Capex doubled to 16.1% of revenue, lifting FCF payout to 78%

Pre-lease free cash flow therefore slipped to NZ$38.3m from NZ$40.8m despite the stronger operating result.

Reported NPAT rose 24.6% to NZ$30.9m, materially ahead of PBT growth of 15.5% (NZ$43.1m). The 9.1 percentage-point gap is driven by the effective tax rate falling to 28.3% from 33.5%. Management's underlying NPAT of NZ$28.3m is up 36.5%, sitting below reported NPAT of NZ$30.9m.

The full-year dividend rose to 14.5c per share from 9.0c, which pushes payout versus pre-lease FCF to 78.0% — well outside Annolyse's three-period historical baseline of 12.4% (range −24.6% to 31.4%).

Payout ratio versus pre-lease FCF is 65.2% based on the source-backed deterministic derivation.

With the effective tax rate down 5.2 percentage points and a non-GAAP underlying NPAT also disclosed, PBT growth of 15.5% — classified within Napier Port's historical range — is the cleaner read on the operating business. Revenue growth of 11.6% (upper edge of the four-year 3.4%–19.4% range) and PBT margin of 27.3% support a constructive but not exceptional underlying trend.

ROE printed an unprecedented 7.2%, against a historical baseline of 4.2%–6.5%. Some of that step-up reflects the same tax tailwind inflating NPAT, so durability of the new ROE level depends on whether the lower tax rate persists and whether the elevated capex cycle eventually translates into proportionate earnings.

The interim shape shows HY25 captured 65.3% of full-year NPAT, implying a noticeably weaker second half on the bottom line — likely linked to the timing of the apple harvest and the lift in capex hitting depreciation and interest later in the year. Revenue, by contrast, split close to even (49.5% first half).

That seasonal skew, combined with the step-change in capex intensity, means investors should not annualise the first-half NPAT run-rate. The release does support continued container-volume momentum from Pan Pac's return to full operations, but does not quantify how much of FY25 growth is catch-up versus a new baseline.

Operating cash conversion is healthy — OCF of NZ$63.6m comfortably covers NPAT — and FCF-to-NPAT of 124.1% looks strong on first read, but this is down from 164.3% last year and the absolute FCF number declined. Working-capital absorption of NZ$0.9m sat at the upper edge of the historical range (mean NZ$0.7m), so some operating cash flow was tied up in receivables despite debtor days improving to 28.9 (below the 30.0–35.3 historical range).

The earnings result itself is partly tax-assisted: a 520-basis-point drop in the effective tax rate accounts for most of the gap between PBT growth of 15.5% and NPAT growth of 24.6%, and the company's own underlying NPAT (NZ$28.3m, +36.5%) is NZ$2.6m below reported. Net debt edged down to NZ$103.5m from NZ$107.6m, so balance-sheet capacity is not under strain, but the lift in payout ratio against pre-lease FCF to 78.0% means future capex cycles will compete more directly with the dividend.

This briefing cannot assess container volume durability, project-by-project capex commitments, or whether the lower effective tax rate reflects a permanent change in tax position.