H1 FY25 Results

IVE Group Limited (ASX: IGL) is pleased to announce its financial results for the six months to 31 December 2024.

The Group delivered a strong first half performance with revenue, EBITDA and margins up again on a record prior corresponding period (pcp). 

Commenting on IVE Group’s FY25 H1 performance, Managing Director, Matt Aitken said:

“Given continued economic uncertainty and persistent inflation, I am extremely pleased with the first half result which was up materially relative to the prior period. In addition to a strong underlying performance, the half included a full run-rate of Ovato and JacPak (cost) synergies, with JacPak’s $15m of available revenue capacity now committed as per the acquisition business case.”

Key underlying ¹ financial performance indicators for the half include:

• Revenue $507.8m, up 0.4% from $506.0m pcp 
• EBITDA $74.1m, up 12.6% from $65.8m pcp
• NPAT $29.3m, up 29.1% from $22.7m pcp
• EPS (NPAT) 19.0¢ps, up 28.1% from 14.8¢ps pcp
• Net debt $121.4m, down from $131.0m at 30 June 2024, reflecting continued strong operating cash conversion and greatly reduced restructuring costs, partially offset by peak working capital seasonality and capex associated with the packaging capacity build-out
• Fully franked interim dividend of 9.5¢ps, unchanged from 9.5¢ps pcp, consistent with guidance indicating a stable dividend for the foreseeable future

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^{1 The underlying results are on a non-IFRS basis, exclude various non-operating items (as reconciled in the Appendix 4D and the Investor Presentation) and are not audited or reviewed.}

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FY25 outlook and guidance

Reflecting a strong start to the year and sound new business prospects, the Group has revised its FY25 underlying NPAT guidance range to $47m-$50m (from $45m-$50m previously).

Non-operating items excluded from guidance and underlying earnings include:

• Lasoo operating loss similar to FY24; and
• Restructuring and other costs of around $3.5m.

Capital expenditure is now expected to be around $32m, including $18m relating to the packaging capacity build-out (net of disposal proceeds), the increase reflecting the bringing forward of additional packaging equipment purchases (for Phase 1 expansion).

The Board and management view IGL’s share price as offering significant value at current levels and accordingly has initiated an on-market share buyback of up to $10m.  

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