AVJennings Reports Financial Results for 1H25

• Profit Before Tax (PBT) of $3.6M, down 14% compared to 1H24
• Revenue grew 9% to $131.4M, driven by increased apartment settlements
• Contract signings down 22% to 228 lots, impacted by market conditions

AVJennings Ltd (ASX:AVJ) announced its financial results for the six-month period ended 31 December 2024 (1H25), reporting a Profit Before Tax (PBT) of $3.6M, down 14% compared to the Prior Corresponding Period (PCP) (1H24 PBT: $4.2M). Net Profit After Tax (NPAT) for the period was $2.4M (1H24 NPAT: $2.8M). During 1H25, the Company settled 325 lots, representing a 20% increase on the 270 lots settled in 1H24. Revenue for the period grew by 9% on the PCP to $131.4M (1H24: $120.4M), driven by a significant increase in apartment settlements. Key contributors to 1H25 revenue were Waterline Place (VIC), Evergreen (NSW), Aspect (VIC) and Rosella Rise (NSW). Gross Margin percentage (GM%) was 22%, a decline compared to 1H24 (26%) due to a greater number of apartment settlements, overall cost escalation in built-form housing and capital recycling initiatives. Contract signings for the period decreased 22% to 228 lots (1H24: 294), impacted by both macroeconomic factors and the Company's market release strategy. AVJennings' CEO, Philip Kearns, AM, commented that variable conditions across the markets are likely to remain until the impact of the interest rate cutting cycle in Australia takes hold, and the Company's focus on balanced capital deployment, more built-form product and the transition to onshore Pro9 manufacturing positions it to take advantage of a recovery in the housing market and the economy.

FY25 gross margin (%) is expected to be down on FY24 due to the greater settlement skew towards apartments and built-form housing.

Macroeconomic indicators for the residential property market are becoming increasingly positive, with factors such as the commencement of the interest rate cutting cycle in Australia and New Zealand, low unemployment, government-led planning reforms, and a growing supply shortfall supporting future market conditions. However, segmentation across regional markets is expected to persist throughout FY25, with Queensland and South Australia expected to continue to outperforming, while recovery in New South Wales, Victoria, and New Zealand may be impacted by affordability and investment constraints.