Lynch Group Posts $430.5M Revenue and $43.2M EBITDA, Exceeding Guidance

Strong FY25 Performance Anchored by Australia and China

Lynch Group Holdings reported a robust FY25 financial year, with group revenue climbing 8.2% to $430.5 million and EBITDA increasing 9.1% to $43.2 million, surpassing the company’s guidance range. The results highlight the resilience and growth potential of Lynch’s operations across Australia and China, despite ongoing market challenges.

In Australia, revenue grew 6.4%, supported by a resilient demand for supermarket floral products, the successful launch of a new brand with a major customer, and the conversion of 50 stores to a Sale or Return (SOR) model. This contributed to an 8.1% increase in EBITDA to $33.5 million and a 20 basis point margin improvement to 9.6%. Operational efficiencies, including the introduction of automated bouquet lines and disciplined cost control, underpinned this margin expansion.

China’s Growth Fueled by Tulips and Export Expansion

The China segment delivered an impressive 18.3% revenue growth to $101 million, driven primarily by a 40% increase in tulip revenue and a 25% rise in export volumes, including shipments to Australia. However, EBITDA margin contracted by 50 basis points to 9.6%, reflecting weak domestic consumer confidence and higher input costs such as energy and tulip bulbs. Despite these headwinds, the second half of FY25 showed signs of recovery with improved pricing and sales dynamics.

Lynch continues to invest in expanding productive land in China, adding 1 hectare to reach 85 hectares, and enhancing downstream distribution capabilities in key cities like Kunming, Shanghai, and Guangzhou. These moves aim to broaden customer reach and support sustained growth in the region.

Strategic Moves – Farm Closures, Automation, and ERP Upgrades

FY25 also saw Lynch progressing with its strategic initiatives, including the planned closure of Australian farms in Western Australia and Queensland, reflecting a shift in operational focus. The company incurred related impairment and closure costs totaling approximately $12.3 million, with a cash impact of $4.4 million.

Investments in automation, particularly automated bouquet making lines across multiple Australian sites, have begun to yield labor efficiencies and cost savings. Additionally, an ERP system upgrade is underway, with the first phase expected to roll out in early FY26, aiming to enhance operational effectiveness.

Acquisition Agreement and FY26 Outlook

Significantly, Lynch Group entered into a Scheme Implementation Agreement with Hasfarm and TPG Capital Asia to acquire 100% of the company’s shares. This move signals a potential new chapter for Lynch, with implications for strategic direction and capital structure.

Looking ahead to FY26, Lynch anticipates continued revenue growth in Australia, driven by the floral category and full-year benefits from SOR conversions. In China, management expects moderate improvement in market conditions and customer demand, although margin recovery remains contingent on broader economic factors. The company plans further investments in automation and farm site upgrades, while the Queensland farm closure is expected to complete by year-end.