Revenue growth of 8.8% is significantly high mark for DMP, compared to FY 2023 increase of 3.5%. So the growth story is alive in my mind, which is necessary for high PE valuation. When you consider they have done exceptionally well in ANZ, considered mature market for DMP. The new products introduction is going well. As they have mentioned DMP needs to roll out the same to other markets as mentioned by management.
Margin improvement is work in progress at this moment and I hope the raw material cost reduction and restructuring savings are on the way yet. NPBT is better than 2023 FY marginally. Cash flow is better now as the acquisition and other capital expenditure is decreasing, debt level are coming down. In the current higher interest rate environment this is a good thing. In my opinion there is turn around in revenue and more work to be done with margins. That is always bit of slow process in the food industry.
DMP Price at posting:
$57.30 Sentiment: Buy Disclosure: Held
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