Atlas Pearls Grows Harvest 4% and Sales 24%, Revenue Hits $44.3M
Atlas Pearls reported increased pearl harvest and sales volumes for FY25, driving revenue growth to $44.3 million, though profits declined compared to the previous year. The company declared a fully franked final dividend, underscoring its solid financial footing.
- Pearl harvest rose to 621,000, up from 598,000 in FY24
- Sales volumes increased 24% to 593,000 pearls
- Revenue grew 6% to $44.3 million despite a 15% drop in average price per pearl
- Normalized EBITDA and net profit after tax declined by 18% and 30% respectively
- Final fully franked dividend of 1.4 cents per share declared
Operational Growth Amid Market Challenges
Atlas Pearls Ltd (ASX – ATP) has delivered a mixed but largely positive FY25 performance, marked by increased production and sales volumes that helped lift revenue despite a notable decline in profitability. The company harvested 621,000 pearls, continuing a steady upward trend from 598,000 in FY24, reflecting ongoing operational improvements in its aquaculture processes.
Sales volumes rose 24% to 593,000 pearls, supporting revenue growth to $44.3 million, a 6% increase over the previous year. However, the average price per pearl fell 15% to $74.67, a factor that weighed on overall earnings. This price normalization follows the elevated pearl prices seen in early FY24, suggesting a market correction that Atlas Pearls has navigated with cautious optimism.
Profitability and Financial Position
Despite higher sales, the company’s normalized EBITDA declined 18% to $18.6 million, and net profit after tax dropped 30% to $21.9 million. These decreases may reflect increased operational costs or margin pressures amid the softer pearl prices. Nonetheless, Atlas Pearls maintained a strong balance sheet, with cash reserves rising to $20.2 million and shareholder equity increasing by 28% to $71 million, signaling robust financial health and prudent capital management.
The company’s debt remained stable and low relative to equity, underscoring a conservative approach to leverage. This financial strength has enabled the board to declare a fully franked final dividend of 1.4 cents per share, rewarding shareholders while maintaining flexibility for future investments.
Looking Ahead
Atlas Pearls’ steady production gains and disciplined financial management position it well to capitalize on medium-term growth opportunities in the pearl market. However, the decline in profitability despite revenue growth highlights the importance of monitoring market price dynamics and cost structures closely. The company’s stable pearl quality and consistent pricing provide a foundation for sustainable operations, but investors will be watching for signs of margin recovery and strategic initiatives to enhance earnings.
Bottom Line?
Atlas Pearls’ FY25 results reflect solid operational progress tempered by market price pressures, setting the stage for a critical year ahead.
Questions in the middle?
- What factors contributed most to the decline in EBITDA and net profit despite higher sales?
- How will Atlas Pearls manage pricing pressures in the pearl market going forward?
- Are there plans for capital investments or expansions to sustain production growth?