Table of Contents
What changed
Group revenue rose 18.4% to $22.8M as total system sales returned to pre-COVID levels, helped by new BurgerFuel stores at Cambridge and Rolleston, recovering CBD trade, and delivery income. EBITDA lifted 26.1% to $3.3M, PBT rose 68.3% to $1.3M and NPAT rose 56.4% to $0.9M. Operating cash flow surged from $0.3M to $3.1M (+820%), taking year-end cash to $8.2M from $6.8M. Total liabilities fell 9.7% and equity rose 8.2% to $11.8M. Segment disclosure shows New Zealand generated essentially all of segment revenue and a $1.6M segment result, while the International segment remained immaterial on revenue ($0.1M) and loss-making (–$0.4M).
What matters
- Operating leverage is real, but tax clouded the bottom line. PBT growth of 68.3% is the cleaner operating read; NPAT grew only 56.4% because the effective tax rate stepped up from 23.0% to 28.5%. The 11.9pp gap between PBT and NPAT growth is tax-driven, not operational.
- Cash conversion swung decisively positive. OCF/EBITDA moved from 12.9% in FY22 to 93.9% in FY23. Even after capex rising to $1.2M (5.5% of revenue vs 2.0%) as new stores were built out, pre-lease free cash flow was about $1.8M — a clean reversal from roughly breakeven in FY22.
- International remains a drag. A –$0.4M segment result on just $0.1M of International revenue is a meaningful offset to NZ profitability and is the first question for anyone modelling forward margins.
Expectations
No quantitative targets were disclosed. Management expects sales growth to continue into FY24 with new online delivery options, while noting the trading environment remains challenging. The HY23 shape is the most useful forward-read: H1 contributed 47.1% of FY23 revenue but 61.3% of FY23 NPAT, so H2 NPAT implied around $0.35M against an H1 print of $0.55M. That is a softer second-half profit despite slightly stronger H2 revenue, and it argues against straight-line extrapolation of the H1 run-rate into FY24.
Quality of result
The result looks largely durable rather than timing- or balance-sheet-assisted. The revenue uplift is attributed to restored volumes and additional store capacity, not one-off items, and no specific non-recurring adjustments were identified. The OCF swing is flattered by the very low FY22 base (COVID-disrupted), but the FY23 absolute level of $3.1M is supported by the underlying earnings expansion rather than by working-capital release — receivable days edged up to 34.2, and inventory days fell to 9.3, leaving simplified operating working capital slightly higher. ROE improved to 7.6% from 5.3%. The main quality caveat is the tax-rate step-up, which is a real cost rather than an accounting artefact but limits how much of the PBT growth flows through.
Unresolved
- Is the H2 profit softening a margin, cost-inflation, or mix issue, and does it carry into FY24?
- What is the pathway for the International segment, and is continued investment into a loss-making footprint the stated plan?
- With capex up 3x to $1.2M on new-store rollouts, what is the expected cadence and payback of further openings?
- No gross borrowings, net debt, dividend, or share-count figures were supplied, so leverage ratios, payout, and per-share valuation metrics cannot be assessed here.
- Customer/supplier concentration and FX sensitivity for the International business were not quantified.
This briefing cannot assess per-share economics, dividend policy, or any valuation ratios because share-count, dividend, and NTA data were not provided.
Key metrics
| Metric | FY23 | FY22 | Change |
|---|---|---|---|
| Revenue | $22799.7m | $19251.1m | +18.4% ↑ |
| EBITDA | $3282.1m | $2602.0m | +26.1% ↑ |
| Net profit after tax | $900.4m | $575.9m | +56.4% ↑ |
| Net cash inflow from operating activities | $3080.1m | $334.8m | +820.1% ↑ |
| Operating profit | $1639.0m | $1212.4m | +35.2% ↑ |
| Profit before tax | $1259.0m | $748.1m | +68.3% ↑ |
| Cash and cash equivalents | $8202.0m | $6798.4m | +20.6% ↑ |
| Total assets | $39849.5m | $41952.8m | -5.0% ↓ |
Reference: annolyse.ai/briefings/bfg-fy23
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| New Zealand | $23884.5m | — | $1637.1m | n/a |
| International | $131.8m | — | −$378.1m | n/a |
Reference: annolyse.ai/briefings/bfg-fy23
Analytical metrics
| Metric | FY23 | FY22 | Context |
|---|---|---|---|
| PBT growth | +68.3% | — | cleaner earnings measure |
| Effective tax rate | 28.5% | 23.0% | — |
| OCF / EBITDA (cash conversion) | 93.9% | 12.9% | stable |
| FCF pre-lease | $1837.6m | −$48.8m | +$1886.4m |
| FCF / NPAT | 204.1% | -8.5% | complementary conversion metric |
| Capex % revenue | 5.5% | 2.0% | — |
| Capex | −$1242.5m | $383.6m | −$1626.1m |
| Debtor days | 34.2 | 33.4 | +0.8 days |
| Inventory days | 9.3 | 14.5 | -5.2 days |
| Operating working capital | $2712.7m | $2523.6m | +$189.1m absorbed |
| Trade debtors | $2133.7m | $1761.2m | +$372.5m |
| ROE (annualised) | 7.6% | 5.3% | Strengthening |
| HY23 share of FY23 revenue | 47.1% | — | Other half was 52.9% |
| HY23 share of FY23 EBITDA | 49.9% | — | Other half was 50.1% |
| HY23 share of FY23 NPAT | 61.3% | — | Other half was 38.7% |
Reference: annolyse.ai/briefings/bfg-fy23
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX/ASX company announcements. The analysis is based on available company filings and standard Annolyse calculations. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.