AoFrio Limited Analysis

Overview

AoFrio is a leading provider of Internet of Things (IoT) solutions and energy-efficient motors to the food and beverage industry around the world.

The company supplies advanced electronic IoT solutions for the commercial refrigeration industry, helping refrigeration original equipment manufacturers (OEMs) and food, beverage and retail companies across the globe reduce their costs, increase sales and become more sustainable.

AoFrio designs, manufactures and sells smart refrigeration controls, cloud-based refrigeration management solutions, controlled motors and digital marketing solutions.

We have a clear strategy for our next growth phase and have recalibrated the business to become a global hardware-enabled, full-service SaaS company.

This is AoFrio's pathway to lifting recurring IoT SaaS-driven revenue, expanding in existing markets and exploring new regions around the world.

Spanning a global network, AoFrio's customer-focused teams are based in New Zealand, Australia, Turkey, Italy, Brazil, Spain, Mexico, USA, Guatemala, Argentina and Singapore. Its supply-chain partners have factories in Vietnam and China, and distribution partners in the UK and USA.

The company is listed on NZX under the ticker of WDT since February 2001, and changed its ticker to AOF in September 2022.

Performance

The following information was extracted from AoFrio Limited's Market Update, released on 30 October 2024:

• Revenue for the three months ended 30 September 2024 was $21.1m, a 32% increase compared to $15.9m for Q3-2023.
• For the nine months ended 30 September 2024 (YTD 2024), revenue was $59.4m, a 29.1% increase compared to the same period in 2023.
• IoT revenue YTD 2024 was $32.3m (54% of total revenue) with a 40.0% gross margin. Motor revenue was $27.1m at a 16.8% gross margin.
• AOF received a $452k Research and Development Tax Incentive payment in September 2024 for R&D activities undertaken in 2023.
• Operating costs YTD 2024 were $15.8m compared to $15.4m in 2023.
• YTD 2024 EBITDA was a surplus $2.1m, (loss of $0.3m in 2023).
• Cash at 30 September 2024 was $2.3m ($3.7m last year at 30 September).
• Borrowing at 30 September 2024 under AOF’s bank trade finance facility reduced to $3.2m from $7.7m last year at 30 September.