IVE Group Ltd. reported a 1.8% year-over-year decline in revenue to $937.4 million for the fiscal year ended June 30, 2026, as the company navigated softening demand across its print and marketing services segments. The decline followed a 210-basis-point improvement in gross profit margin to 51.4%, contributing to a 2.8% rise in pre-AASB 16 EBITDA to $112.6 million.
Post-AASB 16 adjustments, EBITDA increased 6.6% to $145.8 million, lifting the EBITDA margin to 15.6% from 14.3% in the prior year. Net profit after tax rose 3.0% to $52.5 million, while earnings per share grew 3.7% to 34.2 cents. The company maintained a strong cash conversion rate of 93.6% of EBITDA, though this was down from 101.9% in FY25.
IVE Group’s capital expenditure totaled $43.2 million, including $16.8 million for maintenance and investment, $18.0 million for the Kemps Creek fit-out, and $15.4 million for packaging expansion. The company expects capex to normalize at approximately $26 million in FY27. Net debt rose to $173.2 million, with a net debt-to-EBITDA ratio of 1.54x pre-AASB 16 and 1.19x post-AASB 16. A $80 million increase in the senior debt facility to $330 million in December 2025 left $109 million in undrawn capacity.
The company declared a fully franked final dividend of 9.0 cents per share, bringing the full-year dividend to 18.5 cents, a 5.9% increase from FY25. The payout ratio was 55.3%, down from over 70% in FY22. IVE Group also cancelled 2.3 million shares at an average cost of $2.66, reducing its share count.
Strategic investments and facility expansions supported operational efficiency. The Kemps Creek supersite in Sydney, fully operational in Q4, consolidated five business units and is projected to avoid $3.1 million annually in rental cost increases. The Dandenong South 3PL facility, operational since July 2025, now operates at 85% capacity, expanding the national 3PL footprint by 40% to 84,000 square meters.
IVE Group completed two acquisitions in FY26: Impressu for $13.5 million and Daily Press for up to $35 million, with deferred consideration tied to performance through 2027. The company also secured a six-year marketing services agreement with Domino’s Pizza Enterprises, covering creative content, customer experience, and brand activations.
Digital platform Lasoo, which reached 362 live retailers and 5.2 million unique users, reported a 42% increase in gross transaction value to $25 million, though it remains unprofitable with a $6.6 million pre-tax operating loss in FY26. The platform is on track to break even in FY28. IVE Group’s AI initiatives, including the proprietary Indy design platform and partnerships with Salesforce and Adobe, now serve 590 clients with 1,500 active users.
For FY27, IVE Group expects underlying net profit after tax to remain broadly stable, though post-AASB 16 net profit is projected to decline due to a $6 million non-cash lease impact from its new facilities. The company targets a dividend payout ratio of 55%-65% of underlying pre-AASB 16 earnings and expects catalog revenue to continue declining at a low single-digit annual rate.
