Guess which ASX All Ords stock just crashed 46% on half-year earnings

Eek… this company has reported an ugly profit dive today.

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The ASX All Ords is lower on Tuesday with the S&P/ASX All Ordinaries Index (ASX: XAO) down 0.55%.

Among the ASX All Ords stocks reporting earnings results today is chemicals business DGL Group Ltd (ASX: DGL), whose share price dived 45.6% to a new 52-week low of 56 cents this morning.

This followed news of a 43% nosedive in profit in 1H FY24.

The DGL share price is currently 60 cents, down 41.75%.

Let's look at DGL's report as well as the earnings performances of two other ASX All Ords stocks today.

ASX All Ords materials stock DGL plummets 46%

DGL reported revenue of $217 million in 1H FY24, in line with 1H FY23, along with a 3% increase in underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $30.4 million.

However, its statutory net profit after tax (NPAT) came in at $5.9 million, representing a 43% dive.

DGL Founder and CEO Simon Henry said unreliable weather forecasts and supply chain disruptions impacted first-half results.

Henry said:

We have taken corrective actions, and these disruptions are normalising, giving us confidence in the outlook.

DGL expects a stronger second-half performance, in line with typical annual seasonal trends.

The company said it has an intensified focus on managing costs and maximising efficiencies.

DGL is continuing to invest in growing its network and assets and improving its systems and warned this would lead to lower full-year net profit due to higher finance and depreciation costs.

However, the underlying FY24 EBITDA for the ASX All Ords stock "should be broadly in line with FY23".

The company reported an underlying operating cash flow conversion of 93%. Its net assets are worth $339.2 million, up 2% since 30 June 2023, and its net debt was $117.2 million as of 31 December 2023.

No interim dividend for City Chic shareholders

The City Chic Collective Ltd (ASX: CCX) share price tumbled 12.5% to 49 cents after the ASX All Ords plus-size clothing retailer reported sales revenue of $105.8 million in 1H FY24, down 29% on 1H FY23.

City Chic also reported an underlying EBITDA loss of $7.5 million.

The company said it expects to return to profitable trading in 2H FY24.

Phil Ryan, CEO and Managing Director, said the company had been focusing on rightsizing its cost base,
optimising its inventory position, and introducing new products to drive demand.

He said:

I am pleased to report that the revitalisation of our product assortment is delivering improving margin and sellthrough rates, particularly in stores.

Our cost reduction measures will deliver approximately $25m in annualised savings and mitigation, exceeding our initial targets.

While cost of living pressures are impacting transaction volumes, the feedback and sell-through on our new ranges has been encouraging and our new product is expected to support our return to profitable trading.

The ASX All Ords company will not pay an interim dividend "in light of continued market uncertainty and the Group's capital management priorities".

Alumina reports on a "difficult year"

The Alumina Ltd (ASX: AWC) share price is down 7.6% to $1.01 after the company released its full-year FY23 results.

Alumina owns 40% of Alcoa World Alumina and Chemicals (AWAC), which form part of Alcoa Corp's bauxite and alumina business segments.

Alumina reported a net loss after tax of US$150 million in FY23 compared to a US$104 million profit in FY22.

This follows AWAC reporting an EBITDA of US$165 million for FY23 compared to US$817 million in FY22.

AWAC's alumina production fell to 10.3Mt, down from 11.8Mt in FY22. The realised alumina price for FY23 was US$352 per tonne, with the cash cost of production very close to it at US$308 per tonne.

Once again, Alumina shares will not pay a dividend to shareholders. The ASX All Ords materials share hasn't paid a dividend since September 2022.

The company said 2023 was a "difficult year" due to lower production and higher costs.

However, progress on several fronts has been made in recent months, including confirmation of long-awaited mine plan approvals in Western Australia (WA).

AWAC has also chosen to fully curtail operations at the Kwinana refinery in WA and partially curtail operations at its San Ciprian refinery in Spain.

Alumina said:

Together with the ongoing focus on profitability improvement across all aspects of the portfolio, these initiatives provide AWAC with a strong foundation to create a significantly higher quality refinery portfolio.

As we reported yesterday, Alcoa has made a takeover bid for its minority joint venture partner. The Alumina board is currently recommending the proposal to shareholders.

Motley Fool contributor Bronwyn Allen has positions in Alumina. 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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