IVE Group (IGL) H2 2024 earnings summary

Executive summary

• All key profit metrics increased year-over-year, with solid margin expansion and strong operating cash flow; Ovato and JacPak acquisitions completed ahead of schedule, supporting diversification and growth.

• Strategic acquisitions in packaging (JacPak) and creative (Elastic Group) completed, expanding service offerings and customer base.

• Continued investment in Lasoo, which outperformed expectations, with strong user and transaction growth; break-even now targeted for FY28.

• Results consistent with prior guidance despite challenging economic conditions.

Financial highlights

• Revenue rose 0.3% to AUD 969.9 million, with incremental contributions from Ovato and JacPak; base revenue declined 4% due to softer 2H FY24 economic conditions.

• EBITDA increased 7.5% to AUD 127.8 million; EBITDA margin expanded to 13.2% from 12.3%.

• Net profit after tax grew 8.4% to AUD 43 million; EPS up 5.8% to AUD 0.28 per share.

• Operating cash flow surged 65.7% to AUD 114 million; cash conversion to EBITDA at 114%.

• Material gross margin improved to 46.7% from 45.1% year-over-year.

Outlook and guidance

• FY25 underlying NPAT guidance of AUD 45–50 million, excluding Lasoo losses and AUD 2.5 million in restructuring/integration costs.

• Dividend expected to remain at AUD 0.18 per share to preserve cash for debt reduction and capital management.

• Senior debt expected to reduce further in FY25; strong start to FY25 trading noted despite macroeconomic headwinds.

• No major acquisitions currently planned.