Full Year 2026 IVE Group Ltd Earnings Call

August 26, 2026

Speaker #2: Hello, everyone, and welcome to the IVE Group Financial Year 2026 financial results webinar. My name is Rachel Jones, and I'll be your host for today.

Rachel Jones: Hello, everyone, and welcome to the IVE Group Financial Year 2026 Financial Results Webinar. My name is Rachel Jones, and I will be your host for today. On the call today, we have Managing Director, Matt Aitken, and CFO, Darren Dunkley. The format, if you have not joined us before, is a 20 to 30-minute presentation, and that will be followed by 15 minutes of Q&A. If you would like to ask a question, please click the Q&A button at the bottom of your screen and type your question into the Q&A panel. For the analysts joining us today, please click the raise hand button and I will invite you to unmute, and you can ask your question then verbally. I would like to hand over first of all to Managing Director, Matt Aitken, who will now start the presentation. Over to you, Matt.

Operator: Hello, everyone, and welcome to the IVE Group Financial Year 2026 Financial Results Webinar. My name is Rachel Jones, and I will be your host for today. On the call today, we have Managing Director, Matt Aitken, and CFO, Darren Dunkley. The format, if you have not joined us before, is a 20 to 30-minute presentation, and that will be followed by 15 minutes of Q&A. If you would like to ask a question, please click the Q&A button at the bottom of your screen and type your question into the Q&A panel. For the analysts joining us today, please click the raise hand button and I will invite you to unmute, and you can ask your question then verbally. I would like to hand over first of all to Managing Director, Matt Aitken, who will now start the presentation. Over to you, Matt.

Speaker #2: Now, on the call today, we have Managing Director Matt Aiken and CFO Darren Dungley. The format, if you haven't joined us before, is a 20- to 30-minute presentation, and that will be followed by 15 minutes of Q&A.

Speaker #2: If you would like to ask a question, please click the Q&A button at the bottom of your screen and type your question into the Q&A panel.

Speaker #2: Now, for the analysts joining us today, please click the 'raise hand' button. I will invite you to unmute, and you can then ask your question verbally.

Speaker #2: Now, I'd like to hand over, first of all, to Managing Director Matt Aiken, who will now start the presentation. Over to you, Matt.

Speaker #3: Hi, good morning everyone, and thank you for joining the call. Darren and I are pleased to present IVE Group's FY26 results. The disciplined result is consistent with guidance.

Matt Aitken: Good morning, everyone, and thank you for joining the call. Darren and I are pleased to present IVE Group's FY26 results, a disciplined result consistent with guidance we gave to the market back in H1 FY26 in February, and delivered against a genuinely difficult economic landscape. Just for those that might be new to the call, just a bit of quick background. IVE Group is Australia's largest diversified marketing company. We operate across every major marketing discipline. Since 1921, IVE has evolved alongside brands, technology, and consumer behavior. Through partnerships and acquisitions, we have brought strategy, data, creativity, production, technology, and fulfillment into one connected ecosystem so that we can execute from idea. We can go from idea to execution. Markets shift, channels evolve, and customer expectations do not stand still.

Speaker #3: We gave the market back in H1 FY26 in February, and delivered against a genuinely difficult economic landscape. Just for those that might be new to the call, here's a quick bit of background.

Speaker #3: So, IVE Group is Australia's largest diversified marketing company. We operate across every major marketing discipline and have done so since 1921. IVE has evolved alongside brands, technology, and consumer behavior through partnerships and acquisitions.

Speaker #3: We've brought strategy, data, creativity, production, technology, and fulfillment into one connected ecosystem, so that we can execute from idea and we can go from idea to execution.

Speaker #3: Markets shift, channels evolve, and customer expectations don't stand still. We've spent more than 100 years evolving with every major change in media, technology, and marketing.

Matt Aitken: We have spent more than 100 years evolving with every major change in media technology and marketing, not by chasing trends, but by continuously building our capabilities around what brands need next. Our vision is to be Australia's leading integrated marketing solutions provider, delivering impactful experiences across all channels. The results and actions on this page show where we are today against our 2030 strategy and ambition targets. For FY26, we have achieved our EBITDA margin target of +15% and our EPS growth target of 3% to 5%, both on a pre-AASB 16 basis. Net debt remains within our benchmark range, and our revenue mix continues to shift deliberately into growth areas while we protect our leadership in the traditional sectors.

Speaker #3: Not by chasing trends, but by continuously building our capabilities around what brands need next. Our vision is to be Australia’s leading integrated marketing solutions provider, delivering impactful experiences across all channels.

Speaker #3: The results and actions on this page show where we are today against our 2030 strategy and ambition targets. For FY26, we've achieved our EBITDA margin target of plus 15%, and our EPS growth target of 3% to 5%, both on a post-AASB 16 basis.

Speaker #3: Net debt remains within our benchmark range, and our revenue mix continues to shift deliberately into growth areas, while we protect our leadership in the traditional sectors.

Speaker #3: On the right, you'll see this year's highlights and summary: strengthening and scaling the business through the three PL footprint expansions, the Kemps Creek supersite, and the Impressive and Daily Press acquisitions.

Matt Aitken: On the right, you will see this year's highlights and summary, strengthening and scaling the business through the 3PL footprint expansion, the Kemps Creek Super Site, and the Impressu and Daily Press acquisitions. Progress on innovation and AI, strong new business wins, and continued capital management through the buyback. I will take you through each of these in more detail as we go through today's presentation. We think about the performance overview and the key highlights. We delivered strong margin expansion again this year, despite a difficult economic landscape contributing to the revenue softness, particularly in catalogs and publishing. Cash flow remains strong, gearing is conservative, and during the year, we continued the on-market buyback, canceling around 1.5% of issued capital.

Speaker #3: Progress on innovation and AI, strong new business wins, and continued capital management through the buyback. I'll take you through each of these in more detail as we go through today's presentation.

Speaker #3: When you think about delivering a strong margin—well, we delivered strong margin expansion again this year, despite a difficult economic landscape contributing to revenue softness, particularly in catalogues and publishing.

Speaker #3: Cash flow remains strong, gearing is conservative, and during the year we continued the on-market buyback, canceling around 1.5% of issued capital. In terms of key initiatives, on 3PL, Danenong South became operational ahead of schedule and is already running at 85% of capacity on the back of new client wins, with the benefits emerging through FY27.

Matt Aitken: In terms of key initiatives, on 3PL, Dandenong South became operational ahead of schedule and is already running at 85% of capacity on the back of new client wins, with the benefits emerging through FY27. That takes our national 3PL footprint to 84,000 square meters around the country. The Kemps Creek Sydney super site became fully operational during the Q4, with five Business Units relocated and consolidated onto the one site, giving us efficiencies and capacity for growth. In packaging, JacPak relocated to Braeside, so from its site in Keysborough to Braeside in Victoria in the H2 for additional operational efficiencies. The Kemps Creek packaging plant is now in production with major new clients, including Arnott's, coming online late in the financial year. Lasoo continued its strong momentum across all key metrics and remains on track to break even during FY28.

Speaker #3: That takes our national 3PL footprint to 84,000 square meters around the country. The Kemps Creek Sydney supersite became fully operational during the fourth quarter, with five business units relocated and consolidated onto the one site, giving us efficiencies and capacity for growth.

Speaker #3: And in packaging, Jackpack relocated to Braeside. So, from its site in Kingsborough to Braeside in Victoria, and the second half for additional operational efficiencies.

Speaker #3: And the Kemps Creek packaging plant is now in production, with major new clients—including Arnett's—coming online late in the financial year. Lastly, we continued strong momentum across all key metrics and remain on track to break even during FY28.

