ST Group Food Industries Holdings Limited: FY2025 Financial Review and Outlook
ST Group Food Industries Holdings Limited, an established food & beverage operator with a diversified brand portfolio across Australia, New Zealand, Singapore, Indonesia, and the UK, has released its financial results for the year ended 30 June 2025. The report provides key insights into the company’s operational performance, financial health, and strategic direction.
Key Financial Metrics and Comparative Analysis
| Metric |
FY2025 |
FY2024 |
YoY Change |
| Revenue (A\$ million) |
62.5 |
64.4 |
-3.0% |
| EBITDA (A\$ million) |
4.1 |
4.8 |
-14.6% |
| PATMI (A\$ million) |
0.9 |
0.4 |
+125% |
| PATMI Margin |
1.3% |
0.7% |
+0.6pp |
| Net Cash Position (A\$ million, June) |
12.8 |
10.9 |
+17.4% |
| Number of Outlets |
177 |
178 |
-0.6% |
Historical Performance Trends
ST Group has demonstrated robust expansion since 2012, growing its outlet network from just 3 to 177 by June 2025. However, the growth in outlets appears to have plateaued in FY2025, with a slight decrease versus the previous year. Revenue also saw a modest decline of 3%, while EBITDA decreased 14.6%. Despite this, net profit attributable to equity holders (PATMI) more than doubled, suggesting improved cost controls and efficiency, possibly due to lower exceptional expenses.
Cost Structure and Efficiency
The group continues to maintain strong cost discipline. Staff costs and purchases/inventories represent the largest expenses, accounting for nearly 70% of F&B and supply chain revenue. Rental, depreciation, and finance costs remain stable, with rental expenses on right-of-use assets at 14.2% of F&B and supply revenue. The company leases approximately 44.6% of its outlets from major shopping centre landlords, supporting its ability to secure prime locations.
Exceptional Earnings and Expenses
The report notes normalisation adjustments to PATMI for deconsolidation of subsidiaries, impairment losses, intangible assets written off, bad debts, and assets written off. These adjustments helped achieve a normalised PATMI of A\$1.1 million, higher than the reported figure, highlighting the company’s focus on core operational profitability.
Financial Position
ST Group maintains a solid balance sheet. Cash and liquid investments rose to A\$12.8 million, up from A\$10.9 million a year ago. Borrowings and equipment finance leases remained stable, supporting a healthy net cash position. Total assets held steady at A\$58.4 million.
Growth Strategy and Future Plans
The company is focused on organic expansion and brand acquisition. Upcoming store openings in Australia, New Zealand, and Singapore include new locations for Homm, Gong Cha, and NeNe Chicken, with a mix of company-owned and sub-franchised outlets scheduled for the second half of 2025. This suggests a continued commitment to diversifying revenue streams and leveraging franchise partnerships.
Chairman’s Statement
No explicit Chairman’s statement is presented in the financial report. The document does, however, highlight the entrepreneurial vision and strategic commitment of the management team to growth and operational excellence.
Events Affecting Business
No mention of natural disasters, legal disputes, major policy changes, or macroeconomic environment shifts is found in the report. There is no indication of asset revaluation delays, divestments, IPOs, fundraising, share buybacks, or unusual fund flows.
Conclusion and Recommendations
Overall Assessment: ST Group’s financial performance in FY2025 appears neutral to slightly positive. While revenue and EBITDA declined, net profit rose substantially due to lower exceptional expenses and improved margins. The outlet network is stable and the company’s net cash position has improved, supporting future growth plans.
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If currently holding the stock: Investors may consider holding their position, given the stable cash flow, solid financial position, and positive outlook for new store openings. However, the slight decline in revenue and EBITDA warrants monitoring for a return to growth.
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If not currently holding the stock: Potential investors might consider waiting for clearer signs of revenue and EBITDA growth before initiating a position. The company’s strong brand portfolio and expansion plans are attractive, but topline and operational improvements should be confirmed in future quarters.
Disclaimer: This analysis is based strictly on the information provided in the FY2025 financial report of ST Group Food Industries Holdings Limited. Investors should conduct their own due diligence and consider their risk tolerance before making any investment decisions.
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