IVE Group (IGL) H2 2024 earnings summary

Executive summary

• FY24 results met all key guidance metrics, with solid profit growth, margin expansion, and strong operating cash flow; Ovato integration and JacPak acquisition completed ahead of schedule.

• Strategic acquisitions in packaging (JacPak) and creative (Elastic Group) support diversification, growth, and expanded omni-channel marketing capabilities.

• Continued investment in Lasoo, with strong user and transaction growth, and break-even now targeted for FY28 to accelerate growth.

• NPAT and margin higher, though impacted by increased net finance costs; gearing remains below target.

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; fully franked dividend stable at AUD 0.18 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.