Agree, the company is still a very long term hold, but I expect...

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14/02/23

10:41

Post #: 66231924
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Originally posted by madamswer: ↑

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:

View attachment 5058481

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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Agree, the company is still a very long term hold, but I expect there may be better entry points in the near future. Have sold out today after buying on the 23rd March 2020. No regrets

BRG Price at posting: $21.01 Sentiment: None Disclosure: Not Held
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0 Great analysis

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