Table of Contents
What changed
Revenue rose 12.5% to NZD 348.4m, but earnings moved the other way. EBITDA fell to NZD 46.1m from NZD 56.8m (which had included a NZD 7.6m PSA claim settlement), PBT collapsed 67.7% to NZD 7.6m, and NPAT fell 56.2% to NZD 6.5m. Operating cash flow fell 70.8% to NZD 12.1m while capex rose to NZD 33.9m, producing pre-lease free cash flow of -NZD 21.7m (FY21: +NZD 12.1m). Cash dropped to NZD 3.6m from NZD 12.4m, gross borrowings rose to NZD 150.9m from NZD 113.0m, and net debt / EBITDA moved from ~1.8x to ~3.2x. No current-period dividend is shown in the extraction against a prior 13.0 cps. Segment mix shifted further toward post-harvest (67.1% of revenue vs 63.3%), while retail service and Australian operations both turned loss-making.
What matters
- The second half was the story. With HY22 EBITDA of NZD 49.4m against full-year EBITDA of NZD 46.1m, implied H2 EBITDA was -NZD 3.3m and implied H2 NPAT was roughly -NZD 15.0m. The FY22 headline understates how weak the back half was.
- Cash quality deteriorated sharply. OCF/EBITDA fell from 73.2% to 26.3%, and a step-up in capex (to 9.7% of revenue) combined with that collapse pushed free cash flow deeply negative. Funding came from the balance sheet: gross debt increased by NZD 37.9m while cash fell by NZD 8.8m.
- Tax distorts the NPAT read. The effective tax rate fell to 14.3% from 36.7%, cushioning NPAT. PBT is the cleaner operating read, and PBT was down 67.7%, far worse than the 56.2% NPAT decline.
Expectations
No numeric forward targets or forward-work figures are disclosed in the extracted data, and the release references "earnings guidance" narratively without a quantified anchor in the normalised set. Against the HY22 shape (71% of full-year revenue, 107% of EBITDA, 330% of NPAT in the first half), this result confirms a materially weakened second half rather than a seasonal skew. The filing does not support a read on FY23 recovery magnitude; it does confirm that FY21's EBITDA base was inflated by the NZD 7.6m PSA settlement, so the underlying operating deterioration in FY22 is somewhat smaller than the reported 19% EBITDA decline.
Quality of result
Durability looks weak on several fronts. The EBITDA comparison is flattered because FY21 carried the one-off PSA settlement; underlying operating leverage against labour and yield pressures was still negative. Working capital absorbed cash: inventories rose 70.8% to NZD 11.9m and trade debtors rose 17.3% to NZD 20.1m, lifting the gross working-capital proxy to NZD 32.0m from NZD 24.1m. The NPAT line was helped by a materially lower tax rate rather than operating strength. Against that, post-harvest revenue growth of ~19% and a revenue mix shift toward that segment are the more durable positives, though segment result disclosure mixes after-tax and EBIT bases and limits margin comparability. ROE fell to 2.4% from 6.0%.
Unresolved
- How much of the H2 EBITDA loss is structural versus transitory (yield, labour cost inflation, one-time integration costs), and what normalises in FY23?
- With net debt at NZD 147.4m and leverage at ~3.2x, what are the covenant headroom and refinancing profile on the NZD 150.9m of interest-bearing liabilities?
- Is the NZD 33.9m capex level a sustained investment cadence, and how is it funded if OCF stays near NZD 12m?
- Why is no current-period dividend shown against prior 13.0 cps, and what is the board's stated stance on distributions while FCF is negative?
- The retail service and Australian operations both turned loss-making — are these being restructured, resized, or exited?
This briefing cannot assess valuation or forward earnings power, as no share price, NTA per share, quantified guidance, or forward-work figure is provided in the extracted data.
Key metrics
| Metric | FY22 | FY21 | Change |
|---|---|---|---|
| Revenue | $348.4m | $309.6m | +12.5% ↑ |
| EBITDA | $46.1m | $0.1m | +81039.3% ↑ |
| Net profit after tax | $6.5m | $14.9m | -56.2% ↓ |
| Net cash inflow from operating activities | $12.1m | $41.6m | -70.8% ↓ |
| Declared dividend per share | — | 13.0c | — |
| Operating profit | $19.1m | $32.2m | -40.7% ↓ |
| Profit before tax | $7.6m | $23.5m | -67.7% ↓ |
| Cash and cash equivalents | $3554m | $12361m | -71.2% ↓ |
| Total assets | $547.9m | $482.3m | +13.6% ↑ |
Reference: annolyse.ai/briefings/sek-fy22
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Orchard operations | $80.5m | $77.1m | $1.8m | -1.8pp |
| Post harvest operations | $233.8m | $195.9m | $39.0m | +3.8pp |
| Retail service operations | $19.1m | $21.6m | −$1.1m | -1.5pp |
| All other segments | $1.1m | $1.1m | −$30.9m | -0.1pp |
| Australian operations | $14.0m | $13.9m | −$2.3m | -0.5pp |
Reference: annolyse.ai/briefings/sek-fy22
Analytical metrics
| Metric | FY22 | FY21 | Context |
|---|---|---|---|
| PBT growth | -67.7% | — | cleaner earnings measure |
| Effective tax rate | 14.3% | 36.7% | — |
| OCF / EBITDA (cash conversion) | 26.3% | 73.2% | deteriorated |
| FCF pre-lease | −$21.7m | $12.1m | −$33.8m |
| FCF / NPAT | -334.3% | 81.4% | complementary conversion metric |
| Capex % revenue | 9.7% | 9.5% | — |
| Capex | $33.9m | −$29.5m | +$63.4m |
| Debtor days | 21.1 | 20.2 | +0.9 days |
| Inventory days | 12.5 | 8.2 | +4.3 days |
| Operating working capital | $32.0m | $24.1m | +$7.9m absorbed |
| Trade debtors | $20.1m | $17.1m | +$3.0m |
| Net debt | $147.4m | $100.6m | +$46.7m |
| Net debt / EBITDA | 3.20x | 1.80x | Weakening |
| Gross borrowings | $150.9m | $113.0m | +$37.9m |
| Payout ratio vs NPAT | 0.0% | — | — |
| ROE (annualised) | 2.4% | 6.0% | Weakening |
| HY22 share of FY22 revenue | 71.0% | — | Other half was 29.0% |
| HY22 share of FY22 EBITDA | 107.1% | — | Other half was -7.1% |
| HY22 share of FY22 NPAT | 329.9% | — | Other half was -229.9% |
| Profit from continuing operations | $6.5m | $14.9m | −$8.4m |
Reference: annolyse.ai/briefings/sek-fy22
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.