Ann: Acquisition of Australian Petro Chemical Storage, page-295

DGL's Logistics division has increased in size from $22m per half year at 6.97% EBIT margin to close to $60m per half year at 12% EBIT margin. This is in the time frame of 3 years - 3x in 3 years. Yet, each time there's an acquisition, we automatically throw a fit.

Chemical Manufacturing had a one-off year in 2022 due to covid factors, where revenue surged to $154m (from ~$75m per half) for the 6-month period to 30/6/2022. Yet, we are now within reach of these levels with revenue expected to be $140m. Margins have been consistent at ~12%, like a steady ship. Yet, what do we do each time there's an ASX announcement of an acquisition? We automatically throw a fit.

We bi*** about organic growth and acquisitions when things aren't as severe as you all paint it.

The only weak link is Environmental Services, where the top-line revenue has been essentially flat, but EBIT margins have declined from 16% to ~6%.

Stop whinging about organic growth and acquisition growth. Whinge about the Environmental Services division, as that is the only rational (and factually accurate) complaint.