Slide 1: DGL FY24 Results Presentation
DGL FY24 Results Presentation 30th August 2024 DGL Group Limited (ASX: DGL) dglgroup.com
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 chemicals, materials and services
DGL is a leading provider of chemicals, materials and services to essential industries in Australia and New Zealand 3
Slide 4: Agenda
AGENDA 1 FY24 Overview 2 Financial Results 3 Strategy 4 Outlook 5 Questions 6 Appendix FY24 RESULTS PRESENTATION | 30 AUGUST 2024 4
Slide 5: FY24 Overview
FY24 Overview Simon Henry (CEO) 5
Slide 6: FY24 Revenue, Underlying EBITDA, Cashflow and NPAT
FY24 Revenue FY24 Underlying EBITDA $465.1m $63.7m in line with pcp in line with pcp FY24 Cashflow from Operations FY24 NPAT $37.3m $14.1m FY23 $59.3m, -37% vs pcp FY23 $17.4m, -19% vs pcp 6
Slide 7: Key Drivers of Earnings FY24
Key Drivers of Earnings FY24 Contribution from Volume growth Capacity expansion Margin expansion acquisitions Positive volume growth Expansion in Full year contribution Raw material price across the divisions now manufacturing capacity, from acquisitions in decreases, improved serving over 5,000 tra
Slide 8: FY24 Health & Safety
FY24 HEALTH & SAFETY DGL is focused on improving our personal injury performance Lost time injury Total recordable injuries frequency rate (LTIFR) frequency rate (TRIFR) Group LTIFR Group TRIFR 14 29.8 10.3 25.1 FY23 FY24 FY23 FY24 1. LTIFR Calculation ([Number of lost time injuries in the reporting
Slide 9: Our Divisions
OUR DIVISIONS MANUFACTURING LOGISTICS ENVIRONMENTAL Manufacturing Warehousing Environmental Key Industries • Dangerous Goods • General Goods • Waste Removal • Crop Protection • HACCP Accredited Goods • Liquid Waste Treatment • Mining • Pick and Pack • Recycling • Automotive • Container Unpacking Ser
Slide 10: Comprehensive Trans-Tasman Footprint Serving All Industries
COMPREHENSIVE TRANS-TASMAN FOOTPRINT SERVING ALL INDUSTRIES AUSTRALIA (92% Revenue) NEW ZEALAND (8% Revenue) Townsville Tauranga Darwin Mackay Auckland Mt Isa Geraldton Brisbane Perth Pottsville Wellington Sydney Katanning Christchurch Griffith Adelaide Melbourne LEGEND Manufacturing Warehousing Lab
Slide 11: Financial Results
Financial Results Frank Izzo (CFO) 11
Slide 12: Trend Financial Performance
TREND FINANCIAL PERFORMANCE • Strong track record of growth from FY21 to FY24, Revenue ($m) Gross Margin ($m) demonstrated by revenue CAGR of 32% 466.0 465.1 369.8 200.4 • FY24 revenue reflects the impact of declining 172.2 137.9 commodity prices, offset by volume growth in all divisions 154.4 60.7
Slide 13: FY24 Financial Overview
FY24 FINANCIAL OVERVIEW Revenue $ millions FY24 FY23 Variance Variance % • Revenue1 broadly in line with FY23, balancing downward trending commodity pricing and 1 Revenue 465.1 466.0 (0.9) (0.2%) supply chain issues Cost of sales (264.7) (293.8) 29.1 (9.9%) • Upside from recent acquisitions contribu
Slide 14: Revenue Growth
REVENUE GROWTH Revenue ($m) and Gross Margin % Manufacturing Revenue ($m) Logistics Revenue ($m) Environmental Revenue ($m) 500.0 466.0 465.1 Underlying business Recent M&A Underlying business Recent M&A Underlying business Recent M&A 450.0 45% 400.0 369.8 43% 43% 281.9 274.1 137.8 110.4 99.9 350.0
Slide 15: Divisional Performance
DIVISIONAL PERFORMANCE Manufacturing • Crop protection products impacted by lower volumes with seasonal uncertainty resulting from the El Niño forecast • Continued downward-trending commodity prices impacted revenues for crop protection and AdBlue products • Steady demand for blending services • Raw
Slide 16: Cost Drivers
COST DRIVERS Administration Legal & FY23 People Property FY24 & General Professional Growth in the cost base during the year was broadly driven by increased headcount and inflationary pressures which impacted people and property costs People • Acquired employees and investment in people drove headco
Slide 17: Balance Sheet
BALANCE SHEET $ millions FY24 FY23 Variance Variance % Cash 19.6 36.9 (17.3) (46.8%) Liquidity Receivables 66.4 52.4 14.0 26.7% • $17m decrease in cash largely driven by M&A activity and capex Inventory 39.3 37.4 1.9 5.0% Asset held for sale 20.6 - 20.6 nm Working Capital Other assets 9.1 8.6 0.4 5.
