Hi guys, In this FY24 result, I don't think it is that wonderful...

Hi guys,

In this FY24 result, I don't think it is that wonderful as we all wish, but it is fair. DGL is a fair profitable company currently traded with wonderful price. We can still benefit from buying at this price.

During the webinar and reading through the reports, I have some main points to share, please correct me if I am wrong.

1. Operating Cash Flow is impacted by late crop protection breakout, and we should receive those payments now.

2. The inventory level has actually improved from 43.7 million 31st Dec 2023 to 39.2million 30th June 2024.

3. Frank doesn't seem to be fully integrated into the business yet, he didn't answer correctly for his first Q&A question. The financial result is out late is also because the shared admin they are trying to integrate. Hope to see him improve from AGM.

4. Depreciation increase is mainly from PP&E and Motor Vehicles. Logistics and Environment segments have higher % increase in Depreciation, which is likely from the Waste Liquid Treatment Plant and Warehousing investments. However, these investments haven't delivered strongly in FY24. We have extra 20% space in warehouse which are not fully utilized yet.

Some more information regarding Unanderra Liquid Waste Treatment Facility with the link below,
https://majorprojects.planningportal.nsw.gov.au/prweb/PRRestService/mp/01/getContent?AttachRef=SSD-8304%2120220831T004745.674%20GMT

5. A red flag for our environemnt segment, Simon mentioned ULAB reclycing capacities in whole Australia have doubled since Pre-Covid. This will likely make this part of business difficult to recover as competition intensifies.

6. Mt Isa plant is not yet confirmed its feasible profitability to scale similar investments in the future, it will take some time to confirm its yielding worth scaling the footprints. (of course, I personally believe they have already done the study before making this plant, but Simon is being careful with his words now.)

7. Simon mentioned the board is still discussing about share buyback, but they will consider carefully with capital allocations.

8. The team has actually done a decent job for cost management, and I feel it will improve operating expense further in FY25.

9. Simon mentioned FY25 earning will improve.

Overall, Chemical Manufacuring and Logisitcs are more stable and profitable business, but Environment Segment is the key for DGL's long future. They are investing heavily and they are also facing some challenges and uncertainties.

DGL is still a decent profitable business and investing for the growth.

Please share thoughts. Thank you.