Codan (CDA) H2 2024 earnings summary

Executive summary

• FY 2024 revenue reached AUD 550 million (USD 550.5 million), up 21% year-over-year, with EBIT up 29% to AUD 114 million and NPAT up 24% to AUD 81.3 million, driven by strong organic growth and successful acquisitions including Zetron UK, Eagle, and Wave Central.

• All profitability metrics improved, with EPS up 24% year-over-year.

• Fully franked annual dividend increased to AUD 0.225 (22.5 cents) per share.

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

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

Financial highlights

• Communications segment revenue rose 19% to AUD 327 million (USD 326.9 million), with a 25% segment profit margin.

• Minelab/Metal Detection revenue increased 25% to AUD 220 million (USD 219.9 million), with segment profit margin rising to 35%.

• Group net debt increased by AUD 24 million (USD 23.7 million) to AUD 75 million (USD 75.4 million), mainly due to acquisitions, product development, and dividends.

• Engineering investment totaled AUD 57 million (USD 57.4 million), about 10% of revenues, with 74% directed to Communications.

• H2 FY24 NPAT of AUD 43 million (USD 43.2 million), up 13% sequentially and 23% year-over-year.

Outlook and guidance

• Communications targets 10%-15% organic revenue growth for FY 2025, with a strong order book and pipeline and $120 million already secured.

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

• Continued focus on acquisitions, especially in communications and Northern Hemisphere markets, to enhance revenue quality and diversification.

• Continued investment in next-generation products, geographic expansion, and operational leverage.