ARB-ArborGen Holdings Ltd

[ralph]

So much for waiting for the us listing .

[winner69]

The saga of what happened with Fletcher Challenge Group - one disaster after another.

Even our mate David Darling saw no future in this and jumped ship to PEB years ago

[TheHunter]

The losses continue.

A very sad story of "what should have been"

Insightful comments as always
- Less than 10% of revenue in H1
- No new surprises as reflected by market (SP unchanged)

A few key highlights:
- Very favorable Brazil results: revenue / margin growth + new growth initiatives / opportunities
- Record US MCP harvest
- New US supply agreements
- Reduced reliance on single year harvests

Concerns:
- H2 US volumes down on PY (already known)
- H2 US margin pressure (already known)

Material growth was never expected in FY23 (2022 calendar), business model is all about margin expansion via MCP conversion which really starts to kick in next year / FY24.

Focus should be drawn on effectiveness of margin initiatives to pass on cost pressures for FY24.

Happy holding and will continue to watch for developments on the the above.

[TJ1]

Chunky volume yesterday anything new out there ?

[Sideshow Bob]

https://www.nzx.com/announcements/412226

30 May 2023 - ArborGen Holdings Limited (NZX: ARB) (ArborGen or the Company) has reported its audited results for the 12 months ended 31 March 2023 (FY23)1, with an 18% increase in group revenues to US$56.1 million, and a US$3.5 million increase in operating profit to US$2.2 million. ArborGen also reported a 35% increase in US-GAAP EBITDA2,3 to US$10.3 million in FY23, and positive commercial progress under its new strategy.

[TheHunter]

Summary following ASM updates for FY24:

Highlights:
- US gross margin improvement (higher selling prices & favorable COGS)
- Brazil volume increase (strong demand and increased production capacity)
- Brazil gross margin improvement (higher selling prices & favorable COGS)
- Double digit EBITDA growth (incl. ridiculous CEO costs)

Concerns:
- Ridiculous CEO package for a slow moving business
- Flat US sales volume
- Only slight improvement on US MCP vols. expected
- Potential inventory write down (struggling to reconcile this to 90% of US vol. sold + 'strategic' inventory growth).

Biggest disappointment to me is limited US MCP growth, given its the key driver behind earnings growth.

That said, double digit EBITDA growth incl. $2.7m of CEO costs vs. FY23 is still a material earnings improvement (even assuming low end of 10%).

Appreciate hearing any feedback from anyone who joined the ASM call, and if there were any further insights here.

[Thistle72]

Libra Fund has dumped nearly 9m shares over the past 8 months, dropping their holdings to 14.6%.

And we have a new shareholder in the cap table - Greensprings Capital of Memphis, TN, with 28m+ shares or 5.4% of outstanding. Since only 20m shares have traded so far this year, they must have been accumulating for a while. Hope they can help catalyze some movement in this forgotten stock.

[ari]

What a bleak 12mths ARB has had, and down further today. What is the possible future of this company or will we just watch as directors fees keep biting into company. Down 58%...too late to exit now.....

[beetills]

I struggle to see any light at the end of the tunnel.

[nztx]

Wonder if the Yanks from Greensprings want to up their offer to take out the Nursery or perhaps some
wealthy Brazilian Forestry outfit might want a bit more vertical added ?