Latest news with #operatingcashflow
The Australian
28-07-2025
- Business
- The Australian
RLF records strong end to FY25
RLF reports cash receipts of $8.9 million in Q4 FY25, up 254% on the previous quarter Total cash receipts for FY25 of $26 million, up 74% from FY24 Full year FY25 net cash from operating activities of $800,000 marks 'complete turnaround' from $3.67m deficit in FY23 Special Report: RLF AgTech has reported a strong end to FY25 with cash receipts of $8.9 million in Q4, up 254% on the previous quarter and up 74% YoY with a full year positive operating cashflow. Reflecting continued improvement in business performance RLF AgTech (ASX:RLF) achieved net cash from operating activities of $800,000 for FY25, up 782% on FY24 of $90k and a 'complete turnaround' from FY23, which saw a deficit of $3.67m. RLF is a leading provider of crop nutrition products designed to improve agricultural productivity, crop quality and soil health. The company has completed its first full financial year under renewed leadership and a redefined business strategy. RLF's June quarter results provide the clearest view yet of its operational cash performance following the comprehensive business restructure. Positive results include FY25 customer receipts of $26m, up 74% from FY24, attributed to improved sales conversion and performance, with growth recorded across all key regions. Core operations remained cash generative despite absorbing the one-off costs of group restructuring, transition and new market investment, reflecting the strength of the underlying business. During FY25 balance sheet restructure debt was materially reduced, interest waived and repayment terms extended, freeing working capital for growth investment. RLF's cash balance on 30 June 2025, was $6.5m, up 39% YoY, driven by operating performance and disciplined cash management. The company said the uplift also reflected successful integration of the RLF LiquaForce business, which it acquired in May 2024. Strategic expenditure for future growth RLF said the turnaround in FY25 was achieved during a year of substantial strategic expenditure across multiple fronts. In August 2024, the company formally exited a legacy Australian distribution agreement, regaining full commercial rights to the Australian market leading to the formation of RLF Australia. The standalone entity required investment and cash outlay across staffing, systems, training resources, promotional materials, product relabelling and national sales coverage. RLF said It had since become a cornerstone of its growth strategy, enabling direct engagement with key distributors, resellers and growers, while restoring access to revenue streams previously unavailable to the company. RLF Australia has secured major distribution partnerships with a footprint now spanning more than 500 retail locations, supported by new marketing, technical and logistics capabilities. In parallel, the company undertook a comprehensive restructuring of its group operations, including streamlining overheads, consolidating reporting lines and redefining roles across domestic and international divisions. RLF also invested in new equipment and manufacturing capabilities to strengthen its operational base and support commercial programs and grower confidence heading into FY26. The company upgraded its manufacturing facility in Queensland, bringing cost-effective production in-house and enabling increased responsiveness to distributor and grower demand. Among strategic purchases was a Variable Rate Applicator for RLF LiquaForce to enhance precision in product application and trial deployment, aligning with its commitment to innovation and agronomic efficiency. China business recovery with record cash collection RLF reported Q4 FY25 cash collections in China at record levels of $5.3m, signalling a successful rebound from the same period in FY24. June pre-orders in the country rose 73% YoY, demonstrating successful distributor engagement and effective digital-led marketing under its Technology Empowering Agriculture theme. In Vietnam, repeat orders and trial programs from three major distributors including KONA, VINCO, YAMATO signal growing commercial momentum. The company said new trials in coffee and durian showcased RLF's relevance in high-value crops. In India, trials with Gujarat Pesticides, ANU Production, Agrico Organic and Geolife mark the beginning of a strategic entry into one of the world's largest fertiliser markets. Entering biologicals segment RLF signed an exclusive agreement with AXIOMA Biologicals to distribute its innovative plant-based biostimulants across Australia, China and Asia. The deal sees RLF's portfolio enter the fast-growing biologicals segment, enabling new margin opportunities. The company said the biologicals offered growers new, environmentally responsible solutions that aligned with RLF's technology-based approach and enhanced the value of its traditional nutrition offerings. RLF has also had success with its Hillston Soil Carbon Project, delivering strong measured outcomes, helping validate its carbon and soil sustainability integrated nutrition strategy. This supports the company's position in the regenerative agriculture sectors. Board renewal and new management Acting managing director Gavin Ball stepped into the top role following the restructure about 12 months ago, after first investing in RLF more than a decade ago when it was a private company. During FY25, directors Liza Carpene and Donald McLay left the board and were recognised for their pivotal roles in the company's ASX debut in 2022 and expansion. In April, seasoned executive Ben Barlow stepped in as non-executive chair, tasked with steering the next phase of growth. RLF said further board renewal remained a priority, as the company aligned its governance with its expanding scale and strategic ambitions. Planting the seeds for scaled growth in FY26 RLF said it entered FY26 with strengthened operations, national market access and a clearer commercial identity. In Australia, the company said it was well-positioned to drive revenue growth through an established distribution network, expanded field support and the integration of AXIOMA's biological product range. In China, momentum is building with increased pre-orders, distributor re-engagement and margin recovery underway, while in Southeast Asia RLF said recent market entries were expected to translate into expanding commercial orders following success of initial trial programs. With a simplified structure, increasingly diversified product base and positive operating cashflows, RLF said it was entering a new phase of commercial scale-up. 'The results of FY25 validate the strategy in place and provide the foundation to deliver meaningful shareholder value in FY26 and beyond,' the company said. This article was developed in collaboration with RLFAgTech, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Yahoo
22-05-2025
- Business
- Yahoo
Australian Agricultural Co Ltd (ASAGF) (FY 2025) Earnings Call Highlights: Record Cash Flow ...
