Aztech Global (8AZ) H2 2023 earnings summary

Executive summary

• FY2023 revenue reached a record $896.3M and net profit $100.0M; strong balance sheet with $249.8M net cash.

• FY2023 performance benefited from revenue growth, economies of scale, higher interest income and lower net fair value losses on foreign-exchange contracts.

Financial highlights

• FY2023 revenue was $896.3M, up 9.3% YoY; EBITDA was $133.6M, up 48.0%, and net profit was $100.0M, up 48.8%.

• FY2023 PBT rose 53.3% to $123.7M; PBT margin expanded 400 bps to 13.8%, while net profit margin increased 300 bps to 11.2%.

• 2H 2023 revenue rose 11.4% YoY to $507.7M and net profit increased 135.0% to $57.1M.

• 4Q 2023 revenue increased 5.2% YoY to $224.3M; net profit rose to $26.2M from $3.5M.

Outlook and guidance

• Business prospects for the next 6–12 months are expected to remain challenging.

• Order book secured as at 22 February 2024 was $333.9M for completion in FY2024; post-pandemic order lead times normalized to 2–3 months from 9–12 months during the pandemic.

• Mitigation includes disciplined balance-sheet and cost management, balancing customer orders across manufacturing plants, and close coordination with customers and suppliers on forecasts and components.

• Foreign-exchange exposure across the US dollar, Renminbi, Singapore dollar and Malaysia ringgit is managed conservatively and stringently.