Table of Contents
What changed
Revenue rose 2.0% to NZ$1,360.9m, but the earnings picture improved far more sharply. The pre-tax loss narrowed from NZ$64.2m to NZ$6.8m (+89.4%), and NPAT improved from -NZ$51.2m to -NZ$16.0m (+68.7%). Operating profit swung to NZ$12.7m from a NZ$45.6m loss. Operating cash flow more than doubled to NZ$60.7m, and with capex cut to NZ$45.7m from NZ$68.5m, pre-lease free cash flow turned positive at NZ$15.0m (vs -NZ$42.9m). Gross borrowings rose to NZ$215.0m from NZ$197.4m; cash lifted to NZ$46.8m, leaving estimated net debt broadly flat at NZ$168.2m, while equity fell NZ$31.2m. Segment mix concentrated further on Apples, which delivered NZ$859.1m revenue (+7.5%) and NZ$43.7m segment operating profit (vs NZ$10.6m), offsetting deterioration at T&G Fresh (operating result of NZ$3.6m vs NZ$11.1m).
What matters
- Apples is now carrying the group. Apples contributed roughly 63% of revenue and essentially all segment profit at ~5.1% margin. T&G Fresh margin thinned to <1%, and VentureFruit plus "Other" together lost ~NZ$34.6m. Earnings quality is therefore highly dependent on one crop category and on ENVY™/JAZZ™ demand holding.
- PBT is the cleaner read. The 89.4% PBT improvement is 20.7pp better than the 68.7% NPAT improvement. The effective tax rate was 44.8% on a pre-tax loss (vs 27.5% prior) — an unusual drag that makes NPAT the noisier measure. There is also a roughly NZ$9.2m gap between continuing-operations profit of -NZ$9.9m and reported NPAT of -NZ$16.0m that is not separately characterised in the supplied excerpts.
- Balance sheet is modestly weaker despite the operational turnaround. Total liabilities rose NZ$85.6m while equity fell NZ$31.2m. Net debt edged up even after a much stronger cash year, and receivable days extended by 5.5 days to 51.3, absorbing NZ$22.7m into operating working capital.
Expectations
No FY25 guidance, quantitative forward-work figure, or stated medium-term target is disclosed in the supplied excerpts. HY24 represented 60.3% of full-year revenue and all of the full-year loss (HY24 NPAT was -NZ$21.4m; the implied second half was a ~NZ$5.4m profit), consistent with the normal apple harvest seasonality. On that shape, the second-half profit inflection is the critical data point, but there is no management quantum provided against which to benchmark it. The release supports the claim that the weather-impacted FY23 base has largely been absorbed; it does not support a view on what a normalised-year earnings level looks like.
Quality of result
Mixed. The cash-flow uplift looks partly durable — Apples volumes and pricing drove segment profit up NZ$33.0m — but three items temper the read. First, NZ$22.8m of the NZ$35.1m operating cash improvement is matched by the drop in capex rather than by earnings; operating cash flow itself benefited from working-capital timing that was not detailed. Second, receivable days extended meaningfully (45.8 → 51.3), which flatters current-period revenue recognition relative to cash collected. Third, the group recorded an NZ$8.4m FX translation adjustment in the cash flow statement, and no hedge quantification is provided. Segment concentration in Apples means a single-season weather event could reverse a material share of the improvement.
Unresolved
- What explains the ~NZ$9.2m gap between continuing-operations loss (-NZ$9.9m) and reported NPAT (-NZ$16.0m)? The extraction records no discontinued-operation line, so the driver is not disclosed here.
- Why was the effective tax rate 44.8% on a pre-tax loss, and is that a one-off or structural?
- What drove the NZ$7.5m decline in T&G Fresh segment result on higher revenue, and is it recurring?
- No dividend declaration, NTA per share, net-debt-to-EBITDA covenant headroom, or FY25 guidance is provided in the supplied material.
This briefing cannot assess covenant headroom, dividend policy, or any management outlook commentary beyond what appears in the supplied excerpts.
Key metrics
| Metric | FY24 | FY23 | Change |
|---|---|---|---|
| Revenue | $1360.9m | $1334.3m | +2.0% ↑ |
| Net profit after tax | −$16.0m | −$51.2m | +68.7% ↑ |
| Net cash inflow from operating activities | $60.7m | $25.6m | +137.3% ↑ |
| Operating profit | $12.7m | −$45.6m | +127.8% ↑ |
| Profit before tax | −$6.8m | −$64.2m | +89.4% ↑ |
| Cash and cash equivalents | $46.8m | $30.5m | +53.4% ↑ |
| Total assets | $1129.5m | $1075.2m | +5.1% ↑ |
Reference: annolyse.ai/briefings/tgg-fy24
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Apples | $859.1m | $799.0m | $43.7m | +3.2pp |
| T&G Fresh | $455.3m | $434.5m | $3.6m | +0.9pp |
| VentureFruit | $13.0m | $9.0m | −$4.3m | +0.3pp |
| Other | $33.5m | $0.1m | −$30.3m | +2.5pp |
Reference: annolyse.ai/briefings/tgg-fy24
Analytical metrics
| Metric | FY24 | FY23 | Context |
|---|---|---|---|
| FCF pre-lease | $15.0m | −$42.9m | +$57.9m |
| FCF / NPAT | -93.5% | 84.0% | complementary conversion metric |
| Capex % revenue | 3.4% | 5.1% | — |
| Capex | −$45.7m | −$68.5m | +$22.8m |
| Debtor days | 51.3 | 45.8 | +5.5 days |
| Inventory days | 17.8 | 18.5 | -0.7 days |
| Operating working capital | $257.7m | $235.0m | +$22.7m absorbed |
| Trade debtors | $191.2m | $167.4m | +$23.8m |
| Net debt | $168.2m | $166.9m | +$1.3m |
| Gross borrowings | $215.0m | $197.4m | +$17.6m |
| ROE (annualised) | -3.3% | -9.8% | Strengthening |
| HY24 share of FY24 revenue | 60.3% | — | Other half was 39.7% |
| HY24 share of FY24 NPAT | 133.6% | — | Other half was -33.6% |
| Profit from continuing operations | −$9.9m | −$51.2m | +$41.3m |
Reference: annolyse.ai/briefings/tgg-fy24
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.