IVE Group reports increased profit in FYE 24/25 financial results

IVE Group has announced its financial results for the year ended 30 June 2025 (FY25).

IFRS NPAT was $46.7m, up 69.2% from $27.6m pcp.

Excluding non-operating items, the Group’s underlying result was consistent with guidance, with key profit metrics up significantly.

Key underlying financial performance indicators for the year include:

• Revenue $954.8m, down 1.6% from $969.9m pcp

• Material gross profit margin, 49.3% up from 46.7% pcp

• EBITDA $136.7m, up 7.0% from $127.8m pcp

• NPAT $52.1m, up 21.1% from $43.0m pcp

• EPS (NPAT) 33.7¢ps, up 20.3% from 28.0¢ps pcp

• EPS (NPATA3) 36.1¢ps, up 19.4% from 30.2¢ps pcp

• Operating cash conversion to EBITDA normalised to 101.9% from 114.0% pcp

• Net debt $114.4m, down from $131.0m at 30 June 2024, reflecting continued strong cash flow

• Stable fully franked final dividend of 8.5¢ps (FY25 dividend of 18.0¢ps, stable on pcp)

Commenting on IVE Group’s FY25 performance, IVE Group’s Managing Director, Matt Aitken, said, “Given the somewhat muted economic landscape, including lingering inflation and the uncertainty that surrounded the federal election, I am pleased with the FY25 result, which comfortably exceeded the targets set at the beginning of FY25. The result was underpinned by a further strong uplift in operating margins reflecting strict cost control coupled with the full emergence of Ovato and JacPak cost synergies. Continued strong cash conversion sees the Group well placed to deliver continued growth over the medium term with the balance sheet offering significant capacity for both organic and inorganic growth initiatives.”

The Group’s annual dividend is expected to remain steady at 18.0 cents per share.

Diversification (typically through acquisition) remains a core element of IVE’s growth strategy. The company says that its strong balance sheet supports further acquisition capacity, with the Group actively looking for strategically attractive and accretive acquisitions, particularly in 3PL, merchandise and apparel, as well as creative and content.

In an investor presentation, IVE confirmed additional details relating to the FY25 result. Base revenue declined by around 3% due to softer economic conditions and uncertainty surrounding the federal election. However, Brand Activations, 3PL and Packaging achieved new client wins in the FMCG and pharmaceutical sectors. Non-operating items comprised a $6.2 million Lasoo operating loss, $3.0 million restructure costs and a minor offset of $0.1 million. EBIT increased 15.3% to $92.4 million, with net finance costs reducing to $16.0 million from $17.4 million in the prior year. Cash at bank was $50.1 million. The balance sheet showed net debt to EBITDA of 1.05x pre-AASB16 and 0.84x post-AASB16, with $72 million of undrawn debt capacity and the senior debt facility refinanced for a further four years in May 2025. Capital expenditure in FY25 was $25.0 million net, including $18.2 million for the packaging capacity build-out, with approximately $7.0 million of planned FY25 investment deferred into FY26.

Customer and market data was also disclosed. The top customer represented 7.9% of revenue, the top 2–5 customers 15.7% and the top 6–20 customers 16.5%, with the balance spread across the wider base. The average tenure of the top 20 customers was 10.2 years. Sector revenue mix included retail at 51.4%, supermarkets at 17.0%, health and personal products at 13.2%, publishing at 5.9% and media at 4.4%, with the remainder across other industries.

Details of growth initiatives were provided. The Group’s 3PL operations are relocating to a new 33,000sqm Dandenong South facility, handed over in July 2025, with relocation to be completed by October 2025, six weeks ahead of expectations. The site increases Victorian storage capacity by 60% and national capacity by 30% to 80,000sqm, has a 5-star green rating, solar power with battery storage, parking and end-of-trip facilities, and initial storage capacity for 25,000 pallets. In Sydney, a 42,000sqm Kemps Creek supersite is under development to consolidate operations currently across multiple sites, with completion scheduled for December 2025 and full operation by March 2026.

Sustainability progress was also reported. Of the 47 initiatives in the 2025 Sustainability Strategy, 45% are complete, 45% due for completion by the end of calendar 2025 and 10% deferred to 2026–2030. Initiatives delivered during FY25 included a carbon footprint calculator for core print products, a textile take-back program diverting more than 5 tonnes from landfill, joining the Seamless National Clothing Stewardship Scheme, retaining EcoVadis Bronze certification, and diverting 92% of solid waste from production to recycling. Female representation in senior management rose to 33% from 28%, 67 mental health first aid officers were trained, the company submitted its first Reconciliation Action Plan, and the Geoff Selig Scholarship was launched.