NZX Limited

Fantastic full year result from NZX Limited: Growth across all  segments.

NZX has had a standout year, delivering strong growth across its market operations, fund management, and wealth technology businesses.

Key Highlights from 2024:

• Operating earnings up 21% to $48.5M (excluding integration and restructure costs)
• Revenue growth of 11.4% to $120.8M
• Net profit after tax surging 88% to $25.5M
• Capital raised up 11.6% to $15.8B
• Shareholder returns of ~64% in the past year

Business Segment Performance:

• Markets & Trading – Trading activity surged in H2 2024, driven by lower interest rates and major index rebalancing events. Total value traded rose 22.9% to $41.5B, making this NZX’s third-best year ever.
• Smart (Fund Management) – Funds under management hit $13.5B, up 22.6% YoY, reflecting steady growth in passive investment products.

NZX Wealth Technologies – Achieved positive cash flow for the first time in December, winning 12 new clients and growing funds under administration by 40.4% to $16.2B.

EBOS Group Limited half-year results overview

As expected, EBOS Group has reported solid underlying growth across its diversified business segments:

• Revenue: $6.0 billion (up 9.5%)
• Underlying EBITDA: $291 million (up 7.1%)
• Underlying NPAT: $131 million
• EPS: 67.5 cents
• Interim Dividend: NZ 57.0 cents per share (unchanged from H1 FY24)

Healthcare: The segment achieved a 7.0% increase in underlying EBITDA, driven by growth in community pharmacy, Terry White Chemmart, and institutional healthcare businesses.

Animal Care: The segment saw a 7.2% increase in underlying EBITDA, supported by the strong performance of branded products like Black Hawk and VitaPet.

In line with its growth strategy, EBOS has made several investments in Southeast Asia, including acquisitions in the Medical Technology sector and an increased shareholding in Transmedic.

Despite the loss of the Chemist Warehouse Australia (CWA) contract, the company is on track to meet its full-year EBITDA guidance of $575 – $600 million.

The a2 Milk Company

The a2 Milk Company shares opened up 10.25% this morning after their 1H Results:

NZX listed (ATM.NZX).

The A2 Milk Company (a2MC) has reported strong 1H25 results, upgrading its FY25 full-year guidance.

Key highlights from the 1H25 results include:

Double-digit revenue growth of 10.1%, with revenue hitting $893.8 million.

Continued market share gains in China label IMF, despite temporary supply constraints.

A 13.0% growth in English label IMF sales, driven by strong post- Double 11 demand. Launch of new premium products such as a2 Genesis™ targeting the HMO segment and expanded offerings for seniors and kids.

Introduction of the first-ever dividend policy, with an interim dividend of 8.5 cents per share (~67% payout).

CEO, David Bortolussi, commented: “Our execution of growth strategies has delivered another strong period, and we are pleased to declare our first dividend, rewarding our loyal shareholders.”

Looking ahead, a2MC is focused on maximising opportunities in China, innovation, and supply chain transformation to ensure continued growth.

As the company continues to gain momentum, the FY25 revenue growth outlook has been upgraded from mid to high single digits to low to mid double-digit percentage.

Briscoe Group

Briscoe Group (NZX/ASX: BGP) FY25 Results – Resilient Sales, Margin Pressure, and a Lower Dividend.

Briscoe Group has reported its full-year results for FY25, showing resilient sales but ongoing margin pressure in a tough retail environment.

Key financials:

Total sales: $791.5 million (99.94% of last year’s record) Gross profit margin: 40.37% (down from 42.40% last year)

Net profit after tax (NPAT): $68 million before a one-off tax adjustment, or $60.6 million after adjustment.

Online sales: 19.69% of total sales (up from 18.72% last year)

Dividend: Final dividend of 10.0cps, bringing the total FY25 dividend to 22.5cps—lower than in recent years.

Strategic investments & challenges:

Cost control remained a focus, with total store and overhead costs rising just 1.11%, despite wage and operational cost increases.

Inventory levels reduced by $5.2 million, improving stock efficiency.

$58.2 million in capital expenditure, with major investments in:

• A new South Auckland distribution centre (operational by 2026)
• Re-platforming online sales with Adobe and Marketplacer
• Electronic labelling rollout to improve in-store efficiency

The road ahead

Briscoe Group remains in a strong financial position, with $142.4 million in cash and no term debt. However, margin pressures are expected to continue, driven by discounting, cost inflation, and a weaker NZD. The company is focused on stabilising profitability through improved merchandise planning, inventory management, and strategic investments in its digital and physical store footprint.

Fonterra Co-operative Group Limited

Fonterra’s Mainland Group Sale – A Tasty Opportunity for Investors?

Fonterra is moving ahead with the sale of Mainland Group, its consumer dairy and foodservice business.

Why does this matter?

Big Business, Big Brands – Mainland Group isn’t just another dairy company. It’s a $4.9bn revenue business with a portfolio of household names across cheese, milk powder, yoghurt, and butter.

• Global Reach, Strong Growth – With 20+ countries in its network, it has a stronghold in Oceania, Southeast Asia, Sri Lanka, and the Middle East & Africa—regions where dairy demand is on the rise.
• Serious Earnings Power – EBIT of ~NZ$200m and an 8% revenue CAGR over the last two years show that this is a profitable business with room to grow.
• Premium Dairy & Sustainability Edge – With access to New Zealand’s and Australia’s grass-fed milk, Mainland has a high-quality supply chain, positioning it well in the premium dairy space.

What’s next?

A well-executed sale could strengthen Fonterra’s balance
sheet, allowing it to focus on its core Ingredients

business, while new ownership could unlock further growth potential. Investors will be watching closely to see how this unfolds—and what kind of price tag Mainland Group commands.

One to watch in 2025!

Fonterra Upgrades FY25 Earnings Guidance

Fonterra has raised its full-year earnings guidance for FY25 from 40-60 cps to 55-75 cps, reinforcing the strength of its core Ingredients business and resilience in its Consumer channel. With a $10.00/kg MS Farmgate Milk Price midpoint, this is a strong outcome for farmer shareholders and a positive sign for New Zealand’s dairy sector. CEO Miles Hurrell attributes the upgrade to solid volume and margin growth, particularly in the Consumer channel, despite elevated milk prices.

Fonterra will release its FY25 interim results on March 20, where it will also confirm its interim dividend—keeping in line with its 60-80% payout policy.