NPAT up 93.3% but margins sit inside South Port's normal range

Both growth rates are unprecedented in Annolyse's historical baseline (PBT four-period mean -2.7%, range -40.6% to 44.4%; NPAT four-period mean -2.5%, range -41.1% to 46.6%) — but the comparable HY24 was at the bottom end of that same range, with NPAT then down 41.1% on a depressed cargo profile.

Operating cash flow swung to NZ$7.0m from NZ$0.9m, gross borrowings reduced 11.9% to NZ$38.3m, and net debt fell to NZ$35.0m from NZ$42.0m. The interim dividend was held flat at 7.5 cps, dropping the payout-versus-NPAT ratio to 34.3% from 64.7% in the prior comparable.

Despite the unprecedented PBT growth, PBT margin of 27.4% sits within the historical normal range (mean 28.8%) and NPAT margin of 19.6% is also within range (mean 20.5%). This matters because the read is volume recovery off a weak HY24, not a step-change in port economics — fertiliser imports rebounded from a "particularly low level," container trade extended its FY24 momentum, and a new Meridian Energy transfer agreement adds throughput.

NZAS was only partially contributing. Management states the NZAS potline is being progressively brought back online with full production expected by April 2025, meaning HY25 carried reduced alumina imports and aluminium exports for most of the half. This matters because the second-half NZAS contribution is mechanically incremental, not contingent on market conditions.

Balance sheet meaningfully de-geared. Gross borrowings fell NZ$5.2m and equity grew 5.3% to NZ$60.9m, lifting ROE to 9.4% from 5.3% (mean 9.7%, within normal range). The de-gearing widens optionality for capex or distribution decisions later in FY25.

Annolyse's historical baseline shows the business is second-half-weighted: HY24 represented only 41.1% of FY24 NPAT and 6.9% of FY24 operating cash flow. HY25 NPAT of NZ$5.8m is already 78% of full-year FY24 reported NPAT (NZ$7.4m), and the NZAS ramp lands inside the second half. The honest reference point is FY24 normalised NPAT of NZ$9.96m disclosed in the full-year release, since reported FY24 NPAT was depressed by one-offs; on that basis the normalised earnings trajectory is the relevant benchmark, not the GAAP comparable. The release does not quantify that gap for HY25.

The effective tax rate of 28.9% is essentially flat against the prior 29.3% and within the historical normal range, so PBT and NPAT growth move together (gap of -4.9 pp) without tax distortion. The cash flow swing from NZ$0.9m to NZ$7.0m is large in percentage terms but is partly a comparison artefact — HY24 operating cash flow was only 6.9% of FY24 — so HY25 conversion looks healthy without being structurally above the historical pattern.

What the release does not disclose limits the quality read: there is no EBITDA, capex, free cash flow, debtor or working-capital movement detail in the supplied financial statements, and no normalised HY25 earnings reconciliation comparable to the FY24 normalised disclosure. Earnings durability therefore rests on the visible volume narrative — fertiliser normalisation, containers, NZAS recovery, the Meridian agreement — rather than on a verifiable cash-bridge.

This briefing cannot assess segment-level profitability, capex intensity, working-capital movement, or normalised HY25 earnings, because none of those are disclosed in the supplied half-year materials.