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Departed BWX MD saved $7m by selling before the downgrade

https://www.afr.com/brand/rear-window/depar...20181029-h1782n

 

29 October 2018

FY19 Trading Update & Outlook

Melbourne, Australia ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ BWX Limited (ASX: BWX) Ahead of the AGM, Wednesday 31

October, BWX today announces that it expects normalised earnings before interest and tax

(EBITDA) for the 2019 financial year (FY19) to be broadly in line with normalised FY18

EBITDA of A$40.3m. The company also expects a significant skew in earnings to the second

half, which is expected to account for ~70% of FY19 EBITDA.

 

BWX CEO and MD, Myles Anceschi, comments ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“There has been significant disruption and

loss of business momentum at the beginning of FY19 due to the now failed management

buyout (MBO) process. The MBO diverted significant management time and resources, and

several key projects were delayed resulting in an impact on the business:

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ ERP program; An extended delay in the return to normal operations following the ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“goliveÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ

date on 1st July 2018. This program was scheduled to return to normal

operations in mid to late August, however not occur until early October, resulting in

lost domestic sales and materially higher operational costs for the Sukin and

Nourished Life business units;

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Multi-brand selling platform roll-out delayed significantly, resulting in lost sales;

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Key personnel appointments for the leadership teams in APAC and North America;

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Mineral Fusion rebranding project deferred by three months to 1st Jan 2019

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Relocation of the Nourished Life Warehouse and the consolidation of 4 USA

Warehouses to 1 also saw some temporary impacts on sales and costs.

 

All of these initiatives are vital to sustain future growth and to generate cost efficiencies and

operating leverage. Encouragingly, all projects are now back on track and essentially

complete, with the exception of the North American roll out of the ERP which will occur in

4QFY19.

 

Current short position @ 23rd October, 2018 - 12.31%. In No.7 on Shortmans Top Shorted Stocks list

https://www.shortman.com.au/stock?q=bwx

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Ouch - SP down 43.21% following trading update ann - shorters winning on this one https://www.shortman.com.au/stock?q=bwx. Departed, sold out MD also

 

BWX LIMITED ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ TRADING UPDATE ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ 20 DECEMBER 2018

Melbourne, Australia ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ BWX Limited (ASX: BWX) today provides a trading update based on

the unaudited year to date management accounts to 30 November 2018.

 

BWX now expects normalised earnings before interest, tax, depreciation and amortisation

(EBITDA) for the 2019 financial year (FY19) to be in the range of $27m-$32m and EBITDA in

the first half to be around $7.0m. BWX had previously guided to normalised EBITDA for FY19

to be broadly in line with normalised FY18 EBITDA of $40.3 million, with a skew of

approximately 70% to the second half.

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BWX is raising $50 million through a placement ($40 million) and share purchase plan ($10 million) to fund the expansion of its business, including the reshoring of key manufacturing processes previously done by a third party in the United States.

 

It will build a new manufacturing facility in Australia with four automated, high-speed production lines in a bid to triple the throughput compared with its existing manufacturing site.

 

Chief executive Dave Fenlon said the project would involve greater automation, redeployment and upskilling to enhance efficiencies across staff and production and reduce costs on a per unit basis.

 

BWX is a fine example of a company with manufacturing capability being able to pivot quickly because of COVID19. It was able to switch to the production of hand sanitiser within 21 days. It quadrupled its output of hand wash.

 

Fenlon says the reshoring of BWX production of cosmetics will enhance company control over the end to end supply chain and assist with guaranteeing the continuity of supply.

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BWX earnings before interest, tax, depreciation and amortisation for the financial year that ended in June grew 11.5 per cent to $34.5 million and the company said on Friday it will acquire a majority stake in Go-To Skincare.

 

Results for the period included a 3.4 per cent increase in revenue to $194.1 million. Earnings on a per share basis increased 44.9 per cent to 17.1¢ and the company will pay a fully franked 3.1¢ per share dividend.

 

The company also announced on Friday an agreement to acquire 50.1 per cent stake in Go-To Skincare, a business founded eight years ago by Zoe Foster Blake, an author and wife of Hamish Blake, the radio presenter.

 

BWX will pay $89 million for the majority position in the company and values the business on an enterprise value of $177 million. Go-To generated $36.8 million in revenue for the financial year and $11.6 million in EBITDA.

 

The deal will be funded by a $85 million institutional placement and $15 million in a share purchase plan and remains subject to closing conditions.

 

 

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On 8/27/2021 at 9:59 AM, nipper said:

BWX earnings before interest, tax, depreciation and amortisation for the financial year that ended in June grew 11.5 per cent to $34.5 million

... the deal will be funded by a $85 million institutional placement and $15 million in a share purchase plan

raise money at more than $3 just a while ago. Now the latest Update has sent SP in a spin, as low as $1.36, down some 20%, today. Rebounded a bit, and now $1.55

Higher revenue (range of $240 to $250m for FY22, versus $194.3 in FY21.), all smiles, firing on all cyclinders .... but ....

....Underlying EBITDA is expected to be in the range of $34 to $37m for FY22, versus $34.5m in FY21. This reflects the impacts of a higher operating cost base, and recent acquisition investments not yet meeting growth expectations for 2H22. Also reflected in this forecast is the impact of ongoing freight and supply chain costs driven by COVID, which remain substantially higher than the prior corresponding period.
 

 

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