How Will Atlas Pearls Grow Production 50% Despite Profit Slide?
Atlas Pearls Ltd reported a 6% revenue increase to $44.3 million in FY25 despite a 30% drop in net profit, unveiling a strategic roadmap targeting up to 50% production growth by FY30 alongside a fully franked dividend.
- FY25 revenue up 6% to $44.3 million
- Net profit after tax down 30% to $21.9 million
- Final fully franked dividend declared at 1.4 cents per share
- 621,458 pearls harvested, 4% increase from prior year
- FY30 strategy targets 30-50% production growth and cost reduction
Financial Performance and Dividend
Atlas Pearls Ltd closed FY25 with total revenue rising 6% to $44.3 million, reflecting steady demand for its prized South Sea pearls. However, net profit after tax declined by 30% to $21.9 million, a result attributed to a combination of stable but lower pearl prices compared to the previous year’s peak and increased operational investments. Despite this profit dip, the company declared a final fully franked dividend of 1.4 cents per share, bringing total dividends for the year to 2.4 cents, signaling confidence in its cash flow and financial resilience.
Operational Highlights and Production Growth
The company harvested 621,458 pearls in FY25, a 4% increase over FY24, maintaining consistent pearl quality as measured by its internal index. Atlas Pearls continues to refine its multi-channel sales strategy, including hybrid auctions and private sales, to maximise the value of each pearl. Operationally, the company expanded capacity organically across multiple Indonesian sites and leveraged joint ventures to augment oyster supply, mitigating risks such as elevated mortalities experienced at its North Bali nursery.
Strategic Roadmap to FY30
Atlas Pearls unveiled a comprehensive FY30 Strategic Roadmap focused on four pillars – quality operations, sustainability, people and culture, and customer engagement. The plan aims to increase pearl production by 30-50% by FY30 while reducing the real cost per pearl. Initiatives include expanding farm locations, optimising cultivation cycles, and developing complementary revenue streams such as value-added pearl products and alternative aquaculture species like lobster and abalone. The company is also aligning closely with the Indonesian Government’s Blue Economy Roadmap, positioning itself for sustainable growth and regulatory collaboration.
Sustainability and Community Commitment
Atlas Pearls strengthened its sustainability focus by appointing a dedicated leader for ESG and community engagement. The company published its first half-yearly Sustainability Update aligned with Global Reporting Initiative standards and UN Sustainable Development Goals. It continues to invest in local communities through health, education, and economic empowerment projects, reinforcing its role as a major employer and environmental steward in remote Indonesian regions.
Governance and Leadership Changes
José Martins assumed the role of Independent Non-Executive Chairman in January 2025, succeeding Geoff Newman. The Board approved the issuance of 4.4 million performance rights to executives and senior managers under the Employee Awards Plan, aligning management incentives with long-term shareholder value. The company’s financial statements received an unmodified audit opinion, underscoring robust governance and transparency.
Deconsolidation of PT Cahaya Bali
Effective 1 July 2024, Atlas Pearls ceased consolidating PT Cahaya Bali following a reassessment of control under accounting standards. While operationally aligned, contractual and regulatory factors led to the loss of consolidation control. This change does not affect the company’s ongoing Indonesian operations but introduces some uncertainty regarding future earnings contributions from this entity.
Bottom Line?
Atlas Pearls is poised for growth with a clear strategic vision, but investors should watch execution risks and market price stability closely.
Questions in the middle?
- How will the deconsolidation of PT Cahaya Bali impact future earnings and operational synergies?
- Can Atlas Pearls successfully scale production by up to 50% by FY30 without compromising pearl quality or margins?
- What are the prospects and timelines for revenue diversification into alternative aquaculture products?
