IVE Group Limited reported a solid first half for 2026 with margin expansion, strategic acquisitions, and strong momentum in its e-commerce platform Lasoo. Despite a revenue dip, the company’s underlying profitability and operational investments signal confidence in its ‘Now to 2030’ growth strategy.
- Revenue down 6.1% to $479.1 million, NPAT down 10.2% to $24.3 million on IFRS basis
- Underlying EBITDA up 1.8% to $75.4 million driven by margin expansion and cost control
- Three acquisitions completed: Impressu, Budget Mail Services, and Daily Press
- Lasoo e-commerce platform gross transaction value up 53%, on track to breakeven by FY28
- Capital expenditure elevated due to new supersite developments and packaging capacity expansion
Solid Financial Performance Despite Revenue Pressure
IVE Group Limited has delivered a robust half-year result for the six months ending 31 December 2025, navigating a challenging revenue environment with strategic precision. The company reported a 6.1% decline in statutory revenue to $479.1 million and a 10.2% drop in net profit after tax (NPAT) to $24.3 million under IFRS accounting. However, the underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 1.8% to $75.4 million, reflecting effective margin expansion and disciplined cost management.
This divergence between revenue and profitability underscores IVE’s ability to leverage scale and operational efficiencies amid softer demand, particularly in catalogue volumes which saw reduced pagination and distribution. Other segments such as Customer Experience & Data, Creative, and Third Party Logistics (3PL) performed well, cushioning the overall impact.
Strategic Acquisitions Bolster Creative and Operational Capabilities
IVE’s ‘Now to 2030’ strategy is gaining momentum through targeted acquisitions designed to deepen capabilities and broaden its national footprint. During the half, the company completed three key acquisitions: Impressu, a Brisbane-based print and direct mail business; Budget Mail Services (BMS), a Sydney-based mail and communications firm; and Daily Press, a creative agency specialising in digital, social media, and performance marketing.
Daily Press, acquired for up to $35 million, significantly accelerates IVE’s ambition to grow its Creative & Content revenue by $75 million by 2030. The integration of these businesses is expected to unlock synergies, enhance cross-selling opportunities, and contribute materially to revenue and earnings in calendar 2026 and beyond.
Investing in Infrastructure and Capacity Expansion
Capital expenditure for the half-year was elevated at $22.5 million, driven by investments in new facilities and equipment to support growth. Notably, IVE opened a 32,000 square metre 3PL site in Dandenong South, Melbourne, increasing national logistics capacity by 30%. Additionally, the company is progressing the development of a state-of-the-art 42,000 square metre supersite at Kemps Creek, Sydney, designed to consolidate multiple business units and enhance operating efficiencies.
The Kemps Creek supersite, expected to be operational from April 2026, will accommodate expanded packaging capacity and deliver significant rental cost savings. The relocation of JacPak’s Keysborough packaging facility to the Braeside supersite is also underway, aligning with IVE’s broader capacity expansion plans.
Lasoo E-Commerce Platform Shows Strong Growth Trajectory
IVE’s proprietary e-commerce platform, Lasoo, demonstrated impressive growth with gross transaction value (GTV) up 53% year-on-year to $8.1 million in the December quarter, surpassing prior guidance. The platform’s unique offering, now integrated with 352 retailers, continues to attract users and drive repeat sales, positioning Lasoo on track to break even by FY28.
This digital momentum complements IVE’s omnichannel marketing approach, reinforcing its strategic focus on integrating traditional and digital marketing solutions to meet evolving consumer behaviours.
Balance Sheet Strength and Dividend Stability
IVE’s balance sheet remains solid despite an increase in net debt to $172.3 million, primarily due to acquisition funding and seasonal working capital demands. The company maintains conservative gearing with net debt to EBITDA ratios within internal benchmarks. Capital management remains a priority, evidenced by an ongoing on-market share buyback program.
The Board declared a fully franked interim dividend of 9.5 cents per share, unchanged from the prior period, reflecting confidence in the company’s cash flow generation and financial position.
Outlook and Strategic Focus
Looking ahead, IVE expects underlying NPAT for FY26 to be around $50 million, excluding acquisition impacts and certain non-cash lease accounting effects. Capital expenditure is anticipated to normalise in FY27. The company remains committed to its ‘Now to 2030’ strategy, focusing on omnichannel marketing solutions, sustainability initiatives, and technological innovation to drive long-term growth and shareholder value.
Bottom Line?
IVE’s disciplined execution and strategic investments position it well for sustainable growth despite near-term revenue headwinds.
Questions in the middle?
- How quickly will the newly acquired businesses integrate and contribute to earnings?
- What impact will the Kemps Creek supersite have on operational costs and capacity utilisation?
- Can Lasoo sustain its rapid growth trajectory and achieve breakeven as planned by FY28?