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Highlights

  • AEF’s revenue surged 24% YoY to AUD 100.5 million in FY24.
  • Underlying net profit soared 57% YoY to AUD 18.5 million in FY24.
  • The company informed that Altius acquisition integration is expected to add AUD 1 million in EBITDA uplift.

Australian Ethical Investment Limited (ASX:AEF) is an ASX-listed ethical investment manager which has witnessed significant revenue and profit growth in the financial year 2024 (FY24).

During the reported period, AEF’s operating revenue surged by 24% YoY to AUD 100.5 million, up from AUD 81.1 million in FY23. Meanwhile, funds under management (FUM) grew 13% YoY, reaching AUD 10.4 billion as of 30 June 2024. Additionally, the company's underlying net profit stood at AUD 18.5 million, reflecting a 57% increase compared to the previous year.

Outlook and Growth Strategies

Looking ahead to FY25, AEF remains optimistic about continued growth, supported by compulsory superannuation policies and increasing interest in ethical investing. Key strategic initiatives include:

  • Transitioning to a single super administration provider (GROW) to enhance operational efficiency.
  • Shifting custody to State Street, expected to save AUD 4 million annually.
  • Integrating the Altius acquisition, projected to add AUD 1 million in EBITDA uplift.

The company aims to leverage both organic and inorganic opportunities to strengthen its business foundation, drive profitability, and enhance operational efficiency.

Macroeconomic Indicators and Market Trends

The Australian Bureau of Statistics (ABS) recently reported that in the December 2024 quarter the Consumer Price Index (CPI) increased by 0.2% sequentially, marking the lowest quarterly rise since June 2020. On an annual basis, CPI rose 2.4%, down from 2.8% in the September quarter.

Furthermore, core inflation fell to 3.2% in December 2024 quarter, down from 3.6% over previous quarter, marking the lowest level in the past three years. The cooling inflation has fueled speculation of a potential interest rate cut by the Reserve Bank of Australia (RBA) in February 2025, which could benefit the financial services sector, including AEF.

Share performance of AEF

AEF shares closed 0.41% higher at AUD 4.94 per share on 30 January 2025. In the last one year, AEF’s share price has dropped by nearly 8.52% and in the last six months, the share price has increased by nearly 20.19%.

52-week high of AEF is AUD 5.77, recorded on 9 December 2024 and 52-week low is AUD 3.63, recorded on 5 August 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 30 January 2025. The reference data in this report has been partly sourced from REFINITIV.