ArborGen Holdings Limited Analysis

Overview

The shares were listed in March 2001 as part of a recapitalisation of Fletcher Challenge Forests, and to acquire certain assets from Fletcher Challenge Energy. These included 594,000 ordinary shares in NASDAQ listed Capstone Turbine Corporation and the Challenge retail service station network in NZ. All of these interests were later sold. Remaining assets were acquired from Fletcher Challenge Forests following its recapitalisation. These included a 50% interest in FTSA, an Argentinean joint venture and interests in established biotechnology businesses - ArborGen, Trees & Technology and listed Genesis Research & Development. The company also held a 19.9% stake in Fletcher Challenge Forests.

In March 2004 RBC and Carter Holt Harvey agreed to merge their forestry biotechnology and propagation operations into a new venture - Horizon2. In June 2004 it acquired 50.01% of listed wood products company Tenon.

Performance

The following information was extracted from ArborGen Holdings Limited's full year results, released 30 May 2024:

ARBORGEN ANNOUNCES STRONG FY24 RESULT

30 May 2024: ArborGen Holdings Limited (NZX: ARB) (ArborGen or the Company) has today announced its results for the financial year ending 31 March 2024 (FY24), reporting record sales Revenue and an Adjusted US GAAP EBITDA result ahead of guidance.

FY24 Snapshot (in USD, comparatives to FY23):

• Seedling unit sales of 373 million, consistent with prior year. Advanced genetics seedlings made up 44% of sales.
• Revenue $67.7m, up 21% on prior comparative period as a result of strong pricing and margins.
• 32% year-on-year increase in gross profit to $24.0m.
• Improvement in net loss after tax from $(2.5)m to $(0.2)m.
• Net debt (excluding capitalised leases) at $14.4m as at 31 March 2024, with borrowings reduced to $20.0m.
• 39% increase in Adjusted US GAAP EBITDA1 to $12.8m, ahead of guidance.