Today, IVE (ASX:IGL) announced its financial results for the 12 months ended 30 June 2022, where the financial performance was consistent with earnings guidance provided with the release of the Group’s 2022 interim result.
The operational performance and significant uplift in earnings over the prior corresponding period (PCP) once again demonstrate IVE’s underlying solid fundamentals and growth potential.
Financial Performance1
- Revenue $759.0m +15.6% on PCP
- EBITDA $96.6m +13.3% on PCP
- NPAT $33.1m +66.1% on PCP
- EPS 23.1 cents per share +71.1% on PCP
- Operating cash conversion to EBITDA 95%
- Net debt $76.8m
- Cash on hand $67.0m
- Final dividend 8.0 cents per share fully franked
Commenting on IVE Group’s FY22 performance, CEO Matt Aitken said:
“We enter FY23 with a strong balance sheet having already funded a precautionary but material increase in inventories and having repaid a significant amount of debt over the past two years. We were encouraged by the uplift in revenue during FY22, and while the macroeconomic environment remains somewhat uncertain, I am optimistic about the year ahead given our demonstrated track record, business fundamentals and strong market position. My thanks to our Board and the entire IVE team for their skill and ongoing commitment throughout a year of volatility and uncertainty.”
Lasoo replatformed and relaunched
Despite limited functionality, IVE’s digital catalogue aggregation platform, Lasoo, retains significant and loyal consumer and retailer support, as evidenced by impressive and regular site traffic.
In FY23, the Group will invest a further $3.3m after-tax primarily representing the cost of the consumer go-to-market campaign and team buildout.
Implementation Deed for prospective Ovato asset acquisition
On 10 August 2022, IVE announced it had entered into an implementation deed (Implementation Deed) with Ovato Limited (Administrators Appointed).
IVE noted that clearance from the Australian Competition and Consumer Commission (ACCC) will be required in order for the Proposed Transaction to proceed.
FY23 outlook and guidance2
- Underlying EBITDA of $105m excluding Lasoo as noted below
- Underlying NPAT of $36m excluding Lasoo as noted below
- The Company’s dividend policy remains unchanged, targeting a full year payout ratio of 65-75% of underlying NPAT
- Restructure and acquisition costs expected to be significantly less than FY22
- Capital expenditure expected to be $14m
1 The underlying results are on a non-IFRS basis and are not audited or reviewed. They are presented on a continuing operations basis and exclude non-operating items (refer Investor Presentation – Appendix A), while FY21 comparables exclude net JobKeeper receipts.
2 FY23 underlying EBITDA and NPAT guidance excludes an expected $3.3m after- tax loss associated with Lasoo’s consumer go-to-market campaign and team buildout, and exclude any impact of the potential Ovato transaction.