Speaker #3: And on the acquisition front, we continue to diversify and consolidate revenue consistent with our strategy. I'll cover Impressive and Daily Press in more detail shortly.

Matt Aitken: On the acquisition front, we continue to diversify and consolidate revenue consistent with our strategy. I will cover Impressu and Daily Press in more detail shortly. On AI, we are commercializing the investment we have made, combining our proprietary platforms, strategic partnerships, agentic solutions, and an AI-certified workforce to drive recurring revenue, client value, and productivity. Again, I will discuss some of those examples later in the presentation. On sustainability, we continue to progress our roadmap, including preparing for mandatory AASB S2 climate-related financial disclosure. We also introduced an employee salary sacrifice share plan during the year, which will see about AUD 1.2 million worth of shares purchased on market across FY27 for those circa 450 employees that joined that plan. Let me step through the numbers in detail. Revenue was AUD 937.4 million, down 1.8% on prior year, reflecting that difficult economic backdrop I just mentioned.

Speaker #3: On AI, we're commercializing the investment we've made, combining our proprietary platforms, strategic partnerships, agentic solutions, and an AI-certified workforce to drive recurring revenue, client value, and productivity.

Speaker #3: And again, I'll discuss some of those examples later in the presentation. And on sustainability, we continue to progress our roadmap, including preparing for mandatory AASB S2 climate-related financial disclosure.

Speaker #3: And we also introduced an employee salary sacrifice share plan during the year, which will see about $1.2 million worth of shares purchased on market across FY27 for those circa 450 employees that join that plan.

Speaker #3: Let me step through the numbers in detail. Revenue was $937.4 million, down 1.8% on the prior year, reflecting that difficult economic backdrop I just mentioned.

Speaker #3: But material gross profit margin improved to 51.4%, from 49.3%. And that drove EBITDA pre AASB 16 of $112.6 million, up 2.8%, and NPAT pre AASB 16 of $52.5 million, up 3%.

Matt Aitken: Material gross profit margin improved to 51.4% from 49.3%, and that drove EBITDA pre-AASB 16 of AUD 112.6 million, up 2.8%, and NPAT pre-AASB 16 of AUD 52.5 million, up 3%. EPS likewise came in at AUD 0.342, up AUD 0.037. On a post-AASB 16 basis, EBITDA was AUD 145.8 million, up 6.6%, while NPAT was down 1.7% to AUD 51.2 million, reflecting the non-cash lease impact of new Kemps Creek and Dandenong South leases, which Darren will talk about later. Net debt was AUD 173.2 million. Operating cash flow conversion remains strong, and the board has increased the final dividend to AUD 0.09 per share, up from guidance and PCP of AUD 0.085. The IFRS NPAT was AUD 37.4 million, impacted by the increase in non-operating items during the year, which Darren will step you through shortly.

Speaker #3: EPS, likewise, came in at 34.2 cents, up 3.7%. On a post-AASB16 basis, EBITDA was $145.8 million, up 6.6%, while NPAT was down 1.7% to $51.2 million, reflecting the non-cash lease impact of the new Kemps Creek and Dan and Ong South leases, which Darren will talk about later.

Speaker #3: Net debt was $173.2 million, operating cash flow conversion remained strong, and the Board has increased the final dividend to 9 cents per share, up from guidance and PCP of 8.5 cents.

Speaker #3: The IFRS NPAT was $37.4 million, impacted by the increase in non-operating items during the year, which Darren will step you through shortly. As such, I'll now hand over to Darren to take you through the financial section of the presentation in more detail.

Matt Aitken: As such, I will now hand over to Darren to take you through the financial section of the presentation in more detail.

Speaker #2: Thank you, Matt, and good morning, everybody. I'll now just start taking you through the underlying profit and loss on pages 10 and 11 of our presentation, and I'll start with revenue.

Darren Dunkley: Thank you, Matt, and good morning, everybody. I will now just start taking you through the underlying profit and loss on pages 10 and 11 of our presentation, and I will start with revenue. After allowing for acquisition revenue of AUD 32.3 million, revenue of AUD 937.4 million was down 1.8% to PCP. CX and data, premiums and merchandise, and 3PL BUs all performed well relevant to PCP. New client wins in the period include great brands such as Bunnings, Campari, HelloFresh, Nestlé, Reddy Express, and Sydney Airport, amongst others. All of these clients touch IVE's broad product range and services. Packaging new business wins of PepsiCo and Arnott's commenced live production in June following successful trials earlier this year. Underlying earnings. Further margin expansion more than offset revenue weakness. EBITDA up 6.6% to AUD 145.8 million, as well as an increase in EBITDA margin to 15.6%, up from 14.2% in PCP.

Speaker #2: After allowing for acquisition revenue of $32.3 million, revenue of $937.4 million was down 1.8% to PCP. CX and Data, Premiums and Merchandise, and the three PL BUs all performed well, relative to PCP.

Speaker #2: New client wins in the period include great brands such as Bunnings, Campari, HelloFresh, Nestlé, Ready Express, and Sydney Airport, amongst others. All of these clients touch IVE's broad product range and services.

Speaker #2: Packaging and new business wins with PepsiCo and Arnott's commenced live production in June, following successful trials earlier this year. Underlying earnings, with further margin expansion, more than offset revenue weakness.

Speaker #2: EBITDA was up 6.6% to $145.8 million, as well as an increase in EBITDA margin to 15.6%, up from 14.2% in the PCP. NPAT was down 1.7% to $51.2 million, partly impacted by the AASB negative impact in FY26.

Darren Dunkley: NPAT down 1.7% to AUD 51.2 million, partly impacted by the AASB negative impact in FY26. On a pre-AASB 16 basis, NPAT was up 3% to AUD 52.5 million. Material gross profit margin, MGM, which is revenue less material cost of goods sold. MGM improved to 51.7%, up from 49.3% in PCP, with all revenue streams experiencing stable or improved MGM. The further improvement in MGM reflects continued leveraging of improved buying power as the group scale increases, as well as business mix changes reflecting further diversification. Non-operating items. Non-operating items of AUD 20.4 million pre-tax include AUD 6.6 million Lasoo operating loss, broadly in line with PCP and budget. On an NPAT basis, this is AUD 4.6 million loss in line with guidance.

Speaker #2: On a pre-AASB16 basis, NPAT was up 3% to $52.5 million. Material gross profit margin, or MGM—which is revenue less material cost of goods sold—improved to 51.7%, up from 49.3% in the PCP.

Speaker #2: With all relevant revenue streams experiencing stable or improved MGM, the further improvement in MGM reflects continued leveraging of improved buying power as the group's scale increases.

Speaker #2: As well as business mix changes reflecting further diversification. Non-operating items: Non-operating items of $20.4 million pre-tax include a $6.6 million LeSue operating loss, broadly in line with PCP and budget.

Speaker #2: On an NPAT basis, this is a $4.6 million loss, in line with guidance. $14.7 million of restructuring costs, predominantly relating to relocation costs, which include rent duplication, transfer of machinery, and stock.

Darren Dunkley: AUD 14.7 million of restructuring costs predominantly relating to relocation costs which include rent duplication, transfer of machinery and stock, all due to new sites, including Sydney Super Site at Kemps Creek, with five Business Units relocating as part of this initiative. The relocation of packaging into Braeside site in Victoria, as well as Dandenong in H1. All relocations enabling future capacity for growth as well as cost efficiencies. AUD 2 million of acquisition costs, mainly relating to Impressu and Daily Press acquisitions. These costs are partly offset by AUD 2.1 million of net profit on sale of property and fixed assets, as well as the write-back of deferred goodwill of AUD 800K. It should be noted that non-operating items will reduce significantly in FY27 post the completion of these major relocations. Turning to page 12, our balance sheet remains strong, with cash at bank at AUD 44.1 million.

