Table of Contents
What changed
Revenue rose 53.9% to NZ$899.9m and reported EBITDA rose 85.2% to NZ$169.9m (underlying EBITDA NZ$137.6m, up 50%). PBT grew 122.1% to NZ$135.3m and NPAT grew 228.7% to NZ$101.0m. The segment mix is concentrated: Global Proteins NZ$477.6m (53.1% of revenue, ~18.4% segment margin), Horticulture NZ$341.8m (38.0%) and Logistics NZ$81.3m (9.0%), with an Other segment that was a NZ$10.3m drag. Despite the earnings step-up, operating cash flow edged down 1.8% to NZ$95.8m, cash fell to NZ$64.7m from NZ$77.6m, and net debt rose to NZ$84.1m from NZ$34.3m, lifting net debt/EBITDA to 0.50x from 0.37x. The declared dividend component in this announcement is 7.25cps versus 4.25cps (calculations imply a 7.75cps full-period figure once other components are included).
What matters
- Cash conversion deteriorated sharply. OCF/EBITDA dropped from 106.4% to 56.4% and pre-lease FCF fell to NZ$73.6m from NZ$87.9m even as EBITDA almost doubled. The proximate cause is working capital: inventory rose NZ$94.7m (+379.2%) to NZ$119.6m, with inventory days jumping from 15.6 to 48.5, and receivables days rising modestly from 23.7 to 25.8. This is the single biggest read-through on earnings quality.
- NPAT growth outran PBT growth by 106.6pp primarily on tax. The effective tax rate fell to 13.0% from 17.9%. No discontinued operation was disclosed, so PBT growth of 122.1% is the cleaner operating read on the year.
- Balance sheet direction flipped from deleveraging to rebuild. Cash declined NZ$13.0m, gross borrowings stepped up to NZ$148.7m, and net debt more than doubled, coincident with the inventory build and a capex step-up to NZ$22.2m from NZ$9.7m (2.5% of revenue versus 1.7%). Equity still grew 19.7% to NZ$456.5m and ROE reached 22.1%.
Expectations
No numeric forward guidance or stated target was supplied in the release materials, so the result cannot be benchmarked to management targets. On seasonality, HY25 delivered 41.3% of full-year revenue, 51.7% of EBITDA and 48.1% of NPAT, implying the second half carried NZ$528.1m of revenue but only NZ$82.1m of EBITDA — i.e. the first half was the higher-margin half (EBITDA margin ~23.6% in H1 versus ~15.5% implied in H2), and the year was modestly second-half weighted on revenue but not on profitability.
Quality of result
The P&L result is real but its cash backing is noticeably softer than FY24. Roughly NZ$74m of incremental revenue and much of the earnings uplift has been absorbed into inventory, and the effective tax rate decline accounts for the widened gap between PBT and NPAT growth. Pre-lease FCF/NPAT collapsed from 286% to 73%. Capex intensity stepped up but is still modest at 2.5% of revenue. Leverage at 0.50x remains comfortable in absolute terms, but the direction — cash down, borrowings up, inventory up — is a durability question rather than a solvency one. Underlying EBITDA of NZ$137.6m (versus reported NZ$169.9m) also implies roughly NZ$32m of items the company has chosen to strip out, and the Appendix A reconciliation was not in the extracted excerpts.
Unresolved
- What drove the 379% inventory build: unsold apple crop carryover, Global Proteins stock positioning, or acquisition-related opening balances?
- What is the composition of the NZ$32m gap between reported and underlying EBITDA, and how much is recurring?
- Why did the effective tax rate fall nearly 5pp to 13.0%, and is that sustainable?
- Segment-level prior-period comparatives on the same basis (segment profit, not underlying EBITDA) are not available, limiting a like-for-like read on divisional margin movement.
- The NZ$0.5cps step-up implied between the declared 7.25cps and the calculated 7.75cps full-period dividend is not itemised in the extracted materials.
This briefing cannot assess valuation, management's forward outlook, or the specific non-GAAP bridge, because no share price, guidance, or full underlying-to-reported reconciliation was supplied.
Key metrics
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | $899.9m | $584.6m | +53.9% ↑ |
| EBITDA | $169.9m | $91.7m | +85.2% ↑ |
| Net profit after tax | $101.0m | $30.7m | +228.7% ↑ |
| Net cash inflow from operating activities | $95.8m | $97.6m | -1.8% ↓ |
| Interim dividend per share | 7.2c | 4.3c | +70.6% ↑ |
| Profit before tax | $135.3m | $60.9m | +122.1% ↑ |
| Cash and cash equivalents | $64.7m | $77.6m | -16.7% ↓ |
| Total assets | $899.9m | $608.9m | +47.8% ↑ |
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Global Proteins | $477.6m | — | $88.1m | n/a |
| Horticulture | $341.8m | — | $35.7m | n/a |
| Logistics | $81.3m | — | $4.3m | n/a |
| Other | −$0.8m | — | −$10.3m | n/a |
Analytical metrics
| Metric | FY25 | FY24 | Context |
|---|---|---|---|
| PBT growth | +122.1% | — | cleaner earnings measure |
| Effective tax rate | 13.0% | 17.9% | — |
| OCF / EBITDA (cash conversion) | 56.4% | 106.4% | deteriorated |
| FCF pre-lease | $73.6m | $87.9m | −$14.3m |
| FCF / NPAT | 72.9% | 286.0% | complementary conversion metric |
| Capex % revenue | 2.5% | 1.7% | — |
| Capex | $22.1m | — | — |
| Debtor days | 25.8 | 23.7 | +2.1 days |
| Inventory days | 48.5 | 15.6 | +32.9 days |
| Trade debtors | $63.5m | $38.0m | +$25.5m |
| Net debt | $84.1m | $34.3m | +$49.8m |
| Net debt / EBITDA | 0.49x | 0.37x | Weakening |
| Gross borrowings | $148.7m | — | — |
| Payout ratio vs NPAT | 11.0% | — | — |
| Payout ratio vs FCF pre-lease | 15.0% | — | covered |
| ROE (annualised) | 22.1% | 8.0% | Strengthening |
| HY25 share of FY25 revenue | 41.3% | — | Other half was 58.7% |
| HY25 share of FY25 EBITDA | 51.7% | — | Other half was 48.3% |
| HY25 share of FY25 NPAT | 48.1% | — | Other half was 51.9% |
| Profit from continuing operations | $117.7m | $30.7m | +$87.0m |
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.