Full Year 2024 Stealth Group Holdings Ltd Earnings Call Transcript
Key Points
- Stealth Group Holdings Ltd (ASX:SGI) achieved a record revenue of $159 million in FY24, up from $114 million in FY23.
- The company has a strong focus on nondiscretionary items, which make up 90% of their sales, providing resilience in various market conditions.
- Stealth Group Holdings Ltd (ASX:SGI) announced a maiden fully franked dividend with a 4% yield, reflecting strong financial health.
- The recent acquisition of Force Technology International is performing well and is expected to contribute positively to future growth.
- The company has a robust growth pipeline, with significant new contracts and plans to expand its store network and product offerings.
- The company closed several operations and stores, resulting in a revenue reduction of nearly $11 million annually.
- Despite the positive outlook, the company faces challenges from rising interest rates and inflation, which could impact consumer spending.
- The integration of multiple acquisitions over the past few years presents ongoing challenges in terms of maintaining synergies and reducing operating costs.
- The company’s share price, although improved, is still considered undervalued compared to peers with similar or lower profitability.
- There is a significant reliance on the successful launch and market acceptance of new private label products and services, which carries inherent risks.
Good morning, everybody, and welcome to the 2024 full-year results and briefing presentation for Stealth Group Holdings. Today is September 5, 2024. As an Australian distribution company, we're obviously quite excited to explain and uncover our business during the course of today. Organizing a couple of technical things, I think we're right to go, yes, very good, okay. Work my way through this. There we go.
So as a Stealth Group, we are celebrating our 10 years since our foundation. So we've achieved a lot from the startup company and today with an underlying revenue of $159 million of sales as an Australian public listed company. We're a large company. We distribute a whole host of leading brands that are known not only for quality, but we've evolved our business today for products that are really made for everybody and that they're used every day. And the beauty about that is 90% of the products that we do sell are nondiscretionary items. And because of that, obviously, we have
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