DGL.ASX

[Ricky Bobby]

Another acquisition today. Looks like 2023 isn't going to slow DGl down. Purchased with cash which I like.

[lorraina]

The acquisition is expected to be immediately EPS
accretive, pre-synergies.

[winner (n)]

The acquisition is expected to be immediately EPS
accretive, pre-synergies.

You'd hope it would be eps accretive

No new shares

Maybe a little more interest on increased borrowings .... if acquisition doesn't generate enough profit to cover that interest cost they really have stuffed up eh

Sounds good though that EPS accretive doesn't it when all it means they are going to make a few more bucks

[lorraina]

This acquisition will not only provide DGL with an additional 100 trucks and trailers, thereby
substantially increasing the company's fleet, but it also allows for the utilisation of
Nightingale's strong national transport capability as a collection network for the
backloading of lead and other recyclable materials to DGL's other facilities. Furthermore,
it opens the door for DGL to manufacture and deliver chemicals to Nightingale's existing
customer base.
"The acquisition of Nightingale expands our national logistics reach, allowing us to provide
true business-to-business scale and capacity while enhancing DGL's offering to target
industries," said Simon Henry, Founder and CEO of DGL.

[Sideshow Bob]

$70-72 EBITDA for the year. Last year depreciation was $17m (this year probably higher with more acquisitions?), finance costs $2.1m (this year higher with more borrowings/higher rates), and tax was $14m (which will vary). Using last years figures comes to $37.9m net.

Last year net was $28m, so probably will be something similar this year. Roughly 10cps earnings, or a PE of 15 (or 14.5 as dropped this morning to $1.45).

Not too exciting but more exciting than MFB! 

[Shareguy]

Share price encouraging. Nothing new that I'm aware of.

[Ricky Bobby]

Yeh it did this a couple months back, then dropped back... not getting to excited at this point!

[Ricky Bobby]

A couple of big orders on the buy side... could be a good end to the week!

[Shareguy]

NPAT of $10.4million(+22%versuspcp)


UPDATED FY23 GUIDANCE*
Original AGM EBITDA guidance
$70.0 - $72.0 million
EBITDA impact of recent acquisitions1
~$1.5 million
    Updated underlying EBITDA in the range of
$71.5 - $73.5 million
Earnings expected to be skewed towards second half
~40% H1 / ~60% H2

I think a good result as expected

[Ricky Bobby]

It's pretty good reading! Be interesting to see how market reactes...

[Shareguy]

This has turned out to be a great punt, so far.  Good to see Henry buying another $100k of shares.

[Ricky Bobby]

He's been shopping again!

[kiwi2007]

Acquisition of Triox Boosts DGL's agriculture market and chemical manufacturing
capabilities.
� DGL Group Limited acquires 100% of Triox Pty Ltd ("Triox") a chemical toll manufacturing
company in agriculture and pest control.
� The acquisition price of $5.5 million will be funded by cash, with DGL's net debt position
remaining conservative.
� Triox is an Australian owned company supplying the agriculture and pest control markets
since 1995, with vast experience in chemicals, manufacturing, packaging, and retail.
� DGL group see this as a long-term strategic acquisition that provides DGL with a platform of
further growth into the agricultural sector.
� Triox has strategic short- and long-term growth strategies in place that will be accelerated
with the DGL acquisition.
� DGL see an extensive opportunity in geographic expansion for Triox utilising DGLs extensive
network and customer base allowing for a smooth integration.
� Existing Triox sites and assets will allow for DGL to utilise capabilities and capacity in
supporting enhanced efficient service offerings.
� The transaction is subject to limited conditions precedent and expected to be completed on
1 June 2023.
DGL (ASX: DGL) today announces it has entered into an agreement to acquire Triox, a
manufacturer and supplier of pesticides for agricultural and home garden uses.
The acquisition price of $5.5 million represents 4.6 x EBITDA. The acquisition will be funded
by cash, with DGL's net debt position remaining conservative.
DGL's Executive Director and General Manager Robert Sushames said: "Acquisition of Triox
is the strategic next step in DGL's expansion within the chemical manufacturing, agricultural
and home and gardening markets. DGL have been successful in organic growth and required
further capacity that Triox will enable us to utilise effectively.
We see an ability to not only utilise Triox existing sites, locations and assets for further
manufacturing capability but importantly opportunities to use our customer base and
expertise in accelerating Triox's strategic plans in the niche sector.
Triox have been successful in market penetration and DGL will be able to assist in
acceleration of their short- and long-term strategic goals in the market including launching
premium products".
 
DGL have been successfully offering industry leading capabilities in contracted manufacture
of products and see Triox being able to further grow its service offering and expand its
customer base.
About Triox
Triox is a manufacturer and supplier of pest control products with over 25 years' experience in the
agriculture and home and garden sectors in Australia and New Zealand. Triox provides to the market
expertly formulated, tested and proven high quality products and provides toll manufacturing
services ranging from liquids to granular, powder and pelletised products.
Triox's growth strategy involves a combination of short-term and longer-term initiatives that focus
on expanding market share, geographic footprint, and factory throughput capacity.

[winner (n)]

Hadn't looked for a while but saw share price in 120s

Was over 4 bucks not that long ago

What's going on ...or gone on?

[Ferg]

What's going on ...or gone on?

If the financials can be maintained or improved, it's a good buying opportunity.