Ann: Half Year Ended 31 December 2022 - Appendix 4D, page-2

Result be best described as "workmanlike-to-resilient".

The Lelit acquisition and significant investment in Working Capital (Working cap at Dec 22 balance date was a whopping $550m) has left the balance sheet looking like it hasn't looked before:




Resilient operating profit result (+8%) under the circumstances, but the increased interest line due to the significant borrowings resulted in a flat bottom line.

While the market might become a bit animated about the above dynamics, expect very strong cash flows in the current half (always seasonally far stronger than Dec halves, but this time it will receive the added boost of some of the working capital unwind).

All up, another reliable BRG result, recorded during highly unusual circumstances.

In terms of making money out of the stock, while the outlook for the remainder of the year might look pleasing at the operating line (implying ~8% EBIT growth), the added interest impost will result in the bottom line for FY2023 being flat on FY2022.  

And I'm not sure that a P/E approaching 30x offers scope for much share price upside.

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