H1 FY24 results

IVE Group Limited (ASX:IGL) has announced its financial results for the six months to 31 December 2023. IVE has delivered a solid first half performance with revenue, EBITDA and margins up on a strong (record) prior corresponding period (pcp).

Matt Aitken, Chief Executive Officer of IVE Group, said “Given the more uncertain economic landscape, I am pleased with the first half result which was up relative to a record prior period that was partly buoyed by the post Covid-19 recovery. Importantly, during the half we also completed the Ovato integration six months ahead of the original timetable and entered the Australian fibre-based packaging sector through the cornerstone acquisition of JacPak.”

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Financial Performance:

• Revenue $506.0m, up 0.6% from $502.8m pcp
• EBITDA $65.8m, up 1.3% from $65.0m pcp
• NPAT $22.7m, down 6.5% from $24.3m pcp
• EPS 14.8¢, down 10.2% from 16.5¢ pcp
• Cash on hand $41.7m
• Net debt $165.4m, up from $124.2m at 30 June 2023, reflecting the funding of the JacPak acquisition and peak working capital seasonality, partially offset by the rebound in operating cash conversion
• Interim dividend of 9.5¢ps, fully franked

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IVE has provided the following guidance for FY24:

• Underlying EBITDA of around $132m
• Underlying NPAT of around $44m
• Capital expenditure is expected to be around $18.5m (including $4.5m relating to the final phase of the Ovato integration)
• Restructure and acquisition costs are expected to be around $12.5m (including $10m for the final phase of the Ovato integration)