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- BWX (BWX) expects to deliver “strong” underlying revenue growth in its FY22 forecast release
- The company predicts underlying revenue to be between $240 and $250 million for FY22, versus $194.3 million in FY21, driven by the performance of Sukin and Mineral Fusion
- Underlying earnings before interest, taxes, depreciation and amortization (EBITDA) expects to be in the range of $34 to $37 million for FY22, versus $34.5 million in FY21
- The EBITDA reflects the impacts of a higher operating cost base and recent acquisition investments not yet meeting growth expectations for second half of 2022
- The company, however, remains confident that a new manufacturing facility will be a key competitive advantage, unlocking capacity and margin in FY23
- BWX shares are down 19.6 per cent, trading at $1.50
BWX (BWX) is expecting to deliver “strong” underlying revenue growth in its FY22 forecast released today.
The company predicted underlying revenue to be in the range of $240 to $250 million for FY22, versus $194.3 million in FY21 which is said to be driven by the performance of Sukin and Mineral Fusion but impacted by the underperformance of its digital businesses.
The Sukin brand health, however, is reportedly “strong and outperforming” the combined category growth for skin, hair and body at 25 per cent versus the broader category at 3.4 per cent for the quarter.
Underlying earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to be in the range of $34 to $37 million for FY22, versus $34.5 million in FY21.
This reflects the impacts of a higher operating cost base due to people, marketing and recent acquisition investments not yet meeting growth expectations for second half of 2022, said the company.
“BWX’s in-store revenue performance has accelerated from 1H22 and the business is supported by strong brands and an ability to scale distribution in key markets and sales channels,” CEO Rory Gration said.
“Initiatives for reducing our cost base are a key priority, supported by improved visibility and cost controls to ensure sustainable revenue growth.
“With less distractions across the business, the team is focused on streamlining and simplifying our operating model to ensure BWX can continue to grow in a sustainable and profitable way.”
The company, however, remains confident that a new manufacturing facility will be a key competitive advantage for the Group, unlocking capacity and margin in FY23.
BWX shares were down 19.6 per cent, trading at $1.50 as of 12:40 pm AEST.
