MOVE Logistics Group (MOV) H2 2024 earnings summary

Executive summary

• Revenue declined to $301.7m, down 13% year-over-year, due to recessionary pressures and reduced market activity.

• Net loss after tax widened to $(48.1)m, including $19.7m in non-trading adjustments such as asset impairments and restructuring costs.

• Underperformance was driven by high exposure to the retail sector, delayed response to market changes, and subdued customer activity.

• A comprehensive change programme with new leadership and a refreshed Board was launched to recalibrate operations and target significant improvement in FY25 and profitability in FY26.

Financial highlights

• Normalised EBITDA dropped to $27.6m from $47.4m year-over-year, with margin decline due to lower revenue and high costs.

• Net loss after tax was $(48.1)m, including $17.3m in non-cash impairments.

• EPS declined to -37.66 cents from -6.18 cents year-over-year.

• Free cashflow improved to $2.0m from $0.7m year-over-year, but net operating cashflow (including rent and leases) was negative at $(5.1)m.

• Net debt rose to $17.0m from $15.6m year-over-year; total bank debt stood at $36.0m, including $9m in bank guarantees.

Outlook and guidance

• FY25 is positioned as a turnaround year, with a return to normalised EBT profit targeted for FY26.

• Strategic priorities include recalibrating operations, profitable revenue growth, and balance sheet resilience.

• Positive adjusted net operating cashflow and significant EBT improvement targeted for FY25, though change programme costs will impact results.

• The change programme, started in July 2024, is on track with early wins in customer sales and freight turnaround.

• Economic and sector conditions expected to remain challenging until at least 2025.