Coventry Group H1 FY24 Trading Update

Coventry Group Ltd (ASX: $CYG) has announced a solid trading update for the first half of the 2024 financial year. The Group reported a 5.4% increase in sales, reaching $185.3 million, and an 18.1% rise in unaudited EBITDA to $9.8 million compared to the prior year.

Executive Commentary on H1 FY24 Trading Update

The Group CEO and Managing Director, Robert Bulluss, highlighted the positive results of the initiatives aimed at growing EBITDA % to Sales to 10% in the medium term. He mentioned that the buy-side and sell-side initiatives implemented early in the financial year have contributed to the improvement, with Q2 EBITDA up 28.9% on the prior corresponding period. Bulluss also acknowledged the robust demand in the primary end markets in Australia, while noting the short-term negative impact on operations in New Zealand due to the recessionary environment.

Summary of H1 FY24 Trading Update

Coventry Group's H1 FY24 trading update reflects a positive sales and EBITDA growth, driven by initiatives to increase EBITDA % to Sales to 10% in the medium term. The Group's strategy based on specialisation and service excellence has proven to be resilient, despite the recessionary environment affecting operations in New Zealand. Looking ahead, Coventry Group aims to increase market share through various expansion and improvement initiatives. While refraining from providing FY24 guidance due to market uncertainty, the Group will continue to offer quarterly trading updates to the market, demonstrating its commitment to transparency and communication with stakeholders.