IVE Group (ASX:IGL) reported strong FY25 results, meeting all guidance metrics, including an earnings upgrade flagged in June. Revenue came in at $954.8m, down 1.6% year-on-year due to softer economic conditions and election-related uncertainty, but profitability improved markedly. Underlying EBITDA rose 7% to $136.7m, with EBITDA margin expanding to 14.3% from 13.2%. IFRS net profit after tax lifted 69% to $46.7m, while EPS (NPAT) increased 20% to 33.7c. The group declared a fully franked final dividend of 8.5c, bringing the full-year payout to 18c per share, in line with guidance. Operating cash flow was robust, gearing remained well below the internal target, and net debt declined to $114.4m.
Operationally, IVE completed the integration of Ovato and JacPak, while its research reinforced the effectiveness of print catalogues, with retailers earning on average $14.50 for every $1 invested. Growth initiatives advanced, including the Dandenong supersite relocation (ahead of schedule) and the Kemps Creek supersite build in Sydney, targeted for early 2026. The company also progressed ESG initiatives, completing phase one of its sustainability strategy and laying groundwork for 2026–2030 goals. Its Lasoo business tracked to expectations, with strong transaction volumes, particularly in July, and is expected to approach breakeven by FY28.
Looking ahead, IVE guided FY26 NPAT of $50m–$54m, excluding one-off lease accounting impacts and relocation costs. Capex is forecast at around $42m, primarily for packaging capacity and supersite fit-outs. The dividend is expected to remain steady at 18c per share. Management highlighted a strong pipeline of new business, including campaigns for Coles and Bunnings as they return to print catalogues, and confirmed that diversification and acquisitions in packaging, 3PL, apparel, and creative services remain central to its growth strategy.
