contained in this presentation was prepare
Slide 6: Agenda
Agenda 1. Overview of Adrad Holdings Limited (AHL) 2. 1H FY24 Highlights 3. 1H FY24 Segment Achievements 4. 1H FY24 Financial Summary 5. Growth Initiatives 6. FY24 Outlook 3
Slide 7: Overview of Adrad: Vision: 1st Choice for Industrial & Engine Cooling Solutions
Overview of Adrad Vision: 1st Choice for Industrial & Engine Cooling Solutions Two major segments servicing all aspects of the engine cooling market: (1) Heat transfer solutions and (2) Distribution . HEAT TRANSFER SOLUTIONS (AIR RADIATORS) ADRAD DISTRIBUTION A vertically integrated designer and man
Slide 8: 1H FY24 Highlights
1H FY24 Highlights 5
Slide 9: 1H FY24 Operational Highlights
1H FY24 Operational Highlights • Increased revenue and earnings at all levels and across both segments; strong cash flow including $4.7m reduction in inventory • Implemented an organisational structure to focus on the two business segments with clear accountability and supporting functions in People
Slide 10: 1H FY24 Financial Highlights
1H FY24 Financial Highlights $73.5m $9.9m1 $3.1m $11.1m Trading Revenue Pro forma EBITDA NPAT Cash flow generated Statutory Up 7.6% from 1H FY23 Up 8.4% from 1H FY23 Up 66% from 1H FY23 from operations $4.7m 3.81cents 1.33 $3.0m 8.7% Inventory Basic EPS CPS Capital Investment Statutory Interim divid
Slide 11: Growing market presence delivers revenue and earnings growth
Growing market presence delivers revenue and earnings growth • Trading revenue growth of 7.6%; within outlook range of ~5-8%. • Pro forma EBITDA up 8.4% to $9.9m exceeding outlook range of ~5-8%. • Increased trading revenue growth across both HTS and the Adrad Distribution network. • Benefits of inc
Slide 12: 1H FY24 Segment Achievements
1H FY24 Segment Achievements 9
Slide 13: 1H FY24 Segment Achievements
1H FY24 Segment Achievements Trading revenue increased 7.6% from $68.3 million to $73.5 million Pro forma EBITDA increased 8.4% from $9.1 million to $9.9 million • Revenue growth increasing 7.6% over prior comparative period. Reflects increased demand for on-highway and industrial products, product
Slide 14: Highlights: Heat Transfer Solutions
Highlights: Heat Transfer Solutions Thailand production building expansion completed; New equipment being commissioned; Administration building underway; Business Development resource recruitment underway. Growing demand in backup powergen for data centres; Increased demand for “on-road” OE radiator
Slide 15: Highlights: Adrad Distribution
Highlights: Adrad Distribution Optimising assets through increased revenue whilst maintaining cost base – ie increased throughput utilising warehouses and infrastructure added during CY 2022. Refined approach to strategic pricing to maintain competitive position and improved margin. Providing custom
Slide 16: 1H FY24 Financial Summary
1H FY24 Financial Summary 13
Slide 17: Income Statement - Statutory
Income Statement - Statutory Revenue growth of 7.6%; within target range of ~5-8% growth over prior comparative period. Increased revenue offset by higher operating costs; • Inflationary pressures on IT, insurance, freight and occupancy costs (leases). Statutory EBITDA up 7.7% but impacted by; • Tra
Slide 18: Balance Sheet
Balance Sheet The Company has a balance sheet and cash position to support future organic growth and pursue acquisitions. $4.7m (8.7%) lower overall inventory through clear focus on reducing inventory levels and increasing inventory turnover. 15
Slide 19: Cash Flow
Cash Flow Operating cash flow before interest and tax of $11.1m up $5.5M (65.6%) compared to 1H FY23. Capital expenditure predominately directed towards Thailand manufacturing capability and capacity enhancements and new machinery. Cash position provides flexibility to further develop capability and
Slide 20: Growth Initiatives
Growth Initiatives 17
Slide 21: Growth initiatives
Growth initiatives Heat Transfer Solutions Adrad – Distribution Other • Expand revenue in Asia – • Focus on cooling related • Consider adjacencies and employ Asia based business products and be the 1st choice expansion opportunities. development manager. for cooling solutions. • Optimise manufacturi
Slide 22: Supporting Move To Renewables
Supporting Move To Renewables Innovative Cooling Products Heat Transfer Solutions business has developed cooling modules to support the introduction of hydrogen fuel cells into the mining sector and other heavy industry. The innovative Alu Fin product is gaining much attention in the mining sector w
Slide 23: FY24 Outlook
FY24 Outlook FT ah, Al
Slide 24: FY24 Outlook
FY24 Outlook Business organisation has been restructured to focus on core segments with clear accountability; all senior executive appointments made including new CEO. The business is resilient and well positioned for growth due to the non-discretionary products sold. Lift in build rates as major OE
Slide 25: Contact Us
CONTACT US Investor Relations Melanie Singh +61 439 748 819 melanie@nwrcommunications.com.au