Speaker #2: All due to new sites, including the Sydney Supersite at Kemps Creek, with five business units relocating as part of this initiative. The relocation of packaging into the Braeside site in Victoria, as well as Dan and Ong in H1.

Speaker #2: All relocations are enabling future capacity for growth, as well as cost efficiencies. $2 million of acquisition costs, mainly relating to the Impresu and Daily Press acquisitions.

Speaker #2: These costs are partly offset by $2.1 million of net profit on the sale of property and fixed assets, as well as a write-back of deferred goodwill of $800,000.

Speaker #2: It should be noted that non-operating items will reduce significantly in FY27, post the completion of these major relocations. Turning to page 12, our balance sheet remains strong, with cash at bank at $44.1 million. Net debt increased to $173.2 million, reflecting acquisition consideration funding and elevated capex for our growth initiatives.

Darren Dunkley: Net debt increased to AUD 173.2 million, reflecting acquisition consideration funding and elevated CapEx for our growth initiatives. Gearing is consistent with our guidance and our internal benchmark of 1.5 times pre-AASB 16 EBITDA. Senior debt increased by AUD 80 million to AUD 330 million in December 2025 to provide further capacity for expansion. Undrawn debt capacity of AUD 109 million, excluding bank guarantees at balance date. Capital expenditure has been temporarily elevated due to supporting the execution of major strategic initiatives in the year. Capital expenditure was AUD 43.2 million net of disposal proceeds, increasing investment and maintenance CapEx driven by brand activations and fit-out and racking of new Dandenong South 3PL site. Significant fit-out costs associated with the Kemps Creek Super Site. These are gross of cash rent incentive received to partly fund.

Speaker #2: Gearing is consistent with our guidance and our internal benchmark of 1.5 times pre-AASB EBITDA. Senior debt increased by $80 million to $330 million in December '25 to provide further capacity for expansion.

Speaker #2: Undrawn debt capacity of 109 million dollars excluding bank guarantees at balance date. Capital expenditure, capital expenditure has been temporarily elevated due to supporting that the execution of major strategic initiatives in the year.

Speaker #2: Capital expenditure was $43.2 million, net of disposal proceeds, with increased investment and maintenance capex driven by brand activations and fit-out and racking of the new Dan and Ong South 3PL site.

Speaker #2: Significant fit-out costs associated with the Kemps Creek Supersite—these are gross of the cash rent incentive received to partly fund them. Packaging expansion, replacement of aging Sheetfed printing presses, and other equipment to facilitate IVE's packaging expansionary plans at Kemps Creek.

Darren Dunkley: Packaging expansion, replacement of aging sheet fed printing presses and other equipment to facilitate IS packaging expansionary plans at Kemps Creek. It is important to note capital expenditure is expected to normalize in FY27. Cash flow and dividends, page 14. Operating cash conversion to EBITDA remains strong at 93.6%. Working capital is expected to remain relatively stable moving forward and broadly in line with revenue and seasonality. Fully franked dividend of AUD 0.09 per share, which compares to FY25 final dividend of AUD 0.085 per share, up 5.9% on PCP. Reflecting a payout ratio of 55.3% rebased from surplus 70% in FY22 and prior to retain capital for growth. FY27 dividend to be based on 55% to 65% underlying pre-AASB earnings payout ratio. I will now hand you over to Matt for the balance of the presentation. Thank you.

Speaker #2: It is important to note that capital expenditure is expected to normalize in FY27. Cash flow and dividends—page 14. Operating cash conversion to EBITDA remains strong at 93.6%.

Speaker #2: Working capital is expected to remain relatively stable moving forward, and broadly in line with revenue and seasonality. Fully franked dividend of 9 cents per share, which compares to FY25 final dividend of 8.5 cents per share, up 5.9%, or 0.5 cents, on PCP.

Speaker #2: Reflecting a payout ratio of 55.3%, rebase from circa 70% in FY22 and prior to retained capital for growth. FY27 dividend to be based on 55 to 65% underlying pre-AASB earnings payout ratio.

Speaker #2: I'll now hand you over to Matt for the balance of the presentation. Thank you.

Speaker #1: Thanks, Darren. Just quickly stepping through some of the key initiatives, which would be well known to many on the call: Kemps Creek, for us, is a genuinely transformative project for the New South Wales footprint of our business.

Matt Aitken: Thanks, Darren. Just quickly stepping through some of the key initiatives, which would be well known to many on the call. Kemps Creek for us is a genuinely transformative project for the New South Wales footprint of our business. We relocated to the 42,000 square meter Super Site in Western Sydney through the final quarter of FY26. We are out of all of our legacy sites that we have left, and the team are up and running there. Five Business Units in total have been consolidated into that site, as we mentioned. There are many benefits to come from being in that site, one of which is the avoidance of an additional AUD 3.1 million per annum in rental increases that we are going to avoid by going there. Had we not moved, that increase would have been more like AUD 6 million per annum in our existing sites.

Speaker #1: We relocated to the 42,000-square-metre Supersite in Western Sydney. Through the final quarter of FY26, we are out of all of our legacy sites that we've left, and the team are up and running there.

Speaker #1: Five business units in total have been consolidated into that site, as we mentioned. There are many benefits to being in that site, one of which is the avoidance of an additional $3.1 million per annum in rental increases.

Speaker #1: Had we not moved, that increase that we're going to avoid by going there would have been more like $6 million per annum in our existing sites.

Speaker #1: It's clear: operating efficiencies, additional space to accommodate further expansion—particularly in packaging—and it is a much more modern, fit-for-purpose site for our staff to be accommodated in and to work from.

Matt Aitken: It is clear operating efficiencies, additional space to accommodate further expansion, particularly in packaging, and it is a much more modern fit-for-purpose site for our staff to be accommodated in and to work from. New South Wales packaging facility within the site that also became fully operational late in the financial year. In addition to providing extra capacity, we will now begin the relocation of New South Wales and Queensland packaging client revenue from Victoria up to New South Wales to enhance speed to market and reduce the transport costs. On the 3PL business in Dandenong, again, we have spoken a bit about this earlier in the presentation. We moved into that site ahead of schedule. It has been fantastic. Almost 12 months in that facility. We have won a lot of significant new business through that time.

Speaker #1: The New South Wales packaging facility within the site also became fully operational late in the financial year. In addition to providing extra capacity, we will now begin the relocation of New South Wales and Queensland packaging client revenue from Victoria up to New South Wales to enhance speed to market and reduce transport costs.

Speaker #1: On the three PL business in Dan and Ong—again, we've spoken a bit about this earlier in the presentation—so, we moved into that site ahead of schedule.

Speaker #1: It's been fantastic—almost 12 months in that facility. We've won a lot of significant new business during that time. That site is now at 85% of its capacity and really starting to hit its straps.

Matt Aitken: That site is now at 85% of its capacity and really starting to hit its straps. Again, similar to Kemps Creek, there are a lot of benefits to go from two sites that we had at Braeside into this one site, providing dedicated in-house logistics facilities also for our packaging business, which had historically been outsourced up until recently. There are great operating efficiencies to be had from the site as well as, again, a more modern and fit-for-purpose site for our staff to be based out of. Going on to Lasoo, it delivered record retailer and unique user growth again this year with strong growth in GTV, so gross transaction value and repeat customer sales. Retailers live on the platform were up 20% to 362 retailers. Unique users were up 44% to 5.2 million, and GTV was up 42% to AUD 25 million.

