Key facts about Trajan's H1 FY24 financial results

Trajan (ASX: $TRJ) has reported its H1 FY24 financial results, with net revenue at $76.4M, nEBITDA Core at $6.9M, and cash at $11.2M as of 30 June 2023. The company anticipates achieving double digit organic growth in H2, supported by strong order demand and cost disciplines implemented during the period of lower activity.

Executive commentary on financial performance and outlook

Trajan's CEO & Managing Director, Stephen Tomisich, highlighted the company's commitment to delivering meaningful impact by enriching personal health through scientific tools and solutions. He emphasized the ongoing execution of their vision, including enabling global growth, expanding revenue streams, and integrating acquisitions to create operational leverage. Tomisich also mentioned the company's target to expand EBITDA Margin towards 20% and the commercialization of product pipeline to benefit both OEM and distributor/direct sales channels.

Summary of H1 FY24 financial performance and outlook

Trajan's H1 FY24 financial results reflect the impact of industry destocking on net revenue, with a strong rebound in orders in Q2 and an expectation of double digit organic growth in H2. The company implemented cost disciplines and achieved annualized savings of $3.5M, with a reduction of 72 FTE in CY2023. Despite the softer H1, Trajan anticipates delivering its 13th consecutive year of revenue growth for the full year. The transition to segment reporting transparency provides a higher level of detail and transparency to business activities, with a focus on core products and solutions, disruptive technologies, and segment-specific operational updates. Trajan's outlook includes margin expansion, labor cost savings, and corporate overhead savings, with revised guidance for net revenue and nEBITDA - Core Business at $163.0M-$167.0M and $22.3M-$23.7M respectively for FY24.