Joyce Corporation (JYC) H1 2025 earnings summary

Executive summary

• Revenue for 1HY25 was $73.4 million, up 0.5% year-over-year, with stable operating performance despite challenging consumer conditions.

• Normalised NPAT attributable to shareholders was $4.0 million, down 16.1% from 1HY24, reflecting one-off items and softer demand; reported NPAT dropped 21.5% to $7.4 million.

• NPAT attributable to Joyce shareholders fell 35.6% to $3.1 million; basic EPS dropped 37.9% to 10.34 cents.

• Net cash position was $31.8 million as of 31 Dec 2024, with the group remaining debt free.

• Fully franked interim dividend of 10.5 cents per share, maintaining a payout ratio of 78%.

Financial highlights

• Contribution margin improved to 50% and gross profit rose to $40.1 million, despite higher operating expenses and reduced foot traffic.

• Normalised EBITDA was $16.6 million, down 0.8% year-over-year; reported Group EBITDA fell 6.9% to $15.6 million.

• Operating expenses increased to 27.5% of revenue from 26.0% in 1HY24.

• Net cash balance at 31 Dec 2024 was $31.8 million, down from $39.1 million at 30 June 2024, mainly due to dividend payments.

• Normalised EPS was 13.47 cents, impacted by share issues from LTI schemes.

Outlook and guidance

• Focus remains on organic growth in large addressable Australian markets, with further network expansion planned for KWB and Bedshed.

• Second half of FY25 started well, with record January orders for KWB and Bedshed business written sales up 6% year-over-year.

• Full year dividend payout ratio targeted at 60–80% of normalised NPAT.

• Continued emphasis on disciplined cost and capital management.

• No significant post-reporting date events expected to affect operations or financial position.