ALS (ASX:ALQ) reported underlying revenue of $1.46 billion for the six months ended September 30, 2024, up 14% year-over-year. Growth was driven by solid performance in the Life Sciences division, which saw revenue rise 25.6%, offsetting weaker conditions in the Commodities division.
Statutory net profit after tax (NPAT) fell 5% to $126.8 million due to acquisition-related integration costs, a strengthening Australian dollar and modest global mineral exploration. The underlying NPAT, which excludes one-off items, fell 3.9% to $152.3 million. The group has declared an interim dividend of 18.9 cents per share, partially franked at 30%, representing a payout ratio of 60% of underlying NPAT.
Based in Brisbane, ALS is a company that provides testing and analysis services in sectors such as environmental science, food safety, pharmaceutical research and mining. In its Life Sciences division, ALS conducts tests to detect environmental contaminants, ensure food quality and support pharmaceutical development. Its Commodities division focuses on analyzing mineral samples for mining companies, assisting in exploration and production.
CEO and managing director Malcolm Deane highlighted the company’s adaptability: “The group has delivered resilient financial results, driven by strong margins in minerals and solid growth in the environmental and food sectors, demonstrating our strategic positioning in a complex”.
The Life Sciences division benefited from strong organic growth and acquisitions in the United States and Europe, contributing $928.5 million to revenues. The Commodities division faced challenges, with revenue falling 1.7% to $535.7 million due to fluctuating exploration activity and adverse currency movements.
ALS’s balance sheet remains strong, with $375 million in liquidity and continued improvements in cash generation. Recent acquisitions, including York and Wessling in the Life Sciences division, are on track for integration and Nuvisan’s transformation program has delivered €13 million in cost reductions to date, with a target of €25 million euros by fiscal year 26.
Shares closed 5.73% higher at $15.50.