Farm Pride H1 FY25 Results Announcement

• Earnings before interest, tax, depreciation and amortization of $7.05 million, an increase of $3.38 million
• Profit after tax of $1.63 million, an increase of $2.55 million
• Increase of $24.03 million in net equity to $26.85m since 1 July 2024

Farm Pride Foods Ltd (ASX: FRM) announced its financial results for the half year ended 31 December 2024 (H1 FY25). The company reported earnings before interest, tax, depreciation and amortization of $7.05 million, an increase of $3.38 million on the prior corresponding period (PCP). Profit after tax was $1.63 million, an increase of $2.55 million on the PCP, marking the first half yearly profit achieved by the company since the financial year ending 30 June 2018. Net equity increased by $24.03 million to $26.85m since 1 July 2024. The company has made progress in recovering from the avian influenza outbreak at its Lethbridge, Victoria farms and is planning and implementing upgrades in biosecurity arrangements and processes at multiple farms and grading facilities. The company has also identified and implemented overhead reductions and improved efficiencies, completed a $6.16m share entitlement offer, and repaid $4.14 million of debt and converted $1.04m of directors loans to equity.

While national egg shortages have resulted in improved pricing of eggs, the company has not yet returned to full production on all farms and continues to face a challenging environment with cost and labour availability pressures. The company remains focused on implementing operating and capital improvements to enhance its biosecurity on farms and grading floors, and is assessing initiatives to increase both rearing and laying capacity.

The company has identified further operational efficiencies and improvements in productivity and remains committed to its repairs and maintenance and capital expenditure program to improve operating reliability. Repopulation of the avian influenza affected farms has commenced and production volumes will grow throughout 2025.