Speaker #1: And again, similar to Kemps Creek, there are a lot of benefits to moving from the two sites that we had at Braeside into this one site, providing dedicated in-house logistics facilities, also for our packaging business, which had historically been outsourced up until recently.

Speaker #1: There are great operating efficiencies to be had from this site, as well as, again, a more modern and fit-for-purpose site for our staff to be based out of.

Speaker #1: Going on to Lassoo. It’s delivered record retailer and unique user growth again this year, with strong growth in GTV—that’s gross transaction value—and repeat customer sales.

Speaker #1: Retailers live on the platform were up 20% to 362 retailers. Unique users were up 44% to 5.2 million. And GTV was up 42% to $25 million.

Speaker #1: Most pleasingly, repeat customer GTV was up 76% to $4 million. Now representing 16% of total GTV, up from 13% last year, which clearly demonstrates the strength of customer retention on the platform. And we'll have more to say about Lassoo when we get to the outlook and guidance.

Matt Aitken: Most pleasingly, repeat customer GTV was up 76% to AUD 4 million, now representing 16% of total GTV, up from 13% last year, which clearly demonstrates the strength of customer retention on the platform and we will have more to say about Lasoo when we get to the outlook and guidance. Just touching quickly on the acquisitions, which again, we have covered at the H1. We acquired Impressu, a Brisbane-based print business, for AUD 13.5 million in November. We acquired that business off Domino's Pizza Enterprises. It is a business that has a digital and offset print capability along with direct mail, letterbox marketing, signage, point of sale, warehousing, and logistics. So a very complementary set of services to what IVE has in the rest of its sites and how we go to market and service our clients. Long-standing clients in the quick service restaurant, retail, healthcare, and public sectors.

Speaker #1: Just touching quickly on the acquisitions, which again we've covered at the half year. We acquired Impresso, a Brisbane-based print business, for $13.5 million in November.

Speaker #1: We acquired that business from Domino's Pizza Enterprises. It's a business that has digital and offset print capability, along with direct mail, letterbox marketing, signage, point of sale, warehousing, and logistics.

Speaker #1: So a very complementary set of services to what IVE has in the rest of its sites, and how we go to market and service our clients.

Speaker #1: Longstanding clients in the quick service restaurant, retail, healthcare, and public sectors. And the integration has gone very well, with a great team of people up there.

Matt Aitken: The integration has gone very well with a great team of people up there. They are very focused and motivated on growing that business for us in Queensland, and we have been very happy with how they have gotten on our business in the first eight months since we have acquired them. In terms of Daily Press, they are an Australian-based creative agency that we acquired on 31 December. They specialize in digital, social media, and performance marketing. This really advances our ambition to create a truly omni-channel value proposition, further strengthening our existing creative and content capabilities while adding depth in social and performance marketing as well as technology platforms. Similar to my comments about Impressu, the Daily Press team are fitting in really well with work being shared back and forth across the creative teams.

Speaker #1: They're very focused and motivated on growing that business for us in Queensland, and we've been very happy with how they've gone on our business in the first eight months since we've acquired them.

Speaker #1: In terms of Daily Press, they're an Australian-based creative agency that we acquired on the 31st of December. They specialize in digital, social media, and performance marketing.

Speaker #1: This really advances our ambition to create a truly omnichannel value proposition, further strengthening our existing creative and content capabilities, while adding depth in social and performance marketing, as well as technology platforms.

Speaker #1: And so, similar to my comments about Impresso, the daily press team are fitting in really well, with work being shared back and forth across the creative teams. Previously outsourced work from daily presses is now being sent into IVE businesses to be produced.

Matt Aitken: Previously outsourced work from Daily Press is now being sent into IVE businesses to be produced, and a significant amount of new business is being won in this part of the business, and in particular, customers like Campari that would not have been won by Daily Press had they not been part of the IVE Group. So that has been great to see again six months on after acquiring that business. Just moving into the group's position and posture currently with AI. From our perspective, before we started selling AI to clients, we got our own house in order. So we can for some be a complex business. We have 10 different products and service lines. We have multiple sites around Australia, and we employ more than 2,000 people.

Speaker #1: And a significant amount of new business is being won in this part of the business, and in particular, customers like Campari that would not have been won by Daily Press had they not been part of the IVE Group.

Speaker #1: So that's been great to see, again, six months on after acquiring that business. Just moving into the group's position and posture currently with AI: from our perspective, before we started selling AI to clients, we got our own house in order.

Speaker #1: So, for some, we can be a complex business. We have ten different product and service lines, multiple sites around Australia, and we employ more than 2,000 people.

Speaker #1: But today, our group data sits on a single Snowflake platform, and that gives us one view of our clients across IVE, which we're already using to identify cross-sell opportunities.

Matt Aitken: Today, our group data sits on a single Snowflake platform, and that gives us one view of our clients across IVE, which we are already using to identify cross-sell opportunities. Internally, we can see run rates, waste, machine utilization, and other key metrics in near real time. This means better outcomes, faster action, and more efficient results from an IVE perspective. That Snowflake AI platform has been instrumental in driving a lot of that since we have implemented that during the H2 period of FY26. AI at IVE is not a pilot. It is doing real work today across lead generation, research agents, dashboards, RFP and proposal automation, fraud detection, and cybersecurity. A great example of this is recruiting in our catalog, walker network, where we have had an AI agent calling or making more than 13,000 calls, which generated 563 leads that we then followed up through our staff.

Speaker #1: And internally, we can see run rates, waste, machine utilization, and other key metrics in near real time. This means better outcomes, faster action, and more efficient results from an IVE perspective.

Speaker #1: So, that Snowflake AI platform has been instrumental in driving a lot of that since we've implemented it during the H2 period of FY26. AI at IVE isn't a pilot.

Speaker #1: It's doing real work today across lead generation, research agents, dashboards, RFP and proposal automation, fraud detection, and cybersecurity. A great example of this is recruiting in our catalogue Walk Network, where we have had an AI agent making more than 13,000 calls, which generated 563 leads that we then followed up on through our staff.

Speaker #1: And that captures our model well: AI does the volume and the heavy lifting, while our people provide the judgment and the expertise. We use market leaders like Salesforce and Adobe where they make sense, and we build our own IP, like Indie.

Matt Aitken: That captures our model well. AI does the volume and the heavy lifting. Our people provide the judgment and the expertise. We use market leaders like Salesforce and Adobe where they make sense, and we build our own IP like Indie, where we see an opportunity to create competitive advantage. Importantly, we are investing in our people, and we now have more than 100 AI certifications across IVE. This is not one AI team sitting in a corner. AI is being put to work right across the group. Let me give you two real examples of that going to market. Firstly, Indie. This is where our AI capability starts becoming genuinely commercial. Marketers today are drowning in disconnected tools, and Indie brings the entire campaign into one workflow. Plan, create, personalize, approve, and execute.

Speaker #1: Where we see an opportunity to create competitive advantage, importantly, we're investing in our people, and we now have more than 100 AI certifications across IVE.

Speaker #1: And this isn't one AI team sitting in a corner. AI is being put to work right across the group. Let me give you two real examples of that, going to market.

Speaker #1: Firstly, Indie. This is where our AI capability starts becoming genuinely commercial. Marketers today are drowning in disconnected tools, and Indie brings the entire campaign into one workflow.

Speaker #1: Plan, create, personalize, approve, and execute. AI runs that process, turning days into hours. Importantly for us, the client stays within our ecosystem, and we sit across more of their marketing activity. That creates stickier client relationships.

