DGL Group Says Fiscal 2025 Unaudited Revenue to Be Slightly Higher Year-Over-Year; Shares Hit All-Time Low

MT Newswires Live
06 Jun

DGL Group (ASX:DGL) said its unaudited revenue for the second half of fiscal 2025 is projected to be broadly in line with the first half, and the fiscal-year revenue is expected to be slightly higher year-over-year, according to a Friday Australian bourse filing.

Underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) in the second half of fiscal 2025 are expected to be 5% to 10% higher than in the first half. Fiscal 2025 EBITDA is expected to be 15% to 20% lower than fiscal 2024.

The company said its AdBlue business declined as margins normalized following market disruptions in recent years, and due to increased competition. To address these margin pressures, the firm combined its AdBlue production with its crop protection production operations in Victoria and Western Australia.

It plans to relocate out of two warehouses in South Australia and Western Australia over the coming months as a further cost reduction measure. It ceased operating its lead acid battery recycling plant in Victoria due to increased competition raising the cost of acquiring used lead acid batteries.

The company is also undertaking a major systems transition during the year with the installation of new group-wide systems covering ERP and finance, as well as logistics management, the filing said.

DGL Group's shares fell nearly 4% in recent trading on Friday, earlier hitting an all-time low.

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