Lindsay Australia Limited (LAU), the parent company of Australia’s largest multi-modal refrigerated logistics provider Lindsay Transport, has released its FY24 results, with a record underlying EBITDA headlining a strong financial year for the company.
Despite citing challenges in the second half of the year including adverse weather conditions, multiple rail outages and challenging macro conditions, LAU recorded an EBITDA of $92.1 million, with like-for-like operating revenue also growing six per cent to $717 million.
Last year’s $34.6 million company acquisition, WB Hunter, was fully integrated into operations and provided $3.3 million in EBITDA over 11 months of operations.
This increase in revenue has also brought about a strong increase in the number of full-time equivalent (FTE) employees working throughout the company, with LAU boasting a 16.3 per cent increase to 1853 FTEs.
Lindsay Australia CEO Clay McDonald says the strong financial results have come as a result of the company’s diversified operating model.
“This is a solid result from Lindsay Australia’s core operations,” McDonald says. “The result reflects the benefit of operating in different geographies, modes (road and rail), customer segments and market sectors.
“Trading conditions have been challenging, however our exposure to the staple refrigerated food sector, the integration benefits of Rural and Transport, and our renowned delivery performance have created value as suppliers focus on ensuring goods are on the shelf to retain customers and grow sales.
“This year also reflects the consolidation of three years of significant growth for the business with underlying EBITDA increasing 15.3 per cent CAGR from FY21.”
Due to its increased size, LAU has launched an enterprise-wide transformation program to improve efficiency and reduce costs.
Despite the outcomes of the transformation not set to contribute until late FY25, McDonald anticipates a similar upcoming 12 months for LAU.
“We expect trading conditions to remain similar to FY24,” he continues.
“Rural sales have lifted in the second half, and our Transport division finished the year positively with improved demand in quarter four after experiencing a three-year low in quarter three.
“Lindsay is larger, better resourced, more resilient, and positioned strongly to continue capturing market opportunities as we move forward.”
Key figures for LAU’s FY24 include:
- Operating revenue of $804.4 million, up 18.9 per cent.
- Underlying EBITDA of $92.1 million, up 2.1 per cent.
- Underlying NPAT of $30.4 million, down 17 per cent.
- Net debt of $106.9 million, down 0.3 per cent.
- LTIFR of 18.8, up 68.9 per cent.
- Net leverage ratio of 1.16x, down 2.4 per cent.
- ROIC of 20.2 per cent, down 18.6 per cent.
- Underlying EPS of 9.7 cps, down 19.4 per cent.
- Full year dividend of 4.9 cps, no change.
- FTEs of 1853, up 16.3 per cent.
For the full LAU ASX announcement, click here.
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