I would now like to hand the conference over to Mr. John Lorente, Chief Executive Officer. Please go ahead.
Thank you. Thank you all for joining us today. I appreciate you taking the time to meet with us in what I know is a busy reporting season for everyone. My name is John Lorente. I'm the CEO and Managing Director of Big River Industries. It is my pleasure to present the first half results for financial year 2024. I will go through the business overview, the strategic initiatives, and the divisional performance. John O'Connor, our CFO, will then go through the financial detail, and I will wrap up at the end on the outlook. If we move on to page 3, business overview. Now, this is a slide I'm sure that many of you have seen before. A key pillar of our strategy is the diversity of our supply chain, market segment, and geography continues to be a competitive advantage for our business.
Some key points to note by exception on this slide. This half saw a change in our supply chain mix with an increase in local supply as we consolidated purchasing post-COVID supply constraint period. We saw a change of mix in manufacturing with a decrease in Frame and Truss volumes, which was offset with growth in panel and manufactured products. Our market segment splits saw a decrease in residential as that came off, predominantly in Frame and Truss. Pleasingly, our commercial market grew despite extended site delays with continued strong pipelines of work still to be delivered. The state mix remained similar to previous period, and we continue to have 26,000 distribution sites across Australia and New Zealand with seven manufacturing sites across Frame and Truss and panels. Now, if we move on to page 4, performance headlines.
Despite the softer half, which was cycling off a very strong post-COVID market in calendar year 2022, we continue our growth journey of the last five years. The business is delivering solid historical metrics across most measures. As communicated previously, our first half revenue of AUD 218.8 million was in line with the previous half, up 0.8% on the second half financial year 2023 and down 5.9% on a strong first half financial year 2023. Our operating expenses have been managed very well within an inflationary macroeconomic backdrop. OpEx was up 3.8% and flat like for like. As discussed, we have been actively increasing investment in the business to deliver efficiencies, synergies, and future growth. We've invested circa AUD 1 million in these initiatives, and this is included in the flat like for like OpEx result.
EBITDA was AUD 20 million, down 28.3% on a strong previous half, in line with consensus forecasts and pleasingly in line with our target to achieve average 10% EBITDA margins through the cycle. Our cash management continues to be a highlight. Our investments are delivering excellent results with improved disciplines, systems, and processes. Our working capital to revenue was 15.7% with continued improvements in debtor and inventory management. Our cash conversion was strong at 98%, and we delivered a return on funds employed of 20.6% in line with our long-term targets. The positive result allowed us to deliver an interim dividend of AUD 0.055 per share at a payout ratio of 64.5%. Now, if we move on to page five, progress on strategic priorities.
We will continue with our proven and successful strategy of focusing on servicing trade customers, acquire value-accretive businesses in a fragmented market, and leverage our scale while delivering local service. We will also continue to invest in the business to deliver scale benefits, efficiencies, synergies, and growth. The safety and development of our people is a key value for our business. We have accelerated investment in safety initiatives this half with external safety audits, site improvements, and increased engagement and training. We have also invested in key talent and developing our greatest asset, our people. We've made good progress on our organic growth initiatives across the group, in particular growth in focused product groups including our MaxiWall panels and fiber cement as well as timber flooring.
There's been an increase in acquisition opportunities over the last six months, and we will continue to look to add quality acquisitions to the group. As discussed earlier, we have made significant investments in systems and processes which are delivering positive results and will set up the business for future growth. We've had good progress on our supply chain initiatives including the appointment of Gareth Watson, ex-Dulux and Boral to head supply chain and manufacturing. This will help us continue to align the business and realize scale benefits. Lastly, one team, Big River. We are consolidating and extending the Big River branding and marketing initiatives. Onto page 6, our new branding. We had a preview of our new brand at the EGM. This has now been officially launched to the market on the 12th of February. The new branding unifies our 18 brands under one banner, One Big River.
