• All key profit metrics up significantly
• Strong margin expansion
• Further uplift in operating cash flow, working capital levels normalised
• Balance sheet further strengthened, gearing trending below target

IVE Group Ltd reported a strong half-year performance in FY25, with all key profit metrics up significantly. The company achieved strong margin expansion, further uplift in operating cash flow as working capital levels normalised, and a strengthened balance sheet with gearing trending below the internal target. Operational updates included the full realisation of Ovato and JacPak cost synergies, the successful integration of Elastic Group, and continued momentum in the Lasoo e-commerce platform. Growth initiatives progressed well, with the packaging business seeing new business wins and committed capacity, the creative and content division benefiting from the Elastic acquisition, and the third-party logistics business expanding with a new 32,000m2 facility in Dandenong South. The company also announced plans to consolidate multiple Sydney sites into a 42,000m2 supersite in Kemps Creek to drive further operational efficiencies and capacity expansion. Reflecting the strong start to the year, IVE has revised its FY25 underlying NPAT guidance range to $47m-$50m, up from the previous $45m-$50m. Capital expenditure is now expected to be around $32m, including $18m for the packaging capacity build-out. The company intends to maintain its annual dividend at 18.0 cents per share and has initiated an on-market share buyback of up to $10m.

IVE has revised its FY25 underlying NPAT guidance range to $47m-$50m, excluding Lasoo operating loss and restructuring/other costs of around $3.5m. Capex is expected to be around $32m, including $18m for packaging capacity expansion. The annual dividend is expected to be held steady at 18.0 cents per share.

IVE remains focused on executing its growth initiatives across packaging, creative and content, and third-party logistics. The company is consolidating multiple Sydney sites into a 42,000m2 supersite in Kemps Creek to drive further operational efficiencies and capacity expansion. Lasoo is on track to break even during FY28 and reach $150m in GTV by FY30.