Peet (PPC) H2 2024 earnings summary

Executive summary

• Delivered solid FY24 performance amid mixed market conditions, with strong sales in WA, Qld, and SA offsetting softer results in ACT/NSW and Vic.

• Maintained a large, nationally diverse land bank of 33,600 lots, supporting future growth and earnings visibility.

• Continued disciplined capital management, including a 4% reduction in shares on issue via buy-back and a fully franked dividend.

• Sustainability initiatives advanced, with water-efficient communities, affordable housing, and strong community engagement.

Financial highlights

• FY24 net operating profit: $36.6m, down 48% year-over-year; operating EPS: 7.77c, down 47%.

• Revenue: $314.4m, down 14% year-over-year, impacted by prior year one-off settlement in Qld.

• EBITDA: $66.7m, down 38%; EBITDA margin: 21% (down from 29%).

• DPS: 4.25c, down 43%; book NTA per share: $1.31, up 2%.

• Cash and available facility at 30 June 2024: $140m; contracts on hand value: $481m.

Outlook and guidance

• Portfolio well-positioned for growth, with focus on high-quality land, expanding product offering, and disciplined capital management.

• Pipeline of 33,600 lots provides medium-term earnings visibility; up to eight new projects to launch FY25–FY27.

• Expectation for earnings growth and strong operating cash flows in FY25, supported by contracts on hand and improving sales activity.

• On-market share buy-back extended; dividend payout ratio targeted at 50–60%.