Overview of DGL Group's H1 FY24 financial results

DGL Group Limited (ASX: $DGL) has announced its financial results for the half-year ended 31 December 2023 ('H1 FY24'). The company reported sales revenue of $217.0 million, in line with H1 FY23, and underlying EBITDA of $30.4 million, reflecting a 3% increase compared to H1 FY23. However, underlying EBIT decreased by 14% to $16.4 million, and statutory NPAT declined by 43% to $5.9 million. DGL's net assets stood at $339.4 million, representing a 2% increase from 30 June 2023, with net debt of $117.2 million as at 31 December 2023, approximately 1.95x net debt to underlying EBITDA.

Executive commentary on H1 FY24 performance and outlook

'Since listing in 2021, DGL has diversified into a significant industrial business operating throughout Australia, New Zealand and further afield. This diversification has allowed us to deliver a solid result, despite unreliable weather forecasts and supply chain disruptions impacting our first half. We have taken corrective actions, and these disruptions are normalising, giving us confidence in the outlook. We expect a stronger second half year performance.'

Summary of DGL Group's H1 FY24 performance and outlook

DGL Group's H1 FY24 results reflect a resilient performance amidst challenging market conditions, supply chain disruptions, and weather-related impacts. The company's strategic investments in organic growth and acquisitions have contributed to its expansion and diversification, with a focus on maximizing growth by reinvesting earnings. Despite the challenges, DGL anticipates a stronger performance in the second half of the year and remains positive about the outlook for the current half and beyond. The company aims to intensify its focus on cost management, efficiency maximization, and tight integration of acquisitions to drive future growth and profitability.