Lynch Group (LGL) H1 2025 earnings summary

Executive summary

• Group revenue rose 5.3% year-on-year to AUD 196.5 million in 1H FY25, with stable performance in Australia and strong growth in China despite margin pressure.

• EBITDA was AUD 16.5 million, slightly below last year, with margin at 8.4%, reflecting improvement in Australia and decline in China.

• NPATA fell 51% to AUD 1.1 million, as China was loss-making and Australia remained profitable.

• Interim fully franked dividend of AUD 0.05 per share declared, up AUD 0.01 from last year, payable 19 March 2025.

• Automation initiatives and sustainability progress highlighted, with new bouquet-making lines improving productivity and ongoing work across six sustainability pillars.

Financial highlights

• Group revenue reached AUD 196.5 million, up 5.3% year-on-year; EBITDA margin was 8.4%.

• Australia revenue grew 3.9% to AUD 163.7 million, with EBITDA up 7.2% to AUD 14.6 million.

• China revenue rose 19.7% to AUD 43.6 million, driven by volume growth, but EBITDA fell by 36.8% to AUD 1.9 million due to lower rose prices.

• Cash conversion for the half was 46%, impacted by seasonal inventory build and timing of customer receipts.

• Free cash flow was negative AUD 4.3 million, reflecting seasonal working capital build and dividend payment.

Outlook and guidance

• FY2025 group revenue growth expected at around 6%, with stronger second half performance anticipated.

• EBITDA margin projected to remain broadly in line with FY2024.

• Further guidance to be provided after the Mother's Day event in May 2025.

• Australia: Revenue up 7% in first seven weeks of 2H FY25; strong Mother's Day forward orders.

• China: Revenue up 15% in the first seven weeks of the second half, mainly ASP-driven.