DGL Group shares rally after earnings upgrade

Chemicals company DGL has upgraded its earnings forecasts. Photo / Supplied

Dual-listed chemicals specialist DGL Group said its revenue and earnings in the first half to December were running ahead of forecasts, fuelled by a stronger-than-expected growth over the second quarter.

For the six months, sales revenue came to A$143 million ($153.8m), up 182 per cent from the previous corresponding period.

The company's earnings before interest, tax, depreciation and amortisation came to A$23m - before deducting acquisition costs of A$3m - up 139 per cent.

DGL's net profit for the period was A$9m, up 187 per cent.

The company has forecast its full-year 2022 revenue at A$343m, with Ebitda of A$54m.

The results were subject to review by its auditors and may be subject to change, the company said.

DGL's half-year result is due on or before February 25.

Chief executive Simon Henry said DGL's performance had been driven by favourable trading and climatic conditions across the group and the successful integration of acquisitions completed over the period.

Henry added DGL was expected to perform strongly over the remainder of the financial year.

By early afternoon, DGL's shares were trading on the NZX at $3.27, up 32c or 10.8 per cent from Tuesday's close.

The company, whose share price has more than tripled since its debut on the NZX and ASX last May, has been an active buyer of businesses.

DGL manufactures chemicals and transports, stores and manages the processing of chemicals and hazardous waste.

It has a network of 53 sites, owned and leased, across Australia and New Zealand.