ALS (ALQ) Trading Update summary

Commodities performance

• Minerals division faced volume headwinds, with pronounced fluctuations in geochemistry and metallurgy during July and August, especially in Australia and Latin America, leading to volume declines and margin pressure.

• North American volumes remained stable, holding in line with the prior corresponding period (H1 FY24).

• Minerals margins, though down on pcp, remain resilient at approximately 30%.

Life sciences update

• Organic growth in Life Sciences, particularly Environmental, met expectations.

• Integration of Nuvisan, Wessling, and York acquisitions is progressing as planned.

• Nuvisan is showing positive medium and long-term improvement in its business development pipeline.

• Acquisitions are expected to be EPS dilutive in FY25 after accounting for initial trading and interest costs.

Corporate and financial outlook

• Corporate costs are in line with guidance, while interest expenses are slightly higher due to increased debt and lease interest from acquisitions.

• Underlying EBIT for the September half is expected to be slightly ahead of pcp, but underlying NPAT is forecast to be down by about 5%.

• Further outlook updates will be provided with H1 FY25 results on 19 November 2024.