AoFrio (AOF) H1 2024 earnings summary

Executive summary

• H1 FY24 revenue rose 27.4% year-over-year to $38.4m, driven by new USA IoT strategy, business wins in the Americas, and strong customer satisfaction.

• Q2 revenue grew 41%, reflecting sequential acceleration.

• EBITDA improved to $1.1m from a $0.7m loss in H1 FY23; pre-tax loss narrowed to $1.1m from $2.7m.

• Strategic focus remains on investing in new market verticals and protecting the core Cold Drink Equipment (CDE) business.

• Significant improvement in customer satisfaction and strong sales pipeline from new product launches.

Financial highlights

• H1 FY24 revenue reached $38.4m, up from $30.1m in H1 FY23.

• Q1 revenue was $16.6m, Q2 revenue increased to $21.8m.

• EBITDA turned positive at $1.1m versus a $0.7m loss year-over-year.

• Operating cash inflow of $2.3m, reversing a $2.8m outflow in H1 FY23.

• Gross margin was 30.0% (vs. 30.3% in H1 FY23); IoT margin 40.1%, Motors margin 16.9%.

• Net loss for H1 FY24 was $1.0m, improved from $2.7m loss in H1 FY23; basic EPS loss of 0.24c.

• Cash at 30 June 2024 was $2.0m; net debt $2.5m, down from $6.3m in H1 FY23.

Outlook and guidance

• FY24 revenue guidance maintained at $70m–$80m, a 13% increase at midpoint over FY23.

• FY24 EBITDA guidance is around $2.5m; macroeconomic conditions may impact results.

• Significant large opportunities in pipeline could push revenue to top end of guidance.