IVE announces improved profits in FY24 Results

IVE (ASX:IGL) has announced its financial results for the the year ended 30 June 2024 (FY24).

The result was consistent with guidance and underpinned by margin expansion and a strong rebound in cash flow. Significant milestones during the year included the successful completion of the Ovato integration, entry into the folded carton packaging sector with the acquisition of JacPak and expansion of the Group’s creative and content offering with the acquisition of Elastic.

The Group’s e-Commerce marketplace, Lasoo, achieved strong growth across all key financial metrics with ongoing investment expected to drive significantly increased scale.  

Key underlying¹ financial performance indicators for the year include:

• Revenue $969.9m, up 0.3% from $967.4m pcp  

• Material gross profit margin, 46.7% up from 45.1% pcp

• EBITDA $127.8m, up 7.5% from $119.0m pcp

• NPAT $43.0m, up 8.4% from $39.7m pcp, impacted by higher net finance costs

• Operating cash flow of $145.8m, up 86.4% from $78.2m pcp

• Stable fully franked final dividend of 8.5¢ps (FY24 dividend of 18.0¢ps, stable on pcp)    

^{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.}  

Cornerstone acquisition of JacPak and planned organic expansion

On 31 October 2023, the Group entered the Australian fibre-based packaging sector with the cornerstone acquisition of leading Melbourne based folding carton player, JacPak. In addition to organically growing JacPak’s standalone revenues, the Group plans to leverage the operational footprint of its Sydney commercial printing operation (via the addition of new finishing equipment) to support significantly increased packaging revenues.

Creative and content

In line with its growth strategy in content creation, IVE recently acquired Elastic Group, an independent creative agency that specialises in video content creation and visual communications. Elastic’s Sydney and Melbourne operations have been relocated and integrated into IVE’s business. Elastic brings an impressive portfolio of customers across automotive, pharmaceutical, government, sports & entertainment, food & beverage, finance and property.

Lasoo – better than expected performance warrants further investment

Australia’s fastest growing e-Commerce marketplace, Lasoo, launched by the Group in 2022, continues to show strong consecutive month-on-month growth across key financial metrics. Given proof of concept and significantly better than expected performance, over the next four years the Group will continue to invest in Lasoo to further enhance customer experience and significantly scale the business.

Commenting on IVE Group’s FY24 performance, IVE Group’s Managing Director, Matt Aitken said:

“Given an increasingly difficult economic landscape, I am very pleased with the FY24 result which was consistent with the targets we set at the beginning of FY24. In addition to completing the Ovato acquisition ahead of schedule and reaffirming the integration synergies, we completed the acquisition of JacPak which is performing in accordance with expectations with cost and revenue synergy expectations unchanged. Lasoo's continued strong outperformance of its original business case is particularly encouraging and warrants ongoing investment that is expected to deliver a material increase in platform scale and value.”  

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