Key points
- Revenue growth of 5.3% and small margin improvement demonstrate stability in Australia
- Consumer confidence remained weak in China, impacting rose pricing
- Automated bouquet making lines added in Australia, improving labour productivity
Full summary
Lynch Group Holdings reported 1H FY25 results with revenue growth of 5.3% to $196.5m and EBITDA of $16.5m, down 0.8% on 1H FY24. The Australia business saw revenue growth of 3.9%, driven by resilient demand for supermarket floral products and new brand launches, with EBITDA margin improving 20bp to 8.9%. The China business delivered 19.7% revenue growth, with increases in tulip and export volumes, but EBITDA margin declined to 4.4% due to weak domestic rose pricing. The company continued to progress operational improvements, adding automated bouquet making lines in Australia to boost labour productivity. In China, 1ha of additional land was developed, bringing the total to 85ha. The company's sustainability framework was further developed with the release of its second annual sustainability report.
Guidance
The company provided EBITDA guidance for 1H FY25 of $16m to $17m, which it achieved at the midpoint.