Lynch Group Holdings Limited (ASX: $LGL) Financial Results for Half-Year Ended 31 December 2023

Lynch Group Holdings Limited (ASX: $LGL) has reported a revenue of $176.5m for the half-year ended 31 December 2023, reflecting a 5.7% growth when excluding the additional week in the previous reporting period. The net loss attributable to members for the period is $0.3m, which marks a 79.7% increase compared to the previous reporting period. The company's principal activity is the horticultural production and wholesale of flowers and plants.

Executive Commentary on Financial Performance and Market Conditions

The financial results for the half-year ended 31 December 2023 reflect stable consumer demand for floral products in the Australian supermarket channel, with revenue growth of 3.9% for 1H FY24. However, revenue from wholesale markets declined due to lower consumer spending impacting florist demand. The company's loss for the half-year was also influenced by weak consumer confidence and softening economic conditions in China, resulting in a decline in profitability of the China Group of cash-generating units. The Group remains confident in the recovery of pricing and optimistic about the long-term opportunity and profitability of the China market.

Summary of Financial Results and Outlook

Lynch Group Holdings Limited has experienced revenue growth and increased net loss for the half-year ended 31 December 2023, driven by stable consumer demand in the Australian supermarket channel and challenging economic conditions in China. The company remains confident in the recovery of pricing and optimistic about the long-term opportunity and profitability of the China market. The Group has declared an interim dividend of 4.0 cents per ordinary share, fully franked, and expects to continue growing its operations in both Australia and China. However, the volatile economic environment in both countries continues to impact the Group, posing risks to its operational and financial performance.