Wagners Holding Company H1 FY24 Trading Update

Wagners Holding Company Limited (ASX: $WGN) has reported a 20% increase in Group Revenue to $264.0 million for the six month period ended 31 December 2023. The Group Operating EBIT also saw a significant rise to $20.0 million, compared to $4.2 million in the prior corresponding period. The company's Construction Materials & Services (CMS) business observed strong underlying trading conditions, while Composite Fibre Technologies (CFT) experienced improved performance in Australia and New Zealand, partially offset by a weaker performance in the US. Additionally, Earth Friendly Concrete (EFC) Opex and Capex investment were notably reduced following a strategic review, with a ~$5.7 million EFC asset impairment excluded from Group Operating EBIT.

Executive Commentary on H1 FY24 Performance

Performance during FY24 has been positive and consistent with the improvement experienced in the last quarter of FY23. While this operating environment is anticipated to continue into the second half of FY24 across most business units, the Group's second half performance is not anticipated to be as strong as the first half. This is due to the completion of production of precast concrete tunnel segments for the Sydney Metro project and no follow on projects secured to replace this project's earnings contribution made in the first half. In light of this, we anticipate that the full year operating EBIT result will be in the range of $31 million to $34 million.

Summary of H1 FY24 Results and Outlook

Wagners Holding Company Limited (ASX: $WGN) has delivered a strong H1 FY24 trading update, with a 20% increase in Group Revenue and a significant rise in Group Operating EBIT. The company's Construction Materials & Services (CMS) business observed strong underlying trading conditions, while Composite Fibre Technologies (CFT) experienced improved performance in Australia and New Zealand, partially offset by a weaker performance in the US. Earth Friendly Concrete (EFC) Opex and Capex investment were notably reduced following a strategic review, with a ~$5.7 million EFC asset impairment excluded from Group Operating EBIT. Looking ahead, the company expects the H2 FY24 to be consistent with the prior corresponding period, with the full year Group Operating EBIT anticipated to be in the range of ~$31 to $34 million. Wagners Holding Company Limited will release its reported half year results on Wednesday, 21 February, 2024, and will also host an investor webinar on Thursday, 22 February 2024 to discuss the results in more detail.