QAF (Q01) H2 2023 earnings summary

Executive summary

• FY2023 continuing-operations revenue rose 9% to $628.6m; EBITDA before exceptional items increased 5% to $48.0m and PBT after exceptional items rose 10% to $41.0m.

• Profit attributable to owners increased 42% to $27.5m; year-end net cash was $166.8m, with a proposed FY2023 dividend of $0.05 per share in total.

• Growth reflected pricing and product mix, travel-related demand recovery and sales gains across bakery and distribution; inflation, high interest rates and geopolitical uncertainty remain headwinds.

Financial highlights

• Revenue from continuing operations was $628.6m, up 9% reported and 12% in constant currency; EBITDA before exceptional items rose 5% to $48.0m.

• PBT after exceptional items increased 10% to $41.0m; continuing-operations PAT was $27.6m, up 6%, while PAT attributable to owners was $27.5m.

• Exceptional insurance receipts for Malaysia flood damage were $13.8m, down from $19.5m in FY2022; JV impairment was $9.5m versus $5.0m.

• Operating cash flow was $57.6m; capital expenditure cash flow was $39.7m, including flood-damage reinstatement work.

Outlook and guidance

• For 2024, inflation is expected to ease more slowly; higher-for-longer interest rates, slower growth and geopolitical conflicts add uncertainty.

• Priorities include expanding routes and channels, developing products, adjusting pricing and mix, growing long-shelf-life trading and pursuing new markets.

• Cost actions include reviewing operations, improving efficiency, optimizing manufacturing capacity and managing costs; the strong balance sheet is intended to support resilience and suitable growth opportunities.

• Singapore bakery conditions are expected to remain challenging; price and product mix actions, promotions, product launches and efficiency improvements are planned to support affordability and growth.

• Australian bakery capacity expansion is expected to complete in 3Q 2024, targeting 35% higher production output over the coming years.