Print and communications company IVE Group reports strong recovery over the four months to 31 October but says global supply chain issues have pushed paper prices to "the top end.”
“Strong revenue recovery and momentum across the business, with revenue up 9% over pcp,” IVE Group told the ASX on Wednesday In a trading update for the 4 months ended 31 October 2021.
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| "We have moved quickly to shore up supply": IVE CEO Geoff Selig |
“Post COVID global supply chain disruption has a dual effect,” said IVE CEO Geoff Selig. “We continue to benefit from clients “onshoring” work previously produced offshore to guarantee supply.
“Paper prices have moved to the top end of their long term historical range driven by tightening supply, increases in pulp costs and well documented increases in global energy prices and shipping costs. Our expectation is that this price pressure will continue throughout 2022. These price movements primarily impact our web offset printing division.
“In response, we have moved quickly to shore up supply and believe it is prudent to increase our paper inventory holdings as foreshadowed at the time of our full year results in August,” Selig said.
“IVE has long term strong relationships with all major international paper suppliers. We are working closely with our clients to manage/mitigate ‘flow through’ cost adjustments as required. We are confident that the majority of these recent paper cost increases will be passed through to clients.”
Trading update for the 4 months to 31 October 2021
Strong revenue recovery and momentum across the business, with revenue up 9% over pcp
EBITDA & NPAT* up 32% and 75% respectively on pcp, demonstrating heightened operating leverage across the business as highlighted in FY21 full year results
Cash on hand at 31 October 2021 of $42m (post repaying $50m in senior debt facility in August 2021)
Net Debt at 31 October 2021 of $89.7m
* — Revenue, EBITDA and NPAT normalised for our Telefundraising
business which was divested on 31 October 2020
— EBITDA on a pre AASB 16 basis
— EBITDA and NPAT exclude FY21 Jobkeeper receipts
