FY24 NPAT recovered 490% but H1 delivered NZ$28.1m of the NZ$30.7m

The cleaner operating read is PBT growth of 104.4% to NZ$60.9m and EBITDA growth of 64.1% to NZ$88.1m, both delivered on revenue growth of only 3.4% to NZ$584.6m.

Capex tripled to NZ$54.9m (9.4% of revenue versus 3.0% prior), and cash on the balance sheet fell NZ$23.9m to NZ$53.8m. Mix shifted toward Horticulture, which lifted to 42.6% of revenue from 37.1%, while Global Proteins fell to 45.6% from 52.8%.

H1 NPAT of NZ$28.1m represented 91.6% of the full-year figure, with H1 EBITDA also taking 69.8% of FY24 EBITDA. This matters because the supplied historical baseline classifies the 490.4% NPAT print as unprecedented, yet the implied second-half profit run-rate suggests FY25 starts from a softer base than the headline NPAT supports.

Capex stepped up sharply. Capex grew 226.9% to NZ$54.9m, lifting intensity to 9.4% of revenue from 3.0%. This matters because pre-lease FCF of NZ$42.6m sits NZ$1.7m below the four-period historical mean of NZ$44.3m despite a much stronger earnings line — only the 50.8% lift in OCF to NZ$97.6m kept FCF inside the historical range. If cash conversion normalises while capex stays elevated, FCF will compress.

Working capital sent a mixed signal. Trade debtors rose 48.6% to NZ$38.0m, lifting debtor days to 23.7, the upper edge of the historical range (mean 20.2). Inventory days fell to 15.6, below the historical range (mean 28.4). On net, operating working capital absorbed NZ$7.9m of cash and contributed to the NZ$23.9m drawdown in cash on the balance sheet.

Management commentary cites underlying EBITDA of NZ$91.7m as "towards the top end" of the FY24 guidance range, supporting the result against the expectations set going in.

The forward read is harder. With second-half NPAT at NZ$2.6m, the FY24 figure is substantially shaped by H1 economics — apple campaign timing and Horticulture pricing in particular. Without restated FY25 guidance, this briefing cannot anchor an exit-rate view of FY25 to the reported FY24 NPAT.

The decline reflects working-capital absorption (debtors up 48.6%) partly offset by inventory release (-15.5%), so the conversion strength is partly balance-sheet assisted rather than purely earnings quality.

Pre-lease FCF of NZ$42.6m equated to 138.7% of NPAT, but that ratio is flattered by the low NPAT base. In absolute terms FCF sat NZ$1.7m below the four-period historical mean of NZ$44.3m despite the earnings rebound, because capex tripled.

The dividend signal also tempers durability. Despite NPAT rising fivefold, the announced dividend per share fell to 4.25c from 6.0c, taking the payout ratio from 162.2% to 19.7% — the lower edge of the historical range. ROE recovered to 8.5% from 1.4% but sits just below the four-period mean of 8.8%, meaning the rebound restored normality rather than exceeded it.

This briefing cannot assess the durability of the FY24 earnings rebound without prior-year segment results, FY25 guidance, or a clean reconciliation of underlying versus reported NPAT.