Table of Contents
What changed
Revenue rose 11.1% to NZ$101.7m on a 5% volume lift (3,023MT to 3,178MT), but statutory EBITDA fell 32.4% to NZ$12.5m, PBT fell 38.5% to NZ$9.2m and NPAT fell 43.5% to NZ$6.0m. The headline release instead emphasises pro-forma EBITDA of NZ$13.5m versus NZ$10.7m a year earlier. Operating cash flow improved to NZ$16.2m (from NZ$11.8m), but capex stepped up materially to NZ$5.2m (from NZ$1.6m), leaving pre-lease free cash flow only modestly higher at NZ$11.0m versus NZ$10.2m. Inventories grew 32.6% to NZ$35.6m, pushing inventory days from 53 to 64. Gross borrowings eased to NZ$3.1m and the group remains in a net cash position of about NZ$25.2m. No interim dividend was declared.
What matters
- The statutory-to-pro-forma divergence. The two EBITDA measures moved in opposite directions: statutory down NZ$6.0m, pro-forma up NZ$2.8m. No reconciliation bridge is disclosed in the extracted material, which is the single biggest read-through issue for earnings quality.
- Guidance ceiling trimmed. FY25 pro-forma EBITDA guidance was narrowed to NZ$26m–NZ$30m from NZ$26m–NZ$32m. The floor is unchanged, but the removal of the upper NZ$2m signals a tightening of what management now believes is achievable.
- Inventory build. Inventories rose NZ$8.7m year-on-year, a meaningful absorption of balance-sheet capacity. This is consistent with a biological-asset business and enables second-half sales, but it raises the stakes on 2H25 execution and pricing.
Expectations
Management's revised FY25 pro-forma EBITDA range of NZ$26m–NZ$30m sits above the HY25 pro-forma run-rate: annualising HY25 pro-forma of NZ$13.5m implies about NZ$27m, within the range but closer to the floor. Statutory EBITDA of NZ$12.5m annualises to roughly NZ$25m. FY24 seasonality was mixed: revenue was slightly second-half weighted, EBITDA was first-half weighted (HY24 was 75% of FY24 EBITDA), and NPAT was second-half weighted (HY24 was only 37% of FY24 NPAT). The inventory build into 2H25 is consistent with a second-half weighted NPAT, but delivering the top half of guidance now depends on pricing and sales mix improving from here.
Quality of result
The quality read is mixed. Operating cash flow of NZ$16.2m exceeded statutory EBITDA of NZ$12.5m, and cash conversion (OCF/EBITDA of 130%) was materially stronger than the 64% in HY24 — but much of that improvement looks timing-driven rather than earnings-driven, with working-capital dynamics doing the work. Pre-lease FCF was only NZ$0.8m higher year-on-year despite NZ$4.4m more operating cash, because capex more than tripled. The effective tax rate rose to 34.4% from 28.6%, amplifying the NPAT decline relative to PBT, so PBT (-38.5%) is the cleaner operating read. The pro-forma/statutory gap reversed direction versus HY24 (pro-forma was NZ$7.8m below statutory in HY24, and NZ$1.0m above in HY25), which without a disclosed bridge makes the underlying trajectory harder to anchor.
Unresolved
- What are the specific adjustments reconciling pro-forma EBITDA (NZ$13.5m) to statutory EBITDA (NZ$12.5m), and why did the adjustment reverse sign versus HY24?
- What drove statutory EBITDA down NZ$6.0m on revenue up NZ$10.2m — i.e., where is the cost or biological-asset pressure landing?
- What is the composition of the NZ$8.7m inventory build (stock on hand versus biomass), and at what pricing assumption is it carried?
- Why was the FY25 guidance ceiling trimmed while the floor was held, and what 2H25 conditions are implicit in the NZ$26m–NZ$30m range?
This briefing cannot assess underlying operational drivers such as fish-price realisation, feed/farm cost trends, or the composition of the pro-forma adjustments, because the extracted material does not quantify them.
Key metrics
| Metric | HY25 | HY24 | Change |
|---|---|---|---|
| Revenue | $101.7m | $91.6m | +11.1% ↑ |
| EBITDA | $12.5m | $18.5m | -32.4% ↓ |
| Net profit after tax | $6m | $10.6m | -43.5% ↓ |
| Net cash inflow from operating activities | $16.2m | $11.8m | +37.7% ↑ |
| Interim dividend per share | 0.0c | — | — |
| Profit before tax | $9.2m | $14.9m | -38.5% ↓ |
| Total assets | $241.4m | $209m | +15.5% ↑ |
Analytical metrics
| Metric | HY25 | HY24 | Context |
|---|---|---|---|
| PBT growth | -38.5% | — | cleaner earnings measure |
| Effective tax rate | 34.4% | 28.6% | — |
| OCF / EBITDA (cash conversion) | 129.8% | 63.7% | stable |
| FCF pre-lease | $11m | $10.2m | +$0.8m |
| FCF / NPAT | 183.0% | 95.9% | complementary conversion metric |
| Capex % revenue | 5.1% | 1.7% | — |
| Capex | −$5.2m | −$1.6m | −$3.6m |
| Debtor days | 28.1 | 26.9 | +1.2 days |
| Inventory days | 63.7 | 53.3 | +10.4 days |
| Operating working capital | $51.2m | $40.3m | +$10.9m absorbed |
| Trade debtors | $15.7m | $13.5m | +$2.2m |
| Net debt | −$25.2m | −$25.2m | −$0m |
| Net debt / EBITDA | -2.02x | -1.36x | Strengthening |
| Gross borrowings | $3.1m | $3.5m | −$0.37m |
| Payout ratio vs NPAT | 0.0% | — | — |
| Payout ratio vs FCF pre-lease | 0.0% | — | covered |
| ROE (annualised) | 3.1% | 6.1% | Weakening |
| HY24 share of FY24 revenue | 48.9% | — | Other half was 51.1% |
| HY24 share of FY24 EBITDA | 75.3% | — | Other half was 24.7% |
| HY24 share of FY24 NPAT | 37.4% | — | Other half was 62.6% |
| Profit from continuing operations | $6m | $10.6m | −$4.6m |
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.