Lynch Group Holdings Limited: FY23 AGM Chair and CEO address

Lynch Group Holdings Limited (ASX: LGL) delivered impressive operational performance while progressing strategic initiatives across their business units. Facing a challenging start with prolonged COVID lockdowns in China, increased international freight costs, and tight labor markets in Australia, the company finished the year in line with upgraded guidance set in early June. Their FY23 results revealed an 8% year-on-year growth in Group Revenue, adjusted to 7% to account for an extra week of trading in the Australian segment. Lynch Group maintained strong Australian customer demand, mainly driven by lower-priced supermarket sales, and saw robust performance in their sale or return store network. In China, revenue growth stemmed from expanded farm production, although pricing in FY23 generally remained lower than the previous year, notably during COVID restrictions in the first half.

Improvements in EBITDA in the second half, totalling AU$42.7 million for the year, were notable in both Australia and China. Enhanced margins in Australia resulted from strategic initiatives, successful event execution, stabilized freight rates, and improved labor availability. In China, improved trading conditions post-December COVID policy changes bolstered pricing and strong customer demand during key events from Chinese New Year through Mother’s Day in May.

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