COVENTRY GROUP LIMITED — Earnings Release 2022

Jan 19, 2022

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ASX RELEASE

CYG – H1 FY22 Trading Update

20 January 2022

Coventry Group Ltd (ASX: CYG) announced today an update on the Group’s trading.

H1 FY22 Group sales of $156.8m up +13.6% on the prior year.

Robert Bulluss, Group CEO and Managing Director of Coventry Group said, “The Group delivered pleasing sales growth in H1 FY22. This was despite the negative impact of the enforced New Zealand Government Alert 4 lockdown in Auckland and State Government restrictions in Australia which we estimate negatively impacted sales in the order of $2.5m - $3.5m. Our markets are performing well and we are minimising the impact of COVID-19 related disruptions.”

Sales growth

Sales growth is continuing to be driven by our strong value proposition, activity in our key market sectors, acquisitions and diversification into new markets. Percentage sales growth change in H1 FY22 when compared with the prior year is shown below:

Sales change	H1 FY22 vs H1 FY21 % sales change
Fluid Systems (FS)	+15.0%
Trade Distribution (TD)	+12.5%
Consolidated Group	+13.6%

Segment Commentary

• FS sales including acquisitions for H1 FY22 up +15.0% on the prior year. H.I.S Hose and Fluid Power Service business integrations are now largely complete.

• TD sales for H1 FY22 up +12.5% on the prior year. Konnect and Artia Australia up 19.6% on the prior year.

COVID-19

All business units are operating with COVID-safe plans. We are managing the impact of supply chain issues, stock shortages, labour shortages and significant price inflation including maintaining above normal inventory levels.

Outlook

The markets in which FS and TD operate are to date performing well in FY22. Whilst pleased to report continuing positive performance, we are not providing FY22 guidance due to continuing COVID-19 uncertainty.

Authorised for release by the Board of Directors of Coventry Group Limited.

For further information contact:

Robert Bulluss

Chief Executive Officer and Managing Director (03) 9205 8219

Coventry Group Ltd | ABN 37 008 670 102 | 235 Settlement Road, Thomastown Vic 3074 | Tel: (03) 9205 8223 | www.cgl.com.au