ALS (ASX:ALQ) has reported underlying revenue of $1.46bn for the half year ending 30 September 2024, up 14% year-on-year. Growth was driven by robust performance in the Life Sciences division, which saw revenue climb 25.6%, offsetting softer conditions in the Commodities division.
Statutory net profit after tax (NPAT) declined 5% to $126.8m due to acquisition-related integration costs, a stronger Australian dollar, and subdued global mineral exploration. Underlying NPAT, which excludes one-off items, fell 3.9% to $152.3m. The group declared an interim dividend of 18.9 cents per share, partially franked to 30%, representing a payout ratio of 60% of underlying NPAT.
Headquartered in Brisbane, ALS is a company that provides testing and analytical services across industries 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 analysing mineral samples for mining companies, assisting with exploration and production.
CEO and Managing Director Malcolm Deane highlighted the company’s adaptability: “The group delivered resilient financial performance, driven by strong margins in Minerals and robust growth in the Environmental and Food businesses, demonstrating our strategic positioning in a complex landscape.”
The Life Sciences division benefited from strong organic growth and acquisitions in the USA and Europe, contributing $928.5m to revenue. The Commodities division faced headwinds, with revenue dipping 1.7% to $535.7m due to fluctuating exploration activity and adverse currency movements.
ALS’s balance sheet remains strong, with $375m in liquidity and ongoing improvements in cash generation. Recent acquisitions, including York and Wessling in the Life Sciences division, are on track for integration, and the Nuvisan transformation program has delivered €13m in cost reductions to date, targeting €25m by FY26.
Shares closed 5.73% higher at $15.50.