Beacon Lighting Group (BLX) H2 2024 earnings summary

Executive summary

• Achieved record statutory sales of AUD $323 million, up 3.6% year-over-year, and underlying sales of AUD $317.1 million, up 1.6%, with strong growth in trade and online channels in a challenging retail environment.

• Trade sales surpassed AUD $100 million for the first time, up 26.8%, and accounted for 36.5% of relevant sales; online trade sales rose 47%.

• Opened seven new stores and relocated one, expanding the network to 126 stores nationwide.

• Online retail sales rebounded, up 11.2% and now 11.8% of total retail sales.

• Net Profit After Tax declined 12.1% to AUD $29.6 million, reflecting higher operating expenses and inflationary pressures.

Financial highlights

• Gross margin increased to 68.9% (up 120 bps from 67.7% last year), supported by new products and better buying power.

• Underlying EBITDA was AUD $85 million, down 0.8% year-over-year; statutory EBITDA was AUD $86.5 million, up 0.9%.

• EBIT fell 7.2% to AUD $50.9 million; NPAT margin was 9.3%.

• Cash balance at year-end was AUD $46.2 million, up from AUD $20.7 million last year; inventory closed at AUD $95.7 million.

• Fully franked dividend of AUD $0.079 per share for FY 2024, payout ratio at 69.2%.

Outlook and guidance

• Trading momentum from FY 2024 has continued into FY 2025, with optimism for recovery as consumer sentiment stabilizes.

• Five new stores planned for FY 2025, with continued focus on trade customer growth and international expansion, especially in North America, Asia, and Europe.

• Gross margin target remains at 68%-69% for FY 2025 and 2026, assuming stable FX and freight costs.

• Continued investment in new products and team initiatives, including a new enterprise agreement and share plan.

• Expectation for cost pressures to stabilize, with ongoing productivity and cost management initiatives.