Table of Contents
What changed
Revenue rose 15.9% to $12.4m, lifting EBITDA 11.8% to $1.8m. Below EBITDA the picture fractures: operating profit fell 1.4% to $0.9m as depreciation and amortisation absorbed the full revenue uplift, while profit before tax still grew 12.8% to $0.8m — implying non-operating income (most likely interest on the cash pile) did the heavy lifting. NPAT grew just 5.2% to $581k because the effective tax rate stepped up from roughly 26.0% to 31.0%. Operating cash flow rose 27.2% to $1.6m, cash reserves grew to $8.9m from $7.4m, and management reiterates the group carries no debt. Geographic mix is unchanged in substance: New Zealand contributed 99.9% of segment revenue, and the international segment remained loss-making at –$217k on $14k of revenue.
What matters
- Operating profit decoupled from revenue. A 15.9% revenue lift translated into a 1.4% decline in operating profit. EBITDA grew only 11.8% (margin compressed from roughly 15.3% to 14.7%), and the D&A charge widened enough to erase the operating leverage investors would normally expect from franchise royalty growth.
- PBT growth is flattered by non-operating income. PBT +12.8% versus operating profit –1.4% points to meaningful interest income on the expanded $8.9m cash balance. That is real cash earnings, but it is not the same quality as franchised-system operating leverage, and it is sensitive to rate direction.
- Tax distortion. The 5pp rise in the effective tax rate, not any one-off item, is what compressed NPAT growth to 5.2%. There is no disclosed discontinued operation; PBT is the cleaner operating read.
Expectations
No quantified FY24 guidance, forward work, or stated target is disclosed. Prior shape (HY23) represented 47.1% of FY23 revenue, 49.9% of EBITDA and 61.3% of NPAT — i.e., FY23 was second-half weighted on revenue and EBITDA but first-half weighted on NPAT. HY24 revenue annualises to roughly $24.9m, about 9.1% above FY23's $22.8m, so the run-rate supports low-double-digit top-line growth into FY24 if the second-half seasonal tilt repeats. The release does not support any sharper inference on FY24 earnings given the visible D&A step-up and the higher tax rate.
Quality of result
The cash result looks genuinely durable: OCF/EBITDA improved to 86.9% from 76.5%, pre-lease free cash flow rose to $995k from $769k, and FCF covered NPAT 1.7x. Inventory days dropped sharply (12.1 to 7.7), which helped working capital, but receivable days were essentially stable at 29.9 versus 30.8, so the cash uplift is not primarily a working-capital release. Against that, the reported earnings quality is softer than it first appears: EBITDA growth trailed revenue growth, operating profit actually fell, and an outsized share of the PBT gain came from non-operating income rather than franchise economics. ROE edged down to 4.7% from 4.8% despite rising equity, consistent with balance-sheet-assisted earnings.
Unresolved
- What specifically drove the D&A step-up that pushed operating profit negative despite 15.9% revenue growth — new store rollouts, intangible amortisation, or IFRS 16 lease additions?
- How much of the PBT gain is interest income on the cash pile, and how sensitive is FY24 to rate movement?
- Why did the effective tax rate jump ~5pp, and is 31% now the structural rate?
- No dividend announcement, net debt detail, NTA, or forward work is disclosed in the supplied excerpts, and the adjusted operating revenue figure (ex-IFRS 16 and government support) is not fully reconciled to statutory revenue.
This briefing cannot assess same-store sales, store-count changes, franchisee health, or any FY24 trading update beyond the two-sentence qualitative commentary carried over from the FY23 anchor.
Key metrics
| Metric | HY24 | HY23 | Change |
|---|---|---|---|
| Revenue | $12437.2m | $10727.5m | +15.9% ↑ |
| EBITDA | $1832.0m | $1638.6m | +11.8% ↑ |
| Net profit after tax | $581.1m | $552.3m | +5.2% ↑ |
| Net cash inflow from operating activities | $1593.6m | $1253.2m | +27.2% ↑ |
| Profit before tax | $842.2m | $746.6m | +12.8% ↑ |
| Cash and cash equivalents | $8918.2m | $7360.9m | +21.2% ↑ |
| Total assets | $39425.1m | $40139.2m | -1.8% ↓ |
Reference: annolyse.ai/briefings/bfg-hy24
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| New Zealand | $13062.4m | $11296.2m | $1058.9m | +0.2pp |
| International | $14.1m | $39.6m | −$216.6m | -0.2pp |
Reference: annolyse.ai/briefings/bfg-hy24
Analytical metrics
| Metric | HY24 | HY23 | Context |
|---|---|---|---|
| PBT growth | +12.8% | — | cleaner earnings measure |
| Effective tax rate | 31.0% | 26.0% | — |
| OCF / EBITDA (cash conversion) | 86.9% | 76.5% | stable |
| FCF pre-lease | $995.0m | $768.8m | +$226.2m |
| FCF / NPAT | 171.2% | 139.2% | complementary conversion metric |
| Capex % revenue | 4.8% | 4.5% | — |
| Capex | $598.5m | −$484.4m | +$1083.0m |
| Debtor days | 29.9 | 30.8 | -0.9 days |
| Inventory days | 7.7 | 12.1 | -4.4 days |
| Operating working capital | $2562.5m | $2526.3m | +$36.2m absorbed |
| Trade debtors | $2036.1m | $1815.6m | +$220.5m |
| ROE (annualised) | 4.7% | 4.8% | Weakening |
| 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% |
| Profit from continuing operations | — | $552.3m | — |
Reference: annolyse.ai/briefings/bfg-hy24
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.