DGL Group Ltd
ASX:DGL
DGL Group Ltd
DGL Group Ltd. provides chemical manufacturing, warehousing and distribution and environmental services. The firm manufactures, transports, stores and processes chemicals and hazardous waste. The company operates under three segments: Chemical Manufacturing, Warehousing and Distribution and Environmental Solutions. The Chemical Manufacturing division produces its own range of specialty chemicals. The Warehousing and Distribution division offers transport, logistics and warehousing services focusing on hazardous goods across Australia and New Zealand. The services include freight forwarding, inventory management, warehousing, packing and transport. Its waste management activities include liquid waste treatment, used lead acid batteries (ULAB) recycling, lead smelting and refining. The company offers services to the home and garden, fertilizer, agricultural and industrial chemicals markets. The firm's subsidiaries include DGL Manufacturing Pty Ltd, DGL Manufacturing Limited, Chem Pack Pty Ltd and Profill Industries Pty Ltd.
DGL Group Ltd. provides chemical manufacturing, warehousing and distribution and environmental services. The firm manufactures, transports, stores and processes chemicals and hazardous waste. The company operates under three segments: Chemical Manufacturing, Warehousing and Distribution and Environmental Solutions. The Chemical Manufacturing division produces its own range of specialty chemicals. The Warehousing and Distribution division offers transport, logistics and warehousing services focusing on hazardous goods across Australia and New Zealand. The services include freight forwarding, inventory management, warehousing, packing and transport. Its waste management activities include liquid waste treatment, used lead acid batteries (ULAB) recycling, lead smelting and refining. The company offers services to the home and garden, fertilizer, agricultural and industrial chemicals markets. The firm's subsidiaries include DGL Manufacturing Pty Ltd, DGL Manufacturing Limited, Chem Pack Pty Ltd and Profill Industries Pty Ltd.
Revenue: FY '24 revenue was $465 million, flat year-on-year and broadly in line with expectations despite recent acquisitions.
Profit: Net profit after tax declined, mainly due to higher interest and depreciation, as well as investments in shared services.
Margins: Gross margin rose to $200.4 million (up 16%), with margin percentage up 6 points to 43%, driven by procurement and product mix improvements.
Cash Flow: Operating cash flow dropped to $37.3 million from $59.3 million last year, mainly due to higher finance costs.
Investment: Significant spending on plant upgrades, new systems, and warehouse expansion weighed on short-term profits but is expected to boost future earnings.
Outlook: Management expects companies acquired in the past year to contribute significantly to FY '25 profits, with focus shifting to organic growth and extracting value from recent investments.
