IVE announces 2023 Results

IVE has announced its financial results for the 12 months ended 30 June 2023 (FY23).

The result was underpinned by strong organic growth coupled with a maiden contribution from Ovato, partially offset by materially higher input and finance costs. Organic revenue growth was broad-based and reflects the Group’s leading industry vertical positioning, tier-1 clientele and diversified revenue base.

Key underlying financial performance indicators for the year include:

Revenue $967.4m, up 27.5% from $759.0m pcp

EBITDA $119.0m, up 23.1% from $96.6m pcp

NPAT $39.7m, up 19.8% from $33.1m pcp

EPS 26.4¢ps, up 14.5% from 23.1¢ps pcp

ROFE improved further to 24.7% from 21.3% pcp

Operating cash conversion to EBITDA 65.7%

Cash on hand: $44.9m

Net debt $124.2m, up from $76.8m on 30 June 2022, primarily reflecting the Ovato acquisition, including the funding of strategically elevated inventory (paper) and integration costs 

Fully franked final dividend of 8.5 ¢ps, up 6.3% from 8.0¢ps pcp

Commenting on IVE Group’s FY23 performance, Chief Executive Officer Matt Aitken said, “In addition to delivering a strong financial performance, the Group acquired selected assets of major competitor Ovato, successfully launched our new e-Commerce marketplace Lasoo, and executed a 7-year agreement with leading global renewable energy company, Iberdrola.

The Ovato integration has proceeded smoothly, with all Ovato equipment now expected to be installed and operational in IVE sites by March 2024, three months ahead of the previously advised timetable.

Our focus in the coming 12 months will be on driving further organic growth and operational efficiency and successfully executing the final phase of the Ovato integration.”

Ovato – integration ahead of schedule

The Ovato integration has proceeded smoothly, with all Ovato equipment now expected to be installed and operational in IVE sites by March 2024, three months ahead of the previously advised timetable.

Lasoo – performing strongly after a successful launch

Following its successful launch in October 2022, the new Lasoo platform continues to show strong consecutive month-on-month growth across all relevant metrics.

Activity levels remain strong, with more than 126 fully integrated retailers operating on the platform (compared with only 28 live prior to launch) underpinning a broad and deep product/category offering.