Table of Contents
What changed
Revenue fell 16.9% to NZD 4,717.8m and EBITDA fell 15.3% to NZD 720.6m, so the top-line decline was essentially fully absorbed at the EBITDA line. PBT dropped a steeper 32.7% to NZD 395.4m, and reported NPAT more than halved to NZD 208.7m (-51.1%). The NPAT drop is inflated by tax: tax expense rose to NZD 186.7m despite lower PBT, lifting the effective rate to 47.2% from 27.4%, with a disclosed NZD 69.2m tax abnormal item baked into the result.
Operating cash inflow fell 33.3% to NZD 504.8m, capex eased to NZD 250.0m, and the closing cash balance dropped to NZD 213.6m from NZD 342.0m. Gross borrowings were reduced to NZD 181.9m, leaving the group in a modest net cash position (-NZD 31.6m net debt). The final dividend was held flat at NZD 0.87 per share.
What matters
- PBT is the cleaner read, and it still fell a third. Stripping the NZD 69.2m tax abnormal, PBT -32.7% on revenue -16.9% implies operating deleverage: EBITDA margin held up better (15.3% contraction on 16.9% revenue decline) but the gap between EBITDA and PBT widened as depreciation and finance costs on a larger asset base consumed more of the earnings.
- Cash conversion deteriorated materially. OCF/EBITDA fell to 70% from 89%. Trade debtors were flat in dollar terms but receivable days stretched to 47.6 from 39.8 as revenue shrank, meaning collections did not scale down with activity.
- Capital allocation pivot is visible. The flat NZD 0.87 dividend against halved NPAT lifts the payout ratio from ~20.5% to ~42%, and to ~34% of pre-lease free cash flow from ~19%. ROE compressed from 24.7% to 11.2% as the asset base grew (total assets +9.8% to NZD 3,781.2m) while earnings fell.
Expectations
No quantitative targets or forward-work disclosures were provided in the release excerpts, so this result cannot be benchmarked against management guidance. The HY24 shape is mixed: the first half delivered 49.9% of full-year revenue, 44.5% of EBITDA and 59.7% of NPAT, implying the second half was modestly stronger on EBITDA (NZD 400.3m implied vs NZD 320.3m in HY24) but weaker on NPAT (NZD 84.1m vs NZD 124.6m), consistent with the second-half tax distortion. The release supports a read that operating momentum improved into 2H on an EBITDA basis, but says nothing about FY25 trajectory.
Quality of result
The EBITDA-to-PBT bridge looks operationally driven rather than one-off: there is no disclosed discontinued operation, and the NPAT gap versus PBT is explained by the flagged NZD 69.2m tax abnormal rather than an unexplained divergence. That makes PBT (-32.7%) the more durable signal.
Against that, cash quality softened: OCF fell faster than EBITDA, pre-lease free cash flow dropped to NZD 254.8m from NZD 453.7m, and receivable days extended by ~8 days. Pre-lease FCF still covered both NPAT (122%) and the dividend, so the cash squeeze is a deterioration from an exceptional prior year rather than a coverage problem. The balance sheet is not assisting the result — gross borrowings were reduced and the group remains in net cash — so the earnings decline is not being masked by leverage.
Unresolved
- The geographic and segment composition of the revenue decline is not in the extracted material, so it is unclear how much is freight-rate normalisation versus volume.
- The nature of the NZD 69.2m tax abnormal — whether it is a one-off charge, a deferred-tax remeasurement, or something expected to recur — is not explained.
- Whether the 8-day extension in receivable days reflects customer mix, geographic mix, or genuine collection slippage is not addressed.
- With capex still running at 5.3% of revenue on a shrinking top line and total assets up 9.8%, the return profile on recent investment is an open question given ROE at 11.2%.
This briefing cannot assess FY25 trading conditions, segment-level profitability, or whether freight rates have stabilised at current levels, none of which are disclosed in the extracted release.
Key metrics
| Metric | FY24 | FY23 | Change |
|---|---|---|---|
| Revenue | $4717.8m | $5675.7m | -16.9% ↓ |
| EBITDA | $720.6m | $851.0m | -15.3% ↓ |
| Net profit after tax | $208.7m | $426.5m | -51.1% ↓ |
| Net cash inflow from operating activities | $504.8m | $757.2m | -33.3% ↓ |
| Final dividend per share | 87.0c | 87.0c | flat |
| Profit before tax | $395.4m | $587.4m | -32.7% ↓ |
| Cash and cash equivalents | $213.6m | $342.0m | -37.6% ↓ |
| Total assets | $3781.2m | $3443.0m | +9.8% ↑ |
Reference: annolyse.ai/briefings/mft-fy24
Analytical metrics
| Metric | FY24 | FY23 | Context |
|---|---|---|---|
| PBT growth | -32.7% | — | cleaner earnings measure |
| Effective tax rate | 47.2% | 27.4% | — |
| OCF / EBITDA (cash conversion) | 70.0% | 89.0% | deteriorated |
| FCF pre-lease | $254.8m | $453.7m | −$198.9m |
| FCF / NPAT | 122.1% | 106.4% | complementary conversion metric |
| Capex % revenue | -5.3% | -5.3% | — |
| Capex | −$250.0m | −$303.5m | +$53.5m |
| Debtor days | 47.6 | 39.8 | +7.8 days |
| Trade debtors | $614.9m | $619.5m | −$4.5m |
| Net debt | −$31.6m | −$122.8m | +$91.2m |
| Net debt / EBITDA | -0.04x | -0.14x | Strengthening |
| Gross borrowings | $181.9m | $219.2m | −$37.2m |
| Payout ratio vs NPAT | 42.0% | — | — |
| Payout ratio vs FCF pre-lease | 34.4% | — | covered |
| ROE (annualised) | 11.2% | 24.7% | Weakening |
| HY24 share of FY24 revenue | 49.9% | — | Other half was 50.1% |
| HY24 share of FY24 EBITDA | 44.5% | — | Other half was 55.5% |
| HY24 share of FY24 NPAT | 59.7% | — | Other half was 40.3% |
| Profit from continuing operations | $208.7m | $426.5m | −$217.8m |
Reference: annolyse.ai/briefings/mft-fy24
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.