Qube (QUB) H2 2024 earnings summary

Executive summary

• Achieved fourth consecutive year of double-digit earnings and EPSA growth, with underlying EPSA up 13.1% to 15.3 cents per share and robust performance across most key markets in FY2024.

• Statutory revenue rose 16.6% to $3,357.2m and underlying revenue increased 17.2% to $3,503.6m year-over-year.

• Underlying EBITA grew 13.6% to $318.4m, and underlying NPATA rose 13.2% to $271.2m.

• Fully franked dividend increased 13% to 9.15 cents per share, reflecting strong earnings and positive outlook.

• Key drivers included high container and automotive volumes, strategic acquisitions, and strong associate contributions.

Financial highlights

• Group revenue grew by over AUD 500 million year-over-year, with grain trading contributing AUD 140 million.

• Underlying EBITDA up 14.9% to $534.1m; EBITA margin at 9.1% (9.5% ex grain trading).

• Statutory NPAT increased 32.2% to $221.9m; underlying NPAT up 14.8% to $258.0m year-over-year.

• Net CapEx was AUD 615 million, including AUD 104 million on acquisitions; gross capex of $632.3m in FY24.

• Gearing at 27.2%, below the target range of 30–40%; weighted average debt maturity extended to 3.2 years.

Outlook and guidance

• FY25 expected to deliver strong underlying revenue and EBITA growth, with improved agri volumes and contributions from recent acquisitions.

• Group NPATA and EPSA growth expected to continue in FY25, but at a more modest rate than FY24.

• Patrick's NPATA contribution expected to decline 10–15% due to normalization of market share and higher interest costs.

• Estimated FY25 capex of $800–$850m, including $460m for MIRRAT and Colemans acquisitions.

• Considering asset sales of AUD 180–250 million to support liquidity.