BRG –2.2%: Reported well, flagged solid topline momentum into 2H25 however still moved lower, a trend we have seen in growth names with stretchy valuations this reporting season.
- Revenue A$997.5 million up +10% y/y vs. $987.3 million consensus.
- 1H25 earnings before interest & tax (Ebit) $144.8 million vs. A$141 million consensus, +11% yoy
- Net debt improved to $55 million, vs. $98 million pcp
Cash flow is strong, though they’ve pulled forward some US inventory to get ahead of potential tariffs. Product sales are also solid, especially in coffee, with double-digit growth across all regions, and this momentum should continue into 2H. U.S trade policy and the impact of potential tariffs is still an unknown. Management are confident heading into 2H, guiding to another 5-10% EBIT growth for the remainder of the FY, though this slightly underwhelmed given consensus implies 12% growth taking into account the stronger 1H.
MM is neutral BRG
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