Table of Contents
What changed
NZK swung decisively into profit in HY24 against a mortality-affected HY23 comparable. Revenue rose 14.4% to NZ$91.6m on a 4.8% lift in sales volumes (2,885MT to 3,024MT), with gross margin rebuilding from -10.1% to 29.6%. Statutory EBITDA moved from a NZ$18.0m loss to an NZ$18.5m profit (+NZ$36.4m), PBT improved NZ$38.4m to NZ$14.9m, and NPAT came in at NZ$10.6m versus a NZ$24.5m loss. Operating cash flow lifted 26.8% to NZ$11.8m and capex fell to NZ$1.6m (1.7% of revenue, from 5.7%), producing pre-lease FCF of NZ$10.2m versus NZ$4.7m. Cash rose to NZ$28.7m, gross borrowings fell to NZ$3.5m, and equity grew 23.4% to NZ$174.2m, moving the group deeper into net cash of roughly NZ$25.2m. No interim dividend is disclosed.
What matters
- Earnings recovery looks structural, not just base-effect. Annualised HY24 revenue of NZ$183.1m sits ~9.6% above FY23 and annualised EBITDA of NZ$36.9m is well ahead of FY23's NZ$11.7m, suggesting the run-rate has re-based above the full-year FY23 anchor even before any H2 seasonality.
- Guidance upgrade frames forward expectations. Pro-forma EBITDA guidance was lifted to NZ$23.5m–27.5m (from NZ$21m–25m). The upgrade is the clearest signal of management's confidence in the revised sea-farm and seasonal-harvest strategy, though it is on a pro-forma basis not reconciled to statutory EBITDA in the supplied excerpts.
- Balance sheet direction is strongly positive. Net cash deepened from ~NZ$14.7m to ~NZ$25.2m, gross borrowings fell 31.9%, and inventory days dropped 13.2 days. Leverage is now a non-issue; the constraint on capital allocation is biological and strategic, not financial.
Expectations
HY23 was structurally loss-making (it contributed -153.7% of FY23 EBITDA and -1,294.9% of FY23 NPAT), so the shape signal points to an H2-weighted year in a normalised cycle. On a simple annualisation, HY24 statutory EBITDA of NZ$36.9m sits above the top of the revised pro-forma guidance range of NZ$27.5m — but that is not a like-for-like comparison because guidance is pro-forma and the company has not disclosed the reconciling adjustments in the supplied excerpts. The release supports the upgrade but does not support a stronger conclusion than "management expects H2 pro-forma EBITDA of roughly NZ$5m–9m", which would be materially softer than HY24 on a pro-forma basis and implies H2 seasonality or biological caution.
Quality of result
The result is of reasonable quality but is a recovery print against a damaged comparator rather than a clean growth print. Supportive signals: gross margin expansion of ~3,966 bps is volume- and mix-led; OCF/EBITDA at 63.7% (up from 51.6%) indicates cash conversion improved alongside earnings; receivable days are stable at ~27 and inventory days fell; pre-lease FCF covered 95.9% of NPAT versus 19.3%. Cautions: the ~28.6% effective tax rate in HY24 versus ~4.2% in HY23 means PBT (+163.3%) is a cleaner read than NPAT (+143.4%); capex was unusually low at NZ$1.6m, flattering FCF relative to a more normalised investment run-rate; and pro-forma EBITDA of NZ$10.7m cited in the release is materially below the NZ$18.5m statutory number, indicating the statutory figure includes favourable items that the company itself is stripping out.
Unresolved
- What are the reconciling items between statutory EBITDA of NZ$18.5m and pro-forma EBITDA of NZ$10.7m, and how do they behave in H2?
- Why is implied H2 pro-forma EBITDA (roughly NZ$13m–17m on an H1 pro-forma base of NZ$10.7m) consistent with the revised range, and what biological assumptions sit behind it given documented water-temperature pressures?
- Is the sub-2% capex-to-revenue ratio sustainable, or is catch-up capex deferred into FY25 as the revised sea-farm strategy is rolled out?
- Dividend policy after balance-sheet repair is not addressed; with NZ$25.2m net cash, capital return framework remains undefined.
This briefing cannot assess the durability of the biological recovery or the sensitivity of the guidance range to further water-temperature or mortality events, as neither is quantified in the supplied data.
Key metrics
| Metric | HY24 | HY23 | Change |
|---|---|---|---|
| Revenue | $91.6m | $80.0m | +14.4% ↑ |
| EBITDA | $18.5m | −$18.0m | +202.6% ↑ |
| Net profit after tax | $10.6m | −$24.5m | +143.4% ↑ |
| Net cash inflow from operating activities | $11.8m | $9.3m | +26.8% ↑ |
| Declared dividend per share | — | 0.0c | — |
| Profit before tax | $14.9m | −$23.5m | +163.3% ↑ |
| Cash and cash equivalents | $28.7m | $19.8m | +44.8% ↑ |
| Total assets | $209.0m | $184.8m | +13.1% ↑ |
Reference: annolyse.ai/briefings/nzk-hy24
Analytical metrics
| Metric | HY24 | HY23 | Context |
|---|---|---|---|
| Effective tax rate | 28.6% | n/m (loss period) | prior loss period |
| OCF / EBITDA (cash conversion) | 63.7% | 51.6% | stable |
| FCF pre-lease | $10.2m | $4.7m | +$5.5m |
| FCF / NPAT | 95.9% | 19.3% | complementary conversion metric |
| Capex % revenue | 1.7% | 5.7% | — |
| Capex | −$1.6m | −$4.6m | +$3.0m |
| Debtor days | 26.9 | 27.3 | -0.4 days |
| Inventory days | 53.3 | 66.5 | -13.2 days |
| Operating working capital | $40.3m | $41.2m | −$0.9m absorbed |
| Trade debtors | $13.5m | $12.0m | +$1.5m |
| Net debt | −$25.2m | −$14.7m | −$10.5m |
| Net debt / EBITDA | -1.40x | -0.80x | Strengthening |
| Gross borrowings | $3.5m | $5.1m | −$1.6m |
| HY23 share of FY23 revenue | 47.9% | — | Other half was 52.1% |
| HY23 share of FY23 EBITDA | -153.7% | — | Other half was 253.7% |
| HY23 share of FY23 NPAT | n/m | — | Other half was n/m |
| Profit from continuing operations | $10.6m | −$24.5m | +$35.1m |
Reference: annolyse.ai/briefings/nzk-hy24
This analysis was generated using Annolyse, an AI-powered tool that extracts and analyses NZX company announcements. The underlying data is extracted from official company filings and verified against source documents. 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.