Matt Aitken: AI runs that process, turning days into hours, and importantly for us, the client stays within our ecosystem, and we sit across more of their marketing activity, and that creates stickier client relationships and new recurring revenue opportunities. The second one here is AI and how it is disrupting the traditional MarTech professional services model, and we are moving with it. We have been one of Australia's leading Salesforce and Adobe practices for many years, and historically, that model has been based on people and hours. We are now converting that into agentic recurring revenue models already live today with a major financial services client delivering deeper personalization, real-time, in-the-moment decisioning, and omni-channel execution. The agents do the repetitive work at scale. Our architects and strategists provide the thinking and the expertise.

Speaker #1: And new recurring revenue opportunities. The second one here is AI and how it's disrupting the traditional MarTech professional services model, and we're moving with it.

Speaker #1: We've been one of Australia's leading Salesforce and Adobe practices for many years, and historically that model has been based on people and hours. We're now converting that into agentic, recurring revenue models.

Speaker #1: Already live today with a major financial services client, delivering deeper personalization, real-time in-the-moment decisioning, and omnichannel execution. The agents do the repetitive work at scale.

Speaker #1: Our architects and strategists provide the thinking and the expertise. It’s faster for the client, more scalable for us, and keeps IVE at the center of their MarTech environment.

Matt Aitken: It is faster for the client, more scalable for us, and keeps IVE at the center of their MarTech environment, and we are targeting a 50% effort reduction on always-on campaign operations for this client. AI is fundamentally also changing the approach to creative services, particularly when we think about motion and video. We now use AI to storyboard concepts before we pick up a camera, extend sets, and create effects during production, and then automatically adapt one piece of content across multiple channels and audiences. That means more content produced faster and at a lower cost. AI itself will become a commodity as we know everyone will have access to these tools. Our advantage is combining the best AI technology with great creative people, client knowledge, data, and our ability to execute at scale.

Speaker #1: And we're targeting a 50% effort reduction on always-on campaign operations for this client. AI is fundamentally also changing the approach to creative services, particularly when we think about motion and video.

Speaker #1: We now use AI to storyboard concepts before we pick up a camera, extend sets, and create effects during production. Then we automatically adapt one piece of content across multiple channels and audiences.

Speaker #1: That means more content produced faster and at a lower cost. But AI itself will become a commodity, as we know. Everyone will have access to these tools.

Speaker #1: Our advantage is combining the best AI technology with great creative people, client knowledge, data, and our ability to execute at scale. And a great example of this is in action in this campaign film we produced for Kia at the Australian Open, blending live action with AI-generated sequences, produced at a fraction of the traditional shoot cost and time. In fact, 100% of the robot shots in the film were all AI-generated.

Matt Aitken: A great example of this is in the action in this campaign film we produced for Kia at the Australian Open, blending live action with AI-generated sequences produced at a fraction of the traditional shoot cost and time. In fact, 100% of the robot shots in the film were all AI-generated. I will leave you to review that in your own time later, but it gives you a good example of where in live client work we are using AI today. As we now move on to the outlook and guidance for FY27, given the continued significant economic uncertainty, we expect underlying NPAT on a pre-AASB 16 basis to be broadly stable due to a further AUD 6 million adverse non-cash lease impact, mainly associated with the Kemps Creek and Dandenong South leases. That compares with a AUD 1.3 million adverse impact in FY26.

Speaker #1: So I'll leave you to review that in your own time later, but it gives you a good example of AI today. As we now move on to the outlook and guidance for FY27, given the continued significant economic uncertainty, we expect underlying impact on a PAASV16 basis to be broadly stable.

Speaker #1: Due to a further $6 million adverse non-cash lease impact, mainly associated with the Kemps Creek and Dandenong South leases—and that compares with a $1.3 million adverse impact in FY26.

Speaker #1: Underlying impact on a PAASV16 basis is expected to be down relative to FY26. And I'd stress that impact is purely timing, and it will reverse over the life of the leases.

Matt Aitken: Underlying NPAT on a post-AASB 16 basis is expected to be down relative to FY26. I would stress that impact is purely timing, and it will reverse over the life of the leases. There is a schedule in Appendix C of this presentation where you can see that reversal take its course. We are trying to give you more insights and more data around that. The IFRS NPAT, on the other hand, is expected to increase materially due to significantly reduced non-operating items. Capital expenditure, as Darren mentioned, is expected to be significantly lower at around AUD 26 million net of disposal proceeds. Net debt at 30 June 2027 is expected to be below our one and a half times pre-AASB EBITDA target.

Speaker #1: And there is a schedule in Appendix C of this presentation, where you can see that reversal take its course. We're trying to give you more insights and more data around that.

Speaker #1: The IFRS impact, on the other hand, is expected to increase materially due to significantly reduced non-operating items. Capital expenditure, as Darren mentioned, is expected to be significantly lower at around $26 million, net of disposal proceeds, and net debt at 30 June 2027 is expected to be below our one and a half times PAASV EBITDA target.

Speaker #1: As foreshadowed at the 2025 AGM, the Board intends returning to a dividend payout ratio based on 55 to 65% of underlying PAASV16 earnings.

Matt Aitken: As foreshadowed at the 2025 AGM, the board intends returning to a dividend payout ratio based on 55% to 65% of underlying pre-AASB 16 earnings for the 2027 financial year. In terms of the key initiatives and areas of focus for the business in FY27, we are going to continue to execute on the 2030 strategy. We are going to deliver the operational efficiencies from Kemps Creek, make meaningful progress in the deployment of AI and related technologies, grow our events value proposition, which I spoke about at the release of our half year results, deliver a significant improvement in Lasoo's profitability ahead of break even during FY28, and optimize the value of our recent acquisitions while investigating other strategic opportunities.

Speaker #1: For the 2027 financial year, in terms of the key initiatives and areas of focus for the business in FY27, we're going to continue to execute on the 2030 strategy.

Speaker #1: We're going to deliver the operational efficiencies from Kemps Creek, make meaningful progress in the deployment of AI and related technologies, grow our offense value proposition—which I spoke about at the release of our half-year results—deliver a significant improvement in Lesser's profitability ahead of break even during FY28, and optimize the value of our recent acquisitions while investigating other strategic opportunities.

Speaker #1: So in closing, this year's performance and the momentum evident in our key strategic initiatives reflect the dedication and commitment of our people right across the business.

Matt Aitken: In closing, this year's performance and the momentum evident in our key strategic initiatives reflects the dedication and commitment of our people right across the business, and I would like to thank them for their ongoing contribution. Appreciation is also extended to our leadership team and to the board for their support as we execute on an ambitious but disciplined growth agenda. With a strengthened balance sheet, continued margin expansion, and a clear pipeline of organic initiatives and recent bolt-on acquisitions, the business remains well-positioned for continued profitable growth through to 2030. Thank you. We are now happy to take questions.

Speaker #1: And I'd like to thank them for their ongoing contribution. Appreciation is also extended to our leadership team and to the Board for their support as we execute on an ambitious but disciplined growth agenda—with a strengthened balance sheet, continued margin expansion, and a clear pipeline for organic initiatives and recent bolt-on acquisitions.

Speaker #1: The business remains well positioned for continued profitable growth through to 2030. Thank you. We're now happy to take questions.

Speaker #2: Thank you so much, Matt. And Darren, just a reminder for everyone: if you would like to ask a question, click the Q&A button at the bottom of your screen and type your question into the panel.

Rachel Jones: Thank you so much there, Matt and Darren. Now for everybody, this is a reminder that if you would like to ask a question, click the Q&A button at the bottom of your screen and type your question into the panel. I am sure there is a number of questions out there from interested parties. Now, we will take some questions from the analysts first who are covering the IVE Group. Just a reminder for the analysts, please click the raise hand button. I can see a few up there now already. Get ready to ask the question. So first up, I will open up to Chris Savage. If you would like to unmute yourself, Chris, and go ahead and ask your question.

