Full Year 2024 Big River Industries Ltd Earnings Call Transcript
Key Points
- Big River Industries Ltd (ASX:BRI) has a strong geographical and segment diversity, with a significant portion of revenue coming from local supply.
- The company has seen growth in commercial volumes, driven by a strong project pipeline.
- Big River Industries Ltd (ASX:BRI) has a solid footprint across Australia and New Zealand, with Queensland forecasted to be a significant growth region.
- The company has made significant investments in safety initiatives, achieving notable milestones in workplace safety.
- Big River Industries Ltd (ASX:BRI) has maintained a strong balance sheet and achieved a high cash conversion rate of 98.2%.
- Group revenue for the year was down 7.7%, impacted by a soft residential market.
- EBITDA was down 36% from record highs, affected by volume decline and reduced operational efficiency.
- Gross profit declined by 12.4%, with gross margin down by 142 basis points due to lower residential activity and increased competition.
- Operating expenses increased by 4.1% in a macro inflationary environment.
- The residential market is expected to remain soft for the next 12 months, posing challenges for revenue growth.
Good morning, all. Thank you for joining us today. My name is Jon Lorente. I'm the CEO and Managing Director of Big River Industries. And joining me today is John O'Connor, our CFO. It is my pleasure to present the full year results for 2024. We will go through the business overview, business performance and strategy, and then I'll hand it over to John to go through the financial detail, and I'll wrap up at the end with the outlook for the business before we get to questions.
If we go on to slide 3 in the deck business overview, I'm sure you've all seen this slide before. I'll point out the main changes to our mix. One of the key strengths for Big River is our geographical and segment and supply chain diversity. Onto supply chain, we've seen growth in local supply this year to 64% of our revenue as we've consolidated purchasing across the Group with our local partners to deliver cost benefits. Supply availability has improved substantially both from our international and local supply partners.
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