• Net loss after tax of $42.8 million, including $39.2 million non-cash impairment charge
• Operating EBITDA of $10.6 million, down from $19.6 million in prior period
• Inventory up $7.6 million, net operating cash flow negative $9.7 million

NTAW Holdings Limited (ASX: NTD) has announced a net loss after tax of $42.8 million for the six months ended 31 December 2024 ('1H25'), compared to a $0.7 million profit in the prior corresponding period. The loss includes a non-cash impairment charge of $39.2 million against the intangible assets allocated to the Tyre & Wheel, Black Rubber, and Carter's cash-generating units. The company reported an Operating EBITDA of $10.6 million in 1H25, down from $19.6 million in the prior period. Revenue of $262.5 million was relatively flat compared to $264.3 million in 1H24, with growth in Dunlop sales offset by lower revenue from other brands and the commercial retail and retreading business units in Australia and New Zealand. Gross profit margin declined to 28.9% from 31.2% in the prior period, and operating costs increased to 25.7% of revenue from 24.1%. Inventory increased by $7.6 million to $157.2 million, and net operating cash flow was negative $9.7 million, compared to a positive $11.6 million in the prior period. The company's balance sheet remains solid, with net assets of $86.3 million and net debt of $64.2 million.

NTAW has put in place initiatives to facilitate business improvement, including an aggressive cost reduction program targeting $6-7 million in annualized savings by June 2025, inventory reduction targets, and a 'back to basics' approach for the Black Rubber business. The company also plans to implement price increases.