Codan (CDA) H2 2024 earnings summary

Executive summary

• FY 2024 revenue reached $550.5 million (AUD 550 million), up 21% year-over-year, with EBIT up 29% to $113.9 million and NPAT up 24% to $81.3 million, driven by strong organic growth and successful acquisitions including Zetron UK, Wave Central, and Eagle.

• All divisions reported growth, with robust performances in Communications and Metal Detection (Minelab) segments.

• Fully franked annual dividend increased to 22.5 cents per share.

• Investment focused on people, processes, and systems to support future growth.

• Integration of Zetron UK and Wave Central completed, both performing well.

Financial highlights

• Communications segment revenue rose 19% to $326.9 million, with a 25% segment profit margin and profit of $80.5 million.

• Metal Detection (Minelab) revenue increased 25% to $219.9 million, with segment profit margin rising to 35% and profit of $77.9 million.

• Group EBITDA increased 26% to $147.0 million.

• Net debt increased by $23.7 million to $75.4 million, mainly due to acquisitions, product development, and dividends.

• Engineering investment totaled $57.4 million, about 10% of revenues, with 74% directed to Communications.

Outlook and guidance

• Communications targets 10–15% organic revenue growth for FY 2025, with a strong order book and pipeline.

• Minelab aims for high single-digit growth in Rest of World revenues.

• Continued focus on acquisitions, especially in communications and Northern Hemisphere markets, and ongoing investment in next-generation products and geographic expansion.

• $120 million already secured in the Communications orderbook for FY25.

• Strategic investments planned to enhance revenue quality and diversification.