Gale Pacific forecasts sustained growth after robust 1H FY25 results
Outdoor fabric and sunshade maker Gale Pacific (ASX: GAP) remains confident it will continue to deliver growth and value creation through FY25 and beyond.
The company said that, supported by a robust operational foundation and new product and market opportunities, it will maintain momentum with EBITDA guidance of $18 million to $20m.
Those forecasts come after a first half in which the company achieved an 18% increase in revenue to $90.7m.
Earnings growth
Gale also recorded a $3.1m EBITDA increase to $5.6m compared to the previous corresponding period (pcp), which was in line with guidance.
However, the company’s net cash from operating activities moved slightly into the red due to increased working capital expenditure to support second-half growth initiatives.
Increased debtor balances from higher revenues also contributed to the decline from $19.6m in the pcp to negative $2.4m.
Encouraging result
“We are encouraged by our performance in the first half of FY25,” chief executive officer Troy Mortleman said.
“Our Australia / New Zealand business benefited from strong retail momentum and increasing demand for coated fabric in grain storage.”
“Our Developing Markets segment showed exceptional growth, particularly in the Middle East as we grew share in Saudi Arabia and maintained positive revenue and margin growth in the UAE.”
Americas a highlight
“The highlight of the period was the outstanding performance in the Americas, where share growth and new customer wins drove meaningful gains through expanded range placements within existing customers.”
“Alongside securing distribution with new retailers that will commence across the second half of the year, Gale is well positioned for continued growth in H2 FY25 and beyond.”
Gale’s principal activities involve the marketing, sales, manufacture and distribution of branded screening, architectural shading and commercial agricultural/horticultural fabric products to domestic and global markets.
Increased product placements
Gale recorded share gains in the US through increased product placements with existing retail partners, together with continued growth in the commercial architectural shade segment.
In Australia, the company reported record sales at Bunnings during December.
Coated fabric volume also increased, partly driven by share gains in the grain storage market.