Delegat Group (DGL) H1 2025 earnings summary

Executive summary

• Operating NPAT for the half-year was $28.3 million, down 25% year-over-year, with operating EBIT at $48.4 million, a 22% decrease.

• Operating net profit after tax declined due to a lower yielding 2024 vintage, challenging consumer and inventory dynamics, and planned price increases impacting short-term case sales volumes.

• Strong cash from operations and a lower net debt position were achieved despite the profit decline.

• Operating revenue declined 10% to $178.6 million, primarily due to a 15% drop in global case sales, partially offset by favorable foreign exchange movements.

Financial highlights

• Global case sales for HY25 were 1,634,000, down 15% compared to HY24.

• Operating EBITDA was $61.6 million, down 18% year-over-year; operating gross margin remained steady at 48%.

• Reported NPAT was $12.5 million, a 63% decrease from HY24, after NZ IFRS fair value adjustments.

• Cash from operations rose to $75.6 million, up 111% from HY24, driven by higher customer collections and lower supplier payments.

• Net debt at 31 December 2024 was $345.6 million, a reduction of $6.7 million, and well within the $420 million bank facility.

Outlook and guidance

• FY25 operating NPAT is expected at the lower end of the $55.0 million to $60.0 million range.