Lynch Group Reports 6% Australia and 16% China Revenue Growth in FY25
Lynch Group reports robust FY25 trading results, driven by strong Australian and Chinese markets, and sets optimistic full-year revenue and earnings guidance.
- Australian revenue up 6% year-to-date with resilient supermarket demand
- China revenue surges 16% aided by higher pricing and recovering demand
- Group forecasts around 7% full-year revenue growth for FY25
- EBITDA guidance set between $42 million and $43 million, excluding certain costs
- Operational challenges from Cyclone Alfred partially offset by new store conversions
Strong Momentum in Australia
Lynch Group Holdings Limited, Australia's leading vertically integrated wholesaler and grower of flowers and potted plants, has delivered a solid trading update for FY25. The Australian segment continues to demonstrate resilience, with revenue rising 6% year-to-date through May compared to the prior year. This growth was notably supported by a successful Mother's Day event, which saw record volumes handled by the Group's national production facilities and strong sell-through rates in supermarkets.
Despite the disruption caused by Cyclone Alfred in March, which led to approximately $0.8 million in lost sales and stock waste, the Australian operations maintained EBITDA margins in line with FY24. The addition of 50 new SOR stores in the fourth quarter also contributed positively to the second half performance, underscoring Lynch’s expanding retail footprint.
China Market Recovery and Pricing Gains
On the international front, Lynch’s Chinese operations have shown encouraging signs of recovery. Revenue in China increased by 16% year-to-date, buoyed by improved pricing for key products such as roses and tulips. The concentration of major demand events between January and May helped drive this uplift, despite ongoing global trade uncertainties in April and May.
Management remains focused on optimising sales channels, operational efficiency, and cost control to sustain this momentum. The improved EBITDA performance in China reflects these efforts and a gradual return of consumer demand in the floral market.
Outlook and Strategic Considerations
Looking ahead, Lynch Group forecasts full-year revenue growth of around 7% for FY25, with EBITDA expected to range between $42 million and $43 million, excluding costs related to the Australian farm closure and an SAP upgrade. CEO Hugh Toll highlighted the pleasing second-half outlook across both regions, noting the challenges and opportunities presented by recent weather events and market dynamics.
This guidance signals confidence in Lynch’s ability to navigate operational headwinds while capitalising on growth opportunities in its core markets. The Group’s integrated model and event-driven sales approach appear well-positioned to sustain momentum into FY26.
Bottom Line?
Lynch Group’s FY25 results reinforce its growth trajectory, but weather disruptions and evolving China demand remain key watchpoints.
Questions in the middle?
- How will ongoing global trade uncertainties impact Lynch’s China operations beyond FY25?
- What are the financial implications of the Australian farm closure and SAP upgrade on future EBITDA?
- Can Lynch sustain or accelerate growth in the competitive Australian supermarket channel post-Cyclone Alfred?