It's a modern brand that will foster synergies, deliver scale benefits, and drive growth as one team. The construction division branches will now be branded Big River Commercial and Big River Trade Centers. The panel division will be Big River Panels, Big River Panels by Big sorry, Timberwood Panels by Big River, and Plytech Panels by Big River, aligned with the strength in those brands in key customer segments. This has been an 18 month journey, and I'm sure you will all agree the team have done an excellent job. If we go onto page seven, historical performance. Again, you would have seen this slide previously. Despite the decline for the half, cycling on a very strong calendar year 2022, we continue our growth journey over the last five years. The business is in a strong financial position, investing for future growth and with positive medium to long-term outlook.
Revenue, as discussed, was slightly down from the first half 2023 but in line with the previous half. Profit was down on a strong previous result but continuing with a growth trajectory over the last five years with solid profit margins. Our cash and gearing continue to be a highlight, giving us good headroom to navigate the market and catch future investment and acquisition opportunities. As discussed, our return on funds employed remains above 20% in line with our long-term targets. Now, if we go on to page eight, divisional performance. The construction division volume and margin was impacted by a decline in Frame and Truss, cycling off a very strong previous period post-COVID. That business also experienced deflationary impacts on structural timber and LVL. The construction division delivered good commercial market growth despite considerable site delays.
This has meant the project pipeline continues to be strong and pushed into the next 12 months. Our organic growth initiatives delivered positive growth in lightweight cladding and timber flooring categories as the team's focus on winning a larger share of wallet. In the panels division, panels experienced softer market conditions in Victoria due to that market dynamics. This was partly offset by very strong performance by our Queensland business, and that growth has seen us move into a larger site in Brisbane, which will enable us to deliver expected growth in that market. New Zealand performed well in a soft market, flat on previous year with strong performance from our Decortech business in the commercial market. Scott Barclay has joined us as AGM of panels. He has a strong market and sales management background, previously from Laminex and James Hardie, and will drive growth for the business.
The increase in head office costs were investment in key appointments including finance, IT, and HR. Now, I'll pass it on to our CFO, John O'Connor, who will run through the financials.
Thank you, John. Good morning, everybody. As mentioned previously, our revenue was down 5.9% on prior comparative period. That was driven by the lower residential activity across all our markets. That coupled with labor shortages and site delays impacted our results for the period. Our gross profit result at AUD 57.8 million, a 10% decline on the prior period. Our gross margin was off by 130 basis points. In previous periods, we had gained from the volume growth in Frame and Truss. This had enabled us to drive higher efficiencies through these manufacturing operations and, as such, a higher margin. We've seen the opposite impact of that in this last period as the category has declined in line with the lower residential activity. We've also seen increased competitor activity at a general level, which means we've had to be more keen on our pricing to win business generally.
Our operating expenses have increased in the period, but on a like for like, they have remained steady. We've absorbed overall wage increases of 4%-5% in the period, and we've continued to invest in our people and systems to deliver on those future growth opportunities. So overall, we've achieved an EBITDA result of AUD 20 million, down 28% on the prior period. Our overall finance costs were in line with the full period impact of the additional borrowing we took on last December to fund acquisitions and, of course, reflecting the higher interest rates over the last 12 months. The resulting NPAT number was AUD 7.1 million, a 44% decrease on the prior comparative period. Looking at slide 10, our balance sheet.
It's very pleasing to report we've maintained a very strong balance sheet, which gives us confidence to continue with the growth and acquisition strategy we have in place. We continue to maintain a strong disciplined focus on our debtor management. Yes, we have seen some stabilizing in the market and not as many distressed customers as we had this time last year, but we will remain quite focused on how we manage this.
Pleasingly, we've been able to reduce our debtor days further to 39 days. We also maintain our inventory disciplines with the overall inventory levels marginally down from our June 2023 closed numbers. We have reduced our debt by just over AUD 2 million in the period, and that was in the main due to just optimizing our working capital facilities across the group. Looking next at capital management. Our net debt increased from AUD 11.2 million to AUD 19 million.
