IVE Group is continuing to shift its business towards higher-value services and applications, with packaging among the areas offering opportunities as traditional print markets face ongoing structural pressure.
The company reported FY2026 revenue of $937.4 million, down 1.8 per cent year on year, but delivered improved profitability despite a difficult trading environment. Material gross profit margin increased from 49.3 per cent to 51.4 per cent, while EBITDA pre-AASB 16 rose 2.8 per cent to $112.6 million.
The result reflected weaker demand in catalogues and publishing, although IVE reported stronger performance across CX and data, premiums and merchandise, and third-party logistics.
Acquisitions including Impressu and Daily Press also contributed $32.3 million of revenue during the year and expanded the group’s service offering.
For packaging, IVE’s broader strategy of moving towards higher-margin and more diversified services provides an opportunity to capture greater value from print production.
Rather than relying solely on traditional volume markets, the group is building a portfolio spanning applications and services where customers require greater integration, production capability and expertise.
Matt Aitken, managing director of IVE, said the improved margin performance was driven by better buying power and a shift towards higher-margin service lines.
“We delivered a disciplined result consistent with the guidance we gave to the market,” Aitken said, describing the economic environment as “genuinely difficult”.
Operational investment is also supporting the strategy. IVE’s Dandenong South facility was operational ahead of schedule and was already running at 85 per cent capacity, while the Kemps Creek Sydney supersite is delivering efficiencies and additional room for growth.
Aitken said the Sydney consolidation would also avoid $3.1 million in annual rent increases.
The company is also investing in technology, with AI already being used across lead generation, research, proposal automation and cybersecurity.
“IVE’s advantage would come from combining AI with creative talent, client knowledge, data and the ability to execute at scale,” Aitken explained.
“This combination of technology, production infrastructure and service capability is likely to become increasingly important as IVE expands beyond traditional commercial print into growth areas such as packaging and other value-added applications.”
Looking ahead, IVE expects FY2027 revenue to increase, supported by a full-year contribution from Impressu and Daily Press.
Underlying NPAT pre-AASB 16 is expected to remain broadly stable, however, reflecting continued economic pressure, higher interest and rent costs, and declining catalogue and publishing volumes.
With traditional print volumes continuing to decline, IVE’s focus on higher-margin services and operational efficiency will be central to its next phase of growth, with packaging providing an important avenue for diversification.
