Gale Pacific (ASX: $GAP) 1H FY24 Results Overview

Gale Pacific (ASX: $GAP) reported a profit before tax of $(6.1)m for 1H FY24, lower than the $0.6m delivered in 1H FY23. The revenue also decreased to $77.0m from $92.6m in 1H FY23. The Directors have decided not to declare an interim dividend for this period. However, the company's net cash from operating activities improved to $19.6m at 31 December 2023, and net debt decreased to $2.2m from $24.7m in 1H FY23.

Executive Commentary on 1H FY24 Results

The challenging trading conditions in 1H FY24 led to demand headwinds, primarily due to unfavorable weather across Australia, improved global supply chain, and consumer spending shifting from goods to services. Despite these challenges, we have secured long-term debt financing and global treasury management services, which will increase our borrowing capacity and enable increased investments in new product innovation and capital expenditure. We anticipate improved results in the second half, driven by new product launches, increased distribution, and operational efficiency initiatives.

Summary of 1H FY24 Results and Outlook

Gale Pacific (ASX: $GAP) reported lower profit before tax and revenue for 1H FY24, with the decision not to declare an interim dividend. However, the company's net cash from operating activities improved, and net debt decreased. The company has secured long-term debt financing and global treasury management services, which will support increased investments. The outlook for the second half anticipates improved results driven by new product launches, increased distribution, operational efficiency initiatives, and favorable trading conditions.