IVE Group has reported a solid set of results for the financial year ending 30 June 2025, with higher profits and strong cash flow underpinned by cost synergies, disciplined management, and ongoing diversification initiatives.
The Group posted net profit after tax (NPAT) of $46.7m, up 69.2 per cent on the prior year ($27.6m). Underlying NPAT was $52.1m, up 21.1 per cent from $43.0m. Revenue came in at $954.8m, a modest decline of 1.6 per cent, while profitability improved with material gross profit margins rising to 49.3 per cent from 46.7 per cent.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 7 per cent to $136.7m, while earnings per share also lifted, with NPAT EPS up 20.3 per cent to 33.7 cents. Net debt reduced to $114.4m, down from $131m the previous year, reflecting strong cash generation.
A fully franked final dividend of 8.5 cents per share was declared, bringing the total FY25 dividend to 18.0 cents, consistent with the prior year.
IVE Group’s managing director Matt Aitken described the performance as one that “comfortably exceeded the targets set at the beginning of FY25,” achieved despite a muted economic backdrop of lingering inflation and election-related uncertainty. He credited the result to strict cost control and the full benefits of synergies from the Ovato and JacPak acquisitions.
“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,” Aitken said.
Growth and diversification initiatives
IVE’s third-party logistics (3PL) arm continues to grow, with the business relocating its Victorian operations to a 33,000m² purpose-built supersite in Dandenong South. The new site increases Victorian storage capacity by 60 per cent and lifts national capacity to 80,000m², with enhanced facilities for receiving, storage, kitting, and daily order fulfilment.
Consolidation of two Braeside warehouses into the Dandenong supersite is expected to drive efficiencies, while the new facility offers a 5-star green rating, solar-powered electricity, and modern staff amenities.
In Western Sydney, IVE is progressing with a 42,000m² Kemps Creek supersite, replicating the success of its Braeside hub. The site will consolidate multiple operations – including commercial print and packaging, brand activations, CX & data, and paper storage – into a single, modern facility. Groundworks commenced in late 2024 and completion is scheduled for December 2025, with operations to begin by March 2026.
This consolidation is designed to support efficiency gains and capacity expansion, as well as strengthen IVE’s push into adjacent markets such as packaging.
Sustainability progress
IVE advanced its 2025 Sustainability Strategy during the year, reporting it has made strong progress across waste reduction, social value, diversity and supply chain accountability.
The company diverted 92 per cent of solid waste from its production sites into recycling streams and achieved an ‘advanced’ rating in its Australian Packaging Covenant Organisation report. It also introduced a textile take-back program that has already diverted more than five tonnes of material from landfill, and became the first uniform supplier to join Seamless, the National Clothing Stewardship Scheme. IVE retained its EcoVadis Bronze Certification and improved female representation in senior management, increasing from 28 to 33 per cent.
Aitken noted that these sustainability initiatives “bring our strategy to life and lay the foundation for continued impact as we move toward our calendar 2025 goals.”
Outlook
For FY26, IVE has issued underlying NPAT guidance of $50m–$54m, excluding one-off relocation and set-up costs for the supersites and expected operating losses of around $4m from Lasoo (which are expected to significantly improve in FY27).
Capital expenditure is forecast at around $42m in FY26, including final spend on packaging capacity expansion and the fit-out of the Dandenong and Kemps Creek sites. From FY27, capex is expected to return to $15m–$20m annually.
The annual dividend is anticipated to remain steady at 18.0 cents per share. The Group reaffirmed its appetite for strategic acquisitions in 3PL, merchandise and apparel, and creative and content, supported by a strong balance sheet.
“IVE remains well positioned to deliver continued growth over the medium term, with significant capacity for both organic and inorganic initiatives,” Aitken said.