VivoPower International PLC (VVPR) Q2 2023 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good day and thank you for standing by. Welcome to the VIVO Power International PLC Fiscal Year 2023 Half-Year Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Kevin Chin. Good morning, ladies and gentlemen. Welcome to the VIVO Power Half-Year Results presentation The period ended 31st of December, 2022. I'll take you firstly to page three of our presentation, the executive summary. So at a headline level, we made very good strategic progress during the half year. However, our results were affected by unseasonal weather and foreign exchange. Our revenue declined due to project timing. and a decline in the Australian dollar versus the US dollar foreign exchange rates. So our half year revenue decreased 23% year on year to 8.7 million. This is primarily attributable to timing of project execution with one major solar project, Edenvale, undertaken in Australia versus two in the prior period. Skills shortages have had an impact on our ability to take on new projects. However, on a constant Australian dollar, US dollar exchange rate basis, our revenue decrease was reduced 17%. Our gross profit and GP margin also declined. This was due to the decrease in revenue, as well as one-off Edenvale project losses. So half-year gross profit decreased by 3.1 million year-on-year to negative 3.6 million. This does include $3.6 million of specific one-off weather-driven cost overruns on the Edenvale solar project. This was due to climate change-related higher-than-forecast rainfall, leading to damage of project works and delays in execution. Edenvale is in the regional part of Australia, which normally doesn't encounter the...