IVE exceeds full year guidance with $100m EBITDA

The country’s biggest print business, IVE, performed better than anticipated in the financial year to June, achieving a $100.2m EBITDA on revenue of $656m, and is anticipating strong growth next year.

Its EBITA, excluding JobKeeper, was $85.3m, its net profit after tax was $30.2m (or $19.9m excluding JobKeeper). The company said its strong cashflows, significantly strengthened balance sheet and solid financial performance demonstrate the underlying resilience of the business throughout a year of uncertainty and volatility.

EBITDA was up by three per cent, its net profit after tax rose by 7.5 per cent, on revenues that were three per cent lower than last year. The company has $107m cash in hand, and reduced its debt by $59.8m to $77.3m.

It has $30m-$40m earmarked for growth opportunities, which include ramping up its Lassoo digital business, growing in the fibre-based packaging segment, and for bolt-on acquisitions.

Speaking to Print21 IVE executive chair Geoff Selig said, "We already do a little bit in packaging, but see potential growth. We would not be looking to take on Amcor or Visy, but in the short and medium run fibre sector we feel we have a lot to offer."

IVE already produces some fibre-based packaging on its offset and wide format machines in Melbourne.

As for acqusition IVE's last company buy was the Salmat business 18 months ago, Selig said, "It is fair to say that acquistion is back on the table. We may look at a fibre-based packaging business, or a bolt-on for one of our existing sectors, or something else altogether an in adjacent field such as data. Whatever we do we will be disciplined."

During the year it had no material customer losses, and gained some $58m worth of new business from new clients including Bunnings, OfficeWorks and Colgate. It has around 2800 customers.

The slightly reduced revenue came as Covid impacted on the business throughout the year, primarily as clients reduced their marketing spend as they navigated through the crisis with continual revisions to marketing plans.

Commenting on the company's FY21 performance, Selig said: “Given the year of unprecedented volatility and uncertainty, I acknowledge the capacity of our people and business to respond to the pandemic by coming together as one, and committing to go above and beyond to service our clients, and care for each other.

“The solid financial performance of the business, and our significantly strengthened balance sheet, demonstrate the resilience of the business, and position the company to deliver strong growth as we emerge from this period of disruption. My thanks to our Board, our CEO Matt Aitken for his leadership, and the entire IVE team, for their skill and continued commitment over what has been a most challenging year”

The company says revenue growth is expected across the business over the next 12-24 months, driven by post-lockdown economic recovery, and further improved market positioning in key sectors.

During the 2021 year, IVE offloaded its telemarketing operation for $16.5m, a profit of $4.2 on its purchase price, and entered into a $100m five year contract with ACM, which involved buying $2m of ACM's WA web offset assets.