Table of Contents
What changed
Revenue rose 14.5% to NZ$1,558.7m and operating profit rose 270.4% to NZ$46.9m. Profit before tax swung to NZ$21.9m from a NZ$6.8m loss, and parent NPAT swung to NZ$10.2m from a NZ$16.0m loss. Operating cash flow improved 51.6% to NZ$91.9m, while capex stepped down to NZ$30.1m from NZ$45.7m, lifting pre-lease free cash flow to NZ$61.8m from NZ$15.0m. Gross borrowings fell to NZ$194.8m from NZ$215.0m and estimated net debt improved to NZ$147.2m from NZ$168.2m. The mix became more apple-led: Apples revenue grew to NZ$1,049.4m (67.3% of group from 63.2%) and its segment result rose to NZ$74.7m from NZ$43.7m, while T&G Fresh delivered NZ$19.6m from NZ$3.6m on broadly flat revenue.
What matters
- Apples is now carrying the result. Segment profit of NZ$74.7m compares with a group PBT of NZ$21.9m; unallocated/"Other" costs widened their drag to NZ$45.0m from NZ$30.3m. Earnings quality hinges on a single crop and brand family (ENVY, JAZZ) holding premium pricing.
- Cash and leverage both improved genuinely. OCF grew faster than revenue and capex intensity fell to 1.9% of sales from 3.4%, funding a ~NZ$20m reduction in gross borrowings. That is the cleanest read in the release.
- PBT is the better operating read than NPAT. PBT grew 420.6% while NPAT grew 163.7%, a 256.9pp gap driven by tax normalisation (26.7% effective rate in FY25 vs a prior-year loss) and minority allocation – continuing profit after tax was NZ$16.0m but parent NPAT was NZ$10.2m. No discontinued operation is disclosed.
Expectations
No quantitative guidance, forward-work figure or dividend was provided in the supplied material, so the release cannot be benchmarked against management targets. On shape, HY25 delivered NZ$920.6m of revenue (59.1% of the full year) and annualises to ~NZ$1,841m – above the NZ$1,558.7m actual – indicating a softer second-half top line. Profit was, however, clearly second-half weighted: HY25 posted a NZ$1.1m loss, so the implied H2 NPAT is ~NZ$11.3m, consistent with apple harvest seasonality rather than broad-based momentum.
Quality of result
The result is better-than-headline on cash and worse-than-headline on breadth. Pre-lease FCF of NZ$61.8m is 6.05x parent NPAT, helped materially by a NZ$15.5m step-down in capex – a durable gain only if the lower spend is sustainable rather than deferral. Working capital supported rather than distorted the result: receivable days improved to 48.6 from 51.3 and inventory days to 12.1 from 17.8, with operating working capital broadly flat at ~NZ$259.4m despite 14.5% revenue growth. Against that, concentration risk is high (Apples ~67% of revenue, T&G Fresh ~30%), the corporate/"Other" loss widened, no EBITDA or non-GAAP reconciliation was disclosed, and FX translation effects are noted without a sensitivity table.
Unresolved
- What portion of the Apples uplift is price (premium ENVY/JAZZ realisation) versus volume, and how repeatable is it into FY26?
- Is the NZ$30.1m capex run-rate the new baseline, or deferred spend that will rebuild?
- Why did the "Other" segment loss widen to NZ$45.0m, and is that a structural cost base or allocation artefact?
- With NPAT positive and net debt reduced, why was no dividend declared, and what is the capital allocation framework?
- FX exposure is described as material but unquantified – what is the sensitivity to NZD/USD and NZD/EUR?
This briefing cannot assess valuation, ROIC, or segment-level cash generation, as NTA per share, EBITDA, and segment cash flows were not disclosed in the supplied material.
Key metrics
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | $1558.7m | $1360.9m | +14.5% ↑ |
| Net profit after tax | $10.2m | −$16.0m | +163.7% ↑ |
| Net cash inflow from operating activities | $91.9m | $60.7m | +51.6% ↑ |
| Operating profit | $46.9m | $12.7m | +270.4% ↑ |
| Profit before tax | $21.9m | −$6.8m | +420.6% ↑ |
| Total assets | $1139.4m | $1129.5m | +0.9% ↑ |
Reference: annolyse.ai/briefings/tgg-fy25
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Apples | $1049.4m | $859.1m | $74.7m | +4.1pp |
| T&G Fresh | $461.0m | $455.3m | $19.6m | -3.9pp |
| VentureFruit | $9.0m | $13.0m | −$2.4m | -0.4pp |
| Other | $39.3m | $33.5m | −$45.0m | +0.0pp |
Reference: annolyse.ai/briefings/tgg-fy25
Analytical metrics
| Metric | FY25 | FY24 | Context |
|---|---|---|---|
| Effective tax rate | 26.7% | n/m (loss period) | prior loss period |
| FCF pre-lease | $61.8m | $15.0m | +$46.8m |
| FCF / NPAT | 605.1% | -93.5% | complementary conversion metric |
| Capex % revenue | 1.9% | 3.4% | — |
| Capex | −$30.1m | −$45.7m | +$15.5m |
| Debtor days | 48.6 | 51.3 | -2.7 days |
| Inventory days | 12.1 | 17.8 | -5.7 days |
| Operating working capital | $259.4m | $257.7m | +$1.7m absorbed |
| Trade debtors | $207.7m | $191.2m | +$16.5m |
| Net debt | $147.2m | $168.2m | −$21.0m |
| Gross borrowings | $194.8m | $215.0m | −$20.2m |
| Payout ratio vs NPAT | 0.0% | — | — |
| Payout ratio vs FCF pre-lease | 0.0% | — | covered |
| ROE (annualised) | 2.0% | -3.3% | Strengthening |
| HY25 share of FY25 revenue | 59.1% | — | Other half was 40.9% |
| HY25 share of FY25 NPAT | -10.7% | — | Other half was 110.7% |
| Profit from continuing operations | $16.0m | −$9.9m | +$25.9m |
Reference: annolyse.ai/briefings/tgg-fy25
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.