Ingenia Communities Group (INA) H2 2024 earnings summary

Executive summary

• FY 2024 results exceeded guidance, driven by strong revenue growth, 17% EBIT increase, and operational improvements across all segments.

• New CEO and executive team implemented a business transition focused on organic growth, efficiency, and capital discipline, with business simplification and value realisation.

• Strategic shift from asset aggregation to development and operation, with a five-year plan targeting higher development returns and operational efficiency.

• 462 new home settlements in FY24, up 24% on FY23, with average home sales price up 24%.

• High occupancy across residential communities and 6% increase in holidays forward bookings year-over-year.

Financial highlights

• Revenue rose 20% year-over-year to AUD 472 million, with strong contributions from lifestyle, rental, development, and holidays.

• Group EBIT increased 17% to AUD 125.7 million, above guidance.

• Underlying profit up 14% to AUD 94.8 million; EPS at AUD 0.233, exceeding guidance.

• Statutory profit declined to AUD 14 million due to a AUD 97 million goodwill impairment from the 2021 Seachange acquisition.

• NTA per security up 4.9% to AUD 3.69; LVR at 32.3%, within target range.

Outlook and guidance

• FY 2025 targets further growth, with settlements in line with a three-year target of 1,600–2,000 lots from FY 2024–2026.

• FY25 guidance targets underlying EPS of 24.4–25.6 cps and EBIT growth of 10–15% on FY24.

• Five-year plan aims for development to represent 50–60% of EBIT, up from 35%.

• No balance sheet constraints anticipated for funding the development pipeline; multiple capital levers available.

• Cost savings of AUD 6 million annualized, with further efficiency gains expected at the project level.