BINGO Industries Limited (ASX: BIN)

FY20 Full Year Results

BINGO delivers a solid result in a challenging market with a statutory profit of $66 million, up 196%

BINGO Industries Limited (ASX: BIN) (“BINGO”) on 25 August 2020 announced its full year results for the 12 months ended 30 June 2020. Statutory NPAT was up 196% to $66 million, underlying revenue was up 21% to $486.7 million and underlying EBITDA was up 41% to $152.1 million.

(Chart source: TradingView)

• Improved year-on-year safety performance with LTIFR of 0.4, down from 0.8 in FY19.
• Significant progress on sustainability initiatives including responsible sourcing program; achievement of diversity targets and commitment to 100% renewable electricity at all BINGO facilities by FY25.
• Pro-active COVID-19 mitigation strategy has helped limit the impact; focused on protecting the health and safety of our people, the continuity of our service and the preservation of cash flow.
• Solid financial performance in a challenging COVID-19 environment which helped deliver a 31.3% Underlying EBITDA margin, a 440-basis point improvement against the Prior Corresponding Period (“PCP”).
• Balance sheet strength maintained with strong capital management and cash conversion of 106.9% and underlying operating free cash flow up 37.4% to $160.1 million. Our total leverage ratio reduced by 23.1% to 2.0 times.

 

(Graphic Source – Company Reports)

• Network investment well advanced with installed network capacity of 4.6 million tonnes per annum. This additional network capacity of 35-40% will support future growth with no new investment required.
• BINGO is strong through the cycle business. Our vertically integrated network, scale, available capacity and low-cost base makes the company very resilient. We are well positioned for growth over the medium-term due to structural, regulatory and anticipated market tailwinds.
• The Board has declared a final dividend of 1.5 cents with a record date of 1 September 2020 and payment date of 8 October 2020; bringing total FY20 dividends to 3.70 cents, broadly in line with FY19. (Data Source – Company Reports)

 

 

Veye’s Take

BINGO delivered a solid result in a challenging market, Its underlying EBITDA was up 40.8% to $152.1 million and the underlying EBITDA margin was 31.3%, exceeding its long-term target of 30% a year earlier than forecast. During the year the Company increased its network capacity to 4.6 million tonnes per annum across its key markets. BINGO network capacity has increased to 4.6 million tonnes per annum with significant additional capacity supporting future growth. The stock is moving above its MAs on both daily and weekly t/f. though the loss of momentum could slow it. In the long term, it can have the potential of growing strongly. Latest "Buy" on “BINGO Industries Limited” at the price of $1.625 was given on 14 March 2019. It has already grown by more than 55% since then. Veye maintains a "Hold" on “BINGO Industries Limited” at the current price of $2.52