Novus Holdings (NVS) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 September 2024 rose 3.3% year-over-year to R2,088 million, with EBITDA up 33.1% to R394 million and operating profit increasing to R196.4 million.

• Print, Education, and Packaging segments contributed 33.1%, 52.3%, and 14.6% to Group EBITDA, respectively, with Print profitability improving despite a revenue decline.

• Headline earnings per share increased to 59.36 cents (2023: 28.77 cents); EPS rose to 59.46 cents (2023: 31.61 cents).

• Net profit for the period was R189.9 million, up from R112.2 million in the prior year.

• Cash position decreased to R310.0 million due to DBE contract invoicing timing; net debt at period end was R172 million.

Financial highlights

• Gross profit margin improved to 30.3% from 28.7% year-over-year, with gross profit at R632 million.

• Operating profit (excluding other gains/losses) increased to R196 million, up 16% from R169 million.

• EBITDA reached R394 million, including a ZAR 64 million derivative gain.

• Net working capital at 30 September 2024 was R1,299 million, up from R941 million in September 2023.

• Cash outflow of R561.4 million mainly due to delayed DBE contract payment, which was received in October 2024.

Outlook and guidance

• Education segment expected to contribute less in H2 due to curriculum reform, early orders, and reduced MML sales.

• Ongoing investment in digital and AI platforms, including Masky and Maski, with major updates planned and higher H2 costs.

• Packaging segment expanded capacity, with EBITDA impact from recent CapEx expected in FY2026.

• Management anticipates stable integration of recent acquisitions and a shift to a more diversified investment holding model.