Skellerup records tenth normalised EBIT increase as insurance gain lifts headline

Reported EBIT of NZ$94.1m and reported NPAT of NZ$67.7m include a NZ$4.8m pre-tax and NZ$3.5m after-tax non-recurring gain, principally from insurance proceeds for damaged equipment. Revenue rose 10.3% to NZ$390.1m and operating cash flow rose 25.7% to NZ$83.6m. Net debt fell to NZ$2.0m from NZ$12.4m, taking net debt/EBITDA to 0.02x from 0.13x.

The NZ$4.8m pre-tax insurance-related gain lifted reported EBIT and PBT, while the NZ$3.5m after-tax gain lifted reported NPAT. Normalised EBIT growth of 14% and normalised NPAT growth of 18% therefore provide the like-for-like operating and after-tax comparisons.

Receivables and inventory moved on different measures. Debtor days rose to 59.3 from 55.7, above Annolyse's three-period average of 55.4 days. The inventory balance increased to NZ$81.3m from NZ$77.8m even as inventory days fell to 76.1 from 80.4; lower days therefore do not mean the inventory balance was reduced. The cash-flow statement separately shows NZ$3.8m of working-capital absorption.

Both divisions grew, with a modest mix shift toward Agri. Industrial Division revenue rose 9% to NZ$262.8m and its margin expanded to 21.5% from 20.1%, but its share of group revenue fell about 0.9 percentage points to 67.4%. Agri Division revenue rose 13% to NZ$128.4m, its revenue share increased about 0.7 percentage points, and its margin eased to 30.8% from 31.1%. The group mix therefore shifted modestly toward the higher-margin Agri division, not toward Industrial.

Against the interim guidance range of $57m to $62m NPAT set at the half year, both reported NPAT ($67.7m) and normalised NPAT ($64.2m) came in above the top of that range, indicating the full-year outcome beat the guided level management had flagged. The half-year result contributed 46.3% of full-year EBITDA on a statutory basis, implying a stronger second half, but this reported split should not be read as an underlying operating run-rate given the non-recurring item sitting in the full-year numbers.

Net debt fell to NZ$2.0m and leverage strengthened to 0.02x EBITDA from 0.13x. The full-year dividend rose to 30.0 cents per share from 25.5 cents. Skellerup disclosed that dividend as approximately 92% of normalised NPAT; Annolyse's separate reported-NPAT calculation is 86.9%, so the two payout figures have different earnings bases.

Set against this, the $4.8m pre-tax non-recurring gain means part of the reported earnings growth is not organic, and debtor days above the historical range warrant continued attention even though the immediate cash-flow effect has been contained.

This briefing cannot assess whether the modest FY26 mix shift toward Agri will continue beyond what has been disclosed for FY26.