Novus Holdings Reports 24% Revenue Surge and 377% EBITDA Growth, Declares 50 Cent Dividend

  • Novus Holdings' revenue increased by 24%, reaching R3.962 billion for the financial year ended March 31, 2024.
  • EBITDA rose by 377.3% to R628.8 million, reflecting strong performance across all segments.
  • The company declared a 50 cent per share dividend, marking a return to dividend payments.

Novus Holdings

Novus Holdings Limited (JSE: NVS) has announced its audited annual financial results for the year ended March 31, 2024. The company reported significant increases in revenue and profit, reflecting a robust performance across its segments.

Revenue and Profit Surge

Novus Holdings reported a 24% increase in revenue, reaching R3.962 billion, up from R3.196 billion in 2023. This growth was primarily driven by the inclusion of Maskew Miller Learning Proprietary Limited (MML) for the full year in the Education segment.

Key Financial Highlights

MetricFY 2024FY 2023% Change
RevenueR3.962 billionR3.196 billion+24.0%
EBITDA*R628.8 millionR131.7 million+377.3%
Operating Profit*R393.5 millionR6.9 million+5583.3%
Headline Earnings Per Share (HEPS)78.8 cents(7.4) cents+1165.5%
Earnings Per Share (EPS)75.9 cents18.9 cents+301.6%
Diluted HEPS**67.6 cents(7.4) cents+1012.2%
Diluted EPS**64.7 cents18.9 cents+242.9%
Ordinary Cash Dividend50.0 centsNIL
Net Asset Value Per Share693.6 cents676.8 cents+2.5%
Closing Cash PositionR871.4 millionR392.2 million+122.2%

*Excludes other gains/losses of R11.1 million in 2024 and R76.6 million in 2023

Segment Performance

The Group’s overall revenue increased by R764 million, driven by MML’s contribution of R810 million. The Print and Packaging segments experienced slight declines in revenue, net of intergroup transactions.

Print Segment

Revenue in the Print segment remained stable at R2.419 billion, compared to R2.375 billion in 2023. Operating profit improved from a loss of R31.1 million to a profit of R55.0 million. Sales tonnage decreased by 9.1%, with declines in Retail, Inserts, Catalogues, and Magazines. However, Books and Newspapers saw tonnage increases.

MetricFY 2024FY 2023% Change
RevenueR2.419 billionR2.375 billion+1.9%
Operating ProfitR55.0 million(R31.1) million+276.8%
Gross Profit Margin17.4%16.2%+7.4%

Packaging Segment

The Packaging segment’s revenue was stable at R656.8 million, a slight decrease from R659.4 million in 2023. Operating profit increased by 9.6% to R67.5 million, compared to R61.6 million in the previous year.

MetricFY 2024FY 2023% Change
RevenueR656.8 millionR659.4 million-0.4%
Operating ProfitR67.5 millionR61.6 million+9.6%

Education Segment

The Education segment, driven by MML, showed significant growth. Revenue increased from R156.3 million to R966.2 million. Operating profit margin improved from 20.8% to 27.3%.

MetricFY 2024FY 2023% Change
RevenueR966.2 millionR156.3 million+518.1%
Operating Profit Margin27.3%20.8%+31.3%

Cash Generation and Dividend

Novus Holdings reported a strong cash position of R871.4 million, up from R392.2 million in 2023. Net cash after debt was R461.1 million, compared to a net debt of R119.7 million in the previous year. The Board declared an ordinary cash dividend of 50.0 cents per share.

MetricFY 2024FY 2023% Change
Closing Cash PositionR871.4 millionR392.2 million+122.2%
Net Cash After DebtR461.1 million(R119.7) million+485.2%
Ordinary Cash Dividend50.0 centsNIL

Outlook

Novus Holdings plans to optimize its Print business amidst declining print volumes. The significant fixed costs to maintain print infrastructure pose ongoing challenges. MML is expanding its service offerings, launching the AI-enabled platform Maski, which will support textbook users and eventually offer broader services. The acquisition of Bytefuse, an AI technology business, aims to enhance Maski’s development. ITB, the Packaging business, invested R63 million to expand production capacity and improve efficiency.

Results Presentation

Novus Holdings will host its results presentation at its offices in Montague Gardens, Cape Town, on June 18, 2024. Shareholders can access details of the webinar on the Group’s website.

Conclusion

Novus Holdings has demonstrated strong financial growth, significantly improving its revenue, profitability, and cash position. The strategic inclusion of MML and investments in AI technology highlight the Group’s commitment to innovation and expansion.


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