"I actually thought we would be dropping on that announcement"
Given the way that update has been laid out there is plenty of scope for misinterpretation.(mainly due to the normal June half vs December half seasonality).
While JH25 Underlying EBITDA is indeed 10% up on DH24, against the more relevant comparator, i.e., previously corresponding period, i.e., JH24, JH25 is down even more (~19%) than DH24 was on its pcp (-16%).
It's now a business with an EV of somewhere around $270m, which is supported by around $20m of EBIT, so 13.5x EBIT.
They are going to have to do a lot on the cost-out front in FY2026 for that rather rich valuation multiple to be chewed down to a more appropriate level.
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DGL Price at posting:
40.0¢ Sentiment: None Disclosure: Not Held
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