Release Date: May 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Australian Agricultural Co Ltd (ASAGF) achieved its highest operating cash flow and second highest operating profit since 2017. The company reported a 15% increase in total sales revenue, driven by higher meat and cattle sales volumes. ASAGF's strategic refresh and focus on sustainability initiatives, such as the solarable program and soil carbon project, are expected to provide long-term benefits. The company maintained a stable herd size with improved productivity, contributing to increased revenue. ASAGF's brands, including West Home and Darling Downs, showed significant sales growth and market expansion. The company reported a statutory net loss of $1.1 million, impacted by the unrealized mark-to-market value of the herd. Inflationary pressures led to a 5% increase in the cost of production per kilo. Price pressures in some regions resulted in an overall reduction in the weighted average meat sales price per kilogram. The company faced challenges from dynamic markets, evolving trade conditions, and supply and demand constraints. An unfortunate animal welfare incident occurred earlier in the year, highlighting the need for improved procedures to prevent future occurrences. Warning! GuruFocus has detected 7 Warning Signs with ASAGF. Q: With gearing levels at the lower end of the company's target range and the stock trading at a 43.5% discount to NTA, has a buyback been considered? A: Dave Harris, MD and CEO: The decision regarding a share buyback is for the board to make. Currently, the focus is on reinvesting in the business to develop the three strategic business areas, which we believe will provide long-term benefits for shareholders. Q: What is the strategy for debt reduction and future dividend payments? A: Glenn Steadman, CFO: With the strategic refresh, we have identified areas requiring future investment. Therefore, debt reduction is unlikely as we pursue these investment opportunities. Q: Can you please advise how many franking credits AAC has? How much possible fully franked dividend per share does this represent? Why does AAC have a policy of not paying dividends, and when is it likely a dividend may be paid? A: Dave Harris, MD and CEO: Currently, there are zero franking credits. The decision on dividends is for the board. Regarding the unfortunate incident where cattle died due to a water supply failure, we have conducted an investigation and developed procedures to minimize the likelihood of such an event occurring again. Q: What were the impacts, if any, of the heavy rain and Northern Queensland floods in March? How is the pasture since the floods? A: Dave Harris, MD and CEO: The property most affected was South Galway, experiencing significant flooding. Fortunately, there were minimal cattle losses, and the rain was beneficial overall, putting us in good shape for the season ahead. Q: Post-liberation Day, what have you witnessed with respect to trade flows and pricing, and how is AAC positioning itself given likely ongoing volatility? A: Dave Harris, MD and CEO: We focus on controllable factors, working with distributors and customers in each region. Our broad marketing opportunities allow us to move products through different markets as conditions change, ensuring the best outcomes for both customers and the business. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Australian Agricultural Co Ltd (ASAGF) (FY 2025) Earnings Call Highlights: Record Cash Flow ...
Release Date: May 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Australian Agricultural Co Ltd (ASAGF) achieved its highest operating cash flow and second highest operating profit since 2017. The company reported a 15% increase in total sales revenue, driven by higher meat and cattle sales volumes. ASAGF's strategic refresh and focus on sustainability initiatives, such as the solarable program and soil carbon project, are expected to provide long-term benefits. The company maintained a stable herd size with improved productivity, contributing to increased revenue. ASAGF's brands, including West Home and Darling Downs, showed significant sales growth and market expansion. The company reported a statutory net loss of $1.1 million, impacted by the unrealized mark-to-market value of the herd. Inflationary pressures led to a 5% increase in the cost of production per kilo. Price pressures in some regions resulted in an overall reduction in the weighted average meat sales price per kilogram. The company faced challenges from dynamic markets, evolving trade conditions, and supply and demand constraints. An unfortunate animal welfare incident occurred earlier in the year, highlighting the need for improved procedures to prevent future occurrences. Warning! GuruFocus has detected 7 Warning Signs with ASAGF. Q: With gearing levels at the lower end of the company's target range and the stock trading at a 43.5% discount to NTA, has a buyback been considered? A: Dave Harris, MD and CEO: The decision regarding a share buyback is for the board to make. Currently, the focus is on reinvesting in the business to develop the three strategic business areas, which we believe will provide long-term benefits for shareholders. Q: What is the strategy for debt reduction and future dividend payments? A: Glenn Steadman, CFO: With the strategic refresh, we have identified areas requiring future investment. Therefore, debt reduction is unlikely as we pursue these investment opportunities. Q: Can you please advise how many franking credits AAC has? How much possible fully franked dividend per share does this represent? Why does AAC have a policy of not paying dividends, and when is it likely a dividend may be paid? A: Dave Harris, MD and CEO: Currently, there are zero franking credits. The decision on dividends is for the board. Regarding the unfortunate incident where cattle died due to a water supply failure, we have conducted an investigation and developed procedures to minimize the likelihood of such an event occurring again. Q: What were the impacts, if any, of the heavy rain and Northern Queensland floods in March? How is the pasture since the floods? A: Dave Harris, MD and CEO: The property most affected was South Galway, experiencing significant flooding. Fortunately, there were minimal cattle losses, and the rain was beneficial overall, putting us in good shape for the season ahead. Q: Post-liberation Day, what have you witnessed with respect to trade flows and pricing, and how is AAC positioning itself given likely ongoing volatility? A: Dave Harris, MD and CEO: We focus on controllable factors, working with distributors and customers in each region. Our broad marketing opportunities allow us to move products through different markets as conditions change, ensuring the best outcomes for both customers and the business. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
