Noumi (NOU) H1 2025 earnings summary

Executive summary

• Net revenue increased 0.9% year-over-year to $299.3 million, driven by strong Plant-based Milks sales and a slight decline in Dairy & Nutritionals due to lower exports.

• Adjusted operating EBITDA rose 19% to $27.5 million, led by record Plant-based Milks performance and strategic execution.

• Statutory net loss after tax was $82.1 million, impacted by a $36.3 million non-cash fair value adjustment on Convertible Notes and a $50.0 million non-cash impairment in Dairy & Nutritionals.

• Working capital management and operational improvements led to strong cash flow and liquidity, with cash at bank of $26.5 million and an undrawn $10 million facility.

• Material uncertainty remains regarding going concern due to litigation and convertible note liabilities.

Financial highlights

• Plant-based Milks net revenue grew 6.6% to $93.2 million, with adjusted operating EBITDA up 9.2% to $25.3 million and margins improving to 27.1%.

• Dairy & Nutritionals net revenue declined 1.5% to $206.1 million, but adjusted operating EBITDA more than doubled to $4.6 million.

• Group adjusted operating EBITDA margin improved by 1.4 percentage points to 9.2%.

• Cash flow from operations improved to $40.1 million, with trade receivables down $17 million year-over-year.

• Cash and cash equivalents increased to $26.5 million as of 31 December 2024.

Outlook and guidance

• Focus remains on consolidating recent progress and executing strategy across products, channels, and geographies for H2 FY25.

• Continued investment in Milklab brand growth domestically and internationally, with positive outlook for Plant-based segment.

• Dairy & Nutritionals segment to focus on domestic execution and monitor global dairy industry developments.

• Sufficient liquidity for at least 12 months is expected, supported by $26.5 million cash, $10 million undrawn revolver, and debtor finance facilities.

• Macroeconomic uncertainty and evolving consumer preferences acknowledged, but progress remains positive.