• Revenue down 3.3%, but up 8% on 2H FY24
• Gross profit margin improved 76 bps vs 2H FY24
• EBITDA margin of 7%, up 17.5% on 2H FY24

Big River Industries Limited (ASX: BRI) announced its results for the Half Year ending 31 December 2024 (1H FY25). The Group reported revenue of $211.5m, down 3.3% on the prior corresponding period (pcp) and 9.0% down on a like-for-like basis, excluding the SLQ acquisition. However, revenue was up 8.0% on 2H FY24, potentially indicating a level of market cycle stabilisation. The Gross Profit margin was flat on pcp but improved by 76 basis points compared to 2H FY24, driven by enhanced pricing discipline, considered supplier consolidation, and an improved sales mix. EBITDA (before significant items) was $14.8m, delivering an EBITDA margin of 7.0%, down on pcp (1H FY24: $20.0m) due to a downturn from peak market cycle, but up 17.5% on 2H FY24 EBITDA, reflecting gains in gross profit and operational efficiencies. Operating Expenses were well-managed, increasing only 2.9% pcp (on LFL basis), on pro-active cost-down programs and despite ongoing macroeconomic inflationary pressures. The Group has also conducted a comprehensive review of the carrying value of its assets, resulting in a non-cash impairment charge of $20.0m in relation to intangible assets.

The Group remains committed to driving growth in key differentiated trade market segments, both organically and through acquisitions, while continuing to unlock synergies and operational efficiencies. In the short term, market conditions are anticipated to remain challenging, particularly in the residential sector and in key regions such as New South Wales, Victoria, and New Zealand. However, modest improvements in housing approvals and expected strong growth in Queensland, the Group's largest footprint, bodes well for the future. The medium-to-long-term outlook remains strong, underpinned by increasing and forecast population growth, low vacancy rates, and government initiatives to boost housing construction.