• Revenue of $538.2 million, up 0.9% from prior year
• Statutory loss of $44.0 million, impacted by $39.2 million in non-cash impairment charges
• Operational reset and cost reduction initiatives delivered improved 2H2025 performance

In FY2025, NTAW Holdings Limited achieved revenue of $538.2 million, up 0.9% from the prior year. However, the company reported a statutory loss of $43.9 million, which included a non-cash impairment charge of $39.2 million against the intangible assets of its Tyre & Wheel, Black Rubber, and Carters business units. The impairment charge was accounted for in the first half of FY2025, which was characterized by lower than expected sales from the commercial retail and retreading business units in Australia and New Zealand, as well as a lower than expected performance from the distribution of Dunlop branded tyres. To address these operational issues, the company appointed Warwick Hay as CEO in January 2025, and he quickly implemented a transformation plan focused on key control areas such as inventory management, cash generation, and cost reductions. This resulted in a reduction in inventory levels, a substantial improvement in net operating cash flow in the second half of the year, and a 14% decrease in expenses from the first half to the second half.Despite the unacceptable performance in FY2024 and the first half of FY2025, the company's underlying business remains strong. The immediate focus is to leverage the core strengths of the business and continue the improvement program and strategic evaluation.

Revenue for FY2026 will reflect the cessation of Dunlop distribution in Australia. Excluding this impact, NTAW is forecasting conservative sales growth consistent with subdued consumer sentiment and low economic growth across Australia and New Zealand, supported by prudent management of discretionary expenditure. The company expects to see further opportunities to become more efficient through challenging the business model and continuing strict management of discretionary costs. Continued improvement in inventory management will facilitate further debt reduction throughout FY2026. The company will consider options for its South African business in the first half of FY2026.