Codan share price jumps 13% on stellar FY24 results

The Codan Ltd (ASX: CDA) share price has hit a new 52-week high on Thursday.

In morning trade, the metal detector manufacturer's shares climbed almost 13% to $14.56.

Investors have been buying Codan's shares following the release of its results for FY 2024.

Codan share price jumps on full year results

• Group revenue up 21% to $550.5 million
• Earnings before interest and tax (EBIT) up 29% to $113.9 million
• Net profit after tax up 24% to $81.3 million
• Fully franked final dividend of 12 cents per share

What happened in FY 2024?

For the 12 months ended 30 June, Codan recorded group revenue of $550.5 million, which represents a 21% increase over the prior corresponding period.

This was driven by strong growth across both its Communications and Metal Detection businesses.

Communications revenue was up 19% to $326.9 million and segment profit also increased 19% to $80.5 million. Pleasingly, the company looks well-placed to build on this in FY 2025. It notes that the communications orderbook currently stands at $197 million, which is up 21% year on year.

Codan's Metal Detection business reported a 25% increase in revenue to $219.9 million. Segment profit grew at an even quicker rate of 37% to $77.9 million. This reflects growth across all divisions.

And while other revenue declined from $5.9 million to $3.7 million in FY 2024, this is immaterial to its overall results.

The sum of the above was a net profit of $81.3 million for FY 2024, which is up 24% year on year.

This allowed the Codan board to declare a fully franked final dividend of 12 cents per share, which brought its total dividends to 22.5 cents per share. This represents an increase of 21.6% from 18.5 cents per share in FY 2023.

Management commentary

Codan's chief executive, Alf Ianniello, was pleased with the result. He said:

Codan has delivered a strong FY24 result, with Group revenues up 21%, EBIT up 29% and NPAT up 24%. It is pleasing to see the business deliver sustainable growth across the last three consecutive halves. Our primary focus remains on strengthening the business to achieve sustainable, profitable growth for the future, reinforcing a stronger Codan.

Outlook

Management advised that it is targeting organic revenue growth of 10% to 15% for its Communications business in FY 2025.

Whereas the Minelab (metal detection) business is targeting rest of world revenue growth in the high-single digits.

Management also revealed that it is on the lookout for acquisition opportunities which enhance the quality of the company's revenues. Particularly for its Communications segment.

The Codan share price is now up 75% since this time last year.

The post Codan share price jumps 13% on stellar FY24 results appeared first on The Motley Fool Australia.

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