Codan (CDA) H2 2024 earnings summary

Executive summary

• FY 2024 revenue reached $550.5 million, up 21% year-over-year, with EBIT up 29% to $113.9 million and NPAT up 24% to $81.3 million, driven by strong organic growth and successful acquisitions.

• All divisions reported growth, with robust performances in Communications and Metal Detection segments.

• Integration of Zetron UK and Wave Central completed, both performing well and contributing to growth.

• Fully franked annual dividend increased to 22.5 cents per share.

• Continued investment in people, processes, and systems to support future growth.

Financial highlights

• Communications segment revenue grew 19% to $326.9 million, with a 21% increase in the forward order book to $197 million.

• Metal Detection (Minelab) revenue rose 25% to $219.9 million, all organic, with segment profit margin increasing to 35%.

• Group integration and acquisition-related expenses totaled approximately $2 million.

• Net debt increased by $23.7 million to $75.4 million, mainly due to acquisitions, product development, and dividends.

• Engineering investment totaled $57.4 million, about 10% of revenues, with 74% directed to Communications.

Outlook and guidance

• Communications targets 10–15% organic revenue growth for FY25, with $120 million already secured in the order book.

• Minelab aims for high single-digit growth in Rest of World revenues.

• Continued focus on strategic acquisitions, especially in Communications and the Northern Hemisphere.

• Ongoing investment in next-generation products, geographic expansion, and distribution channel strengthening.