IVE Group has made good progress against its ‘Now to 2030’ strategy, while delivering solid financial results for the six months to 31 December 2025.
Further margin expansion reflecting the leveraging of IVE’s scale, coupled with strict cost control, has seen MGM, EBITDA and NPAT margins increase in line with the Group’s ‘Now to 2030’ strategic ambition.
The uplift in margins largely offset revenue softness in the retail and media sectors, particularly impacting IVE’s catalogue and publishing business, as foreshadowed at the Group’s AGM in late November 2025.
Underlying NPAT declined three per cent to $28.4m (from $29.3m the previous corresponding period). Pre-AASB 16 underlying NPAT was broadly unchanged at $28.7m, compared with $29m previously.
IFRS NPAT declined to $24.3m from $27.1m, reflecting an increase in non-operating items largely associated with the 3PL Dandenong and Kemps Creek relocations coupled with acquisition expenses.
Key underlying financial performance indicators for the HY include:
- Revenue at $476.5m, down 6.2 per cent from $507.8m
- Material gross profit margin of 50.7 per cent, up from 48.5 per cent
- EBITDA at $75.4m, up 1.8 per cent from $74.1m
- EPS (NPAT) at 18.4c, down 2.9 per cent from 19c
- EPS (NPATA) at 19.7c, down two per cent from 20.1c
- Operating cash conversion remains strong at 84 per cent compared with 92 per cent
- Net debt of $172.3m, up from $114.4m at 30 June 2025, reflecting the funding of the Impressu, Budget Mail Services (BMS) and Daily Press acquisitions, coupled with peak working capital seasonality and capex associated with the packaging capacity build-out
- On-market buyback resulted in the cancellation of a further 992,167 shares or ~0.6 per cent of issued capital at an average cost of $2.72
- Fully franked interim dividend of 9.5c, unchanged from the previous corresponding period, consistent with guidance indicating a stable dividend in FY26
“Despite softer revenue in catalogues and publishing, I am pleased with IVE Group’s continued margin resilience which underpinned a solid half-year performance,” said Matt Aitken, managing director of IVE.
“During the first half, IVE made good progress on the 2030 strategy – having recently completed the Dandenong 3PL relocation, the operational focus for the remainder of FY26 includes completion of the Kemps Creek supersite, completion of site consolidations in Victoria, and leveraging the recent acquisitions of Impressu, BMS and Daily Press."
FY26 outlook and guidance
Underlying NPAT is expected to be around $50m, excluding the expected favourable net impact of recent acquisitions.
Excluding non-cash AASB 16 lease impacts, guidance is around $52.5m, which compares with the FY25 result of $51m on the same basis.
Consistent with previous treatment, underlying NPAT excludes:
- An expected Lasoo operating loss of ~$4m post-tax (in line with FY25 with a significant improvement expected in FY27);
- Abnormal costs of ~$10m post-tax primarily associated with the Dandenong and Kemps Creek relocations; and
- The expected favourable net impact of the BMS, Impressu and Daily Press acquisitions.
Capital expenditure expectations are broadly unchanged at ~$45m (net of disposal proceeds). Net debt on 30 June 2026 is expected to be <1.5x pre-AASB 16 EBITDA (<1.2x post-AASB 16 EBITDA).
As foreshadowed at the 2025 AGM, while IVE’s FY26 annual dividend is expected to be held steady at 18c, thereafter the Board intends returning to a dividend payout ratio based on 55-65 per cent of underlying earnings.
In calendar 2025, IVE undertook an on-market buyback (of up to $10m), which resulted in the cancellation of a ~1.7m shares or 1.1 per cent of issued capital for total consideration of $4.3m at an average cost of $2.53.
Although not active in the market since late October 2025, the Group intends reinstating the buyback after obtaining the requisite regulatory approvals.