BWX Details

BWX Limited (ASX: BWX) is engaged in the business of owning, manufacturing, and distributing products predominantly under Sukin, Andalou Naturals, and Mineral Fusion brands.

Financial Results for H1 FY 2022

• BWX witnessed robust group underlying revenue growth of 26.5% as well as EBITDA growth of 26.2% vs pcp due to recent acquisitions as well as momentum in the USA segment.
• The company ended the period with robust balance sheet, supporting reinvestment for the longer-term growth.
• Notably, sales performance for the USA segment rose 12% due to the growth in brands Mineral Fusion (+33.3% vs pcp) as well as Andalou Naturals (+5.5% vs pcp) as consumer demand gained momentum.

Key Updates

BWX advised on 30 September 2022 that the audited full-year accounts for FY 2022 were anticipated to be released by October 2022 end. However, in the release dated 28^th October 2022, it has advised that this timeline has been extended. The release of audited accounts – including certain revenue recognition issues for FY 2021 as well as H1 FY 2022 and the likely impairment of intangible assets – is expected in mid-November 2022.

Considering this delay in the release of the FY 2022 audited accounts, the company has proposed to defer its AGM to after 30^th November 2022.

Key Risks

BWX’s activities expose the company to several financial risks. Also, the company is exposed to the risks related to the COVID-19 pandemic, unfavourable broader market conditions, changes in the consumer behaviour, etc.

Stock Information

In the release dated 30^th September 2022, the company has mentioned that its securities would remain suspended until the release of its audited FY 2022 results.

The last traded price of the stock was A$0.630 per share.

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

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

Note 2: The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

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