Australian Agricultural Company (AAC) H1 2025 earnings summary

Executive summary

• Statutory net profit after tax reached AUD 23.6 million for H1FY25, reversing a prior year loss of AUD 105.5 million, driven by a AUD 34–34.6 million unrealized herd value adjustment as cattle prices rebounded.

• Operating profit was AUD 20.2 million, down from AUD 30.1 million year-over-year, reflecting margin pressure and global market challenges.

• Total revenue rose 17% year-over-year to AUD 195.5–195.6 million, driven by a 37% increase in Wagyu meat volumes and higher production.

• Branded sales for Westholme, Darling Downs, and 1824 grew globally, despite a 17% drop in Wagyu meat sales price per kilogram.

• Focused on brand development, global distribution, and sustainability initiatives.

Financial highlights

• Statutory EBITDA was AUD 64.5 million (H1FY24: loss of AUD 124.9 million), and statutory EBIT was AUD 50.9 million (H1FY24: loss of AUD 136.7 million).

• Operating cash flow increased to AUD 4.3 million, up from AUD 2.6 million year-over-year.

• Net tangible assets per share rose to AUD 2.55, up 2% from March 2024.

• Gearing ratio held at 23.7%, with AUD 179 million in unutilized borrowing capacity.

• Gross margin decreased to AUD 49.3 million from AUD 57.8 million prior year, reflecting cost pressures and lower average sales price.

Outlook and guidance

• No formal guidance provided, but production volumes are expected to normalize at current levels.

• Global beef oversupply is expected to ease through FY26, with cattle prices anticipated to remain stable.

• Continued investment in brands, marketing, and sustainability initiatives planned for the second half.

• Board remains focused on maximizing earnings and value creation from premium branded Wagyu beef operations.