Lynch Group (LGL) H2 2025 earnings summary

Executive summary

• FY 2025 revenue reached AUD 430.5 million, up 8.2% year-on-year, with EBITDA of AUD 43.2 million, up 9.1% and exceeding updated guidance, driven by robust Australian demand and improved China performance in the second half.

• Australia saw 6.4% revenue growth, led by supermarket floral demand, new brand launches, and SOR store conversions.

• China delivered 18.3% revenue growth, led by tulips and exports, despite weak domestic consumer confidence.

• A scheme of arrangement was announced for Hasfarm Holdings/TPG Capital Asia to acquire 100% of shares at AUD 2.245 per share, including a fully-franked dividend.

• Final fully franked dividend of 9.0 cents declared, totaling 14.0 cents for the year (7.8% yield).

Financial highlights

• Group revenue reached AUD 430.5 million, up 8% year-on-year; underlying EBITDA was AUD 43.2 million, up 9%.

• Group EBITDA margin held at 10.0%, with Australia improving by 20 bps and China declining by 50 bps.

• Net profit after tax (adjusted for non-cash amortization) was AUD 10.2 million, up AUD 1 million from the prior year.

• Cash conversion remained strong at 96%, with positive free cash flow in both regions.

• Total dividends for the year were AUD 0.14 per share, up AUD 0.02, with a yield of 7.8%.

Outlook and guidance

• Australian revenue growth is expected to remain positive, supported by supermarket partnerships, product innovation, and SOR conversions.

• China revenue is closely tied to consumer confidence and event-driven demand; margins will depend on market conditions and sector recovery.

• Early FY 2026 trading: Australian revenue up 4% in first seven weeks; China revenue down 14% due to adverse weather.

• Queensland farm closure anticipated by end of FY26; further trading guidance to be provided at AGM.