DGL Group Limited (DGL) H2 2025 earnings summary

Executive summary

• Revenue increased by 4% year-over-year to $481.5m, driven by strong crop protection demand, chemical formulation, and acquisitions.

• Underlying EBITDA rose 20% to $44.7m, but underlying net profit after tax fell by 78% to $3.5m due to lead recycling losses, increased competition, and higher operating costs.

• Statutory net loss after tax was $24.6m, impacted by $28.1m in non-recurring items, including goodwill and asset write-downs.

• Strong operating cash flow and cash conversion, with no dividends declared as earnings are reinvested for growth.

Financial highlights

• Revenue rose by $16.4m to $481.5m, with $16m contributed by acquisitions.

• Underlying EBITDA at $44.7m (+20% vs pcp); underlying NPAT at $3.5m (-78% vs pcp).

• Gross margin improved to $203.9m, aided by acquisitions and crop protection demand.

• Operating cash flow reached $44.7m with 110% cash conversion.

• Net debt reduced by $19m to $94.6m as of 30 June 2025.

Outlook and guidance

• Expectation of significantly improved results in FY26 due to cost reductions, business closures, and operational efficiencies.

• Profitability to benefit from closure of lossmaking lead recycling, system integration, and cost reduction.

• Substantial reduction in administration expenses anticipated as shared services and ERP integration complete.

• Continued investment in growth, plant, equipment, and selective acquisitions.

• Ongoing economic and macro uncertainties anticipated, but diversified operations expected to support growth.