That was primarily reflecting the contingent considerations paid in the period and the catch-up on the prior year income tax liabilities that were settled in the period. In terms of the key metrics that John alluded to earlier, the gearing ratio at 13.6 is a very healthy result and within our historic ranges, and it leaves us well-positioned for future acquisitions. Our total working capital as a percent of revenue remains a focus as always, and it was again pleasing to see this average 15.7% on the period reflecting that approach. And just finally on this page, confirming the interim dividend of AUD 0.055, fully franked, has been determined and payable on the 27th of March, a dividend payout of 65%. A solid result.
Moving to the cash flow page, on page 12, our cash conversion cycle beat commitment 98%, which again was a particularly sort of strong result given our really good result at the end of the last financial year. Our working capital remains in good shape. Strong financial disciplines have helped us, as I said, see debtor days down again. Our inventory turns are in the right range. So overall, our working capital decreased by 17.2%, which compares favorably to the total revenue decline of 5.9%. Our CapEx is down slightly year-on-year as we cycle out of the heavily weighted Grafton investments of the last couple of years. And then just confirming that AUD 7 million dividend paid in the year and the higher tax payment as we settle our FY 2023 tax liabilities. I'll now pass you back to John, who will take you through the outlook.
All right. Thank you, John. Now onto the outlook page, page 13. We're experiencing short-term delays but have a strong medium-term outlook. In the short term, our outlook is supported by continued solid pipelines. Site delays are continuing to push a pipeline well into calendar year 2024. On the macro side, housing approvals have been in decline, but the medium-term market outlook is positive given the reduced inflation, the plateauing of interest rates, elevated migration levels, low vacancy rates, high housing demand, and the state and federal initiatives to boost construction. Onto the market segments. The commercial project pipeline remains strong and out into calendar year, the end of calendar year 2024, given the delays in delivery due to labor and weather. We've had good growth in multi-residential in Queensland with positive medium-term outlook to be led by the built-to-rent sector and medium-density construction.
Housing is expected to continue to be softer in calendar year 2024 given slow delivery and reduced starts with a rebound expected in 12 months on that high underlying demand. Onto the states. The WA market is very strong, and that should continue. The Queensland and South Australian markets are also looking solid. Sydney and Melbourne are expected to continue to be soft for the short term but bounce back on increased migration. And New Zealand is expected to be flat on a soft resi market but a good commercial pipeline with some potential shipping delays. Now, if we go onto page 14, and we continue with the outlook. Onto acquisitions. Now, this has been a key part of our strategy.
Opportunities to acquire quality businesses have increased over the past six months, and we have several value accretive opportunities across both divisions that we are working on, and we will inform the market in due course. The Grafton project is now complete and is delivering increased volumes of both Decortech Panels and Formply. The grand opening is scheduled for the 3rd of April. Our supply chain strategies and plans will continue over the next six months as we align with key partners and deliver synergies over the next 12 months to mitigate increased competition and market pressures. As noted previously, we have made several investments at the back end of our business over the past six months that have delivered a positive result.
We will continue to prudently invest in people, systems, and processes to deliver efficiencies, synergies, and long-term growth while maintaining costs across the business. In terms of guidance, extended site delays have pushed a pipeline into the second half of calendar year 2024, and there are signs that the market in the short term will be less predictable than previous years. If projects continue to be delayed, then second half financial year 2024 revenue could be below the first half result. Now, the next few slides are the appendix. So that's the end of our presentation, and I'll pass it on to some questions.
Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. As a reminder, that is star one on your telephone keypad to ask a question. There are no further questions at this time. I'll hand the call back to Mr. Lorente for closing remarks.
Right. Well, thank you all. Thank you for jumping on the call. We'll be doing the roadshow, the investor roadshow, on the week of the 4th of March. I look forward to seeing you all then. Thank you.
This does conclude our conference for today. Thank you for participating. You may now disconnect.