H1 FY24 Results and Guidance Update

Strong first and second quarter trading for AoFrio produced H1 FY24 revenue growth of 27.4% over the same period last year. EBITDA for H1 FY24 was a $1.1m profit compared to a $0.7m loss for the same period last year. The Company’s Interim Report has been released today and is attached. The results show a strong first half performance, as previously indicated, built on AoFrio’s new USA IoT strategy, new business wins in both North America and South America and a significant improvement in customer satisfaction score. Metric (NZ$m) H1 FY24 H1 FY23 Variance Revenue 38.4 30.1 8.3 IOT 21.8 17.1 4.7 Motors 16.6 13.0 3.6 GM % 30.0% 30.3% (0.3) pp EBITDA 1.1 (0.7) 1.8 EBIT (0.3) (2.1) 1.8 Loss (1.0) (2.7) 1.6 Operating cash inflow / (outflow) 2.3 (2.8) 5.1 AoFrio has significantly accelerated its new product development and will be releasing new software and hardware solutions focused on improving the return on investment for our customers’ refrigeration fleets. The pipeline of solutions to be launched in FY24 includes AoFrio® INSIDE™, AoFrio iQ, ECR®2 26W, and AoFrio’s first Food Retail solution. The Company is building a strong sales pipeline based on these new solutions, which offer opportunities to take additional market share, with the potential for some significant sized deals. AoFrio is maintaining its FY24 guidance for revenue in the range $70m to $80m, a 13% increase over FY23 at the midpoint of the range. EBITDA guidance for FY24 is targeting around $2.5m. Macroeconomic conditions may impact this guidance. AoFrio notes it is working on significant large opportunities that, if they eventuate, would push revenue to the top end of guidance. AoFrio remains measured in its approach to managing the investment required for new product and adjacent market growth, including cost controls, and tighter criteria for investment in innovation. AoFrio continues to manage its investment to align with trading conditions and expects to be able to continue expanding through internally generated cashflows. Thank you to the AoFrio team and stakeholders for your support.