NZ Merino

[Sideshow Bob]

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

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

[GTM 3442]

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/

[Sideshow Bob]

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.

[Sideshow Bob]

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.

[Sideshow Bob]

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%

[percy]

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.

[Sideshow Bob]

Serious decline in 2nd half of the year

https://prod-trade.usx.co.nz/api/file/66d546640c033b1c231dfabd.pdf

Key points

• EBIT1(loss) of ($2.63) million
• NPAT (loss) of ($3.29) million
• Positive net operating cashflow of $5.91m
• Bales sold 115,000, down 7.6%
• No dividend declared for year-ended 30 June 2024