Dyno Nobel (DNL) H2 2024 earnings summary

Executive summary

• Record underlying earnings in explosives (DNAP) and fertilizer distribution, despite statutory loss from non-cash impairments in fertilizers.

• Transformation program delivered AUD 64 million EBIT uplift in FY24, exceeding expectations.

• Strategic focus on becoming the leading global explosives player and separating the fertilizers business within 6–12 months.

• Safety performance below target with a TRIFR of 1.08, but no significant environmental incidents for the third consecutive year and industry recognition for HSE excellence.

Financial highlights

• Statutory net loss after tax of AUD 311 million, mainly due to AUD 712 million after-tax impairments in fertilizers.

• Underlying EBIT of AUD 580 million, up 18% year-over-year after adjusting for asset sales and closures.

• EBITDA from continuing operations reached AUD 925 million.

• Total ordinary dividends for FY24 at AUD 0.106 per share, or AUD 0.208 including capital return; net debt/EBITDA improved to 0.8x.

• Capital expenditure of AUD 379 million, down 23% from prior year, with focus on capital-light, high-ROIC projects.

Outlook and guidance

• FY25 earnings to benefit from transformation program, but impacted by planned turnarounds (AUD 45–55 million earnings impact).

• Dyno Nobel earnings expected to be 40% H1, 60% H2; Americas business more skewed to H2.

• Fertilizer distribution earnings expected in AUD 40–60 million range; Phosphate Hill production guidance at 790,000–860,000 tons.

• Transformation program expected to deliver 40–50% run rate uplift by end of FY25, with 70–80% by end of FY26.