Operator: Thank you so much there, Matt and Darren. Now for everybody, this is a reminder that if you would like to ask a question, click the Q&A button at the bottom of your screen and type your question into the panel. I am sure there is a number of questions out there from interested parties. Now, we will take some questions from the analysts first who are covering the IVE Group. Just a reminder for the analysts, please click the raise hand button. I can see a few up there now already. Get ready to ask the question. So first up, I will open up to Chris Savage. If you would like to unmute yourself, Chris, and go ahead and ask your question.

Speaker #2: I'm sure there are a number of questions out there from interested parties. Now, we'll take some questions from the analysts first, who are covering the IVE Group.

Speaker #2: And just a reminder for the analysts, please click the "raise hand" button. I can see a few up there now already. And get ready to ask your question.

Speaker #2: So, first up, I'll open it up to Chris Savage. If you would like to unmute yourself, Chris, go ahead and ask your question.

Speaker #3: Thanks, Rachel. Hey Matt. Hey Darren.

Chris Savage: Thanks, Rachel. Hey, Matt. Hey, Darren.

Speaker #4: Morning, Chris.

Matt Aitken: Morning, Chris.

Darren Dunkley: Hi, Chris.

Speaker #5: Hi, Chris.

Speaker #3: G'day. I guess a couple of questions. One, the guidance for flat underlying impact on a PAASV16 basis. Obviously, you've got Impress You and Daily Press contributing for a full 12 months in '27.

Chris Savage: Good day. I guess a couple of questions. One, the guidance for flat underlying NPAT on a pre-AASB 16 basis. Obviously you have Impressu and Daily Press contributing for a full 12 months in 2027, so that implies the underlying business will go back a bit. Where are you assuming the underlying business goes backwards?

Speaker #3: So, that implies the underlying business will go back a bit. Where are you assuming the underlying business goes backwards?

Speaker #4: Yeah, Chris. I mean, first and foremost, we still think we're in a very difficult trading environment. And so our view of the near term is that there's clearly inflationary pressure right across the economy.

Matt Aitken: Yeah, Chris. First and foremost, we still think we are in a very difficult trading environment. This is our view of the near term. There is clearly inflationary pressure right across the economy. We have increasing rent, as I alluded to earlier, around Kemps Creek. Whilst we are mitigating AUD 3 million of rent increases by moving to that site, it would have been AUD 6 million. That is just on those sites alone, let alone our Victorian sites. We are still seeing, as we foreshadowed previously, decline in the catalog and magazine sector. Whilst there is always great things happening in that sector in terms of retailers coming back into the channel like they did in FY26 with Coles and Bunnings and BIG W, we are also seeing other retailers like an Aldi or a Metcash really dial back their volumes in that channel.

Speaker #4: We've got increasing rent, as I alluded to earlier, and Kemps Creek—whilst we're mitigating $3 million of rent increases by moving to that site, it would have been $6 million.

Speaker #4: So that's just on those sites alone, let alone our Victorian sites. We are still seeing, as we've foreshadowed previously, a decline in the catalog and magazine sector.

Speaker #4: And whilst there's always great things happening in that sector in terms of retailers coming back into the channel, like they did in FY26 with Coles and Bunnings and Big W, we're also seeing other retailers like an Aldi or a Metcash really dial back their volumes in that channel.

Speaker #4: And then even just in areas like interest rate expense, we've clearly had a range of interest rate increases as we've gone through FY26. So that's really what's underlying the numbers that we're putting forward here, or the position that we're putting forward.

Matt Aitken: Even just in areas like interest rate expense, we have clearly had a range of interest rate increases as we have gone through FY26. That is really what is underlying to the numbers that we are putting forward here or the position that we are putting forward.

Speaker #3: So, is it more an OPEX and net interest story, rather than the revenue coming back?

Chris Savage: Is it more an OpEx and net interest story rather than the revenue coming back?

Darren Dunkley: Well, there's no doubt that interest expense is expected to be slightly higher in FY27 than FY26. As I already touched on, we've had a large CapEx year and the impact of depreciation will also impact as a result, Chris. But as Matt also alluded to, given the current economic conditions, we think that it's prudent to say that our guidance is stable on FY26.

Speaker #4: Well, there's no doubt that interest expenses are expected to be slightly higher in FY27 than in FY26. And as I already touched on, we've had a large capex year.

Speaker #4: And the impact of depreciation as well will also impact as a result, Chris. But as Matt also alluded to, given the current economic conditions, we think that it's prudent to say that our guidance is stable on FY26.

Speaker #3: Sure.

Chris Savage: Sure.

Speaker #4: Chris, we're budgeting revenue up in terms of our headspaces. It's a growth number on revenue over where we finished FY26.

Matt Aitken: Chris, we're budgeting revenue up in terms of our headspaces. It's a growth number on revenue over where we finished FY26.

Chris Savage: Is that underlying revenue or for the revenue with the Impressu and Daily Press?

Speaker #3: But is that underlying revenue, or for the revenue with the Impressive and Daily Press?

Chris Savage: Is that underlying revenue or for the revenue with the Impressu and Daily Press?

Matt Aitken: Yeah.

Speaker #4: Yeah, total. Yeah, that's right.

Chris Savage: Okay. Cool.

Speaker #3: Okay. Okay. Cool.

Speaker #4: Yep.

Matt Aitken: Yeah.

Speaker #3: And second question. As you highlighted, the balance sheet remains very strong, and you’ve basically got buyback potential, an increase in dividends, and potential further M&A.

Chris Savage: Second question, as you highlighted, the balance sheet remains very strong and you have basically a buyback, potential increase in dividends and potential further M&A. Is the focus going to be across all three or is there one you think you will focus more on than the other?

Speaker #3: So, is the focus going to be across all three, or is there one you think you'll focus more on than the others?

Speaker #4: Look, we'll just—I mean, the main focus for us will be to make sure that we continue to achieve a high operating cash conversion and keep our net debt below 1.5 times.

Darren Dunkley: The main focus for us, we will make sure that we continue to achieve a high operating cash conversion, keep our net debt below the 1.5 times. As we have traditionally always looked at a pipeline of acquisitions and we have that pipeline of acquisitions. There is nothing currently that we are working on right now, but we are always looking at something there, Chris. On the whole, we will be concentrating on delivering a below 1.5 times net debt and delivering on the new payout ratio of 55% to 65%, noting it is on an underlying pre-AASB 16 basis.

Speaker #4: We have, as we have traditionally, always looked at a pipeline of acquisitions, and we have that pipeline of acquisitions. There's nothing currently that we're working on right now, but we are always looking at something there, Chris.

Speaker #4: But on the whole, yeah, we will be concentrating on delivering a below 1.5 times net debt and delivering on the new payout ratio of 55 to 65 percent, noting it is on an underlying PAASV16 basis.

Speaker #3: Sure.

Chris Savage: Sure.

Matt Aitken: Chris, I think from a board perspective, if we have a view that the share price is not representing the value that we think it should represent, then yes, we will use the buyback. We also think we probably have other priorities for that cash that could yield better return for shareholders.

Speaker #4: And Chris, I think from a board perspective, if we have a view that the share price is not representing the value that we think it should represent, then yes, we will use the buyback. But we also think we probably have other priorities for that cash that could yield a better return for shareholders.

Speaker #3: Sure. Thank you.

Chris Savage: Sure. Thank you.

