Market Update - Strong Revenue Growth in Q1-2025

A: 78 Apollo Drive, Rosedale, Auckland 0632, New Zealand
PO Box: 302-533 North Harbour, Auckland 0751, New
Zealand

P: + 64 9 477 4500 E: info@aofrio.com
® is a registered Trademark of AoFrio Ltd.


1 May 2025

Market Announcement
For immediate release

Strong revenue growth continues in Q1

AoFrio Limited (AOF), is providing an update on trading performance for the three months ended 31 March
2025 (Q1-2025).

• Revenue for Q1-2025 was $23.9m, a 43.9% increase compared to $16.6m for Q1-2024.
• IoT revenue increased 19.1% to $11.8m from $9.9m in 2024. This increase was the result of a
3.7% increase in the number of hardware units supplied and an increase in average unit prices.
• Revenue from the sale of motor products increased 80.4% to $12.1m, from $6.7m in 2024. The
number of motors supplied increased 76.2% compared to Q1-2024.
• Gross Margin was 31.1% (31.3% in Q1-2024). IoT was 45.0% (40.5% in Q1-2024) and motors
17.6% (17.8% in Q1-2024).
• Operating Costs for Q1-2025 were $5.9m compared to $5.1m in 2024.
• EBITDA was a surplus of $1.5m, a $1.3m improvement over the comparable period in 2024.
• Cash at 31 March 2025 was $4.6m ($2.1m last year at 31 March) and the Company had borrowed
$3.9m under its then $5m trade finance facility ($3.9m last year at 31 March). The trade finance
facility has since been increased to $10m.

AoFrio secured its first significant food retail order in March following completion of a proof-of-concept trial.
The order includes recurring SaaS revenue under a multi-year contract. We are working on other significant
opportunities in this segment.

The threat of imposition of tariffs in the USA gives rise to uncertainty for the rest of the year. AOF
manufactures its products in Vietnam and product entering the USA is subject to an additional 46% tariff,
effective 90 days after 5
th
April 2025. Tariff rates may change before that date. In the year to 31 December
2024, AOF sales to customers located in the USA amounted to US$6.3 million of which US$0.5 million was
sales of product imported by AOF. Most product supplied into the USA is supplied ex-works Vietnam and
imported by AOF’s customers, so the cost is not AOF’s. What tariff rate is eventually applied and the impact
that the increased importation costs will have on customer demand is not clear at this time. We continue to
monitor the situation and examine options to reduce the tariff impact on US customers.

2025 Outlook

AOF is maintaining its revenue guidance for FY25 in the range $85m to $95m and EBITDA guidance
between $3.5m and $4.0m. The imposition of tariffs in the USA may lead to reduced customer demand
globally and a stronger NZ$ relative to the US$ also negatively impacts reported revenues and earnings.
Guidance will be updated as the position becomes clearer.

AO237


A: 78 Apollo Drive, Rosedale, Auckland 0632, New Zealand
PO Box: 302-533 North Harbour, Auckland 0751, New
Zealand

P: + 64 9 477 4500 E: info@aofrio.com
® is a registered Trademark of AoFrio Ltd.


AOF’s Chair John Scott said “The year has certainly started strongly. Q1-2025 is especially pleasing on
several fronts. It shows that operating at a world class level delivers results. This performance is driven by
our core business and the 43.9% revenue increase this quarter is even more impressive when you consider
that Q1-2024 revenue was 13% higher than Q1-2023. Notwithstanding the great start to the year, we have
maintained guidance. While there are risks to global trade, there is as much potential upside to revenue as
downside and we just don’t know yet which side of it AoFrio will land”.

*EBITDA (i.e., Earnings before interest, taxation, depreciation, amortisation, and impairment) is a non-GAAP
earnings figure that equity analysts tend to focus on for comparable company performance analysis. AoFrio
considers it a valuable financial indicator because it avoids the distortions caused by differences in
amortisation and impairment policies. Contact




Ends

Contact

Greg Balla Howard Milliner
Chief Executive Officer Chief Financial Officer
Phone + 64 21938601 +64 275870455