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Novus final results March 2025
Revenue for the year grew to R4.2 billion (R4.0 billion) whilst gross profit increased to R1.3 billion (R1.1 billion). Operating profit jumped to R421.7 million (R382.3 million). Net profit for the year attributable to equity holders shot up to R348.0 million (R241.9 million). Furthermore, headline earnings per share rose to 88.33 cents per share (78.75 cents per share).
Dividend
The Board declared an ordinary final gross dividend (No. 7) of 55 cents per share for the year ended 31 March 2025
Results presentation
Novus Holdings will be hosting their results presentation at the Novus Holdings Offices situated at 10 Freedom Way, Montague Gardens at 11h00 (SA time) on Tuesday, 17 June 2025.
For access and details of this webinar, go to the Group's website at www.novus.holdings and view the invitation at ovus.holdings/wp-content/uploads/2025/06/IAR25_Annual-Results-Invite- v2.pdf
Company outlook
The ongoing decline in print volumes places pressure on the recovery of fixed costs and this trend is expected to continue. Future advertising spend also remains uncertain as brand owners and retailers continue to alternate between print and digital formats. Paper prices remain a key driver of value relative to digital marketing.
MML successfully submitted the Foundation Phase curriculum update to the Department of Basic Education, but remains unsure if the procurement of new material will commence for the 2026 year. There is no indication if the next phase of the curriculum update, covering grades 4 to 6, will be announced. Provincial education budgets are already under pressure and the additional cost to replace all the material for a phase is significant. The cost to the Group of developing material for each update is significant with no income certainty.
The Group's artificial intelligence ("AI") associate, Bytefuse, is working with MML to leverage its expertise to deliver learning outcomes through Maski, our AI tutor. Technology and AI supported tools will change the way that education is delivered, and the Group needs to develop expertise and products in this area. It is not clear what will be required in order to be successful in this segment and the Group expects significant competition and new entrants into the education market.
The Packaging segment's focus area is to continue to develop new packaging options with our strategic clients in order to retain margin. The successful commissioning of their expanded production capacity within the current year and future capital expansion positions them to grow their product offering and customer base.
The Group successfully acquired three divisions from Media24 (Pty) Ltd. which transforms the Group into a publisher. The challenge remains to make print products relevant and to build a digital presence at the same time. Our Distribution segment needs to add additional products to its network in order to leverage fixed costs.
The Mustek acquisition reflects our focus to deploy capital into attractive investment opportunities. Mustek has significant scale in the South African market and when its working capital profile is normalised, the business should generate the required return for shareholders.
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| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
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