Table of Contents
What changed
Revenue rose 6.9% to $439.6m and EBITDA rose 25.9% to $95.9m, with operating leverage lifting the EBITDA margin by roughly 340bps. Profit before tax grew 59.9% to $47.5m, while NPAT almost quadrupled to $32.0m from $8.8m — a 265% jump that largely reflects a tax normalisation (effective rate 32.7% in FY25 versus 70.5% in FY24) rather than a step-change in underlying earnings. Operating cash flow rose 19.6% to $79.0m, gross borrowings fell 14.7% to $119.6m, and cash climbed to $19.4m from $3.0m. Segment mix shifted further toward post-harvest operations, which expanded its revenue share to 62.9% (from 60.0%) and its segment EBIT margin to around 30.9% (from 26.6%). The declared final dividend is 25.0cps (prior 5.0cps), lifting full-FY25 dividends paid/declared to 30.0cps.
What matters
- Earnings quality read is PBT, not NPAT. PBT growth of 59.9% is the cleaner signal; the 265% NPAT surge is mostly a tax-rate effect and is not repeatable.
- Deleveraging is real. Net debt fell to about $100.3m from $137.3m, and net debt/EBITDA improved to roughly 1.0x from 1.8x, giving materially more balance-sheet optionality heading into FY26.
- Profit concentration in post-harvest is rising. Post-harvest generated $85.5m of segment EBIT on $276.6m of revenue, offsetting a $32.0m loss in the "all other" bucket (wider than FY24's $23.9m drag). Earnings are increasingly dependent on a single segment holding its ~31% margin.
Expectations
No forward-work book, revenue guidance, or medium-term targets are disclosed in the supplied material, so there is no explicit benchmark to measure the result against. Seasonality is pronounced: HY25 represented 48.4% of FY25 revenue but only 38.0% of EBITDA and 32.8% of NPAT, confirming a second-half-weighted earnings shape. The implied second-half contribution of about $59.4m EBITDA and $21.5m NPAT indicates the upgrade in profitability came largely in H2, but nothing in the release signals whether that run-rate is sustainable into FY26.
Quality of result
Much of the operating improvement looks durable: EBITDA grew faster than revenue, post-harvest margins expanded, and borrowings were paid down. Working capital was a modest help — trade debtor days shortened to 11.3 from 15.6, and operating working capital fell by about $3.0m — so the cash result is not being flattered by receivables stretch. That said, cash conversion (OCF/EBITDA) softened from 86.8% to 82.4%, so EBITDA grew faster than the cash it produced. Capex rose to $25.7m (5.8% of revenue, versus 4.4%), leaving pre-lease FCF of $53.3m versus $47.7m; lease payments are not separately disclosed so post-lease FCF cannot be derived. The NPAT bridge from $8.8m to $32.0m is meaningfully flattered by a lower tax charge rather than incremental operating profit, and the release's reference to "normalised FY24" is not reconciled in the supplied excerpts.
Unresolved
- What drove the effective tax rate from 70.5% to 32.7%, and is the current rate a steady-state level?
- How is "normalised FY24" defined, and what would the FY24 comparable look like on a reconciled basis?
- What is inside the "all other segments" bucket that widened its loss to $32.0m, and is that corporate overhead or a specific loss-making activity?
- With leverage now at ~1.0x, what is the stated capital-allocation hierarchy between further debt reduction, capex, and dividends, given the dividend payout ratio stepped up to ~33% of NPAT from ~24%?
- No forward work, customer concentration, or FX sensitivity disclosure is provided.
This briefing cannot assess valuation, industry/peer positioning, or the outlook for FY26 kiwifruit volumes and pricing from the supplied material.
Key metrics
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | $439.6m | $411.4m | +6.9% ↑ |
| EBITDA | $95.9m | $76.1m | +25.9% ↑ |
| Net profit after tax | $32m | $8.8m | +265.2% ↑ |
| Net cash inflow from operating activities | $79m | $66m | +19.6% ↑ |
| Final dividend per share | 25.0c | 5.0c | +400.0% ↑ |
| Operating profit | $62.6m | $46.8b | -99.9% ↓ |
| Profit before tax | $47.5m | $29.7m | +59.9% ↑ |
| Cash and cash equivalents | $19.4m | $3m | +549.0% ↑ |
| Total assets | $605.4m | $549.9m | +10.1% ↑ |
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Orchard operations | $117.3m | $102.7m | $5.6m | +1.7pp |
| Post harvest operations | $276.6m | $246.6m | $85.5m | +3.0pp |
| Retail service operations | $22.7m | $30.9m | $2.1m | -2.4pp |
| All other segments | $1.4m | $12.1m | −$32m | -2.6pp |
| Australian operations | $21.6m | $19.2m | $1.4m | +0.3pp |
Analytical metrics
| Metric | FY25 | FY24 | Context |
|---|---|---|---|
| PBT growth | +59.9% | — | cleaner earnings measure |
| Effective tax rate | 32.7% | 70.5% | — |
| OCF / EBITDA (cash conversion) | 82.4% | 86.8% | deteriorated |
| FCF pre-lease | $53.3m | $47.7m | +$5.6m |
| FCF / NPAT | 166.8% | 545.8% | complementary conversion metric |
| Capex % revenue | 5.8% | 4.4% | — |
| Capex | $25.7m | −$18.3m | +$44m |
| Debtor days | 11.3 | 15.6 | -4.3 days |
| Inventory days | 9.4 | 9.1 | +0.2 days |
| Operating working capital | $24.8m | $27.8m | −$3m absorbed |
| Trade debtors | $13.6m | $17.6m | −$4m |
| Net debt | $100.3m | $137.3m | −$37m |
| Net debt / EBITDA | 1.05x | 1.80x | Strengthening |
| Gross borrowings | $119.6m | $140.3m | −$20.7m |
| Payout ratio vs NPAT | 32.9% | — | — |
| Payout ratio vs FCF pre-lease | 19.7% | — | covered |
| ROE (annualised) | 10.7% | 3.3% | Strengthening |
| HY25 share of FY25 revenue | 48.4% | — | Other half was 51.6% |
| HY25 share of FY25 EBITDA | 38.0% | — | Other half was 62.0% |
| HY25 share of FY25 NPAT | 32.8% | — | Other half was 67.2% |
| Profit from continuing operations | $32m | $8.8m | +$23.2m |
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.