Full Year 2024 Codan Ltd Earnings Call Transcript
Key Points
- Codan Ltd (ASX:CDA) reported a strong FY24 with group revenue of approximately $550 million, up 21% from the previous year.
- The company achieved an EBIT growth of 29% to $114 million, with organic EBIT growth of $22 million, up 24%.
- The communications segment saw a revenue increase of 19% to $327 million, with a forward order book growth of over 20%.
- Minelab's revenue increased by 25% to $220 million, driven by new product releases and expansion in North America and Europe.
- Codan Ltd (ASX:CDA) successfully integrated acquisitions Zetron UK and Wave Central, contributing $31 million in revenues and meeting year one expectations.
- Net debt increased by just under $24 million to $75 million, partly due to acquisitions and product development investments.
- Operating leverage in the communications segment was impacted by geopolitical issues in Africa and the normalization of a large project from FY23.
- The company incurred approximately $2 million in integration and acquisition-related expenses during FY24.
- The African market remains challenging, with Sudan still largely disrupted, affecting Minelab's regional performance.
- There is an elevated cost base due to acquisitions and business success, which may impact return on investment and future cost management.
Good morning, everyone, and welcome to Codan's full year FY24 results webinar. I'm Sam Wells from NWR. And joining me from the company today is Managing Director and CEO, Alf Ianniello, as well as CFO and Company Secretary, Michael Barton. Following a brief summary of the results released to the ASX this morning, investors and research analysts will have the opportunity to ask questions. There'll be a choice with two options.
First, you can submit a written question via the Q&A function at the bottom of your Zoom screen throughout the call. Alternatively, research analysts may raise your hands during the call, should you wish to ask a verbal question of the management team. We clearly ask that you limit your verbal questions to two per person, and we will endeavor to get to the majority of questions asked in some cases, consolidating questions on the same or similar topic. Thank you, and over to you, Alf.
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