Table of Contents
What changed
Revenue rose a modest 3.4% to $584.6m, but earnings leverage was substantial: underlying EBITDA lifted 36% to $91.7m (statutory EBITDA +70.8% from $53.7m), PBT more than doubled to $60.9m, and attributable NPAT rose 487% to $30.7m off a very low $5.2m FY23 base. Operating cash flow climbed to $97.6m from $64.7m. The step-up was concentrated in Horticulture, where segment EBITDA jumped from $14.8m to $37.7m as the division recovered from the prior-year Cyclone Gabrielle volume hit; Global Proteins ($55.4m vs $54.5m) and Logistics ($6.9m vs $4.3m) were broadly stable to modestly better. Cash balances fell from $77.6m to $53.8m, equity edged down to $381.5m, and the announced interim dividend was cut from 6.0c to 4.25c per share.
What matters
- Horticulture rebound did almost all the heavy lifting. Roughly $23m of the $24m uplift in underlying EBITDA came from Horticulture normalising, rather than structural margin gains elsewhere. The read on underlying earning power therefore depends heavily on whether FY24 Horticulture volumes represent a durable baseline or a one-off recovery year.
- The year was dramatically first-half weighted. HY24 NPAT of $28.1m was 91.6% of the full-year $30.7m, implying H2 NPAT of just $2.6m. H1 also carried 67% of full-year EBITDA. That is a sharp decelerating exit rate into FY25.
- The interim dividend was cut 29% despite record earnings. Against a FY24 attributable NPAT payout ratio of only 19.7%, the cut is not a coverage issue; combined with the $23.9m decline in cash, it reads as either growth-capex preparation or caution about H2/FY25 run-rate.
Expectations
No numeric FY25 target, no forward work figure, and no quantified segment outlook were provided in the extracted material, so the release can only be judged against the stated FY24 guidance range, which management says was met at the top end. Shape context is the useful frame: with HY24 having already delivered essentially all of the year's NPAT, the filing supports the conclusion that FY24 was a recovery year for Horticulture rather than a step-change in run-rate earnings. It does not support extrapolating the 36% underlying EBITDA growth into FY25.
Quality of result
Mixed. Underlying EBITDA of $91.7m equals statutory EBITDA, so there is no obvious non-cash adjustment inflating the headline. Effective tax was stable (17.9% vs 17.2%), meaning PBT growth of 104% is a cleaner read than the 487% NPAT optic, which is distorted by the depressed FY23 base and non-controlling interests. However, cash conversion deteriorated: OCF/EBITDA fell from 120.6% to 106.4%, trade debtors rose 48.6% to $38.0m, and receivable days lengthened from 16.5 to 23.7. Operating working capital rose $4.4m to $33.1m. The cash balance decline of $23.9m, against $97.6m of OCF, implies meaningful investment or financing outflows that are not broken out in the extracted data. ROE improved to 8.1% from 1.4% but remains modest.
Unresolved
- Why was the interim dividend cut 29% when the payout ratio on FY24 NPAT is under 20% and OCF rose $32.9m? Is this signalling an H2/FY25 earnings step-down, a specific capex programme, or balance-sheet repositioning?
- What explains the sharp H2 NPAT drop to ~$2.6m, and is it seasonality of the apple cycle or genuine deterioration in Global Proteins or Logistics?
- FY24 capex, gross borrowings, and net debt were not in the extracted material, so leverage direction and free cash flow cannot be assessed.
- Is the $23m Horticulture EBITDA uplift a durable baseline or a cyclical snapback?
- Why did receivable days jump by roughly 7 days, and does that reverse in FY25?
This briefing cannot assess FY25 guidance, forward work, capex intensity, or leverage, because those figures were not disclosed in the extracted data.
Key metrics
| Metric | FY24 | FY23 | Change |
|---|---|---|---|
| Revenue | $584.6m | $565.4m | +3.4% ↑ |
| EBITDA | $91.7b | $53.7b | +70.8% ↑ |
| Net profit after tax | $30.7m | $5.2m | +486.9% ↑ |
| Net cash inflow from operating activities | $97.6m | $64.7m | +50.8% ↑ |
| Interim dividend per share | 4.3c | 6.0c | -29.2% ↓ |
| Profit before tax | $60.9m | $29.8m | +104.4% ↑ |
| Total assets | $608.9m | $581.7m | +4.7% ↑ |
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Global Proteins | — | $298.5m | $55.4m | n/a |
| Horticulture | — | $209.9m | $37.7m | n/a |
| Logistics | — | $92.6m | $6.9m | n/a |
Analytical metrics
| Metric | FY24 | FY23 | Context |
|---|---|---|---|
| PBT growth | +104.4% | — | — |
| Effective tax rate | 17.9% | 17.2% | — |
| OCF / EBITDA (cash conversion) | 106.4% | 120.6% | deteriorated |
| Capex | — | −$16.8m | — |
| Debtor days | 23.7 | 16.5 | +7.2 days |
| Inventory days | 15.6 | 19.1 | -3.5 days |
| Operating working capital | $33.1m | $28.7m | +$4.4m absorbed |
| Trade debtors | $38.0m | $25.6m | +$12.4m |
| Gross borrowings | — | $65.6m | — |
| Payout ratio vs NPAT | 19.7% | — | — |
| ROE (annualised) | 8.1% | 1.4% | Strengthening |
| HY24 share of FY24 revenue | 54.4% | — | Other half was 45.6% |
| HY24 share of FY24 EBITDA | 67.0% | — | Other half was 33.0% |
| HY24 share of FY24 NPAT | 91.6% | — | Other half was 8.4% |
| Profit from continuing operations | $30.7m | $5.2m | +$25.5m |
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.