Image source: © Wrightstudio | Megapixl.com

Highlights

  • DGL Group is a diversified industrial group with operations in Australia, New Zealand and internationally.
  • In FY23, DGL’s sales revenue increased by 26% YoY and gross profit surged by 24.51% YoY.
  • Henry (Simon) has the highest stake in the firm with a shareholding of around 53%.

DGL Group Limited (ASX: DGL) is an ASX-listed diversified industrial group that operates in Australia, New Zealand and globally. The company offers full-service solutions, including warehousing, chemical formulation and manufacturing, recycling and waste management.

The industrial solutions provider has delivered 26.01% YoY growth in sales revenue to AUD 466 million in FY23. While its gross profit increased by 24.51% YoY to AUD 171.7 million, its underlying EBITDA surged by 26.93% to AUD 64.1 million during the reported period.

In FY23, the company witnessed an increase in volume and price, resulting in sales growth. In addition to this, the cost of sales increased following the surge in revenue and higher raw material prices.

During the latest half, the company invested in strategic acquisition and organic growth as it strengthened the network through addition of assets and numerous strategically located sites.

Top 10 shareholders of DGL

The top 10 shareholders of DGL have around 61.99% stake in the firm. The highest stake is held by Henry (Simon), with a shareholding of almost 53.08%.

Recent business update

Through an  ASX filing dated 15 June 2023, the company informed about its intent to undertake an on-market share buy-back program of up to 10% of its issued shares, starting from 30 August 2023 for nearly 12 months.

DGL shared that its board believes that the existing share price does not represent the firm's true value, and the share buy-back program is an opportunity to add value to the remaining shares on issue. 

Outlook

In FY24, the company intends to focus on cross selling between segments, increase investment in capital projects, achieve further economies of scale, and target strategic acquisition, which can increase capacity and bring scale across geographies.

DGL anticipates a surge in demand for multiple chemicals and formulations and chemically treated potable water. Also, it expects to deliver high utilization underpinned by customers holding a high inventory level in the business logistics segment.

Share performance of DGL

DGL shares closed 6.67% up at AUD 0.88 apiece on 20 September 2023. Including today’s gain, DGL’s share price has increased by over 18% in the past three months and dropped by almost 43.23% in the last 12 months.

The 52-week high of DGL is AUD 1.905 apiece, recorded on 1 March 2023, and the 52-week low is AUD 0.645 apiece, recorded on 26 June 2023. Worth mentioning here is that today’s closing price is nearly 54% lower than its 52-week high.

 

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

 

Note 2: The reference date for all price data, currency, is 20 September 2023. The reference data in this report has been partly sourced from REFINITIV.