Seven Group Holdings (SVW) has reported strong financial performance for the fiscal year ending June 30, 2024, with revenue rising by 10% to A$10.6 billion.
The company achieved a 14% increase in earnings before interest, tax, depreciation, and amortisation (EBITDA), reaching A$1.93 billion. However, net income fell by 22% to A$464.4 million, largely due to one-time charges, including a significant impairment related to its investment in Seven West Media, which reduced profits by approximately A$386 million.
Despite the decline in net income, Seven Group’s underlying net profit after tax (NPAT) rose by 30% to A$850.3 million, surpassing the market estimate of A$759.1 million. The company declared a final dividend of A$0.30 per share, up 30% from the previous year, reflecting its commitment to delivering value to shareholders.
Chief Executive Ryan Stokes highlighted the robust performance of Seven Group’s industrial services businesses, which contributed significantly to the company’s overall results. WesTrac, in particular, delivered a 28% expansion in EBIT, supported by strong demand for services and a healthy capital sales pipeline, marking one of the strongest in a decade. Boral, now fully owned by Seven Group, and Coates also performed well, benefiting from a robust infrastructure and construction pipeline, which is expected to drive further earnings growth in fiscal 2025.
Looking ahead, Seven Group is optimistic about its growth prospects, forecasting high single-digit growth in EBIT for fiscal 2025. This outlook is supported by the company’s strategic investments in working capital during FY24 and the continued strength in its core sectors of industrial services, energy, and media.
Seven Group’s strategic acquisition of the remaining shares in Boral allows it to fully leverage Boral’s strong cash generation capabilities, which can be reinvested across the group to improve shareholder returns. The company believes that both Boral and Coates are well-positioned to translate their productivity gains from FY24 into earnings growth in the coming year.
Overall, Seven Group Holdings continues to demonstrate strong performance, positioning itself for growth across its diverse business portfolio. The company’s strong balance sheet, coupled with its disciplined approach to capital allocation, underpins confidence among investors.
As a reminder, SVW’s inclusion in the ASX Growth Portfolio is based on share price momentum. While SVW continues to perform well on a relative basis it will remain in the portfolio, and has returned 58% since its inclusion in May 2023.
