IVE shifts towards higher-value packaging

Australian print and communications company IVE Group is increasing its focus on packaging and other higher-value applications as traditional print markets continue to face structural decline. The company's latest financial results highlight a strategy centred on diversification, operational efficiency and services that can generate greater value from its production infrastructure.

IVE reported revenue of A$937.4 million for the 2026 financial year, down 1.8% compared with the previous year. Despite weaker demand in areas such as catalogues and publishing, profitability improved, with the company's material gross profit margin increasing from 49.3% to 51.4% and EBITDA before AASB 16 rising 2.8% to A$112.6 million.

Packaging offers a new growth opportunity

As conventional commercial print volumes decline, IVE is building a broader portfolio of services and applications where customers require greater production capability, integration and technical expertise. Packaging is one of the areas identified as offering opportunities for future growth.

The strategy moves the company away from relying primarily on high-volume traditional print work and towards applications where specialised production capabilities can generate higher margins. Packaging provides an opportunity to apply existing printing expertise while accessing a market with different customer requirements and growth potential.

Acquisitions broaden the service portfolio

IVE's expansion is also being supported through acquisitions. The integration of Impressu and Daily Press contributed A$32.3 million in revenue during the financial year while expanding the group's range of services.

These investments form part of a broader strategy to build a more diversified business capable of serving customers across multiple applications. Rather than depending on a single segment, IVE is combining print, data, creative services, logistics and packaging capabilities to create a wider production platform.

Operational investment supports expansion

IVE is also investing in manufacturing infrastructure to improve efficiency and create additional capacity. Its Dandenong South facility became operational ahead of schedule and was already operating at 85% capacity, while the company's Kemps Creek site in Sydney is providing additional room for growth following consolidation.

The Sydney consolidation is expected to generate further operational savings, including an estimated A$3.1 million reduction in annual rent increases. These improvements are intended to strengthen margins while providing the infrastructure required to support future growth in higher-value applications.

AI becomes part of the production strategy

Technology is another element of IVE's transformation. The company is already using artificial intelligence across areas including lead generation, research, proposal automation and cybersecurity.

IVE sees the combination of AI with creative expertise, customer knowledge, data and large-scale production as a potential competitive advantage. Integrating digital technologies into commercial operations could allow the company to improve efficiency while supporting more complex and customised customer requirements.

Packaging connects print and manufacturing

The move into packaging illustrates how traditional printing companies are adapting as demand for conventional print products changes. Packaging still requires expertise in printing, colour management, finishing and production, but it also involves additional requirements around materials, converting, formats and supply-chain performance.

For IVE, expanding into packaging therefore represents an opportunity to use existing capabilities while developing expertise in applications with greater value-added potential. The approach also reflects a wider transformation within the printing industry as companies search for new markets beyond declining catalogue and publishing volumes.

Growth expected despite economic pressure

IVE expects revenue to increase during FY2027, supported partly by a full-year contribution from its recent acquisitions. However, underlying net profit after tax is expected to remain broadly stable as the company continues to face economic pressure, higher interest and rental costs and declining traditional print volumes.

These conditions make diversification particularly important. By expanding into packaging and other higher-margin services while investing in automation, infrastructure and digital technologies, IVE is positioning itself for a business environment in which production flexibility and value-added capabilities are becoming increasingly important.

Packaging becomes part of the next growth phase

IVE's strategy demonstrates how the boundaries between printing, packaging and broader manufacturing services are becoming increasingly interconnected. As traditional print demand continues to decline, companies with established production infrastructure are looking towards packaging and other specialised applications to maintain growth.

For IVE, packaging is expected to play an increasingly important role in this transition. Combining production scale, technology, creative expertise and operational efficiency could allow the company to capture new opportunities while reducing its dependence on mature print markets.