Stealth Global released FY 2023 results at 3pm today and although much was revealed on 14th August 2023 we got a chance to see some of the great work being done by the management team.
What i am finding most impressive is the disciplined approach to doing business Mike and the team are taking which have yielded great benefits over past 3 yrs and set the scene for years to come .
Let me share what i mean.
Revenue growth was 11.4% for the FY to $111 million with the split H1 47% c/w 53%.
This is a acceleration in revenue.
The growth achieved was impressive when you consider the business elected to exit 6.3m in revenue which was associated with unprofitable customers.
The importance this plays long term should not be understated as it allows efficiencies to be realised to drive long term goals to be reached.
This can be seen in the following measurements
- Sales per day increase to $450k in FY 23 c/w $390k in FY22 or 14.9%
- Gross Profit per day increase to $150k per day c/w $110k per day or 31.3%
- EBITDA increase to 5.3m (4.77%) c/w 4m in 2022 or 32.5% increase.
Very Impressive.
Looking into the inventory and expense management and the results are further impressive.
Inventory as a dollar figure increased 4.8% to $14,825,384 when revenue rose 11.4%.
Such results indicate that Stealth value the real estate in their supply chain and ensure stock is working for them and not sitting dormant holding up valuable capital and space. Ultimately this will extend the life of the warehouse facility ensuring products that are profitable come into and out of the business . Finally the operation itself is also a beneficiary of this in terms of processing orders more efficiently and dropping to the bottom line
So what do the numbers say.
- Sales per order rose 17.4%
- Sales per employee rose 19.6%
- GP per order rose 14.2% AND GP per employee rose 36.7%.
- Staff as a % of revenue thus fell to 17.7% from 19.1%
- H1 staff % was 18.3% , H2 staff % was 17.1%
Operationally Stealth efficiency is accelerating as the year concluded and there is clear evidence of the goals regarding 8% plus EBITDA are within reach over the next 2yrs.
Sometimes we take a narrow view of results but stepping back and see the past 3 years Mike and the Team have done amazing job to building shareholder value.
Inventory to sales % 16.1% 2022 to 13.3% 2023.
Remain Bullish and current valuation simply confirms this , Trading at 2.45x to EBITDA and 2.32x Free cash flow.
Stealth Aug 23-confirms-record-financial-performance-in-FY23.pdf
SGI Annual-Report-to-shareholders.pdf
Disc; Top 5 Holding in RL and SM