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Highlights
- BSL reported a 6.33% YoY decline in revenue from continuing operations, falling to AUD 17,055.30 million in FY24.
- Total non-current assets increased by 4.4% YoY to AUD 9,581.50 million in FY24.
- BSL lowered its EBIT forecast for 1HFY25 to AUD 270-310 million, down from the previous estimate of AUD 350-420 million.
BlueScope Steel Limited (ASX:BSL), an Australian steel producer, operates across various regions. For the financial year 2024 (FY24), BSL reported a drop in revenue from continuing operations by 6.33% YoY to AUD 17,055.30 million, compared to AUD 18,206.90 million in FY23. This decline was primarily attributed to reduced selling prices and lower dispatch volumes. However, the impact was somewhat offset by the favorable effects of a weaker Australian dollar exchange rate.
At the end of FY24, BSL’s total non-current assets increased by 4.4% YoY, totalling AUD 9,581.50 million compared to AUD 9,177.30 million in FY23. The increase in non-current assets was due to an increase in certain categories, including property, plant, and equipment, although increases in inventories and operating intangible assets contributed to some growth.
Despite the decrease in revenue, BSL's asset turnover ratio remained at 1.08x, significantly higher than the industry median of 0.57x. The company's lower debt-to-equity ratio of 0.07x in FY24 also positioned it better than the industry median of 0.16x.
Business Update and Director’s Share Acquisition
BSL also shared a business update on 13 January 2025, revealing that its director, Jennifer Lambert, has increased her ownership in the company by acquiring 932 ordinary shares on 10 January 2025.
Outlook for 1HFY25
BSL has revised its earnings guidance for 1HFY25. The company now projects underlying earnings before interest and tax (EBIT) to range between AUD 270 million and AUD 310 million, a reduction from the earlier forecast of AUD 350 million to AUD 420 million. The adjustment reflects ongoing operational challenges and market pressures in the regions where BSL operates.
Share performance of BSL
BSL shares closed 1.11% higher at AUD 20.98 per share on 30 January 2025. In the last one year, BSL shares have experienced a drop of nearly 11.14% and in the past month, the share price has increased by 12.25%.
52-week high of BSL is AUD 24.25, recorded on 10 April 2024 and 52-week low is AUD 18.60, recorded on 31 December 2024.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 30 January 2025. The reference data in this report has been partly sourced from REFINITIV.
Disclaimer
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