Table of Contents
What changed
Revenue more than doubled to $1,286.6m (+112.9%), driven largely by the consolidation of One NZ, which alone contributed $650.9m (44.6% of group revenue) and had no comparable in HY23. Proportionate EBITDAF – the company's preferred measure – was $400.0m, up 45% on the disclosed prior-period figure of $275.6m. Statutory operating profit actually fell 7.3% to $301.7m, so the EBITDAF growth depends on the non-GAAP perimeter.
Below the line, PBT rose 327.9% to $1,274.7m and NPAT rose 235.2% to $1,174.9m. Operating cash flow swung from –$234.6m to +$166.4m, but cash on hand fell to $146.5m (from $522.5m) as gross borrowings rose to $5,369.2m (+64.7%). Total assets grew to $16.0bn and equity to $8.0bn. The declared interim dividend rose to 7.0 cps from 6.75 cps.
What matters
- Guidance upgrade vs current run-rate. FY24 proportionate EBITDAF guidance was lifted to $820–850m (from $800–840m), but HY24's $400.0m annualises to only ~$800m – below the midpoint of $835m. Management is therefore signalling a second-half acceleration rather than linear delivery, with CDC cited as the key lever.
- Leverage direction. Estimated net debt has stepped up to ~$5.2bn from ~$2.7bn, with gross borrowings up $2.1bn and cash down $376.0m. Against proportionate EBITDAF this implies a materially higher leverage profile, and capex more than tripled to $165.1m (12.8% of revenue vs 8.6%), so the funding intensity is set to continue.
- Earnings-quality gap between PBT and NPAT. PBT grew 327.9% but the headline NPAT jump is amplified by an effective tax rate of just 4.7% (vs 25.9% in HY23). PBT is the cleaner operating read; on that basis the uplift is real but smaller than the reported attributable surplus implies.
Expectations
No stated revenue or NPAT target is disclosed, and HY23 split 50.7% of FY23 revenue and 39.3% of FY23 NPAT into the first half – so there is no strong seasonal lean to anchor against. The only quantitative forward anchor is the upgraded FY24 proportionate EBITDAF range of $820–850m. HY24's $400.0m sits below that midpoint on a simple doubling, so delivery implies second-half EBITDAF of $420–450m, i.e. a step-up of 5–13% H2-over-H1. The release flags CDC demand as the driver, but the excerpt does not quantify the CDC contribution inside the $400.0m.
Quality of result
The underlying trading uplift looks genuine but less dramatic than the headline figures. Points to weigh:
- Statutory operating profit fell 7.3% despite revenue more than doubling, so reported margin has compressed sharply at the group level even before non-GAAP adjustments.
- HY23's NPAT included a $336.5m after-tax gain from discontinued operations; HY24's discontinued contribution was a trivial –$0.6m. The continuing-operations comparison (+450% on the appendix) is the like-for-like read, not the total NPAT line.
- The 4.7% effective tax rate is a major contributor to reported NPAT growth and is unlikely to persist.
- Operating cash flow of $166.4m converts to roughly 41.6% of proportionate EBITDAF, and capex of $165.1m consumed essentially all of it: pre-lease free cash flow was just $1.3m. The interim dividend is therefore not covered by pre-lease FCF in the half and is being funded from the balance sheet.
- Segment detail shows Manawa's result collapsed to $55.9m from $390.8m, and Wellington Airport swung to a –$2.2m result from $11.1m; the group lean on One NZ and CDC has increased.
Unresolved
- What is the CDC-specific contribution inside the $400.0m, and what H2 step-up does the new $820–850m range assume?
- What is management's own net debt figure and leverage ratio against proportionate EBITDAF, given the $2.1bn borrowings increase?
- What drove the 4.7% effective tax rate, and is it a one-off?
- Why did statutory operating profit decline 7.3% while proportionate EBITDAF rose 45% – i.e. what sits between the two measures this period?
- What is the post-lease free cash flow picture, and how is the increased capex programme being funded beyond current facilities?
This briefing cannot assess the durability of CDC's demand surge, the valuation implied by the upgraded guidance, or the sustainability of segment-level margins without more granular operating disclosure.
Key metrics
| Metric | HY24 | HY23 | Change |
|---|---|---|---|
| Revenue | $1286.6m | $604.4m | +112.9% ↑ |
| Net profit after tax | $1174.9m | $350.5m | +235.2% ↑ |
| Net cash inflow from operating activities | $166.4m | −$234.6m | +170.9% ↑ |
| Interim dividend per share | 7.0c | 6.8c | +3.7% ↑ |
| Profit before tax | $1274.7m | $297.9m | +327.9% ↑ |
| Cash and cash equivalents | $146.5m | $522.5m | -72.0% ↓ |
| Total assets | $15979.3m | $10166m | +57.2% ↑ |
Reference: annolyse.ai/briefings/ift-hy24
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Gurīn Energy Asia | $0.3m | — | −$11.2m | n/a |
| Manawa Energy New Zealand | $217.8m | $287m | $55.9m | -13.6pp |
| Renewables Australasia | $0m | — | −$3.9m | n/a |
| Wellington Airport New Zealand | $76.7m | $63.8m | −$2.2m | -1.1pp |
| Diagnostic Imaging Australasia | $329.9m | $298.5m | $27.8m | -7.1pp |
| One NZ New Zealand | $650.9m | — | −$0.5m | n/a |
| All other segments and corporate | $92.8m | $108.1m | −$44.5m | -4.4pp |
Reference: annolyse.ai/briefings/ift-hy24
Analytical metrics
| Metric | HY24 | HY23 | Context |
|---|---|---|---|
| PBT growth | +327.9% | — | cleaner earnings measure |
| Effective tax rate | 4.7% | 25.9% | — |
| OCF / EBITDAF (cash conversion) | 41.6% | — | stable |
| FCF pre-lease | $1.3m | −$286.5m | +$287.8m |
| FCF / NPAT | 0.1% | -81.7% | complementary conversion metric |
| Capex % revenue | 12.8% | 8.6% | — |
| Capex | $165.1m | −$51.9m | +$217.0m |
| Net debt | $5222.7m | $2738.1m | +$2484.6m |
| Net debt / EBITDAF | 13.10x | — | Weakening |
| Gross borrowings | $5369.2m | $3260.6m | +$2108.6m |
| Payout ratio vs NPAT | 5.0% | — | — |
| ROE (annualised) | 14.7% | 6.1% | Strengthening |
| HY23 share of FY23 revenue | 50.7% | — | Other half was 49.3% |
| HY23 share of FY23 NPAT | 39.3% | — | Other half was 60.7% |
| Profit from continuing operations | $1215.1m | $220.8m | +$994.3m |
| Discontinued operation after tax | −$0.6m | $336.5m | −$337.1m |
Reference: annolyse.ai/briefings/ift-hy24
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX/ASX 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.