Australian Agricultural Company (AAC) H1 2025 earnings summary

Executive summary

• Statutory net profit after tax was $23.6 million for H1FY25, reversing a $105.5 million loss in H1FY24, driven by a $34–34.6 million unrealised herd valuation gain as cattle prices rebounded.

• Total revenue rose 17% year-over-year to $195.5–195.6 million, with Wagyu beef volumes up 30–37% and head processed up 30%, offsetting a 16–17% decline in average sales price per kg.

• Operating profit was $20.2 million, down $9.9 million from the prior half/year, but remained resilient amid challenging global market conditions and inflationary pressures.

• Brand and sustainability investments, including soil carbon sequestration and solar upgrades, supported growth and operational resilience.

• The company celebrated its 200th year, highlighting a shift from wool to Wagyu beef exports across 16+ global markets.

Financial highlights

• Statutory EBITDA was $64.5 million (H1FY24: loss of $124.9 million), and statutory EBIT was $50.9 million (H1FY24: loss of $136.7 million).

• Gross margin improved to $150.7 million from a negative $51.8 million year-over-year.

• Operating cash flow increased over 60% to $4.3 million.

• Net tangible assets per share rose to $2.55, up 1.6% from March 2024.

• Net assets at $1.55 billion and basic EPS was 3.95 cents (H1FY24: -17.63 cents).

Outlook and guidance

• Production volumes are expected to remain stable, reflecting normalized output post-Goonoo property expansion.

• Focus remains on quality, efficiency, and brand investment amid volatile global conditions, with ongoing sustainability initiatives.

• Global beef oversupply is expected to ease through FY26, potentially benefiting branded products.

• The Board is exploring alternative value generation, supply chain efficiency, asset development, and sustainability.