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.

• Diversification strategy enabled resilience against inflationary and economic challenges.

• Strong safety culture maintained, with improvements in key safety metrics, despite a fatal incident in South Australia.

• Geographic footprint expanded organically and through acquisitions in New Zealand, NSW, and WA.

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.

• Underlying EBIT/EBITA increased by almost AUD 40 million (14.5%) over FY2023 to $318.4m.

• Underlying NPATA rose 13% to AUD 271 million; underlying EPSA up 13.1% to 15.3 cents per share.

• Fully franked final dividend of AUD 0.0515 per share, full-year dividend up 13% to AUD 0.0915.

• Net CapEx was AUD 615 million, including AUD 104 million on acquisitions; net debt at June 2024 was AUD 1.215 billion.

Outlook and guidance

• Expect strong underlying revenue and EBITDA/EBITA growth in FY2025, with improved agri volumes and continued high volumes in most areas.

• Underlying NPAT and EPSA growth expected to be modest due to lower Patrick contribution and initial losses from Moorebank Interstate JV.

• Guidance includes contributions from recent acquisitions and growth CapEx, with estimated FY25 capex of $800–$850m.

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

• Assumes no material adverse changes in market, economic, or labor conditions.