AFC Group (AFC) H2 2026 earnings summary

Executive summary

• Operating revenue for the year ended 31 March 2026 was NZ$161,285, down sharply from NZ$741,088 year-over-year, primarily due to lower sales, especially in overseas wine markets and weak demand in China.

• Net loss for the year was NZ$818,093, compared to a net loss of NZ$184,806 in the prior year, reflecting ongoing operational challenges and macroeconomic headwinds.

• The Group's net assets stood at NZ$206,390 as of 31 March 2026, with cash and bank balances of NZ$39,437 and property, plant, and equipment valued at NZ$1,463,053.

• The Group remains reliant on ongoing shareholder support and prudent cash management to sustain operations.

Financial highlights

• Gross loss for the year was NZ$75,004, compared to a gross profit of NZ$377,196 in the previous year.

• Operating loss was NZ$637,305, up from NZ$59,233 year-over-year.

• Net finance expense increased to NZ$184,102 from NZ$127,982 year-over-year.

• Basic and diluted EPS was (0.00014) NZ$, compared to (0.00004) NZ$ in the prior year.

• Cash outflow from operating activities was NZ$570,243, compared to NZ$275,697 in the previous year.

Outlook and guidance

• Management forecasts a return to break-even and modest profitability by 2029, contingent on successful implementation of growth initiatives and continued shareholder support.

• Strategic focus includes expanding wine exports to China, strengthening biotechnology sales, and pursuing M&A and reverse takeover opportunities.

• The Group is integrating operations with its major shareholder to leverage shared resources and market access.