Speaker #2: Well, thank you so much for those questions, Chris. That was Chris Savage from Bell Potter. Moving on now, we're moving on to Jonah Higgins.

Rachel Jones: Well, thank you so much for those questions there, Chris. That was Chris Savage from Bell Potter. Moving on now, we are moving on to Jonathon Higgins from Unified Capital Partners. Jono, if you could unmute yourself and go ahead and ask your question.

Operator: Well, thank you so much for those questions there, Chris. That was Chris Savage from Bell Potter. Moving on now, we are moving on to Jonathon Higgins from Unified Capital Partners. Jono, if you could unmute yourself and go ahead and ask your question.

Speaker #2: From Unified Capital Partners. Now, Jonah, if you could unmute yourself and go ahead and ask your question.

Speaker #5: Yeah, excellent. Thanks for taking the time. Great set of results, guys. Just two from me. Firstly, just on the material gross margin and the strength we're seeing here, I wonder if you can just sort of tell us what's feeding into that. I mean, you guys have been pretty disciplined at the operating margin line.

Jonathon Higgins: Yeah, excellent. Thanks for taking the time. Great set of results, guys. Just two from me. Just firstly, just on the material gross margin and the strength we are seeing there, I wonder if you can just tell us what is feeding into that. You guys have been pretty disciplined at the operating margin line. We are expecting that to keep coming through. Just anything around what you should think on the material gross margin line for next year. Thank you.

Speaker #5: We're sort of expecting that to keep coming through. Just anything around what we should think about on the material gross margin line for next year.

Speaker #5: Thank you.

Matt Aitken: I think, we probably answered the same question 12 months ago, Jono, and said, "Oh, don't expect it to grow too much," and here we are. We have done a really good job of lifting that up, and we will continue to try and do that, obviously, through the mechanism of price to customers and managing the supply chain, the raw material costs extremely well, which are the two key drivers in that. We would think that 51-odd percent for the business is about right. It does also reflect a changing mix, in our web profile as well. Some of that is coming through that machination. Yeah, no, look, our intent will always be to try and improve that wherever we possibly can.

Speaker #4: We probably answered the same question 12 months ago, Jonah, and said, "Don't expect it to grow too much." And here we are with—we've done a really good job of lifting that up.

Speaker #4: And we will continue to try and do that, obviously, through the mechanism of price to customers and managing the supply chain of raw material extremely well, which are the two key drivers in that.

Speaker #4: But we would think that 51-odd percent for the business is about right. It does also reflect a changing mix in our work profile as well.

Speaker #4: So some of that’s coming through that machination. But yeah, no, look, our intent will always be to try and improve that wherever we possibly can.

Matt Aitken: At this stage, there is nothing from a supply chain perspective that we have not already encountered in the last five to six months with the war and all of that should see it really damage that number in FY27. We cannot see anything in front of us on that front from a supply chain perspective. So, we have obviously already had to deal with a fair bit over the last five to six months around impacts of fuel increases and other things like that, and yet we have still managed to maintain this position. So pretty wrapped with what the team have achieved on that front, given the circumstances.

Speaker #4: At this stage, there's nothing from a supply chain perspective that we haven't already encountered in the last five to six months, with the war and all of that, that should see it really damage that number in FY27.

Speaker #4: We can't see anything in front of us on that front from a supply chain perspective. So, we've obviously already had to deal with a fair bit over the last five to six months around impacts of fuel increases and other things like that.

Speaker #4: And yet we've still managed to maintain this position, so I'm pretty rapt with what the team have achieved on that front, given the circumstances.

Speaker #5: Thanks. And last one from me, then I'll rejoin the queue. But I mean, obviously, there are some difficult economic conditions, some unexpected, in terms of that currently for the broader economy.

Jonathon Higgins: Thanks. Last one from me, then I will rejoin the queue. Obviously, some difficult economic conditions you have called out and that is one, all not unexpected in terms of that currently for the broader economy. I have usually, if I look back in the history of IVE, difficult operating conditions, although we would like the profit to constantly be going up, it has actually been a thing that, a dynamic that IVE has taken advantage of, in terms of strategic consolidations and winning work, even in the packaging space, catalogs. Can you talk about what a tough environment means, is this like a good thing to invest and lean into?

Speaker #5: But I usually if I look back in the history of hives, difficult operating conditions, although we'd like to profit to constantly be going up, it's actually been a thing that a dynamic that I've taken advantage of in terms of strategic consolidations and winning work even in the packaging space, catalogs.

Speaker #5: I mean, can you talk about what a tough environment means? And is this a good thing to invest in and lean into?

Speaker #4: I think it definitely throws up opportunities around the acquisition space, Jonah. We've definitely seen heightened activity around inquiries and engagement in that space.

Matt Aitken: I think it definitely throws up opportunities in and around the acquisition space, Jono. We have definitely seen heightened activity around inquiries and engagement in that space, and that is not the answer for everything, but it definitely throws up some of that. We are definitely seeing some of our retail customers and the impact on retailers currently as well spoken about in the media. We are definitely seeing some of our retail customers want to lean heavier into what they are doing in store or, and/or even increase catalog runs or bring in additional catalogs that they may not have been planning on doing. So there are some green shoots in and around that as well. We have also seen some of our competitors go through some pretty tough times during the last financial year. We had a major 3PL competitor collapse.

Speaker #4: And that's not the answer for everything, but seeing some of our retail customers and the impact on retailers currently, as well as spoken about in the media.

Speaker #4: We're definitely seeing some of our retail customers want to lean heavier into what they're doing in-store and/or even increase catalog runs, or bring in additional catalogs that they may not have been planning on doing.

Speaker #4: So there are some green shoots in and around that as well. And we've also seen some of our competitors go through some pretty tough times during the last financial year.

Speaker #4: We had a major 3PL competitor collapse, and as a result of that, we picked up a lot of work out of that collapse. But that was also off the back of a couple of really hard years on the street, competing hard for clients.

Matt Aitken: As a result of that, we picked up a lot of work out of that collapse, but that was also off the back of a couple of really hard years on the street, competing hard for clients, winning new business along the way. That sort of yielded probably the best part of another AUD 8 to AUD 10 million of revenue into the group, as through the sort of H2 FY26. As I said, we will pick up the benefit of that as we go through FY27. So the combination and range of things, Jono.

Speaker #4: Winning new business along the way, and that's sort of yielded, probably, the best part of another $8 to $10 million of revenue into the group.

Speaker #4: As through the sort of H2 FY26, and as said, we'll pick up the benefit of that as we go through FY27. So, it's the combination of a range of things, Jonah.

Speaker #5: Thanks, guys.

Jonathon Higgins: Thanks, guys.

Speaker #2: Thanks so much, Jonah. That's Jonathan Higgins from Unified Capital Partners. Thanks so much for your questions there. Now, moving on, we have some questions from Shane Bannon from PAC Partners.

Rachel Jones: Thanks so much, Jono. That is Jonathon Higgins from Unified Capital Partners. Thanks so much for your questions there. Moving on, we have some questions from Shane Bannon from PAC Partners. Shane, if you would like to unmute yourself and ask your questions. Thank you.

Operator: Thanks so much, Jono. That is Jonathon Higgins from Unified Capital Partners. Thanks so much for your questions there. Moving on, we have some questions from Shane Bannon from PAC Partners. Shane, if you would like to unmute yourself and ask your questions. Thank you.

Speaker #2: Shane, if you'd like to unmute yourself and ask your questions, thank you.

Speaker #6: Thank you. Morning, guys. Obviously, touched on this on the way through—I just would like you to bulk out the narrative, if you wouldn't mind, just on the whole area of print and catalogs.

