Guidance Update – Lower Debt, Earnings at Top of Range

MKTUPDTE

Tue, Apr 09 2024 03:08 pm

9 April 2024 - ArborGen Holdings Limited (NZX: ARB) (ArborGen or the Company) advises that, based on unaudited preliminary management accounts, its net debt as at 31 March 2024 is now expected to be 25% to 35% lower than previously advised. Previously guidance was for net debt of $18.3m to $19.3m. The company now expects this to be between $14.5m to $15.0m(1).

ArborGen also advises that Adjusted US GAAP EBITDA(2) is expected to be at the upper end of guidance provided in November 2023 of $11.6m to $12.6m. All dollar values are in US currency.

The key drivers in the reduction of net debt are favourable working capital movements, reduced nursery and orchard costs, and some capital expenditure items being delayed into the new financial year.

Trading has continued in line with expectations, with record sales, pricing and margins in Brazil. A solid performance is expected in the US, where strong pricing and margins have been maintained helping to offset subdued seedling sales.

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(1) Net debt excludes capital leases
(2) Adjusted US GAAP EBITDA is a non-GAAP financial measure and excludes one-off and unusual items which may include restructure costs, impairments and write downs on assets, acquisition/sale transaction costs and other one-off items. Additionally, management believes this measure provides useful information, as it is used internally to evaluate performance, and it is also a measure that equity analysts focus on for comparative company performance purpose.

ENDS

Authority for this announcement: Justin Birch, President and CEO, ArborGen Holdings Limited
For more information, please contact: Jackie Ellis, Ellis and Co
e: [email protected], t: +64 27 2462505
http://www.arborgenholdings.com or email [email protected]

ArborGen
ArborGen is the largest commercial global seedling supplier and a leading provider of advanced genetics, for the forest industry. Employing state-of-the-art technology, ArborGen is developing high-value products that significantly improve the productivity of a given acre of land by enabling our customers to grow trees that yield more wood per acre with greater consistency and quality in a shorter period of time. For more information, please visit ArborGen’s website at www.arborgen.com.