The facts on DGL - 2H FY24 outlook, page-147

Hi guys,

With a growth business, I personally focus on EBITDA margin, EBITDA and Net Debt/EBITDA Ratio.

EBITDA is the operating profit of a business, and it should be growing to prove acquisition synergies and organic growth investment work. EBITDA margin is to show how efficient the business is operating.

Net Debt ratio being controlled is important, because we don't want to see borrowing too much money and invest inefficiently to boost EBITDA.

ROE and ROIC wise, it will continuously be low until the business reaches scale and slows investment.

For Bell Potter's estimation, it is in line with DGL's announcement. DGL already mentioned on the 1H 24 result that FY 24 sales will be broadly in line with FY 23 and net profit will be lower. DGL has not updated anything, and Simon said it is likely to be consensus what the market expects. 250M sales of 14% underlying EBITDA margin is 35M, and hoping that sales hit 300M with 14% margin, then underlying EBITDA is 42M. So my estimation is FY24 underlying 70M EBITDA is a very good result, Net Profit around 16M.

And I have a feeling Share Buy-Back can be happening again. Share price wise, I don't expect we will be AUD 1 per share until 1H 25.

Please share with thoughts.