Table of Contents
What changed
Revenue rose 6.6% to $1.3b and profit before tax rose 10.6% to $112.0m, with NPAT up 12.9% to $80.1m. Operating profit grew 7.1% to $146.1m, so modest operating leverage is visible at the EBIT line on top of the revenue uplift. Operating cash flow increased 10.8% to $173.6m while capex fell to $25.9m (2.0% of revenue from 2.4%), lifting pre-lease free cash flow to $147.7m from $127.7m. Gross borrowings eased to $258.5m and cash rose to $43.3m, taking net debt to about $215.2m from $230.0m. The declared final dividend is 29.2cps, up 10.5% on the prior-year final. Group EBITDA was not disclosed in the FY25 extraction, so the FY24 comparative of $229.1m is not a like-for-like reference point.
What matters
- PBT is the cleaner operating read. NPAT grew 12.9% but PBT grew 10.6%; the 2.3pp gap reflects the effective tax rate easing to about 28.5% from 30.0%. No discontinued operations were disclosed. The underlying operational improvement is closer to the PBT number.
- Cash generation outran earnings. Pre-lease FCF rose about 16% to $147.7m, covering the dividend comfortably (pre-lease payout ratio about 35.4%) and funding further deleveraging. FCF/NPAT held at about 184%.
- Balance sheet direction is clearly strengthening. Net debt fell about $14.8m and equity rose to $500.0m. ROE lifted to 16.1% from 14.6%. With EBITDA not re-disclosed for FY25, a clean net-debt-to-EBITDA update is not available, but the prior-year level near 1.0x and the direction of travel both suggest reduced gearing pressure.
Expectations
No quantified FY26 guidance or forward-work disclosure was provided in the supplied excerpts, and no stated target exists in the extraction. On seasonality, HY25 carried 51.3% of FY25 revenue and 55.7% of FY25 NPAT, indicating a modest first-half skew rather than a second-half weighting — so the H2 run rate is a little softer than the H1 run rate rather than stronger. The result therefore supports a read that growth was front-loaded within FY25; it does not, on its own, support any specific FY26 trajectory claim.
Quality of result
The operating half of the result looks durable. Revenue growth of 6.6% converted into higher operating profit, cash flow expanded faster than earnings, and working capital moved the right way (receivable days down to 39.7 from 43.7; inventory days up modestly to 3.5). There is no evidence of a working-capital release doing the heavy lifting — partial operating working capital was essentially flat at $152.6m. The caveats are above the operating line: part of the NPAT headline was a tax rate reduction rather than trading improvement, capex dropped roughly $3.0m year on year (which helps FCF but is not an earnings tailwind), and the absence of a current-period EBITDA disclosure prevents a direct cash-conversion ratio against earnings. No non-recurring items were identified in the extraction.
Unresolved
- Current-period EBITDA and the FY25 segment split between Express package and business mail and Information management were not in the extraction, so the mix drivers behind operating leverage cannot be attributed.
- Same-customer volume trends flagged at the HY25 stage (depressed NZ activity, offset by pricing and share gains) are not re-quantified for the full year.
- No FY26 guidance, forward-work book, or medium-term target is disclosed, so the durability of the margin and FCF uplift into next period is not supported or refuted by this release.
- The full-period dividend total versus the 29.2cps final component is not reconciled in the supplied excerpts.
This briefing cannot assess segment-level margin trends in FY25 or management's forward view, because neither a FY25 segment result breakdown nor quantified guidance was included in the extraction.
Key metrics
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | $1.3b | $1.2b | +6.6% ↑ |
| EBITDA | — | $229.1m | — |
| Net profit after tax | $80.1m | $70.9m | +12.9% ↑ |
| Net cash inflow from operating activities | $173.6m | $156.7m | +10.8% ↑ |
| Final dividend per share | 29.2c | 26.4c | +10.5% ↑ |
| Profit before tax | $112m | $101.3m | +10.6% ↑ |
| Cash and cash equivalents | $43.3m | $35.7m | +21.3% ↑ |
| Total assets | $1.4b | $1.4b | -0.9% ↓ |
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Express package and business mail | — | $999.1m | — | n/a |
| Information management | — | $214.4m | — | n/a |
Analytical metrics
| Metric | FY25 | FY24 | Context |
|---|---|---|---|
| PBT growth | +10.6% | — | cleaner earnings measure |
| Effective tax rate | 28.5% | 30.0% | — |
| FCF pre-lease | $147.7m | $127.7m | +$20m |
| FCF / NPAT | 184.4% | 180.2% | complementary conversion metric |
| Capex % revenue | 2.0% | 2.4% | — |
| Capex | −$25.9m | $28.9m | −$54.8m |
| Debtor days | 39.7 | 43.7 | -3.9 days |
| Inventory days | 3.5 | 2.9 | +0.7 days |
| Operating working capital | $152.6m | $154.1m | −$1.5m absorbed |
| Trade debtors | $140.2m | $144.6m | −$4.4m |
| Net debt | $215.2m | $230m | −$14.8m |
| Gross borrowings | $258.5m | $265.7m | −$7.2m |
| Payout ratio vs NPAT | 65.2% | — | — |
| Payout ratio vs FCF pre-lease | 35.4% | — | covered |
| ROE (annualised) | 16.1% | 14.6% | Strengthening |
| HY25 share of FY25 revenue | 51.3% | — | Other half was 48.7% |
| HY25 share of FY25 NPAT | 55.7% | — | Other half was 44.3% |
| Profit from continuing operations | $80.1m | $70.9m | +$9.2m |
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.