Newly-listed chemicals specialist DGL said it had exceeded its prospectus forecasts in the year to June, partly reflecting the integration of Chem Pack into the business.
DGL, which makes, transports, stores and processes chemicals and hazardous waste, said its net profit came to $11.3 million, up 135 per cent on the previous corresponding period and 19 per cent greater than prospectus forecast.
Sales revenue came to $196m, up 9 per cent on the previous year, and 3 per cent greater than prospectus forecast.
Chem Pack, a Melbourne-based company that formulates and packs chemicals, predominately agricultural chemicals, became part of DGL in January this year.
DGL said its operating EBITDA came to $28.1m up 47 per cent on the prior year’s, and 8 per cent greater than prospectus forecast.
There was solid revenue growth across DGL’s three divisions:
• Chemical Manufacturing division: up 3 per cent to $97.3m
• Warehousing and Distribution division: up 48 per cent o $40.9m.
• Environmental Solutions division: up 2 per cent to $63.4m.
Company founder and chief executive Simon Henry said the year had been a transformative one for DGL following its listing on the NZX and ASX, and raising $100m to fund growth initiatives.
“I am very pleased we have been able to deliver on our initial promises, as set out in the prospectus, both at an operational level and financial level,” he said in a statement.
“The outstanding results were a result of the successful integration of Chem Pack, greater demand for our products from the agriculture sector, as well as the commissioning, ahead of schedule, of our lead smelter plant in Victoria.”
DGL’s shares, which listed in May, rallied sharply after the result.
By late morning the stock was up 34c or 13 per cent at $2.90 against their issue price of $1.
Separately, DGL said it had bought Opal Australasia – is a specialist contract formulator and packaging business – for $8.6m.
Looking ahead, DGL expects to exceed its prospectus forecast for 2022 of a net profit of $10.4m and EBITDA of $29m.
These forecasts do not include the revenue and profit contribution from recently acquired businesses, Labels Connect and Opal Australasia and favourable trading conditions experienced to date.
“Our business is in a strong position to grow in the year ahead,” Henry said.
Lockdowns across the region, to date, had not had a material impact on DGL’s business, Henry added.
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