Lynch Group Holdings Limited (ASX:LGL) Announces 1H FY25 Financial Results
Financial Performance
Lynch Group Holdings Limited reported a 5.3% increase in revenue for the first half of FY25, reaching $196.5 million. However, EBITDA slightly declined by 0.8% to $16.5 million. The EBITDA margin stood at 8.4%, down from 8.9% in the previous year. The company declared an interim fully franked dividend of 5.0 cents, up by 1.0 cent compared to 1H FY24.
Segment Performance
In Australia, revenue grew by 3.9% to $163.7 million, supported by strong demand for supermarket floral products and the launch of new brands. EBITDA in this segment increased by 7.2% to $14.6 million, with an improved margin of 8.9%. Conversely, the China segment experienced a significant revenue growth of 19.7%, reaching $43.6 million, driven by higher tulip and export volumes. However, EBITDA in China declined by 36.8% to $1.9 million due to weak domestic consumer confidence and rose pricing pressures, resulting in a margin of 4.4%.
Outlook
Lynch Group projects full-year FY25 group revenue growth of approximately 6%, driven by strong performance during key event periods such as Chinese New Year, Valentine’s Day, International Women’s Day, and Mother’s Day. The company expects the EBITDA margin to remain similar to the previous year, with further investments planned in automated bouquet making lines to enhance margin improvement. Additional guidance on trading conditions will be provided following the Mother’s Day event in May 2025.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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