Shares of BWX Ltd (ASX: BWX) fell 19% on Wednesday following the release of its half year financial report.
BWX is an Australian manufacturer and distributor of popular skincare and haircare products, such as Sukin.
Here are the key news events from BWX’s half year report:
- Revenue up 79% to $67 million
- Profit down 34% to $5.4 million
- A fully franked interim dividend of 3.25 cents per share
- Normalised EBITDA of $17.5 million, up 37% (What does EBITDA mean?)
According to its ASX filing, BWX’s Australian and Interntional division reported a lower result, primarily due to acquisition related expenses.
“Our recent acquisitions along with the continued organic sales growth in the business provided the Company with a near 80% growth in sales for the first half 2018 and further strengthens the platform to support the future growth in the business,” BWX CEO John Humble, said.
“This continued growth in the sales of BWX own branded product during the period has increased the Company’s underlying profits by 36.7%.” – Humble
During the half, BWX’s gross profit margin, which is the percentage of profit made from each dollar of sales before business related expenses are taken into account, fell from around 65% to less than 60%.
Looking ahead, BWX said it is prepared to put in a stronger second half to its 2018 financial year.
“In consideration of the above, and assuming no change in market conditions or corporate activity, the Company is pleased to provide EBITDA guidance in the range of $42m – 46m for FY18, representing an increase of between 60% – 74% on FY17.”
On Wednesday BWX shares were trading 19% lower at $5.82, according to Google Finance.
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