Appendix 4D - Half Year Accounts 27 February 2025

Key points

• Net sales declined 11.7% but EBIT margin improved to 7.5%
• Profitability increased through strategic brand mix adjustments
• European division and all major brands contributed positively
• Interim dividend of 10 cents per share, up from 9 cents prior year

Full summary

Globe International Ltd reported a consolidated net profit of $4.8 million for the half-year ended 31 December 2024, largely flat on the prior corresponding period despite a 11.7% decline in net sales to $95.3 million. The revenue reduction was the result of a planned strategic adjustment to the brand mix, aimed at delivering improved profitability through long-term growth in higher-margin brands. In the first half, the company delivered an EBIT of $7.1 million, representing a 7.5% return on sales - a 7 bps improvement driven by higher gross profit margins, increased operating efficiencies, and a greater proportion of sales in more profitable apparel brands. All three regions and major brands contributed positively to the result, enabling the company to continue delivering on its strategic objectives. The company's cash position, net of working capital borrowings, stood at $24.6 million as at 31 December 2024, up from $22.1 million at the end of the 2024 financial year. Cash generated from operations was $8.7 million, driven by a $1.5 million reduction in working capital. The directors have determined an interim dividend of 10 cents per share, fully franked, to be paid on 28 March 2025.

Guidance

The company reported an EBIT of $7.1 million for the half-year ended 31 December 2024, representing a 7.5% return on sales.