Slide 18: Capital Allocation & Efficiency
CAPITAL ALLOCATION & EFFICIENCY Working capital ($m) at balance date Net Operating Assets ($m) at balance date Receivables Inventory Payables Land Buildings Plant & Equipment Intangibles Net working capital Other NOA 42.5 62.5 56.4 478.3 441.9 10.9 48.2 39.3 61.8 37.4 361.2 56.4 1.4 42.5 145.5 144.1
Slide 19: Cash Flow
CASH FLOW • Operating cash flow of $37.3m is 37% down on pcp • Operating cash conversion1 at 86% • Investing cash outflows of $42m includes capex of $30m and Working capital movements ($6m) acquisition outflows of $13m • Major capex items include additional fleet and strategic land and buildings in
Slide 20: Strategy
Strategy Simon Henry (CEO) 20
Slide 21: DGL Business Strategy
DGL Business Strategy Purpose Providing chemicals, materials and services to essential industries in Australia and New Zealand Focus Regulated chemical markets in Australia and New Zealand, where licenses and accreditations are required to operate, for the safe and secure manufacture, storage and su
Slide 22: Investing Today for Earnings Growth Tomorrow
INVESTING TODAY FOR EARNINGS GROWTH TOMORROW DGL continues to invest for growth Significant investment has been expensed in FY24 to improve future profitability, at a cost to short-term profit Plant and Equipment People and Systems Site Capacity • The final phase of DGL’s investment in • Significant
Slide 23: Health, Safety, Environment & Quality
HEALTH, SAFETY, ENVIRONMENT & QUALITY DGL operates a continuously improving Health, Safety and Environmental Framework Integrated Management System 1 FY25 Safety Objectives Licence & Accreditation Portfolio More than 20 years of accumulated IP and licenses to ensure HSEQ Health and Safety Quality Ma
Slide 24: Corporate Responsibility
CORPORATE RESPONSIBILITY OUR ESG FRAMEWORK REFLECTS AN EVOLUTION AND ENHANCED MATURATION OF DGL GROUP Workplace At DGL, we recognise that our people are our greatest asset. DGL focuses on the importance of our employees and our commitment to their success, wellbeing, and Accreditations and Certifica
Slide 25: Outlook
Outlook Simon Henry (CEO) 25
Slide 26: Trading Update and Outlook
TRADING UPDATE AND OUTLOOK TRADING UPDATE • We are seeing stronger volumes early in the current half in crop protection products following improved growing conditions, following strong demand at the finish of FY24. We anticipate returning to normal conditions for FY25 • Our automotive manufacturing
Slide 27: Investment Highlights
INVESTMENT HIGHLIGHTS Leading supplier of chemicals, materials and services to essential industries in Australia & New Zealand Operating in highly regulated industries with significant barriers to entry Integrated service offering which provides customers with a single source solution Diversified ac
Slide 28: Questions
Questions 28
Slide 29: Thank you. Contact
Thank you. CONTACT: Barbara Furci (DGL Group Limited) info@dglgroup.com +61 487 962 595 dglgroup.com