Print and marketing group IVE says revenue momentum in the second half of FY22 is expected to push its full-year revenue up 14% pcp to about $750 million. IVE’s integration of wide format acquisitions Active Display Group and AFI Branding into its Retail Display facility in Braeside, VIC has been delayed by three months due to the weather and Covid.
|IVE Group's new Retail Display facility at Braeside, VIC|
| 'Supply change disruption
remains a key focus':
Geoff Selig, IVE Group
In a trading update for the 11 months to 31 May 2022, IVE's executive chairman Geoff Selig said: “Supply chain disruption, primarily paper supply, remains a key focus. We continue to build inventory levels to ensure no disruption to customer service levels, and to place the business in a strong position to take advantage of growth opportunities.
"Raw material inventory levels are currently approximately 25% higher than June 2021," Selig said. "This level of holding, whilst high by historical standards, is considered appropriate given the scale of the business, current supply chain volatility, and the competitive advantage it potentially delivers.
"We envisage paper inventories will continue to grow over H1 FY23. We continue to work successfully with clients to manage flow through price increases as result of upward pressure on input costs."
IVE's integration of Active Display Group (ADG) and AFI Branding Solutions (AFI) is “progressing well,” Selig said, with full integration expected to be complete by September 2022, "three months later than previously advised, due to weather and Covid-driven delays in completion of IVE’s new Braeside facilities."
ADG and AFI’s operations across five sites are currently being fully integrated into IVE’s new Retail Display facilities in Braeside, Victoria.
FY22 full year guidance
- Underlying EBITDA expected to be $98m
- Underlying NPAT expected to be $33m, which would deliver an earnings per share uplift of 70% over 2021.
- Capital expenditure expected to be $14.5m (excluding Lasoo investment of $4m)
- Net debt at June 30 expected to be circa $95m-$100m.
- The Company’s dividend policy remains unchanged, targeting a full year payout ratio of 65%-75% of NPAT
The company will release full year results on August 25.