DGL Group Limited (DGL) AGM 2025 summary

Opening remarks and agenda

• Emphasis on the company's critical role in supporting industry and appreciation for employees and shareholders during a challenging period.

• Acknowledgement of the ASX suspension as a major concern and commitment to resolving it.

• CEO addressed stakeholders, providing an overview of FY25 performance and strategic direction.

Financial performance review

• FY25 revenue reached $481.5m, up 3% from FY24, with strong cash conversion and operating cash flow of $44.7m, up 27%.

• Underlying EBITDA was $52.1m; statutory NPAT was a loss of $27.9m, compared to a $14.3m profit in FY24; underlying NPAT was $3.5m, down 78%.

• Cost pressures, asset write-downs, and increased price competition in lead-acid batteries impacted results.

• Integration of 30 acquisitions and ERP rollout caused temporary revenue shortfalls and operational disruptions.

• Auditor issued a disclaimer of opinion on FY25 financial statements; caution advised in relying on reported figures.

Board and executive committee updates

• Liz Smith joined as an independent non-executive director and chair of the audit and risk committee, resulting in a majority of independent directors.

• Recruitment for a new CFO is underway after the previous CFO's departure.

• CEO outlined actions to address performance, including cost reductions, site consolidations, and system upgrades.