Amotiv Limited (ASX:AOV) Releases 1H FY25 Results
Financial Performance
Amotiv Limited reported a 2.3% increase in revenue for the first half of FY25, reaching $503.7 million. Underlying EBITA decreased by 1.0% to $97.0 million, while underlying EBITDA grew by 2.6% to $114.9 million. The gross margin declined by 75 basis points to 44.0%. The company maintained a strong capital position with a leverage ratio of 1.75x and a cash conversion rate of 76.5%. The underlying EPSA slightly decreased by 0.7% to 41.9 cents. The interim dividend remained flat at 18.5 cents per share.
Operational Achievements
Amotiv continued its investment in growth within an updated Capital Allocation Framework, successfully commissioning a new plant in South Africa on time and within budget. The company achieved industry-leading safety metrics and received several awards, including the APCO Sustainable Packaging award and the AFR Boss Innovation Award. Additionally, Amotiv initiated a share buyback program, purchasing approximately 733,000 shares at a cost of $7.7 million.
Shareholder Returns
The company announced an interim dividend of 18.5 cents per share, consistent with the prior comparative period. Amotiv also continues its share buyback program, aiming to purchase up to 5% of its issued capital by October 2025, demonstrating its commitment to maximizing shareholder value.
Future Outlook
Amotiv expects growth in FY25, driven by a stronger second half supported by new business wins, product launches, and modest mix improvements in key models. The company anticipates continued resilience in the wear and repair market, strategic pricing actions, and benefits from restructuring and optimization efforts. Cash conversion is projected to remain around 85%, supported by a strong balance sheet and conservative leverage position.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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