Table of Contents
What changed
Revenue rose 13.8% to NZ$25.9m and EBITDA rose 9.5% to NZ$3.6m, but the leverage on profit was much greater: PBT jumped 49.8% to NZ$1.9m and NPAT 47.4% to NZ$1.3m, the strongest result since the 2007 NZX listing. Total system sales (unaudited, all three brands) rose 10.22% to NZ$117.1m. Operating cash flow moved the other way, falling 5.1% to NZ$2.9m. Capex more than halved to NZ$0.5m (from NZ$1.2m), lifting pre-lease free cash flow to NZ$2.4m from NZ$1.8m. The balance sheet strengthened: cash up 16.7% to NZ$9.6m, total liabilities down 5.0%, and equity up 11.2% to NZ$13.2m. Segment mix tightened further toward New Zealand (~99.9% of revenue); the International segment shrank to NZ$36k of revenue and remained loss-making, though the loss narrowed.
What matters
- Operating leverage in the P&L is genuine but EBITDA-to-PBT gearing did the heavy lifting. Revenue +13.8% drove EBITDA only +9.5%, implying EBITDA margin compression. The 49.8% PBT lift came from below-EBITDA lines (lower D&A/interest drag), so the headline NPAT growth overstates underlying operating momentum.
- Cash conversion deteriorated materially. OCF/EBITDA fell to 81.3% from 93.9%, even as EBITDA grew. Inventories rose 13.5% against revenue +13.8%, so stock-build is partly explanatory, but the gap warrants scrutiny.
- Capital allocation flexibility improved. With cash at NZ$9.6m, no disclosed debt, capex reduced by NZ$0.7m, and ROE rising to 10.1% (from 7.6%), the company has more optionality than at any point in the cycle shown.
Expectations
No quantitative guidance, forward-work backlog, or stated targets were disclosed in the supplied material. The HY24 split shows HY24 contributed 47.9% of FY24 revenue, 51.0% of EBITDA, and 43.8% of NPAT — i.e. the second half was modestly stronger on revenue and NPAT but slightly softer on EBITDA, suggesting H2 margin gave back some of the H1 gain. Management commentary references the BurgerFuel Dunedin opening (April 2023) and rollout of delivery as drivers, but does not quantify FY25 contribution.
Quality of result
Mixed. The earnings result is clean below the line — no discontinued operations, no unusual items, and an effective tax rate of 29.6% (vs 28.5%) that broadly tracks profit. ROE rising to 10.1% is supportive. Against that:
- OCF fell while EBITDA rose, so a meaningful share of the reported earnings improvement did not convert to cash this period.
- Pre-lease FCF of NZ$2.4m (FCF/NPAT 179.8%) looks healthy, but it is flattered by the NZ$0.7m step-down in capex; if capex normalises back toward FY23 levels, FCF would compress sharply.
- The result is overwhelmingly a New Zealand story; international remains immaterial and loss-making, so there is little geographic diversification supporting the earnings base.
Unresolved
- Why did OCF fall while EBITDA rose? The release excerpts do not break down working-capital movements (payables and accruals are not visible), so the cash-conversion gap is not fully explained.
- Is the FY24 capex level a sustainable run-rate or a one-year pause? Pre-lease FCF depends heavily on the answer.
- Is there a dividend declared for FY24, and what is the payout policy? No dividend, DPS, or payout ratio data was provided.
- Net debt cannot be assessed because gross borrowings are not disclosed; the "no debt" statement appears in HY24 commentary only.
- What is management's plan for the International segment given another year of losses on a vanishing revenue base?
This briefing cannot assess valuation, dividend policy, or store-level economics, as no share-price, NTA, dividend, or store-count and per-store sales data were supplied.
Key metrics
| Metric | FY24 | FY23 | Change |
|---|---|---|---|
| Revenue | $25950.0m | $22799.7m | +13.8% ↑ |
| EBITDA | $3593.6m | $3282.1m | +9.5% ↑ |
| Net profit after tax | $1327.1m | $900.4m | +47.4% ↑ |
| Net cash inflow from operating activities | $2922.5m | $3080.1m | -5.1% ↓ |
| Operating profit | $2020.4m | $1639.0m | +23.3% ↑ |
| Profit before tax | $1885.7m | $1259.0m | +49.8% ↑ |
| Cash and cash equivalents | $9571.2m | $8202.0m | +16.7% ↑ |
| Total assets | $39782.1m | $39849.5m | -0.2% ↓ |
Reference: annolyse.ai/briefings/bfg-fy24
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| New Zealand | $27242.0m | $23884.5m | $2170.6m | +0.4pp |
| International | $36.3m | $131.8m | −$284.9m | -0.4pp |
Reference: annolyse.ai/briefings/bfg-fy24
Analytical metrics
| Metric | FY24 | FY23 | Context |
|---|---|---|---|
| PBT growth | +49.8% | — | — |
| Effective tax rate | 29.6% | 28.5% | — |
| OCF / EBITDA (cash conversion) | 81.3% | 93.9% | deteriorated |
| FCF pre-lease | $2386.0m | $1837.6m | +$548.3m |
| FCF / NPAT | 179.8% | 204.0% | complementary conversion metric |
| Capex % revenue | 2.1% | 5.5% | — |
| Capex | −$536.6m | −$1242.5m | +$705.9m |
| Debtor days | 30.3 | 34.2 | -3.8 days |
| Trade debtors | $2156.7m | $2133.7m | +$23.0m |
| ROE (annualised) | 10.1% | 7.6% | Strengthening |
| HY24 share of FY24 revenue | 47.9% | — | Other half was 52.1% |
| HY24 share of FY24 EBITDA | 51.0% | — | Other half was 49.0% |
| HY24 share of FY24 NPAT | 43.8% | — | Other half was 56.2% |
Reference: annolyse.ai/briefings/bfg-fy24
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX 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.