Lindsay Australia achieved record underlying EBITDA of $91.1 million as it announced the results of the financial period ending 30 June 2024.
Despite significant disruptions in the second half due to adverse weather, multiple rail outages and challenging macroconditions, the business reported revenue of $717 million an increase of 6 per cent thanks to the positive performance of its transport division’s metro operations.
Transport’s underlying EBITDA increased $2.2 million or 2.2 per cent to $103.3 million reflecting robust growth in metro operations and the rail division despite the considerable disruptions and challenged performance in horticulture sectors.
The division also bolstered its earnings base with new and existing blue-chip customers who have provided a steady supply of food staples.
Strategic investments continued to expand the division’s network and asset portfolio, enhancing Transport’s market leading refrigerated capabilities and positioning the division for future growth with greater geographical and customer diversification continuing to reduce market cyclicality including the successful integration into the business of WB Hunter which contributed $3.3 million in underlying EBITDA over 11 months.
The result highlighted the resilience of Lindsay’s diversified operating model, particularly in navigating the challenges of the second half that included over 40 days of multiple rail disruptions on the East/West line and prolonged wet weather, which had the largest impact on Queensland growing regions.
While the wet weather reduced near-term volumes, it is expected to lead to improved conditions for future growing seasons.
In Q4 FY24, Lindsay launched an enterprise-wide transformation program to leverage the company’s size and scale to improve efficiency, increase utilisation, and reduce costs.
A dedicated project team, led by a newly promoted General Manager, has been established to drive this initiative forward.
“This is a solid result from Lindsay Australia’s core operations. The result reflects the benefits of operating in different geographies, modes, customer segments, and market sectors,” said Lindsay Australia CEO, Clay McDonald.
“Trading conditions have been challenging however, our exposure to the staple refrigerated food sector, the integration benefits of Rural and Transport, and our renowned delivery performance have created value as suppliers focus on ensuring goods are on the shelf to retain customers and grow sales,” he said.
“The recent wins with blue-chip customers are a direct result of the investments we’ve made in our business over the past several years.”
In a statement McDonald said Lindsay Australia had built a platform with additional headroom and capacity, positioning it for continued growth, with operating leverage expected to come through in future years.
While trading conditions were anticipated to remain similar to FY24 he acknowledged the uplift of Rural sales in the second half and the strong finish of the Transport division in Q4 was positive after it had experienced a three-year low in quarter three.
“The year also reflects the consolidation of three years of significant growth for the business with underlying EBITDA increasing 15.3 per cent CAGR from FY21,” said McDonald.
“Lindsay is larger, better resourced, more resilient, and positioned strongly to continue capturing marketopportunities as we move forward.”