Schaffer Corporation (SFC) H2 2024 earnings summary

Executive summary

• Revenue rose 23% to $226.2 million for FY24, with net profit after tax (NPAT) up 99% to $27.1 million compared to FY23.

• Strong performance in both Automotive Leather and Building Materials (Delta) divisions, with improved sales volumes and operational efficiencies.

• Group Investments delivered significant unrealised gains, notably from the revaluation of South Connect Jandakot.

• Fully franked dividends of $0.90 per share maintained, continuing a 61-year record of dividend payments.

• Net debt reduced by $17.5 million to $33.6 million, supported by robust operating cash flow.

Financial highlights

• Revenue: $226.2 million, up from $183.6 million in FY23 (23% increase).

• Statutory NPAT: $27.1 million, up from $13.6 million in FY23 (99% increase).

• EPS: $1.99, up from $1.00 in FY23.

• Ordinary dividend per share: $0.90, unchanged from FY23.

• Operating cash flow: $47.7 million, up from $5.9 million in FY23.

Outlook and guidance

• Automotive Leather expects margin improvement in FY25 as new program launches stabilise.

• Delta continues to benefit from government infrastructure investment but faces project delays and cost pressures.

• Group Investments division to pursue further value-add opportunities, focusing on medium to long-term capital gains.