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 30 October 2025:

Q3-25 FINANCIAL PERFORMANCE UPDATE

Revenue from the sale of motor products in the period increased 8.3% to $29.4m, from $27.1m in the same period of FY24 supported by a 6.2% increase in the number of our advanced ECR motors supplied. Revenue from the sale of IoT hardware rose 3.9% to $33.6 million from $32.3 million in the same period of FY24, lifted by a 1.3% increase in the number of SCS refrigeration controllers supplied. SaaS billings in the period amounted to $4.1m compared to $4.0m last year.

The 28.6% improvement in EBITDA to $2.7m from $2.1m in the same period of FY24 is attributable to increased revenues and improvements in gross margin.

Gross Margin increased to 31.3% (2024: 29.4%) due to improved gross margins for all products. The gross margin on IoT was 42.3% (2024: 40.0%) and motors 18.6% (2024: 16.8%). Operating costs increased to $17.8m (2024: $15.8m).

Cash at 30 September 2025 was $2.2m ($2.1m at 31 December 2024). At the end of the period borrowings under our $10.0 million trade finance facility were $9.5m ($4.2m at 31 December 2024).

AoFrio Chief Executive Officer Greg Balla said: “The global food and beverage industry is waking up to the value of refrigeration data and the productivity and efficiency opportunities it offers when paired with machine learning and AI. AoFrio is ideally positioned to take advantage of this shift having developed the world’s only integrated ecosystem of commercial refrigeration fleet monitoring hardware, software and data analytics.

“The branded cold drink equipment market, where we occupy a position of leadership, is now rapidly adopting this technology. We now see significant opportunities to accelerate our growth in this market by expanding into new territories, providing higher value cellular hardware solutions and new hardware to ensure full fleet coverage, and further developing AoFrio-iQ SaaS solution to provide added value to customers.”