Australian Ethical Investment (AEF) H2 2024 earnings summary

Executive summary

• Achieved record FY24 results with 24% revenue growth to $100.5 million, UPAT up 57% to $18.5 million, and statutory NPAT up 80% to $11.8 million, driven by organic growth, successful integration of Christian Super, and positive net flows.

• Funds under management (FUM) reached $10.4 billion, up 13% year-over-year, with net flows of $607 million, and customer numbers exceeding 134,000.

• Announced acquisition of Altius Asset Management, expected to add $2 billion in FUM, expand fixed income capability, and be immediately EPS accretive.

• Maintained strong brand reputation, high customer retention, and received multiple industry awards for responsible investment and customer experience.

• Declared a record full-year dividend of 9 cents per share, up 29% from the prior year.

Financial highlights

• Revenue grew 24% year-over-year to $100.5 million, with a five-year CAGR of 20%.

• UPAT was $18.5 million, up 57%; statutory NPAT was $11.8 million, up 80%.

• FUM reached $10.4 billion, tripling from $3.4 billion five years ago, with a 25% five-year CAGR.

• Net flows totaled $607 million, primarily from resilient super net flows.

• Cost to income ratio improved to 74% from 79% year-over-year.

Outlook and guidance

• Further profit uplift expected in FY25, driven by organic growth, Altius acquisition, and $4 million in annualised cost savings from administration transition.

• Altius acquisition anticipated to generate $1 million in annualised EBITDA uplift.

• Continued investment in business platform and technology, with focus on operating leverage and scaling through inorganic opportunities.

• Confident in medium-term market opportunity, supported by compulsory superannuation and ethical investing trends.