4imprint Group (FOUR) H1 2024 earnings summary

Executive summary

• Revenue grew 5% year-over-year to $667.5m in H1 2024, with operating profit up 10% to $69.9m and basic EPS up 10% to 194.3c.

• Market share increased to 6.3% in H1 2024, with strong customer retention and a 2% rise in average order value.

• Cash and bank deposits rose to $121.5m, supporting a 23% increase in the interim dividend to 80.0c per share.

• Over 1 million orders received in H1 2024, 4% above H1 2023.

• Continued investment in people, marketing, and infrastructure, including a $20m Oshkosh distribution center expansion.

Financial highlights

• Gross profit rose 11% to $214.0m, with gross margin improving to 32.1% from 30.4% in H1 2023.

• Marketing costs increased 13% to $87.4m, reflecting continued investment in brand and customer acquisition.

• Free cash flow was $59.1m, with cash conversion at 106%.

• Basic EPS increased 10% to 194.3c.

• Interim dividend per share: 80.0c (+23% year-over-year); $42.1m in dividends paid in H1 2024.

Outlook and guidance

• Full year 2024 revenue expected to grow at a rate similar to H1; profit before tax to remain within current analyst forecast range.

• 2024 capex guidance at ~$22.1m, including $16.2m for distribution centre expansion.

• Effective tax rate for 2024 expected at 25%.

• Board confident in ability to manage through current market conditions and achieve further organic growth medium-term.

• Interim dividend of $22.5m to be paid in September 2024.