FY23 Guidance Update

GENERAL

Wed, May 24 2023 08:52 am

AoFrio Limited recent Q1 trading update gave full year FY23 guidance of EBITDA around $3.5 million and revenue trending toward $100 million.

AOF is maintaining EBITDA guidance of around $3.5million. AOF continues to conservatively manage its investment in growth (mainly additional staff) to align with trading conditions and looks to continue expanding through internal cash generation rather than raising capital.

AOF is now revising its revenue guidance for FY23 to a range of $80 to $90 million which is a growth rate of around 14% at the mid-point of the range. This revision is due to a reduction in predominantly lower margin motors sales, whereas our higher margin IoT business remains strong.

As previously communicated, some of the company’s customers were holding excess inventory, as they had over-purchased to protect their businesses from supply chain disruptions in FY22.

AOF expected surplus inventory would be largely consumed through early FY23 and remained conscious that macro-economic conditions were impacting purchasing decisions, with major bottle cooler brands being later-than-usual to place orders on the refrigerator manufacturers. These factors appear to be taking somewhat longer to work through than previously expected, our markets remain more volatile than usual and difficult to forecast.

AOF is holding an analyst strategy briefing on Wednesday 24th May 2023 at 12.30pm, at which the company will set out the opportunities it is progressing as part of its strategic plan. This includes substantial adjacent market opportunities for IoT solutions in food service, food retail and ice cream. This presentation will be released to the NZX at the start of the meeting.