AoFrio (AOF) H1 2024 earnings summary

Executive summary

• Revenue for H1 FY24 rose 27.4% year-over-year to $38.4m, driven by new USA IoT strategy, business wins in the Americas, and strong customer satisfaction.

• EBITDA improved to $1.1m from a $0.7m loss in H1 FY23; pre-tax loss narrowed to $1.1m from $2.7m.

• Strategic focus remains on investing in new market verticals and protecting the core Cold Drink Equipment (CDE) business.

Financial highlights

• Q1 revenue was $16.6m, Q2 revenue increased to $21.8m, reflecting sequential growth.

• Gross margin was 30.0% (vs. 30.3% in H1 FY23); IoT margin 40.1%, Motors margin 16.9%.

• Operating cash inflow of $2.3m, reversing a $2.8m outflow in H1 FY23.

• Net loss for H1 FY24 was $1.0m, improved from $2.7m loss in H1 FY23; basic EPS loss of 0.24c.

• Cash at 30 June 2024 was $2.0m; net debt $2.5m, down from $6.3m in H1 FY23.

Outlook and guidance

• FY24 revenue expected between $70m–$80m, a 13% increase at midpoint over FY23.

• FY24 EBITDA guidance is around $2.5m; macroeconomic conditions may impact results.

• Significant large opportunities in pipeline could push revenue to top end of guidance.