Apple-led 14.5% revenue lift drives T&G to $61.8m free cash flow

Revenue rose 14.5% to NZ$1.6b — well above Annolyse's historical baseline, where the four-period mean is -0.9% and the prior range was -4.4% to 2.3%. Profit before tax swung from a NZ$6.8m loss to NZ$21.9m (+420.6%), and NPAT attributable to shareholders moved from -NZ$16.0m to NZ$10.2m (+163.7%).

The Apples segment did most of the work: revenue rose to NZ$1b (67.3% of group, up 4.1pp) with segment result of NZ$74.7m versus NZ$43.7m. T&G Fresh delivered NZ$19.6m versus NZ$3.6m, while the "Other" segment loss widened to -NZ$45.0m. Operating cash flow rose 51.6% to NZ$91.9m and pre-lease free cash flow reached NZ$61.8m, against a historical mean of -NZ$30.5m. Net debt fell to NZ$147.2m from NZ$168.2m.

Apples generated NZ$74.7m of segment result on NZ$1b of revenue, while the "Other" line lost NZ$45.0m and absorbed most of the corporate overhead. This means group profitability is highly geared to premium apple pricing and yields; a single weak apple season would meaningfully reverse the swing visible in this result.

Cash generation reached an unprecedented level, but partly via lower capex. Pre-lease FCF of NZ$61.8m is the strongest in the supplied four-year history (range -NZ$100.4m to NZ$15.0m). Capex fell 34% to NZ$30.1m (1.9% of revenue, down from 3.4%), contributing roughly NZ$15.5m of the year-on-year FCF improvement. Working-capital movement was effectively flat (+NZ$1.7m), so the cash improvement is real, but a portion reflects a step-down in investment rather than recurring earnings power.

The tax line and minority interests both flatter the headline. The effective tax rate of 26.7% sits below the historical normal range (mean 46.2%, range 27.5%–74.2%), so PBT growth of 420.6% is the cleaner operating read rather than NPAT growth of 163.7%. Separately, profit after tax was NZ$16.0m on the face of the income statement, but NZ$5.8m accrued to non-controlling interests, leaving NZ$10.2m for shareholders.

Against the HY25 shape, the second half clearly carried the year: HY25 NPAT was -NZ$1.1m, implying second-half NPAT of NZ$11.3m, and HY25 revenue of NZ$920.6m implies a softer NZ$638.1m second half (a counter-seasonal pattern consistent with apple harvest timing).

That shape matters because it makes the result heavily dependent on the late-year apple campaign. Without a forward target or order-book disclosure, the release does not support a view on FY26; it confirms the FY25 swing is real but leaves the durability of premium apple pricing untested.

Operating cash flow rose NZ$31.3m, broadly tracking the NZ$28.7m PBT improvement, and working capital did not flatter the cash result — receivables rose 8.6% to NZ$207.7m (debtor days at 48.7, the upper edge of the historical 6.3–51.3 day range) while inventories fell 22.4%, leaving operating working capital essentially flat. Net debt reduction of NZ$21.0m and ROE recovery to 2.0% (from -3.3%) are durable.

The flattering elements warrant attention. The 26.7% effective tax rate is below the historical normal range and lifted reported NPAT relative to PBT growth. The NZ$15.5m capex reduction sits behind a meaningful share of the FCF print; the release does not disclose whether this is a permanent re-baselining of orchard and infrastructure spend or a one-year pause. ROE of 2.0% remains modest in absolute terms despite being above the supplied historical range.

This briefing cannot assess the durability of premium apple pricing, the multi-year capex requirement, or how the upgraded PBT guidance compares to FY26 consensus.