DGL Group shares climbed 10.9% after the trans-Tasman chemical maker and distributor raised its earnings outlook after its recent buying spree.
The dual-listed company expects to report revenue of A$343 million in the June financial year and earnings before interest, tax, depreciation and amortisation of A$54m. That’s up from its forecast for revenue of A$209.7m and ebitda of A$29m in its initial public offer prospectus in May last year.
DGL held off adjusting its June 2022 forecast at last year’s annual meeting in December, saying at the time that a series of acquisitions would boost ebitda by A$15m but it would provide guidance in its first-half result.
Among these acquisitions were initiatives focused on delivering growth in the automotive chemical markets and agricultural and water treatment markets.
The company today said net profit more than doubled to A$9m in the six months ended Dec 31. First-half ebitda jumped 139% to A$23m as revenue climbed 182% to A$143m.
Chief executive Simon Henry said the “outstanding” results were driven by “favourable trading and climatic conditions across the group and the successful integration of the acquisitions completed over the reporting period”.
DGL shares advanced 32 cents to $3.27 in early afternoon trading on the NZX. The shares were sold at $1 apiece in an initial public offering in May last year.
The company said it would report its audited first-half result on Feb 25.