• Statutory loss of $42.7 million due to $39.2 million impairment charge
• Operating EBITDA margin decreased to 4.0% from 7.4% in 1H24
• Initiatives underway to reduce costs, inventory and net debt

NTAW Holdings Ltd has reported a statutory loss of $42.7 million for the half-year ended 31 December 2024, compared to a profit of $0.9 million in the prior comparative period. The result was significantly impacted by a non-cash impairment charge of $39.2 million related to intangible assets. Revenue decreased by 0.7% to $262.5 million, while gross profit margin declined from 31.2% to 28.9%. Operating EBITDA margin decreased from 7.4% to 4.0%. The company's balance sheet remains solid, with net assets of $86.3 million and net tangible assets of $73.5 million at 31 December 2024. However, net debt increased to $64.2 million. The company has put in place several initiatives to facilitate business improvement, including an aggressive cost reduction program targeting annualized savings of $6-7 million by June 2025, inventory reduction targets, and a 'back to basics' approach for the underperforming Black Rubber business. The company also noted that it is negotiating with Goodyear & Dunlop Tyres regarding the termination of the Dunlop distribution agreement, which is set to occur on 8 July 2025.

The company has put in place initiatives to facilitate business improvement, including an aggressive cost reduction program targeting annualized savings of $6-7 million by June 2025, inventory reduction targets, and a 'back to basics' approach for the underperforming Black Rubber business. The company is also negotiating with Goodyear & Dunlop Tyres regarding the termination of the Dunlop distribution agreement, which is set to occur on 8 July 2025.