Coventry Group Ltd (ASX:CYG) Announces Q3 FY25 Trading Update
Overall Financial Performance
Coventry Group Ltd reported Q3 FY25 sales of $87.0 million, a +3.6% increase compared to the prior year. However, unaudited EBITDA declined by -41.1% to $2.4 million. Year-to-date FY25 sales reached $272.3 million, up +0.9%, while unaudited EBITDA fell by -11.8% to $12.3 million.
Segment Performance
Reduced sales in the Konnect New Zealand and Fluid Systems businesses significantly impacted the Q3 FY25 EBITDA. Adverse weather in Queensland caused branch closures and staff disruptions, limiting access to customer sites. Konnect New Zealand maintained its market share in a soft market environment. Fluid Systems experienced performance issues, leading to a new management structure with Mr Brody Sewell, Head of Fluid Systems, reporting directly to the Board to enhance transparency and address adverse performance. Konnect Australia’s EBITDA for Q3 FY25 increased by 45%, with Gross Margin improving by over 410 basis points, despite challenges from adverse weather and costs associated with greenfield branch rollouts.
Outlook
The Group is focusing on cost reduction initiatives, including non-stock procurement, third-party service provider savings, post-ERP operating efficiencies, and acquisition synergies. These efforts are expected to enhance margins into FY26. Coventry Group Ltd will continue to provide quarterly trading updates to the market.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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