Overview of DGL's H1 FY24 financial performance

DGL (ASX: $DGL) presented its H1 FY24 results, reporting steady sales revenue and underlying EBITDA despite challenges in the first half. The company's statutory NPAT reduced to $5.9m, influenced by higher finance costs, depreciation, increased investment in systems, and wage pressures. However, trading conditions have improved in H2 FY24, with expectations of revenue and earnings growth driven by a strong recovery in demand for crop protection products, robust demand for pest control products, and improved volumes of waste and recycled material being sourced and processed.

Executive commentary on H1 FY24 performance and outlook

Trading conditions in H1 FY24 were challenging, with impacts from forecast droughts, reduced availability of raw materials, and falling commodity prices affecting margins on formulated chemicals. However, the company anticipates improved performance in H2 FY24, driven by a strong recovery in demand for crop protection products, robust demand for pest control products, and improved volumes of waste and recycled material being sourced and processed. The company remains focused on cost management, maximizing efficiencies through tight integration of acquisitions, and maintaining a highly selective approach to strategic acquisitions.

Summary of H1 FY24 results and outlook

DGL's H1 FY24 results showed steady sales revenue and underlying EBITDA, with challenges from various factors impacting the financial performance. However, the company anticipates improved revenue and earnings in H2 FY24, driven by a strong recovery in demand for crop protection and pest control products, as well as improved volumes of waste and recycled material being sourced and processed. The company's outlook includes a focus on cost management, maximizing efficiencies through tight integration of acquisitions, and maintaining a highly selective approach to strategic acquisitions. DGL aims to achieve strong organic growth and expects full-year revenue and EBITDA to be broadly in-line with FY23, with a stronger performance anticipated in H2 FY24.