Table of Contents
What changed
Revenue rose 9.3% to NZ$514.6m and EBITDA rose 26.2% to NZ$71.6m, with PBT up 37.7% to NZ$48.5m. Reported NPAT attributable to equity holders was NZ$26.9m (FY20: NZ$21.0m), up 28.1%. Prior-year statutory profit was flattered by a NZ$73.0m discontinued-operations gain, so the continuing-operations comparison (NZ$26.9m vs NZ$26.6m) is materially flatter than the headline NPAT growth suggests.
The mix shifted toward Food Ingredients, which added 5.6pp of revenue share to 42.5% and lifted segment result from NZ$20.7m to NZ$32.1m (implied margin ~14.7%). Horticulture revenue edged down to NZ$243.4m but segment result improved to NZ$20.7m. Operating cash flow fell 25.1% to NZ$39.8m, cash balances dropped NZ$12.0m to NZ$35.4m, and gross borrowings were cut 29.7% to NZ$38.3m, leaving net debt of just NZ$2.9m (0.04x EBITDA).
What matters
- H2 was the weak half. HY21 NPAT of NZ$28.3m implies an H2 loss of roughly NZ$1.4m, and HY21 EBITDA of NZ$54.5m implies only NZ$17.1m in H2. The full-year growth story is almost entirely an H1 story.
- Food Ingredients carried the earnings uplift. Its segment result rose NZ$11.4m, more than the NZ$13.3m PBT improvement at group level once the widening "Other" segment loss (–NZ$8.1m vs –NZ$4.5m) is considered. Horticulture improved modestly but continues to run at mid-single-digit margins.
- Cash conversion deteriorated materially. OCF/EBITDA fell from 93.8% to 55.6%, with trade debtors up 23.1% and inventories up 14.9%. Capex was also cut from NZ$24.2m to NZ$15.8m, so pre-lease free cash flow held at NZ$24.0m despite the weaker operating cash line.
Expectations
No group-level numeric guidance or forward-work disclosure was supplied. The only target reference is qualitative: Food Ingredients exceeded its divisional EBITDA target. Against the HY21 shape, the release implies a pronounced H2 fade in both EBITDA and NPAT, which is the dominant context going into FY22 rather than any quantified target. This briefing cannot benchmark the result against consensus or prior management guidance because neither was provided.
Quality of result
The earnings uplift is concentrated in one division and one half, which limits the durability read. PBT growth of 37.7% is the cleaner operating measure (effective tax rate stable at ~24%, and FY20 NPAT is distorted below the line by discontinued operations). However, the second-half implied NPAT loss, the 38pp drop in cash conversion, and the higher receivable days (17.0 vs 15.1) and inventory days (21 vs 20) suggest part of the reported earnings lift is working-capital-assisted rather than cash-backed. The lower capex spend flatters free cash flow but is not a repeatable earnings support. Management cites "underlying EBITDA" of NZ$73.8m and records on underlying NPAT, but no reconciliation was supplied in the extracted materials.
Unresolved
- What drove the H2 softness — was it Horticulture seasonality, pricing/cost pressure, or a specific Food Ingredients cadence?
- Why did receivables rise 23.1% on 9.3% revenue growth, and how much of the NZ$13.4m OCF decline is permanent versus timing?
- What is the reconciliation from reported to the cited "underlying EBITDA of NZ$73.8m" and "record Underlying NPAT"?
- What is the full-period dividend (the 9.5 cents disclosed appears to be one declared component; the implied payout on that alone is ~49.7% of NPAT)?
- With net debt effectively zero, what is the capital allocation intent for FY22?
This briefing cannot assess valuation, share-price context, peer comparatives, or forward FY22 guidance, none of which were supplied.
Key metrics
| Metric | FY21 | FY20 | Change |
|---|---|---|---|
| Revenue | $514.6m | $470.7m | +9.3% ↑ |
| EBITDA | $71.6m | $56.7m | +26.2% ↑ |
| Net profit after tax | $26.9m | $21.0m | +28.1% ↑ |
| Net cash inflow from operating activities | $39.8m | $53.2m | -25.1% ↓ |
| Interim dividend per share | 9.5c | — | — |
| Operating profit | $52.1m | $37.6m | +38.6% ↑ |
| Profit before tax | $48.5m | $35.2m | +37.7% ↑ |
| Cash and cash equivalents | $35.4m | $47.4m | -25.3% ↓ |
| Total assets | $584.8m | $586.2m | -0.2% ↓ |
Reference: annolyse.ai/briefings/scl-fy21
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Horticulture | $243.4m | $246.0m | $20.7m | -4.9pp |
| Food Ingredients | $218.9m | $173.7m | $32.1m | +5.6pp |
| Logistics | $51.7m | $49.8m | $3.8m | -0.5pp |
| Other | $0.6m | $1.2m | −$8.1m | -0.1pp |
Reference: annolyse.ai/briefings/scl-fy21
Analytical metrics
| Metric | FY21 | FY20 | Context |
|---|---|---|---|
| PBT growth | +37.7% | — | cleaner earnings measure |
| Effective tax rate | 23.9% | 24.6% | — |
| OCF / EBITDA (cash conversion) | 55.6% | 93.8% | deteriorated |
| FCF pre-lease | $24.0m | $29.0m | −$5.0m |
| FCF / NPAT | 89.2% | 137.8% | complementary conversion metric |
| Capex % revenue | 3.1% | 5.2% | — |
| Capex | $15.8m | −$24.2m | +$40.1m |
| Debtor days | 17.0 | 15.1 | +1.9 days |
| Inventory days | 21.0 | 20.0 | +1.0 days |
| Trade debtors | $23.9m | $19.5m | +$4.5m |
| Net debt | $2.9m | $7.0m | −$4.2m |
| Net debt / EBITDA | 0.04x | 0.12x | Strengthening |
| Gross borrowings | $38.3m | $54.4m | −$16.2m |
| Payout ratio vs NPAT | 49.7% | — | — |
| ROE (annualised) | 6.9% | 5.6% | Strengthening |
| HY21 share of FY21 revenue | 49.3% | — | Other half was 50.7% |
| HY21 share of FY21 EBITDA | 76.1% | — | Other half was 23.9% |
| HY21 share of FY21 NPAT | 105.2% | — | Other half was -5.2% |
| Profit from continuing operations | $26.9m | $26.6m | +$0.3m |
| Discontinued operation after tax | — | $73.0m | — |
Reference: annolyse.ai/briefings/scl-fy21
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.