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 1 May 2025

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).
• 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.”