Table of Contents
What changed
Revenue rose 31.4% to $1,306.0m and EBITDAF increased 181% to $354.0m off a very weak HY23 base of $126.0m. PBT swung from a $9.0m loss to a $213.0m profit, and NPAT moved from a $7.0m loss to $153.0m. Operating cash flow more than doubled to $251.0m, and company-defined operating free cash flow rose to $187.0m from $63.0m. Gross borrowings expanded by $495.0m to $1,895.0m, but cash also built to $274.0m, leaving net debt at roughly $1,621.0m. Net debt / EBITDAF improved to 4.6x from 9.8x as earnings outpaced debt growth. The interim dividend was held flat at 14.0 cps.
What matters
- The comparable base is soft, not the run-rate. HY23 carried the weight of the onerous contract provision flagged in the FY23 release ($84m P&L / $113m EBITDAF impact). The PBT swing from -$9.0m to $213.0m is a cleaner read than NPAT given the prior period's negative effective tax rate; current ETR normalised to 28.2%.
- Leverage direction is genuinely better despite more debt. Gross borrowings rose 35.4% but EBITDAF rose 181%, cutting net debt / EBITDAF roughly in half. That reconciles with continued high capex ($262.0m in the half, ~20.1% of revenue) funded partly by drawdowns.
- Wholesale is doing the heavy lifting. Segment disclosure shows Wholesale EBITDAF of $383.0m on $969.0m of revenue (~39.5% margin), while Retail was effectively breakeven at -$1.0m. Earnings quality is concentrated in the generation/wholesale book, not the consumer franchise.
Expectations
No quantitative guidance or forward-work metric was supplied. Shape context from FY23 shows HY23 contributed only 27.4% of full-year EBITDAF and -5.5% of NPAT, i.e. the prior period was unusually H2-weighted because of the onerous contract charge. Annualising HY24 revenue gives ~$2,612.0m, ~23.3% above FY23's $2,118.0m, but annualising off a half that benefitted from a reset comparable is unreliable. The release does not support a specific FY24 number; it supports the direction that FY24 EBITDAF should comfortably exceed FY23's $460.0m absent a similar one-off.
Quality of result
Mixed. The EBITDAF jump is real at the reported level but is flattered by the $113.0m EBITDAF drag disclosed in the FY23 base. Cash conversion deteriorated: OCF/EBITDAF fell to 70.9% from 91.3%, with inventories more than doubling to $81.0m from $39.0m (other working-capital lines were not disclosed at the half). FCF-pre-lease of $187.0m covers the $14.0 cps dividend (payout ~58.7% of pre-lease FCF, 71.8% of NPAT), so the headline dividend is funded from operations, not balance sheet. However, the company-defined operating free cash flow is a non-GAAP measure and a full bridge from statutory OCF to FCF was not provided.
Unresolved
- The extracted release text for the HY24 key-metrics table shows inconsistent EBITDAF figures (references to $325m, $354m and $257m in adjacent cells); the $354.0m figure used here matches Note A2 and the statement of comprehensive income but the precise reconciliation to the headline summary is not clear from the supplied excerpts.
- Trade receivables at period-end were not disclosed, so the sustainability of the OCF uplift versus wholesale price-driven billing timing cannot be verified.
- Retail's breakeven result is not decomposed (volume, acquisition cost, or hedge-book impact), and no commentary on customer churn or ARPU was supplied.
- The mix of debt drawn to fund capex versus working capital is not broken out, and no net-debt figure was disclosed directly.
This briefing cannot assess management's forward capex schedule, hedge-book positioning, or wholesale price outlook because no guidance, forward-work metric, or hedge disclosure was provided in the supplied materials.
Key metrics
| Metric | HY24 | HY23 | Change |
|---|---|---|---|
| Revenue | $1306m | $994m | +31.4% ↑ |
| Net profit after tax | $153m | −$7m | +2285.7% ↑ |
| Net cash inflow from operating activities | $251m | $115m | +118.3% ↑ |
| Interim dividend per share | 14.0c | 14.0c | flat |
| EBITDAF | $354m | $126m | +181.0% ↑ |
| Profit before tax | $213m | −$9m | +2466.7% ↑ |
| Cash and cash equivalents | $274m | $163m | +68.1% ↑ |
| Total assets | $6059m | $5408m | +12.0% ↑ |
Reference: annolyse.ai/briefings/cen-hy24
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Wholesale | $969m | — | $383m | n/a |
| Retail | $618m | — | −$1m | n/a |
Reference: annolyse.ai/briefings/cen-hy24
Analytical metrics
| Metric | HY24 | HY23 | Context |
|---|---|---|---|
| Effective tax rate | 28.2% | n/m (loss period) | prior loss period |
| OCF / EBITDAF (cash conversion) | 70.9% | 91.3% | deteriorated |
| FCF pre-lease | $187.0m | $63.0m | +$124.0m |
| FCF / NPAT | 122.2% | -900.0% | complementary conversion metric |
| Capex % revenue | -20.1% | -27.4% | — |
| Capex | −$262.0m | $272.0m | −$534.0m |
| Free cash flow | $187.0m | $63.0m | +$124.0m |
| Net debt | $1621.0m | $1237.0m | +$384.0m |
| Net debt / EBITDAF | 4.60x | 9.80x | Strengthening |
| Gross borrowings | $1895.0m | $1400.0m | +$495.0m |
| Payout ratio vs NPAT | 71.8% | — | — |
| Payout ratio vs FCF pre-lease | 58.7% | — | covered |
| ROE (annualised) | 5.7% | -0.3% | Strengthening |
| HY23 share of FY23 revenue | 46.9% | — | Other half was 53.1% |
| HY23 share of FY23 EBITDAF | 27.4% | — | Other half was 72.6% |
| HY23 share of FY23 NPAT | -5.5% | — | Other half was 105.5% |
| Profit from continuing operations | $153.5m | −$7.0m | +$160.5m |
Reference: annolyse.ai/briefings/cen-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.