K&S (KSC) H2 2024 earnings summary

Executive summary

• Underlying profit before tax for FY2024 was $42.1 million, down 3.6% year-over-year, while underlying profit after tax rose 3.4% to $31.7 million.

• Statutory profit after tax increased 9.1% to $31.2 million compared to the previous year.

• Operating revenues declined 2.9% to $824.6 million for FY2024.

• Operating cash flow dropped 35.2% to $65.8 million year-over-year.

• Safety improved, with lost time injury frequency rate falling from 5.4 to 3.0.

Financial highlights

• EBIT rose 1.9% to $44.9 million; EBITDA decreased 2.8% to $87.6 million year-over-year.

• Net borrowings (excluding lease liabilities) increased to $23.8 million from negative $0.4 million.

• Dividend per share remained at 18.0 cents, fully franked.

• Net tangible assets per share increased 10.8% to $2.56.

• Total assets grew 9.3% to $652.4 million.

Outlook and guidance

• Higher inflation, interest rates, and input costs, along with customer contract losses, are expected to pressure FY2025 results.

• Some downside is anticipated from contract cessations, but price, volume, and margin improvements may partially offset.

• Focus remains on improving revenue quality, organic and acquisitive growth, and property investment for accretive returns.