Trajan reports H1 FY24 results and outlook

Trajan Group Holdings Limited (ASX: $TRJ) has reported its Half Year Results for the 2024 financial year (H1 FY24), with Net Revenue of $76.4M, down 4.6% on the previous corresponding period (PCP). The company's H1 performance was impacted by industry-wide destocking activity, particularly in the Components and Consumables segment. However, Trajan anticipates a return to normal growth trends in H2, aiming for double digit growth and focusing on cost savings and operational execution.

Executive Commentary on H1 FY24 Results and Outlook

Trajan Founder, CEO and Managing Director Mr. Stephen Tomisich commented, 'Last August we forecast only single digit growth for FY24 knowing that the first half would be strongly impacted by industry destocking. Based on our industry-wide visibility to end user demand, we are expecting Trajan's second half forecast to revert to double digit growth. Importantly, we were able to use this period to accelerate the benefits of Project Neptune and anticipated savings from synergies from our acquisitions to lower our cost base ahead of schedule. The extent to which we are able to catch up in H2 will largely rely on our ability to execute operationally.'

Summary of H1 FY24 Results and Outlook

In H1 FY24, Trajan's Net Revenue was impacted by industry destocking, resulting in a 4.6% decrease compared to the PCP. The company anticipates a return to double digit growth in H2, supported by a healthy closing order book and a focus on cost savings and operational execution. Trajan aims to expand its EBITDA Margin to 20% and has revised its full year guidance to $163.0M-$167.0M Net Revenue and $22.3M-$23.7M Core nEBITDA. The company remains optimistic about the future, emphasizing the importance of operational execution and the potential for meaningful and profitable levels of commercialization from its Disruptive Technologies portfolio to support medium-to-long term growth.