Ann: 1HFY2024 Investor Presentation, page-6

@Robert16,

These guys are masterclass profit smoothers.

Remember that this result has a $4.1m warranty provision reversal (which, in turn, followed the raising of a $5.4m provision in JH2023), so when they say "NPAT willbe XYZ", that's really a nothing statement until it can be reconciled with whatever warranty-driven smoothing of earnings has occured.

I'll wager the second-half result will also be hollow-logged with a nice big fat warranty provision, as is the custom in many second-half results in which the underlying earnings are embarrassingly strong:



(You don't want your customers thinking you are too profitable, do you?)

PS. I'm strongly suspect, given how strong the underlying earnings are, that the LYL directors would have preferred for the $4.1m provision that was reversed to remain in the earnings larder for a rainy day, but that the auditors wouldn't buy it. Just a little hunch I have.

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