Globe released the half year results this afternoon, key highlights include:

GLB - Company Announcement HY.pdf

• Net sales for the half-year of $142.9 million were 15% higher than the prior comparative period (pcp).

• Earnings before interest and tax (EBIT) were $18.2 million, representing 12.7% of net sales (lower than the 16.8% return on sales that was achieved in pcp)

• Net profit after tax (NPAT) was $12.5 million, compared to $15.3 million reported in the pcp.

• The fully franked interim dividend of 16 cents per ordinary share is 33% higher than the interim dividend paid in the 2021 financial year.

Overall, great to see revenue growing; however, this didn't translate into increased earning due to surging logistic costs.

The CEO outlined “In the second half of this financial year we will be working hard to address our underlying

gross profit margin erosion by increasing wholesale and retail prices and negating the impact of higher freight costs.

Meanwhile, we will embark on sales programs in some parts of our business to move through categories with excess

stock".

Extrapolating out their revenue and NPAT for the full year gives a PS of 0.76 and PE of 8.8

Although this report isn't great, I don't expect the market to sell this down as its valuation is already on the low end.

Disc: held