AUS
NZ
UK
CA
USA
IND
Highlights:
- BWX reported a statutory EBITDA loss of AU$6.4 million in the financial year 2022.
- EBITDA loss during the year was AU$6.4 million.
- The company expects improvement in sales in the second half of the financial year 2023.
Beauty and personal care distribution company BWX Limited (ASX:BWX) on Monday (19 December 2022) shared the results for the financial year 2022 (FY22). In the 12 months, the company registered a profit attributable loss of AU$337 million and a statutory EBITDA loss of AU$6.4 million. In addition to this, the company has also shared its outlook for FY23.
Shares of BWX last traded at AU$0.630 per share.
Key highlights of financial results for FY22
- The company reported a statutory net loss after tax of AU$335.6 million.
- Statutory revenue stood at AU$198.3 million, up 8.3% from the previous year.
- EBITDA declined from AU$24.7 million in FY21 to a loss of AU$6.4 million.
- Operating cash flow during the year was negative AU$22.2 million. It includes working capital of AU$5.8 million, tax of AU$9.6 million and acquisition costs of AU$3.2 million.
- Inventory levels increased by AU$19.1 million over the previous year.
Outlook for FY23
During the second half of FY23, the company expects an improvement in sales. However, it expects to report operating loss during the first half of the year. BWX said that elevated inventory would affect the financial performance of the first half as in-store promotional activity will continue without generating associated revenue.
In FY23, the company expects revenue of AU$205 million to AU$230 million and EBITDA of AU$25 million to AU$30 million.
As reported, the net debt is expected to reach around AU$95 million as the group has managed the short-term liquidity challenges via working capital support from the existing lenders.
What is BWX doing to control losses?
According to ASX announcement, BWX has undertaken these steps to ensure a sustainable level of the cost base and assist in deleveraging its business to reduce its net debt:
- Cost-saving initiatives of AU$10 million per annum.
- Continuous inventory management.
- Organisational restructure to improve reporting and financial process.
- Strategic review of the company’s non-core assets, and the company is considering potential disinvestments also.
Management Commentary
Rory Gration, managing director and CEO of BWX Group, commented on the development,
Change in BWX’s board
In FY22, Steven Fisher was appointed as the non-executive director and new chair. Ian Campbell has retired as chair but remains with the company as a non-executive director.
As a part of the board renewal process, Fiona Bennett and Rod Walker have left the position of non-executive director.