Shane Bannon: Thank you. Morning, guys.

Shane Bannan: Thank you. Morning, guys.

Darren Dunkley: G'day, Shane.

Darren Dunkley: Pleasure.

Shane Bannon: You have obviously touched on this on the way through, but I would just like you to bulk out the narrative, if you would not mind, just on the whole area of print and catalogs. Everybody is aware that newspapers seem to be progressively shrinking, and I am just wondering what you are experiencing there and the way you see it unfolding, whether in fact we are witnessing a secular shift towards other mediums to reach the customer base, and these things are in secular decline. You are saying, Matt, that you think they are coming back. I would just like you to flesh that out, if you would not mind, please.

Shane Bannan: You have obviously touched on this on the way through, but I would just like you to bulk out the narrative, if you would not mind, just on the whole area of print and catalogs. Everybody is aware that newspapers seem to be progressively shrinking, and I am just wondering what you are experiencing there and the way you see it unfolding, whether in fact we are witnessing a secular shift towards other mediums to reach the customer base, and these things are in secular decline. You are saying, Matt, that you think they are coming back. I would just like you to flesh that out, if you would not mind, please.

Speaker #6: I mean, everybody's aware that newspapers seem to be progressively shrinking. And I'm just wondering what you're experiencing there and the way you see it unfolding—whether, in fact, we are witnessing a secular shift towards other mediums to reach the customer base and these things are in circulated client.

Speaker #6: But you're saying that, as you think, they're coming back. And so I'd just like you to flesh that out, if you wouldn't mind, please.

Speaker #4: Yeah, thanks, Shane. So just in that catalog space, we in the strategy day or the investor day that we did with investors last year, those that attended or those that went through our document, we talked about then that over the five years from sort of '25 to 2030, we felt that traditional revenue streams like print but more so catalogs would walk back at a sort of single-digit pace year on year from a percentage perspective.

Matt Aitken: Yeah, thanks, Shane. For, just in that catalog space, in the strategy day or the investor day that we did with investors last year, those that attended or those that went through our document, we talked about then that over the five years from 2025 to 2030, we felt that traditional revenue streams like print, but more so catalogs, would walk back, at a single-digit pace year on year from a percentage perspective. That is still what we are seeing. There is probably a little bit of H1 FY26, where we saw that accelerate a little bit quicker than what we had anticipated in our modeling. But that has peered back a little bit. So our business now modeling is seeing that, again, catalogs will continue to decline year on year from a revenue perspective on a single percentage digit number. That is where we are at.

Speaker #4: And that's still what we're seeing. There's probably a little bit of H1 FY26 where we saw that accelerate a little bit quicker than what we had anticipated in our modeling.

Speaker #4: But that has pared back a little bit. So our business now, modeling, is seeing that, again, catalogs will continue to decline year-on-year.

Speaker #4: From a revenue perspective, we're at a single-digit percentage number, and that's where we're at. So yes, as I said earlier on the call—Audi, Metcash—two clients that have really dialed back their presence in that channel.

Matt Aitken: As I said earlier on the call, Aldi, Metcash, two clients that have really dialed back their presence in that channel. But BIG W were not in this channel really at all for the last four or five years, and they are now back with multiple variations of the catalog going into market throughout the year. Coles similarly, Bunnings similarly. So I can also talk to retailers that are saying, "No, we need to be back in this channel, and we are seeing the real benefits of it." It really comes off the back of, again, I think the research and insights program that we have driven in catalogs over the last two years and educating the retailers on the power of the catalog, the returns that they get from it, and the impact of not having that in market, and it is really resonating with the retailers.

Speaker #4: But Big W wins in this channel really at all for the last four or five years, and they're now back with multiple variations of the catalogue going into market throughout the year.

Speaker #4: Coles, similarly; Bunnings, similarly. So I can also talk to retailers that are saying, "No, no, we need to be back in this channel, and we're seeing the real benefits of it."

Speaker #4: And it really comes off the back of, again, I think, the research and insights program that we've driven in catalogs over the last two years, and educating the retailers on the power of the catalog, the returns that they get from it, and the impact of not having that in market.

Speaker #4: And it's really resonating with the retailers. So that's sort of how we're seeing that space at the moment, Shane.

Matt Aitken: That is how we are seeing that space at the moment, Shane.

Shane Bannon: Net, Matt, you are still saying it is going to continue to shrink at low single digits, right?

Speaker #6: So net-net, Matt, you're still saying it's going to continue to shrink at a sort of low single-digit rate?

Shane Bannan: Net, Matt, you are still saying it is going to continue to shrink at low single digits, right?

Speaker #4: Yep. Yes, we are, Shane.

Matt Aitken: Yep. Yes, we are, Shane.

Speaker #6: Great. Thanks, Matt.

Shane Bannon: Great. Thanks, Matt.

Shane Bannan: Great. Thanks, Matt.

Speaker #2: Thanks, Shane. Thanks for your question there. Now, Chris, I can see your hand up again. Do you have another question for the guys?

Rachel Jones: Thanks, Shane. Thanks for your question there. Chris, I can see your hand up again. Do you have another question for the guys?

Operator: Thanks, Shane. Thanks for your question there. Chris, I can see your hand up again. Do you have another question for the guys?

Speaker #5: No.

Chris Savage: No.

Speaker #2: Okay, we'll hand back to Matt. If you have any questions from general shareholders, if you'd like to go through those now, Matt?

Rachel Jones: Okay. We will hand back to Matt. If you have any questions from general shareholders, if you would like to go through those now, Matt.

Operator: Okay. We will hand back to Matt. If you have any questions from general shareholders, if you would like to go through those now, Matt.

Speaker #4: Okay, thank you. We have no other questions from shareholders at all, so on that basis, we will look to conclude the call. I would like to say thank you for attending this morning.

Matt Aitken: Okay. Thank you. We have no other questions from shareholders at all. On that basis, we will look to conclude the call. I would say thank you for attending this morning. Thank you for your support. We also look forward to inviting investors out to our Kemps Creek Super Site. For those that want to come and visit it and join us out there between here and Christmas, we will hold some investor sessions and road shows out there. So we look forward to inviting you out.

Speaker #4: Thank you for your support. We also look forward to inviting investors out to our KEPS super site, for those that want to come and visit, and join us out there between now and Christmas.

Speaker #4: We will hold some investor sessions and roadshows out there, so we look forward to inviting you out.

Speaker #2: Excellent. Well, Matt, thank you so much for a very insightful presentation and a really helpful Q&A session. That does bring us to the end of the session today.

Rachel Jones: Well, Matt, thank you so much for a very insightful presentation and a really helpful Q&A session. That does bring us to the end of the session today. So thank you, everyone, for making time to listen to the call today. If you do have any further questions that you think of after, please reach out to the team. I am sure they will be very happy to help you. So thank you, everyone, for joining us today, and I hope you have a good afternoon.

Operator: Well, Matt, thank you so much for a very insightful presentation and a really helpful Q&A session. That does bring us to the end of the session today. So thank you, everyone, for making time to listen to the call today. If you do have any further questions that you think of after, please reach out to the team. I am sure they will be very happy to help you. So thank you, everyone, for joining us today, and I hope you have a good afternoon.

Speaker #2: So thank you, everyone, for making time to listen to the call today. If you do have any further questions that you think of afterwards, please reach out to the team.

Speaker #2: I'm sure they'll be very happy to help you. So thank you, everyone, for joining us today. And I hope you have a good afternoon.

Operator 2: Goodbye

Browse all earnings call transcripts

Full Year 2026 IVE Group Ltd Earnings Call

Request TrialDemo

IVE Group

Earnings