Revenue up 71.3% but comparison base was reshaped by acquisition and disposal

EBITDA margin fell to 10.0%, at the lower edge of Savor's historical range and 2.4 percentage points below the 12.4% five-period average, even as absolute EBITDA grew. The PBT and NPAT loss narrowed 53.7% to -NZ$2.3m from -NZ$5.0m, helped in part by the prior year carrying a -NZ$3.5m discontinued-operation loss that did not recur. Operating cash flow rose 105.5% to NZ$6.1m and net debt/EBITDA eased to 2.27x from 4.03x, though it remains above the 1.76x historical mean.

Capital raise adds balance-sheet context, with NZ$3.3m capital raised, but borrowings and gearing are the direct leverage evidence.

Capital raise adds balance-sheet context, with NZ$5.3m capital raised, but borrowings and gearing are the direct leverage evidence.

Capital raise adds balance-sheet context, with NZ$7.9m capital raised, but borrowings and gearing are the direct leverage evidence.

The 71.3% revenue growth and 53.7% NPAT improvement are measured against an FY22 base distorted by an acquisition and a discontinued operation, so these are not organic like-for-like figures. This matters because investors reading FY23 as confirmation of a sustained growth trajectory would be extrapolating from a base year that is not representative of ongoing operations.

Margin dilution despite scale. EBITDA margin of 10.0% sits at the lower edge of the historical range (mean 12.4%, range 9.8%-14.5%), which means the larger revenue base has not translated into proportionate earnings gains. This points to either lower-margin acquired venues in the mix or cost pressure that a pure revenue-growth headline obscures.

Leverage still elevated versus history. Net debt/EBITDA of 2.27x has improved from 4.03x a year ago but remains above the 1.76x historical average, so balance-sheet flexibility, while directionally better, has not fully normalised.

The half-year shape shows first-half revenue at 39.5% of the full year and first-half EBITDA at only 26.8% of the full year, confirming a strongly second-half-weighted trading pattern typical of hospitality seasonality. Without a specific numeric target to test, the release supports a read that the second half carried the bulk of both revenue and earnings, but it does not establish whether that skew is improving or simply repeating prior seasonality.

Capex intensity rose to 8.2% of revenue from 6.3%, and free cash flow to NPAT was -76.9%, reflecting a capex-heavy expansion phase. Pre-lease free cash flow of NZ$1.8m sits within Savor's historical range but is below the NZ$3.2m five-period mean, so the durability of the cash story is more modest than the headline OCF growth suggests once capex and working-capital movements are taken into account.

This briefing cannot assess whether the underlying organic (like-for-like) revenue and earnings trend, stripped of the acquisition and discontinued-operation effects in the comparative base, is improving or deteriorating.