DGL lifts first quarter earnings after FY26 loss
Por Jon CuthbertPontos principais
- DGL reported higher first-quarter operating earnings following cost cuts and operational restructuring across its sites.
- The company's stock rose 16.98% following the earnings release after a challenging fiscal year 2026.
- Management is prioritising internal efficiency, technology upgrades, and asset utilisation over new corporate takeovers.
DGL Group (ASX:DGL) reported an increase in first-quarter operating profit following a difficult fiscal year 2026, where statutory losses reached $40.2 million.
The quarterly recovery follows a 4.8% drop in annual revenue to $457.9 million and a 20.7% decline in underlying earnings before interest, tax, depreciation, and amortisation to $41.3 million last year.
"Their appointments represent an important step in strengthening the Board’s industry expertise as we continue to focus on operational performance, financial discipline and delivering sustainable long-term value for shareholders," said DGL CEO Simon Henry.
To lower overhead expenses, the group sold its Laverton battery facility, trimmed costs at Unanderra, and is replacing over 30 legacy IT programmes.
Following the announcement, the DGL share price was up 16.98% at $0.31.
Operational changes follow major board shifts, including the appointment of two directors alongside a voluntary salary cut for the chief executive from $700,000 to $150,000.
The business aims to increase production throughput across its expanded 120,000-tonne network rather than pursuing further corporate acquisitions.
