IG Design (IGR) investor relations material

Executive summary

• Completed the divestment of DG Americas, simplifying the group and refocusing on the more resilient and profitable DG International segment.

• Group revenue declined 9% year-over-year to $729M, mainly due to macroeconomic headwinds, customer bankruptcies, and supply chain disruptions.

• Adjusted operating profit dropped 83% to $5.2M, with margins down to 1% from 4% and significant impairment charges.

• Closure of inefficient China manufacturing facility and strong growth of Smartwrap™ product line.

• The group now has a streamlined structure, robust balance sheet, and renewed focus on organic growth and premiumization.

Financial highlights

• Group revenue fell 9% to $729M, with DG Americas down 12% and DG International down 3%.

• Adjusted operating profit decreased by 83% to $5.2M, mainly due to DG Americas' performance.

• Gross margin dropped 310 basis points to 14.7%, leading to a 25% reduction in gross profit.

• Net cash at year-end was $85M, with average net cash up to $40.2M from $27.7M year-over-year.

• Capital expenditure reduced to $6.5M from $9.9M the prior year.

Outlook and guidance

• FY 2026 revenue expected at $270M–$280M with adjusted profit margin of 3%–4%.

• Organic growth of up to 5% per annum and operating margins of 4%–5% targeted by FY 2027.

• Guidance excludes potential upside from new channels, products, or geographies.

• No dividend recommended for FY 2025; under review for future periods.

• Net cash expected to remain above $40M at FY 2026 year-end.