Table of Contents
What changed
Revenue fell 8.1% to NZ$23.9m as BFG lapped its record FY24, with system sales across all three brands down 7.59% to NZ$108.2m. EBITDA eased 7.5% to NZ$3.3m, but the decline widened down the P&L: PBT fell 18.6% to NZ$1.5m and NPAT fell 22.6% to NZ$1.0m, amplified by a higher effective tax rate (33.1% vs 29.6%). Operating cash flow dropped 43.2% to NZ$1.7m, and cash on balance sheet roughly halved to NZ$4.8m from NZ$9.6m. New Zealand still accounts for 99.4% of segment revenue; the international segment remains immaterial and loss-making.
What matters
- Cash conversion deterioration. OCF/EBITDA fell from 81.3% to 50.0%. Given the operating decline was only ~8% at the top line, the halving of cash conversion is the most important read on earnings quality this period.
- Cash balance halved. Cash fell NZ$4.7m to NZ$4.8m while pre-lease FCF was only NZ$1.4m and capex was cut to NZ$0.3m from NZ$0.5m. That means cash outflows well beyond capex and working capital – likely financing, lease repayments or distributions – consumed most of the opening buffer, and the extracted release does not reconcile this.
- Operating leverage is negative. EBITDA margin held up relatively well, but PBT and NPAT declined at roughly 2–3x the revenue drop, consistent with a fixed-cost base and the flagged legal costs associated with defending a shareholder opposition.
Expectations
No forward guidance, forward-work book or quantified target was disclosed in the extracted release. Against the only shape context available, HY25 accounted for 51.5% of FY25 revenue but only 46.5% of EBITDA and 42.7% of NPAT, implying a stronger H2 for profitability (implied H2 NPAT ~NZ$588k vs H1 NZ$439k). The release frames the decline against a record FY24 comparator and a weaker consumer backdrop, but does not quantify how much of the gap is cyclical versus structural.
Quality of result
Quality is mixed and skewed to the downside. PBT is the cleaner operating read given the tax-rate step-up, and at -18.6% it is a materially weaker print than the -8.1% revenue line suggests. The cash result is weaker still: pre-lease FCF of NZ$1.4m is well below NPAT of NZ$1.0m only because of reduced capex (NZ$0.3m vs NZ$0.5m, or 1.2% of revenue vs 2.1%). Working capital is not a meaningful swing factor – receivable days rose modestly to 31.2 from 30.3 and inventory days to 9.5 from 9.2 – so the OCF drop is driven by earnings and other operating items rather than a clean working-capital build. Non-GAAP EBITDA is reported without a detailed reconciliation, and legal costs are cited as a drag without a disclosed quantum in the extract.
Unresolved
- What drove the NZ$4.7m cash decline beyond the NZ$1.4m pre-lease FCF – distributions, lease principal, or another item?
- How large were the legal costs that the release says eroded profit, and do they recur in FY26?
- Using disclosed lease liabilities as gross borrowings gives net debt of roughly NZ$14.6m and ~4.4x FY25 EBITDA; how much of this is occupied versus non-occupied store leases (non-occupied lease liability of NZ$12.7m suggests sublet exposure)?
- Is the international segment's widening revenue base a strategic investment or residual, given it remains loss-making on NZ$0.2m of revenue?
- What is the dividend policy given no payout figures were in the extracted data?
This briefing cannot assess underlying unit economics, same-store sales trends, or the quantum of non-recurring legal costs, because those disclosures were not present in the extracted data.
Key metrics
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | $23860.8m | $25950.0m | -8.1% ↓ |
| EBITDA | $3322.7m | $3593.6m | -7.5% ↓ |
| Net profit after tax | $1026.8m | $1327.1m | -22.6% ↓ |
| Net cash inflow from operating activities | $1660.0m | $2922.5m | -43.2% ↓ |
| Operating profit | $1736.1m | $2020.4m | -14.1% ↓ |
| Profit before tax | $1535.5m | $1885.7m | -18.6% ↓ |
| Cash and cash equivalents | $4826.1m | $9571.2m | -49.6% ↓ |
| Total assets | $32270.5m | $39782.1m | -18.9% ↓ |
Reference: annolyse.ai/briefings/bfg-fy25
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| New Zealand | $24820.4m | $27242.0m | $1590.8m | -0.5pp |
| International | $153.9m | $36.3m | −$55.3m | +0.5pp |
Reference: annolyse.ai/briefings/bfg-fy25
Analytical metrics
| Metric | FY25 | FY24 | Context |
|---|---|---|---|
| PBT growth | -18.6% | — | cleaner earnings measure |
| Effective tax rate | 33.1% | 29.6% | — |
| OCF / EBITDA (cash conversion) | 50.0% | 81.3% | deteriorated |
| FCF pre-lease | $1373.8m | $2386.0m | −$1012.2m |
| FCF / NPAT | 133.8% | 179.8% | complementary conversion metric |
| Capex % revenue | 1.2% | 2.1% | — |
| Capex | −$286.2m | −$536.6m | +$250.4m |
| Debtor days | 31.2 | 30.3 | +0.8 days |
| Inventory days | 9.5 | 9.2 | +0.3 days |
| Trade debtors | $2036.5m | $2156.7m | −$120.2m |
| Net debt | $14588.9m | — | — |
| Net debt / EBITDA | 4.39x | — | — |
| Gross borrowings | $19414.9m | — | — |
| ROE (annualised) | 10.4% | 10.1% | Strengthening |
| HY25 share of FY25 revenue | 51.5% | — | Other half was 48.5% |
| HY25 share of FY25 EBITDA | 46.5% | — | Other half was 53.5% |
| HY25 share of FY25 NPAT | 42.7% | — | Other half was 57.3% |
Reference: annolyse.ai/briefings/bfg-fy25
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.