Highlights

  • AoFrio projects two growth scenarios: 10% CAGR revenue growth internally funded, or 25% CAGR with NZD 15 million investment.
  • FY25 revenue is forecast to rise 7.9% to NZD 86 million, with EBITDA improving by NZD 1 million to NZD 3.5 million.
  • Global deployment includes 3.5 million coolers, powering 70% of connected cold drink refrigerators in operating markets.

AoFrio (NZX:AOF), a leading name in smart refrigeration, shared its growth strategy today at an investor briefing in Auckland. The company outlined two potential futures: one fueled by internal operating cash flows aiming for 10% compound annual revenue growth (CAGR), and a more ambitious trajectory targeting 25% CAGR through an investment of NZD 15 million. The accelerated plan envisions revenue exceeding NZD 300 million by FY30, driven by geographic expansion and diversification into related markets.

Dual Growth Strategies: Internal Funding or Strategic Investment

AoFrio revealed two distinct financial pathways to grow its revenue by FY30. The self-funded approach expects revenue to increase to NZD 140 million, representing a steady 10% CAGR from FY24. The aspirational scenario would involve an infusion of NZD 15 million to accelerate growth, aiming to more than triple revenues, reaching over NZD 300 million by FY30. This strategy depends on expanding smart refrigeration offerings into fresh markets and broadening AoFrio’s business scope into adjacent sectors.

Revenue and Earnings Guidance on Track for FY25

The company reaffirmed its FY25 targets, forecasting revenue around NZD 86 million, which marks a 7.9% increase over FY24. EBITDA for FY25 is projected at approximately NZD 3.5 million, improving by NZD 1 million from the previous fiscal year. These figures will represent the company’s twelfth consecutive period of meeting its guidance targets, emphasizing operational consistency and financial discipline.

Market Leadership With Expanding Ecosystem

With over 3.5 million coolers deployed globally, the technology powers approximately 70% of connected cold drink refrigerators in its operating regions. This includes partnerships with major beverage companies such as Coca Cola, AB Inbev, PepsiCo, and Heineken. By extrapolating its current Latin American market share to other regions and factoring in organic growth, AoFrio anticipates achieving the NZD 140 million revenue target from its core motors and cold drink equipment segment, which also contributes 11% from SaaS / annual recurring revenue.

Strategic Priorities for Future Growth

  • Protect & Grow Core: Focus on expanding branded cold drink equipment into new territories and enhancing sales in existing ones. The company aims to introduce innovative cooler solutions designed to increase revenue per cooler linked to its ecosystem.
  • Diversify Segments: Plans to enter adjacent markets like food retail and branded ice cream, where market demand for integrated ecosystems similar to its cold drinks technology appears strong.
  • Transform Foundations: AoFrio continues to work on improving scalability and sustainability measures to support growth and operational efficiency.