Winton Land (WIN) H2 2024 earnings summary

Executive summary

• FY24 revenue was NZD 173.6 million, down 21.5% year-over-year, with 345 units settled amid challenging market conditions and a prior year of strong delivery.

• Development margin remained above 40%, with gross profit of NZD 70.3 million and profit after tax of NZD 15.7 million, reflecting a 75.6% decline.

• Presale book increased to NZD 411.7 million as of August 2024, supporting future revenue and visibility.

• Significant progress on master-planned communities, including resource consents for all five Northbrook locations and the opening of Ayrburn hospitality precinct, which attracted over 150,000 visitors and won awards.

• Diversification into commercial and retirement living segments, with Ayrburn and Cracker Bay contributing to annuity income and segment expansion.

Financial highlights

• Residential development revenue was NZD 162.5 million, with average revenue per unit rising to NZD 470,000 from NZD 374,000 year-over-year.

• EBITDA was NZD 29.5 million, down 69.1% from NZD 95.6 million in FY23; net profit after tax was NZD 15.7 million, down from NZD 64.6 million.

• Commercial revenue increased to NZD 11 million, mainly from Ayrburn and Cracker Bay.

• Cash holdings at year-end were NZD 41.7 million; inventories decreased due to higher settlements.

• One-off non-cash deferred tax liability adjustment of NZD 2.9 million due to tax legislation change impacted FY24 profit.

Outlook and guidance

• Market conditions in New Zealand housing remain difficult, with high housing stock, falling consents, and elevated insolvencies; no formal guidance issued for FY25.

• Management remains cautious for FY25, focusing on financial discipline and long-term shareholder value.

• Plans to commence major projects during the market trough to benefit from lower construction costs and complete at the next cycle peak.