Major printing operation IVE is aiming to enter the packaging market in the near term, as the company saw all its figures rise in its full year results.
Following a strategic review, IVE will now “move more aggressively” into the packaging sector, and is actively seeking an appropriate acquisition to expedite this strategy, with $30m-$40m allocated to fund this, and any other “earnings accretive opportunities.”
Geoff Selig, executive chair of IVE said, "Our entry into packaging will be fibre-based, and we will build from there. We have plenty of fuel to use."
The company has been eyeing packaging for some time, and says it sees opportunities for both organic and acquisition growth in the packaging sector. Its near term focus is on finalising the strategy and plans to build its packaging capability over the coming two years.
IVE has been working with an “expert advisory firm” over recent months to develop and refine its strategy for packaging. It says this has confirmed its strategic imperative to grow packaging is “sound”, and that it should actively seek an appropriate acquisition.
The analysis also identified other packaging markets which “strongly complemented” IVE’s key strengths.
IVE has a track record of acquisition and consolidation to take it to the top of the market; this was the case in the heatset and retail display sectors.
IVE revenue for the year was up by 15.6 per cent to $759m, its EBITDA increased by 13.3 per cent to $96.9m, while its net profit after tax rose by 66 per cent to $33.1m (figures excluding JobKeeper). IVE bought Active Display Group and AFI Branding in November.
Matt Aitken, CEO at IVE, said, “We were encouraged by the uplift in revenue during FY22, and while the macroeconomic environment remains somewhat uncertain, I am optimistic about the year ahead given our demonstrated track record, business fundamentals, and strong market position.”
IVE said the company, which now has 1800 staff, had seen bounceback across most parts of the business as the economy emerges from Covid.
