ASX small-cap stock Globe International Ltd (ASX: GLB) share price surged 23.2% on Thursday, reaching $3.08 per share by the close of trading.
Today's jump follows the street apparel designer and retailer's announcement of its FY24 financial results. Meanwhile, the S&P/ASX 200 index (ASX: XJO) finished 0.21% in the green at 8,027 points.
Let's see what the ASX small-cap stock posted.
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ASX small-cap stock finishes strong after solid full-year results
Key takeaways from the company's full-year results include:
- Revenues of $222.3 million, down by 5.1% from FY23.
- Earnings before interest and tax (EBIT) surged by $12.4 million to $17.1 million.
- Net profit after tax (NPAT) soared to $11.5 million, up from just $1.5 million in FY23.
- Globe declared a fully franked final dividend of 13 cents per share.
- This brings the total FY24 dividend to 22 cents per share, up from 7 cents per share in FY23.
What else happened in FY24?
Globe International had an interesting year in FY24. The ASX small-cap stock's core brands all returned to profitability, with notable growth in their international markets.
International sales contributed 32% of total EBIT, totalling $8.1 million during the year. This almost doubled operating cash flows to $23 million.
Globe's most profitable region during the year was Australasia, which benefited from strong demand for FXD workwear and streetwear apparel.
Meanwhile, its restructuring in Europe is now complete, where it delivered a "modest profit" there after posting a large loss in FY23.
Alongside the restructuring, management said the operating cost base was also "reset" by removing certain underperforming brands from the portfolio.
Given the profits earned last financial year, the board declared a final dividend of 13 cents per share, bringing the FY24 payout to 22 cents.
At more than three times the payout of FY23, this may be one reason investors piled into the ASX small-cap stock.
What did management say?
Commenting on the results, Globe International CEO Matt Hill was notably pleased:
Our multi-brand strategy continues to deliver profit and positive cashflow with the strategic initiatives implemented in FY23, which included restructuring, inventory optimisation and cost structuring, positively impacting the bottom line.
The Group's core brands – Globe, FXD, Impala Skate and Salty Crew – were all profitable, showcasing market leadership in their respective industries. Meanwhile, emerging brand 'It's Now Cool' successfully demonstrated strong potential for future growth.
While skate remains our heritage and culture, we continue to evolve our brand mix by creating iconic brands that operate in the board sports, streetwear, workwear and outdoor distribution segments around the world.
I am proud of the significant progress the Group made over FY24 that led to increased profitability and a return to significant dividend payout for our shareholders.
What's next for Globe?
Looking forward to FY25, Globe plans to focus on profitability by growing its market-leading brands and investing in emerging ones.
Sales are expected to be flat, but this hasn't dampened the operational outlook. CEO Hill says:
While it's premature to provide reliable sales outlooks, we expect FY25 sales to remain relatively flat, but profitability to increase through sustained brand leadership and the strategic initiatives of FY23 continuing to positively flow through…
… Looking to FY25, we will continue to focus on growing our market-leading brands, investing in core and emerging brands, and driving profitability to deliver value for our shareholders.
Share price snapshot
This ASX small-cap stock finished well into the green today after its FY24 results. Investors clearly see good things on the horizon.
Shares in the footwear and hardgoods company have increased more than 52% in the last 12 months.
