Full Year 2025 Peet Ltd Earnings Call Transcript
Key Points
- Peet Ltd (ASX:PPC) reported a strong net profit for FY25 of $58.5 million, exceeding the high end of their guidance range.
- Earnings per share increased by 61%, benefiting from share buybacks.
- The company declared a final dividend of $0.05 per share, bringing total dividends for the year to $0.0775.
- EBITDA margin improved to 24% from 21% last year, driven by price growth across the portfolio.
- Gearing was reduced significantly from 34.8% to 27.5%, supported by strong operating cash flows.
- There is a chronic housing shortage in Australia, with a current shortfall of 400,000 dwellings.
- The company faces cost of living pressures despite easing inflation.
- Interest rates, although decreasing, still pose a challenge for some customers.
- The strategic review, while proactive, indicates potential uncertainty about future company direction.
- The weighted average cost of debt increased from 8.1% to 8.3% due to a higher proportion of Peet notes in total debt.
Everybody, FY25 results presentation. With me this morning is Greg Wall, the Chairman of our Board of Directors. Greg is going to make a few comments shortly with respect to the strategic review that we announced back in May -- earlier this year. So I'll hand to Greg shortly. But before we get to that, we want to move straight to the results highlights.
So on the slide in front of you, for those of you that are doing it old school and with hard copies, I'm on page 3. Net profit for FY25 of $58.5 million, really strong performance. We guided the market back in February and gave a range of 50% to 55%. We upgraded that in April, 55% to 58%, and we've ended a little beyond the high end of that range, which is a really pleasing outcome.
Earnings per share, likewise up 61%, a little bit more than operating profit because of the impact of the share buybacks. Dividends. So we have declared a final dividend of $0.05 per share with respect to FY25, which brings total dividends for the year to $0.0775. EBITDA margin, very pleasingly up to
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