Lynch Group's 2024 AGM highlights

Lynch Group (ASX:LGL) provided a comprehensive update during its 2024 Annual General Meeting. Key discussions centered around operational performance in Australia and China, sustainability initiatives, and future outlooks. Significant demand in the Australian supermarket floral market boosted revenue, while economic challenges impacted Chinese operations.

Lynch Group's strategic focus and future plans

Lynch Group's 2024 AGM highlighted its strategic focus on improving operations and sustainability. In Australia, the company expects a 4% revenue growth for the first half of FY25, with significant events boosting demand in the second half. Challenges in China persist, with government policies yet to improve consumer confidence. The group projects a 5% revenue growth for the first half of FY25. Sustainability efforts include partnerships for flora conservation and exploring sea freight for reducing carbon emissions. Operational efficiency remains a priority, and the SAP system upgrade is on track for completion in FY25.

Executive insights from 2024 AGM

The Australian business experienced recovery in supply chain and logistics post-COVID, resulting in improved margin conditions. Supermarket floral products saw significant demand, with revenue growth driven by the sale-or-return (SOR) store network. Revenue reached $329.6 million, a 3% increase from the previous year when adjusted for an extra trading week. EBITDA improved by 50% to $31 million, attributed to margin recovery initiatives and stabilization of international freight rates. Challenges persisted in the wholesale market serving florists.' 'China faced challenges due to economic headwinds, low consumer confidence, and weak pricing, particularly in the floral market. Revenue decreased by 12% to $85.4 million, with a 61% drop in EBITDA to $8.6 million. Contributing factors included increased production volumes, lower domestic pricing, and reduced export freight rates. The company paused growth capital expenditures in China until market conditions improve.