IVE Group’s FY25 Profit Jumps to AUD 46.7m on Margin Gains

Financial Performance Highlights

IVE Group Limited has delivered a robust financial performance for the year ended 30 June 2025, reporting a significant 69.2% increase in net profit after tax to AUD 46.7 million, despite a modest 1.4% decline in revenue to AUD 959.2 million. This profit surge was underpinned by margin expansion, cost synergies from recent acquisitions such as JacPak, and the full integration of Ovato, which collectively boosted underlying EBITDA by 7.0% to AUD 136.7 million.

The company’s earnings per share also improved markedly, with underlying EPS rising 20.3% to 33.7 cents, reflecting enhanced operational leverage and disciplined cost management. Meanwhile, net debt was reduced to AUD 114.4 million, well below the Group’s internal gearing target, supported by strong operating cash flow and a conservative dividend payout ratio of 53.4%.

Strategic Operational Developments

IVE’s operational strategy is focused on expanding its integrated marketing and logistics capabilities. Key investments include the relocation and expansion of its third-party logistics (3PL) operations to a new 33,000 square metre facility in Dandenong South, Melbourne, which increases storage capacity by 60% for Victorian clients and enhances operational efficiencies. This move is expected to be completed ahead of schedule in October 2025.

In Sydney, the Group is consolidating multiple business units into a state-of-the-art 42,000 square metre supersite at Kemps Creek, designed to reduce rental costs by AUD 3.1 million annually and improve cross-unit collaboration. The site is scheduled to be fully operational by March 2026, positioning IVE for further growth in packaging and brand activation services.

Digital Innovation and Sustainability Initiatives

IVE continues to invest in digital transformation, notably through its Lasoo platform, which saw a 70% increase in gross transaction value and a 40% rise in retailers onboarded during FY25. The platform is on track to break even by FY28, reflecting the Group’s commitment to omnichannel marketing solutions.

Sustainability remains a core pillar of IVE’s strategy. The Group has made substantial progress in reducing its environmental footprint, including a 25% target reduction in emissions intensity by the end of 2025 and diverting 92% of operational waste from landfill. IVE also became the first uniform supplier to join Seamless Australia, reinforcing its leadership in circular apparel practices. The company is preparing for mandatory climate-related disclosures under the Australian Sustainability Reporting Standards, further enhancing transparency and accountability.

Governance and Executive Remuneration

The Board has approved an increase in Managing Director Matt Aitken’s fixed remuneration to AUD 1 million, reflecting market benchmarks and retention objectives. The remuneration framework continues to align executive rewards with performance, with 25% of short-term incentives now paid in shares to strengthen shareholder alignment. The FY23 Long-Term Incentive plan saw 100% vesting based on earnings per share growth and total shareholder return metrics.

Outlook and Market Position

Looking ahead to FY26, IVE guides underlying net profit after tax in the range of AUD 50 million to 54 million, factoring in relocation costs and ongoing investment in packaging capacity and logistics infrastructure. Capital expenditure is expected to peak at approximately AUD 42 million before normalising in subsequent years. The Group remains active in pursuing strategic acquisitions, particularly in 3PL, merchandise, apparel, and creative content sectors, supported by a strong balance sheet and undrawn debt capacity.

IVE’s dominant market positions across multiple integrated marketing segments, combined with its diversified client base of over 2,800 customers, position it well to navigate evolving consumer expectations and technological shifts. The Group’s commitment to sustainability and innovation further differentiates it in a competitive landscape increasingly focused on environmental and social governance.