In This Article:
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Revenue Growth: 12.1% increase in first half '25 revenues.
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Underlying Net Profit After Tax: Increased by 13% compared to the prior period.
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EBIT Margin: Slight contraction due to one-off items and timing differences.
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Underlying Earnings Per Share: Grew by 5.1%.
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Interim Dividend: $0.25 per share, a 25% increase from the previous interim dividend.
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Organic Underlying Net Profit After Tax Growth: 9.3%.
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Acquisition Growth Contribution: 15% increase in net profit after tax.
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Australian Broking Revenue Growth: 10.1% with a 70 basis point margin improvement.
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BizCover Revenue Growth: 16.5% with a 360 basis point margin expansion.
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Agencies Revenue Growth: 26.1% with a 320 basis point margin expansion.
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New Zealand Revenue Growth: 18.7% with broadly neutral margins.
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International Division Revenue Growth: 10.4% with a 160 basis point margin expansion.
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Leverage Ratio: 1.9x as of December 31, 2024.
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Cash and Undrawn Debt: AUD208.3 million as of December 31, 2024.
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Full Year NPAT Guidance: $190 million to $200 million, representing 11.1% to 16.9% growth.
Release Date: February 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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AUB Group Ltd (ASX:AUB) reported a 12.1% increase in first half '25 revenues, with underlying net profit after tax rising by 13% compared to the prior period.
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The company achieved strong revenue growth in its BizCover, Agencies, and New Zealand divisions, supported by above-market growth in Australian broking.
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AUB Group Ltd (ASX:AUB) has successfully expanded its international presence, with the International division delivering 10.4% revenue growth and margin expansion of 160 basis points.
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The acquisition of Tysers has driven a substantial uplift in the value of retail brokers and underwriting agencies, creating a strong pipeline for future investment opportunities.
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The Board declared an interim dividend of $0.25 per share, a 25% increase from the previous year's interim dividend, reflecting financial strength and commitment to shareholder returns.
Negative Points
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The group's EBIT margin contracted slightly due to one-off items and timing differences.
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The International division's profit outcome was complicated by several one-off items, including a $12.8 million impact from bonus period realignment.
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AUB Group Ltd (ASX:AUB) experienced a reduction in profit from the first half of '24 to the first half of '25 in the International division, partly due to the departure of certain teams.
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The company faces challenges in replicating its successful Australian model internationally, as it is still in the early stages of this process.
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Increased funding costs and one-off impacts on international results are expected to offset strong growth in the second half of '25.