IVE EXPECTS 14% UPLIFT IN 2022 REVENUE

Marketing, communications and printing group IVE expects to close the financial year with revenue 14 per cent higher than last year, at $750m, and EBITDA and net profit also up.

Underlying EBITDA is expected to be $98m, up from the $85.3m last year (excluding JobKeeper) with underlying NPAT expected to be $33m, up by 55 per cent from last year’s $19.9m (excluding JobKeeper), which would deliver an earnings per share uplift of 70 per cent, compared to 2021 underlying full year NPAT.

All print business, including IVE, are facing rising costs, in consumables, energy and labour, however Geoff Selig, executive chair, said "We continue to work successfully with clients to manage flow through price increases as result of upward pressure on input costs."

The company says supply chain disruption, primarily paper supply, remains a key focus. IVE is keeping itself well stocked, Selig said, "We continue to build inventory levels to ensure no disruption to customer service levels, and to place the business in a strong position to take advantage of growth opportunities.

"Raw material inventory levels are currently approximately 25 per cent higher than June last year. "This level of holding, whilst high by historical standards, is considered appropriate given the scale of the business, current supply chain volatility, and the competitive advantage it potentially delivers. We envisage paper inventories will continue to grow over H1 FY23."

IVE says its integration of Active Display Group and AFI Branding Solutions is “progressing well,” with full integration expected to be complete by September, "three months later than previously advised, due to weather and Covid-driven delays in completion of IVE’s new Braeside facilities." All five Active and AFI sites are being consolidated into the new facility. IVE bought Active and AFI in October.

IVE has renewed its syndicated senior debt facility with the maturity date extended to May 2026. The renewal achieved improvements in both the terms and pricing. At the end of May, IVE’s senior syndicated loan facility of $160m was drawn to $125m, with available headroom of $35m.

The company will release its full year results on August 25.