Steel & Tube – Earning Guidance FY22

16 May 2022
STU / NZX ANNOUNCEMENT


7 Bruce Roderick Drive, East Tamaki, 2013, Auckland PO Box 30543, Botany, 2163, Auckland
P 04 570 5000 F 04 570 2453www.steelandtube.co.nz


STEEL & TUBE FY22 GUIDANCE
Steel & Tube Holdings Limited (NZX: STU) has provided earnings guidance for the financial year ending 30
June 2022 (FY22). The company has continued the strong performance seen in the first half of the year
and is expecting FY22 normalised EBIT of not less than $45m and normalised EBITDA of not less than
$64m
1
.
The announcement coincides with Steel & Tube’s Investor Day for investors and analysts being held
today. Management presentations are available to view on the NZX and the company website and
include additional information on Steel & Tube’s business and operations, with further financial
commentary in the CFO Update.
For the 10 months to end-April 2022, Steel & Tube’s revenue was up 25% on the prior comparative
period (pcp) to $479.3m and volumes increased by 8%.
Gross margin continues to improve, driving a significant increase in earnings. EBITDA was up 81.6% on
pcp to $53.6m, and EBIT increased to $37.9m, up 157% on pcp.
Normalised EBITDA was up 89% on pcp to $54.0m, while normalised EBIT was up 178% on pcp to $38.3m.

$millions

FY22
10 months
FY21
10 months
% change
Revenue 479.3 384.6 24.6%
EBITDA 53.6 29.5 81.6%
Normalised EBITDA 54.0 28.6 89.2%
EBIT 37.9 14.8 156.7%
Normalised EBIT 38.3 13.8 177.9%
NPAT 24.1 7.4 226.7%
FY22 Guidance
Normalised EBIT Not less than $45m $19.0m > 137%
Normalised EBITDA Not less than $64m $37.9m >69%

CEO of Steel & Tube, Mark Malpass, said: “Revenues have been robust across the business and we have
also benefited from diligent price and margin management, structural cost savings and supply chain
capability. Sales to customers have been strong, with activity continuing to build in the infrastructure,
manufacturing and commercial sectors in particular.
“Steel & Tube is a trusted supplier with a focus on maintaining availability of critical products and high
levels of service while navigating tight supply dynamics - steel mill customers continue to be on
allocations, lead times have increased both locally and offshore and there have been significant cost price
escalations. We have invested significant cash to increase stock levels of high demand items and ensure
availability of critical products for our customers. Using data analytics, our experienced team has been
able to hold inventory unit and tonnes turns in line with previous periods (excluding goods in transit). Our

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Normalised EBITDA and Normalised EBIT have been adjusted to exclude non-trading adjustments. A reconciliation of
GAAP to non-GAAP measures is included in the appendix to the Investor Day management slides released today to the NZX.

strong supplier partnerships have put us in good stead during this time and our customer satisfaction
rating (Net Promoter Score) continues to rise.
“With structural changes to the business now well embedded and delivering value, we are focused on
growth and building a more diversified, resilient business. We remain disciplined in our focus on
customers and product mix, targeting products and segments that have allowed us to improve our
overall margins.”
Chair Susan Paterson acknowledged the leadership and support the management team has provided
over the COVID-19 period. “Steel & Tube’s dedicated front-line team have gone above and beyond to
deliver for our customers. The restructuring and investment we have undertaken, positioned us well
from a people and technology perspective to meet the challenges of the past two years.”
The company expects its strong business performance to be sustained as it continues to strengthen its
core business and builds on higher value segments.
ENDS
For media or investor enquiries, please contact: Jackie Ellis Tel: +64 27 246 2505 or
email: jackie@ellisandco.co.nz

For further information please contact:
Mark Malpass
Steel & Tube CEO
Tel: +64 27 777 0327
Email: mark.malpass@steelandtube.co.nz

Richard Smyth
Steel & Tube CFO
Tel: +64 21 646 822
Email: richard.smyth@steelandtube.co.nz