Pro-forma EBITDA up 21% but NPAT halved as FY24's PBT boost did not repeat

What changed

Revenue grew 12.8% to $210.9m and pro-forma EBITDA rose 21.2% to $29.7m, landing near the top of the $26–32m (later $26–30m) guidance range set for FY25. Below the EBITDA line the result inverted: profit before tax fell 52.3% to $19.1m and net profit after tax fell 53.0% to $13.4m, against $40.1m and $28.5m respectively in FY24. Operating cash flow jumped to $38.5m from $13.2m, capex stepped up to $10.7m (5.1% of revenue, from 3.2%), and cash rose to $49.7m from $20.9m while borrowings fell to $4.5m. Inventories were drawn down by $9.9m (-26.6%).

What matters

• EBITDA vs NPAT divergence. Pro-forma EBITDA is a non-GAAP figure and the release does not reconcile it to statutory profit. The effective tax rate was broadly stable at roughly 30% (vs 29%), so tax does not explain the gap; the FY24 PBT of $40.1m appears to have been lifted by items (almost certainly non-cash biological asset / fair value movements in a salmon farmer) that did not repeat at the same scale. That makes the 21% EBITDA growth the more operationally relevant read.
• Cash and balance sheet stepped up sharply. OCF of 129% of EBITDA (vs 54% in FY24) and a $28.8m increase in cash give the group a clear net cash position of roughly $45.2m. Pre-lease free cash flow of $27.7m (vs $7.2m) funds both higher capex and a stronger optionality buffer for the stated growth strategy.
• FY26 harvest warning. Management flagged that higher water temperatures have impacted FY26 harvest volumes, with no quantification. That softens any assumption that FY25's EBITDA trajectory simply rolls forward.

Expectations

FY25 pro-forma EBITDA of $29.7m sits near the top of the $26–30m revised guidance range (originally $26–32m). The HY25 split shows H1 carried 48.2% of revenue but only 42.0% of EBITDA and 45.0% of NPAT, so H2 was the heavier earnings half — implied H2 EBITDA was $17.2m versus $12.5m at H1. No FY26 numeric target or forward-work figure was disclosed; the only shape commentary is the qualitative FY26 harvest-volume warning, which the release does not size.

Quality of result

The operational improvement looks real at the EBITDA line, and the cash result is unusually clean: OCF materially exceeded EBITDA, helped by a $9.9m (-26.6%) inventory drawdown and a small reduction in receivable days (23.7 from 27.3). That inventory release is a one-off working-capital tailwind that cannot repeat at the same magnitude, so underlying cash conversion is likely lower than the reported 129% of EBITDA suggests. ROE weakened to 6.8% from 15.0%, consistent with the statutory profit decline. The absence of a pro-forma-to-statutory EBITDA reconciliation and the unexplained non-operating items between EBITDA and PBT in both years limit confidence in comparing underlying profitability cleanly.

Unresolved

• What specifically drove PBT down from $40.1m to $19.1m while EBITDA rose — most plausibly non-cash biological asset fair-value movements, but the extracted release does not itemise this.
• The size of the FY26 harvest-volume impact from higher temperatures, and whether it affects unit costs as well as volumes.
• A full pro-forma EBITDA reconciliation, any adjusting items, and the split of revenue growth between price and volume.
• The dividend decision, payout policy, and intended use of the expanded cash balance.

This briefing cannot assess segment mix, customer or geographic concentration, valuation ratios, or the magnitude of the flagged FY26 harvest impact, as none of these were disclosed in the extracted material.

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Analytical metrics

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.