Midway (MWY) H2 2024 earnings summary

Executive summary

• Achieved first NPAT profit since FY 2019, with underlying EBITDA rising to $14.2M (up $11.3M year-over-year), positive operating cashflow of $22.8M, and a net profit after tax of up to $2.0M, enabling dividend resumption.

• Strategic review and asset sales since 2022 led to a stronger balance sheet, with plantation estate sales exceeding $173M, and operational improvements in Geelong and Tasmania.

• Carbon business established, managing over 10,000 hectares, with a $350M investment mandate and a growing project pipeline.

• Special and ordinary dividends declared and paid, with a fully franked special dividend of up to 14.5c/share and ordinary dividend of 1.6c/share.

• Geelong and Tasmanian operations drove volume and financial improvements, with new product exports, infrastructure development, and new supply agreements.

Financial highlights

• Sales revenue increased to $273.5M (up $85.7M year-over-year), with underlying EBITDA at $14.2M and net profit after tax up to $2.0M.

• Positive operating cashflow of $22.8M, driven by inventory reduction and asset sales.

• Net cash position of $20.5M at year-end, projected to rise to $40–45M post grain terminal proceeds, before dividends.

• All short and long-term debt repaid by June 2024; current asset ratio at 3.64.

• Net tangible asset backing per share increased to 165.4c.

Outlook and guidance

• Expectation of $10–15M underlying EBITDA through the cycle, with carbon business earnings to become meaningful in 2–4 years as project pipeline matures.

• Grain project to contribute revenue from 2H25; land sale of 5.15ha for $15.5M to settle in Q2 FY25.

• Cautious optimism for wood fibre demand, with most 1H25 sales volumes contracted and ongoing market volatility.

• Carbon market expected to tighten from 2026, with rising ACCU demand and prices.