Codan (CDA) H2 2021 earnings summary

Executive summary

• Record FY21 sales of $437.0m, up 26% YoY; statutory NPAT was $90.2m, up 41%, and underlying NPAT was $97.3m, up 52%.

• Underlying EBITDA rose 35% to $158.8m; underlying EPS increased 52% to 54.0 cents. Return on equity was 36%.

• Strong cash generation left net debt close to zero at 30 June after $174m of acquisition funding.

Financial highlights

• Revenue reached $437.0m versus $348.0m in FY20; underlying EBIT was $139.8m, up 56%, and underlying EBITDA was $158.8m, up 35%.

• Underlying NPAT of $97.3m compared with $64.0m in FY20; statutory NPAT was $90.2m versus $64.0m.

• Net profit before tax rose 56% to $138.7m; net interest expense was $1.1m versus $0.6m in FY20.

Outlook and guidance

• FY22 began strongly and in line with FY21 run-rate; demand for metal detection products remained strong, with a full year of GPX6000 sales expected to contribute.

• Communications will include a full year of DTC and Zetron; FY22 is expected to focus on integrating the acquisitions.

• DTC is expected to deliver FY22 EBITDA of $14m and Zetron $8m.