IVE Group (ASX:IGL) has released its FY25 results for the year ending 30 June 2025, reporting a net profit after tax (NPAT) of $52.1 million, up 21.1 per cent from the $43.0 million it recorded in the previous corresponding period.

Its revenue, however, was marginally down by 1.6 per cent – from $969.9 million to $954.8 million and base revenue was down by about 3 per cent relative to the previous corresponding period, which it said was impacted by a softer economy and uncertainty surrounding the federal election.

EBITDA was reported at $136.7 million, up 7.0 per cent from $127.8 million the previous corresponding period, with the company saying that excluding non-operating items, the group’s underlying result was consistent with guidance with “key profit metrics up significantly”.

The company attributed its strong margin expansion to improved MGM, a full period of Ovato integration benefits, JacPak synergies, as well as ongoing operational efficiencies. In addition, its Brand Activations, 3PL, and Packaging divisions enjoyed new client/business wins including household brands in the FMCG and pharmaceutical sectors.

Commenting on IVE Group’s FY25 performance, IVE Group managing director Matt Aitken said, “Given the somewhat muted economic landscape including lingering inflation and the uncertainty that surrounded the federal election, I am pleased with the FY25 result which comfortably exceeded the targets set at the beginning of FY25.

“The result was underpinned by a further strong uplift in operating margins reflecting strict cost control coupled with the full emergence of Ovato and JacPak cost synergies.

“Continued strong cash conversion sees the group well placed to deliver continued growth over the medium term with the balance sheet offering significant capacity for both organic and inorganic growth initiatives.”

In addition to the financials, the company provided an update on its growth initiatives including:

• 3PL expansion in Dandenong South, Melbourne – With the strong growth in IVE’s 3PL operations and the upcoming expiry of 3PL’s main warehouse lease in Braeside, the group is relocating to a brand new, purpose-built facility in nearby Dandenong South.
  The 33,000m2 facility will become 3PL’s largest site and provide an additional 60 per cent storage capacity for IVE’s Victorian clients (increasing 3PL’s national capacity by 30 per cent to 80,000m² from 62,000m2 currently).
  Handover of the site to IVE occurred in late July 2025 with relocation expected to be complete in mid-to-late October.
  The building has a 5-star green rating, with parking for all staff, solar powered electricity supply with battery storage, and end-of-trip facilities for up to 100 staff. In the initial phase, the warehouse will have state-of-the-art storage systems for over 25,000 pallets of stock, with
  plenty of open floor space for future growth and dedicated in-house logistics services for JacPak.
  
• Sydney supersite at Kemps Creek – This site will consolidate multiple sites for operating efficiencies and capacity expansion, including Commercial Print & Packaging from Silverwater, Brand Activations from Granville, CX & Data from Homebush, and Paper storage (for Print Web Offset) from Warwick Farm.
  This site is said to facilitate the group’s strategy of expanding into horizontal adjacencies
  such as packaging, to drive revenue growth and operational efficiencies.
  Groundworks commenced in December 2024 with completion said to be on track for late December 2025, with the site expected to be fully operational by March 2026.

IVE Group also updated that its cash at bank is at $50.1 million, while its net debt decreased to $114.4 million, reflecting stable working capital and greatly reduced restructuring costs, partially
offset by capex associated with the packaging capacity build-out.

IVE Group said its FY26 underlying NPAT guidance range is at $50 million to $54 million, adding that diversification, typically through acquisition, remains a core element of its growth strategy.

“Our strong balance sheet supports further acquisition capacity, with the group actively looking for strategically attractive and accretive acquisitions, particularly in 3PL, merchandise and apparel as well as creative and content,” it said.

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