Novus Holdings (NVS) H2 2025 earnings summary

Executive summary

• Revenue increased to R4,222m for the year ended 31 March 2025, up 6.6% year-over-year, with improvements in the print business and normalized trading after residual paper costs were addressed.

• Integrated acquisitions from Media24, including On the Dot distribution, community newspapers, and two sports titles, enhancing the group's portfolio.

• Book business stabilized and is growing, while education business faced pressure due to curriculum changes and budget constraints.

• Packaging segment showed steady growth, supported by increased investment in equipment and innovation.

• Education segment led EBITDA contribution at 50.9%, followed by Print (29.5%) and Packaging (14.8%).

Financial highlights

• Revenue: R4,222m (up 6.6% year-over-year); gross profit: R1,327m (up 14.3%); gross margin: 31.4%.

• EBITDA rose 5.4% to R663m; operating profit was flat at R394m, but normalized profit increased by R80m after adjusting for once-off costs.

• EPS increased 46.1% to 110.9c; HEPS up 35.7% year-over-year on a normalized basis.

• Strong cash position at year-end, with net working capital up to R1,299m.

• Major acquisitions included Mustek, ByteFuse, and Media24 OMS businesses.

Outlook and guidance

• Guidance is difficult due to ongoing uncertainty in education procurement, curriculum changes, and advertising spend.

• Continued investment in AI, digital platforms, and packaging innovation, with a focus on e-books and e-commerce.

• Packaging business expected to grow organically, with potential for acquisitions.

• Mustek acquisition offer ongoing, aiming to complete by mid-July; group holds just under 39% of Mustek.

• B-BBEE Level One Contributor status enhances education sector positioning.