Supply Network (SNL) H2 2024 earnings summary

Executive summary

• Sales revenue grew 20% year-over-year to $302.6m, with net profit after tax rising to $33.0m and EPS at 78.61 cents, reflecting steady business improvement and stable gross margins.

• Australian operations saw 21% revenue growth, while New Zealand operations grew 15% in local currency, both exceeding or meeting expectations.

• Continued investment in customer service, network expansion, and systems improvement supported operational efficiency and future growth.

• The business maintained a focus on organic growth, network intensification, and product range expansion, with a new Perth branch planned for FY2025.

Financial highlights

• EBITDA increased 21% to $58.4m and EBIT rose 21% to $49.3m year-over-year.

• Profit after tax margin remained steady at 10.9%.

• Dividends paid or declared for FY2024 totaled 56.0 cents per share, up 8.0 cents from the prior year, with a payout ratio of 71.2%.

• Net assets increased to $103.2m from $77.8m, and net tangible asset backing rose to 242.9 cents per share.

• Gearing (excluding lease liabilities) decreased to 9.3% from 12.8% year-over-year.

Outlook and guidance

• FY2025 revenue growth is expected to align with the long-term average of 14% p.a., supported by ongoing market expansion and network investments.

• Management anticipates continued addressable market growth of 5–10% p.a. for at least a decade, with further market share gains.

• Focus remains on organic growth, product range expansion, and transaction system development over the next three years.