AUB Group (AUB) H2 2024 earnings summary

Executive summary

• Achieved strong FY 2024 results with underlying revenue up 19.8% to AUD 1.33 billion and NPAT up 32.5% to AUD 171 million, driven by organic growth and acquisitions across all divisions.

• EPS grew 21.2% to AUD 1.568 per share; total dividend per share increased 23.4% to AUD 0.79, maintaining a 52.8% payout ratio.

• Expanded global footprint to 16 countries, serving 1 million clients, and ranked 18th largest insurance broking group globally.

• Completed significant acquisitions, including a 70% stake in Pacific Indemnity, and expanded international presence.

Financial highlights

• Organic growth contributed 20.9% to NPAT, with acquisitions adding 17%; offset by 1.5% from divestments and 3.9% headwind from higher funding costs.

• EBIT margin expanded to 34% in FY 2024; dividend payout ratio at 52.8%.

• Cash and undrawn debt at 30 June 2024: AUD 471.3 million; leverage ratio 1.28x.

• Agencies and New Zealand broking divisions saw profit before tax growth of 57.9% and 59.2% year-over-year, respectively.

• BizCover delivered 15% revenue growth and 20.5% EBIT growth, with margin expansion to 42%.

Outlook and guidance

• FY 2025 NPAT forecasted at AUD 190–200 million, representing 11.1%–16.9% growth, with organic growth of 7.2%–10.1% and acquisition growth of 6.7%–9.6%.

• Underlying EPS guidance for FY25: 162.97–183.35c, factoring in equity funding impact.

• Guidance includes assumptions for Movo acquisition in the second half, with upside or downside risk depending on timing.

• EPS growth for FY 2025 will reflect the full-year impact of increased share count from FY 2024 equity raises.

• Margin improvement remains a key focus, with medium-term EBIT margin targets on track or being upgraded.