BWX (ASX:BWX) - CEO & Managing Director, Rory Gration
CEO & Managing Director, Rory Gration
Source: Rory Gration/LinkedIn
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • 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.

BWX by the numbers
More From The Market Herald
Flexiroam (ASX:FRX) - CEO, Marc Barnett

" Flexiroam (ASX:FRX) drives growth in FY22

Mobile data provider Flexiroam (ASX:FRX) has announced its financial results for the 12 months ending March…

" Kingsgate Consolidated (ASX:KCN) appoints CR3 to restart Chatree gold mine

Kingsgate Consolidated (ASX:KCN) has progressed activities for the restart of the Chatree gold mine in Thailand…
Green Technology Metals (ASX:GT1) - CEO, Luke Cox

" Green Technology Metals (ASX:GT1) receives final drilling results from Seymour

Green Technology Metals (ASX:GT1) has received the final assays from the phase one diamond drilling program…

" Arafura Resources (ASX:ARU) signs MoU with Hyundai

Arafura Resources (ASX:ARU) has signed a memorandum of understanding with South Korean automotive manufacturer Hyundai Motor…