IVE Group (ASX: IGL) has reported a strong first-half performance for the six months ending 31 December 2024, with increased revenue, profitability, and operating margins. The company posted IFRS net profit after tax (NPAT) of $27.1 million, more than doubling from $13.0 million in the prior corresponding period, reflecting improved profitability and reduced non-operating costs.
Key financial highlights include:
– Revenue of $507.8 million, up 0.4% from the prior year.
– EBITDA of $74.1 million, up 12.6%.
– NPAT of $29.3 million, up 29.1%.
– Earnings per share (EPS) of 19.0 cents, up 28.1%.
– Operating cash flow conversion of 92.0%, up from 84.0%.
– Net debt reduced to $121.4 million, down from $131.0 million in June 2024.
The company attributed its performance to strong margin expansion, cost synergies from the Ovato and JacPak acquisitions, and organic growth initiatives. The JacPak acquisition, completed in October 2023, has now fully realised its $2.4 million annual cost savings, with its $15 million additional revenue capacity now fully committed.
In light of the strong start to the financial year, IVE has raised its FY25 underlying NPAT guidance to between $47 million and $50 million, up from $45 million to $50 million. It has also reaffirmed its fully franked interim dividend of 9.5 cents per share, maintaining a stable payout for shareholders.
Looking ahead, IVE continues to expand its packaging division, relocate its third-party logistics (3PL) operations to a new 32,000m² site in Dandenong South, and develop a 42,000m² Sydney supersite to consolidate its print, packaging, and data operations. The company has also initiated a $10 million share buyback program, reflecting confidence in its financial position and growth prospects.
