Australian Agricultural Company (AAC) H1 2025 earnings summary

Executive summary

• Statutory net profit after tax reached $23.6 million for H1FY25, reversing a $105.5 million loss in H1FY24, driven by a $34–34.6 million unrealized herd revaluation as cattle prices rebounded.

• Revenue rose 17% year-over-year to $195.5–$195.6 million, supported by a 37% increase in Wagyu beef volumes and expanded branded sales globally.

• Operating profit was $20.2 million, down from $30.1 million prior year, reflecting lower product margins and a 17% drop in Wagyu sales price per kg amid global market pressures.

• Branded sales for Westholme, Darling Downs, and 1824 grew globally, with Westholme and Darling Downs achieving strong volume and revenue growth.

• Net tangible assets per share increased 2% to $2.55, reflecting herd value growth and a robust balance sheet.

Financial highlights

• Statutory EBITDA was $64.5 million, up from a loss of $124.9 million in H1FY24, mainly due to herd fair value uplift.

• Operating cash flow improved to $4.3 million, up from $2.6 million year-over-year.

• Net tangible assets per share rose to $2.55, up from $2.51 at 31 March 2024.

• Gearing ratio held at 23.7%, at the low end of the 20%-35% target range.

• Gross margin improved to $150.7 million from a negative $51.8 million year-over-year.

Outlook and guidance

• Production volumes are expected to remain stable, leveraging integrated supply chain and recent property expansions.

• Industry analysts expect global meat oversupply to ease through FY26, potentially benefiting branded products.

• Ongoing investment in brand, commercial resources, and sustainability initiatives, including soil carbon sequestration.

• Focus remains on quality, efficiency, and value creation from premium branded Wagyu beef operations.