Amotiv (AOV) H2 2024 earnings summary

Executive summary

• Results for the year met or exceeded guidance, with 7.7% revenue growth and strong performance across all segments, driven by organic expansion, acquisitions, and margin management.

• The business transitioned to a pure automotive play after the divestment of Davey, with a divisional structure focused on growth and resilience.

• Strategic initiatives included expansion into new geographies and product categories, further diversification of revenue streams, and scaling up the Infinitev EV aftermarket business.

• Cash conversion remained strong above 92%, supporting ongoing debt reduction and investment.

• Margin management and resilience were demonstrated amid macro volatility and market shifts.

Financial highlights

• Revenue increased 7.7% year-over-year to $987.2 million, with 5.8% organic growth.

• Underlying EBITA rose 5.0% to $194.6 million, and statutory NPAT grew 6.5% to $99.8 million.

• Gross margin expanded to 44.1%, up 0.9pps, reflecting effective margin management.

• Cash conversion was 92.9%, down from 112% the prior year but above expectations.

• Full-year dividend increased 3.8% to 40.5c per share.

Outlook and guidance

• Further growth in group revenue and underlying EBITA is expected in FY25.

• PD spend as a percentage of revenue will rise slightly as product ranges expand; capex forecast at ~$25 million.

• Cash conversion expected to normalize to ~85% in FY25.

• Ongoing softness in NZ and Caravan/RV markets is being closely monitored.

• No formal guidance provided due to market volatility; trading update to be given at Q4 Investor Day.