NZ Merino

Don't know much about these guys - but seems like a positive announcement.....

NZMC_Earnings_Guidance_18_March_2021_FINAL.pdf (usx.co.nz)

Website: The New Zealand Merino Company | Home (nzmerino.co.nz)

Last AR: fdb7ce_e7b7bda91b8b4825b27bde0d0fb6a94d.pdf (filesusr.com)

Issuer Profile: NZMC_Issuer_Profile_2020_Final.pdf (usx.co.nz)

CEO is the largest shareholder. Only 40-odd thousand shares traded in since listing in Oct. Looks like about 5.3m shares on offer - just bought back 600k at $3.80 and price is still $3.95.

NZMC is quite interesting, further opinion on the balance sheet would be appreciated. I like the company.

Quote:

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Originally Posted by surfnturf

NZMC is quite interesting, further opinion on the balance sheet would be appreciated. I like the company.

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The 2020 report is a nicely presented clear Financial window into the company

Enjoyable reading & not a lot to not like about NZ Merino IMO

Up to 2020 year - smallish on good turnover but sound, paying down it's debt.

Probably a bit illiquid as to be expected on USX, but that's about it

A shame that USX has such limited audience / accessibility as companies like this
may be attractive to a wider audience.. and could ideally attract better pricing ratings like elsewhere

Quote:

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Originally Posted by nztx

The 2020 report is a nicely presented clear Financial window into the company

Enjoyable reading & not a lot to not like about NZ Merino IMO

Up to 2020 year - smallish on good turnover but sound, paying down it's debt.

Probably a bit illiquid as to be expected on USX, but that's about it

A shame that USX has such limited audience / accessibility as companies like this
may be attractive to a wider audience.. and could ideally attract better pricing ratings like elsewhere

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"not a lot to not like " double negative, should read , "a lot to like "! please.

Geez so from about $1 per share in feb this year to over $5 today.

hope you got a nice few when making this thread, looks like it was a good call.

will have to add the AR and half year to this weekends reading list

Quote:

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Originally Posted by whatsup

"not a lot to not like " double negative, should read , "a lot to like "! please.

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There may not be 'a lot to like' though. Equally there may not be a lot to dislike (not like). Double negatives can sometimes be used for effect.

NZMC_Annual_Result_070921.pdf (usx.co.nz)

Good result and 24.1c divvy.

NZMC_Half_Year_Result_and_Earnings_Guidance_1_Marc h_2022.pdf (usx.co.nz)

Another very solid result for the half year, EBIT of $8.8m, with a current market cap of $29.2m.....

https://www.usx.co.nz/uploads/paperc...pdf?1664308895

Mixed announcement - profit up slightly on much larger turnover but negative operating cashflow and forecast earnings to be down slightly.

The New Zealand Merino Company announces long-standing CEO to step down

The New Zealand Merino Company (NZMC) today announced that co-founder and chief executive
John Brakenridge will be stepping down in 6 months after 27 years in the role.

https://www.usx.co.nz/uploads/paperc...pdf?1666641597

https://www.usx.co.nz/uploads/paperc...pdf?1671162908

At a significant premium to the current share price - more than 50%!

After ten minutes rolling round the internet, at first glance you might think that the Australian "marketing" partner has moved into the New Zealand "production" side of the business.

https://awn.net/wool/

Made their money in the first half of the year, almost breakeven forecast the second half.



The New Zealand Merino Company Limited (NZMC) is pleased to advise Earnings before Interest andTax (EBIT) of $5.6 million for the six months ended 31 December 2022. This is in line with budgetexpectations, with the result driven by good growth in bale volumes underpinned by our strategicplatform of ZQRX.We note that due to the seasonality of the NZMC business the majority of earnings are generated inthe first six months of the financial year.With this half year result and our expectations for the remainder of the financial year we reaffirmour earlier guidance for full year EBIT to be in the range of $5.8 million to $6.4 million.

https://www.usx.co.nz/uploads/paperc...pdf?1684276397

The New Zealand Merino Company (NZMC) Limited is pleased to announce the appointment ofagricultural industry leader, Angus Street, as Chief Executive Officer. Angus will commence the role inearly August 2023.

https://www.usx.co.nz/uploads/paperc...pdf?1693775426

Highlights
• EBIT1 $4.3 million, down 38%
• Trading EBIT2 $6.4 million, down 15%
• NPAT $1.7 million, down 61%
• Bales Sold 147,000, up 9%

12 March 2024
Half Year Result and Earnings Guidance
The New Zealand Merino Company Limited (NZMC) advises Earnings before Interest and Tax (EBIT)
of $3.4 million, and a Net Profit After Tax (NPAT) of $1.8 million for the six months ended 31
December 2023. This is in line with budget expectations.
Trading conditions have however deteriorated further in recent months with the global slowdown in
consumer demand meaning retailers are holding high inventories of finished products. This,
together with aggressive brand partner growth targets that are not now coming to life due to the
macroeconomic environment, is directly impacting brand partner demand for wool resulting in
lower bale volumes and deferrals on deliveries planned for the second half of the financial year and
on into the 2025 financial year. NZMC is working with these brands on a number of solutions
including pushing out deliveries into future years, selling off excess volumes and adjusting future
contract volumes.
Key brands are however reporting reasonable sell-through of product in-line with pre-Covid levels
which bodes well for when the current over-supply of inventory in the supply chain is worked
through.
This will have a significant negative impact on earnings this financial year, with this exacerbated by
the fact that due to the seasonality of the NZMC business the majority of earnings are generated in
the first six months of the financial year.
Our expectation now is for full year EBIT to be in the range of $1.0 to $1.6 million. Previous
expectations were for EBIT to be in the range of $4.5 to $5.1 million.
At a NPAT level we now expect to record a loss in the range of $0.4 to $0.9 million for the year
ending 30 June 2024.