Ann: Halo Records Strong First Half Growth, page-6

Great to see a normalised positive EBITDA reported at the group level of $1.1m AUD for H1 FY2022. Those 6 months don't include the impact of the recently signed major deals and so it is highly likely that EBITDA for H2 FY2022 will continue to climb...

Also, the upgrade of the protein bar and healthy snacking plant was completed late in 1HFY22 with the first commercial production run undertaken in September 2021; suggesting further upside in H2 FY2022.

"Normalised consolidated group EBITDA profitability increased 223% to more than$1.1m for 1H FY22 compared with a normalised loss of $0.9m in the priorcorresponding period"

“HaloFood Co. has had an exciting six months of developments, growth and progression. The grouphas continued to advance at a double-digit rate both in Australia and New Zealand andsecured multiple material contracts which will begin to contribute to the financial results ofthe group in the second half of FY22. With the scale now realised, the group has hitnormalised underlying group EBITDA profitability.”

With the crossover into group EBITDA profitability and the securing of the debt facilities, it is looking promising that HLF can continue on this trajectory and importantly, without any need for a capital raise as was originally suggested by management. They are holding true to that.

Ultimately, more steady progress, and most importantly, ongoing profitable growth. I think credit should be given where credit is due — well done to Danny and the Halo Foods Co Ltd team. The business is growing well. At 12.5c we have a market cap of $34m AUD, which is a ~0.6x revenue multiple AND (now we can finally say it!) a 15x EBITDA multiple. I think there is excellent value on offer here, particularly given the trajectory the business is on.

I might be wrong (I certainly have been before), but I think it is a no-brainer at these levels.

I topped up this morning.