Livestock Improvement Corporation (LIC) investor relations material

Executive summary

• Revenue for the six months ended 30 November 2025 was NZ$195.2 million, up 5.2% year-over-year, driven by volume growth in key segments and improved underlying earnings.

• Net profit after tax was NZ$33.8 million, down 13.5% year-over-year due to the absence of prior year's bull team revaluation gain and investment costs.

• Underlying earnings rose to NZ$36.8 million, with underlying EPS at NZ$0.26, compared to NZ$33.7 million and NZ$0.24 last year.

• Increased demand for sexed semen, animal health services, and genomics reflects a farmer focus on genetic gain and confidence in products.

• Comprehensive income for the period was NZ$35.3 million.

Financial highlights

• Gross margin improved, with segment gross profit before tax at NZ$78.7 million, up from NZ$72.9 million year-over-year.

• Cash and cash equivalents at period end were NZ$34.7 million, down from NZ$57.1 million at year-end and NZ$29.7 million a year ago.

• Net operating cash flows were NZ$12.2 million, up from NZ$11.4 million year-over-year.

• Dividends paid in the period totaled NZ$17.4 million, more than double the prior year.

• Total revenue rose 5.2% to $195.2 million compared to the same period last year.

Outlook and guidance

• November results are not indicative of the full year due to seasonality, as most artificial breeding revenues are recognized in the first half while costs are spread across the year.

• Underlying earnings forecast for year-end remains at $20-24 million, unchanged from previous guidance.

• Market guidance assumes no significant events or milk price changes before year-end.