The DGL Group Ltd (ASX: DGL) share price is racing higher on Monday morning. This comes after the company announced an update on its full year earnings guidance for FY22.
During early morning trade, the chemical company's shares are swapping hands at $3.82, up 9.14%.
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DGL eyes strong growth for FY22
Investors are driving up DGL shares following the release of an upgraded earnings guidance by the company.
In its statement, DGL advised that favourable trading conditions have continued to run into the new financial year.
As a result, the company upgraded its earnings guidance for the period ending 30 June 2022. It expects its full year EBITDA (before deducting acquisition costs) of roughly $65 million on sales revenue of $354 million.
Previously, DGL had forecasted FY22 EBITDA to be around $54 million (before acquisition costs) on revenue of $343 million.
Management stated that revenue growth and margin expansion have been recorded for the current financial year. This is expected to continue throughout FY22 with results exceeding expectations across the group.
Whilst all three operating segments are performing well, the company's manufacturing business has been the star performer. DGL noted that demand for products and services remains high and assets are well utilised.
DGL CEO, Simon Henry touched on the company's improved earnings guidance, saying:
DGL's performance so far in the financial year 2022 continues to exceed expectations. All three operating segments are performing strongly with increased activity due to market and seasonal factors.
DGL continues to successfully execute our strategy to sustainably grow through organic growth and acquiring strategically positioned businesses.
DGL share price summary
Over the past 12 months, the DGL share price has soared, representing a 279% gain for shareholders.
Throughout the year, the company's shares have continued on an upwards trajectory, up 20%.
It's worth noting that the DGL share price touched a record high of $3.99 today before slightly retracing.
Based on today's price, DGL commands a market capitalisation of roughly $1.06 billion, with approximately 279.12 million shares outstanding.
