As expected, H1 25 was much lower than H1 24, due to the large decrease of average price (peak of 103 $ during H1 24). So, as indicated 2 days ago in another thread, it was more interesting to compare H1 25 with H2 24.
H1 25 results are better than H2 24, both for sales (+ 29 %) and normalised EBITDA (+ 21 %). This good result comes only from the volume of pearls sold (+ 28 hoh). Average price/pearl was almost flat : + 1 % to 67.40 $. EBITDA increase was lower than sales increase due to the cost inflation. H1 25 EBITDA of 7.1 m$ is in line with my forecast for FY 25 (14.5 m$), even if it is achieved differently than what I was expecting (expecting flat volume yoy).
There was again a good conversion of EBITDA into cash flow from operation (before working capital) and the company produced again a significant free cash flow of 3.8 m$ (despite a significant increase of Capex to 2.6 m$ vs 1 m$). This free cash flow annualised corresponds to a free cash flow yield of 17.1 % which remains significant.
ATP Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
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