Lynch Group blooms again after torrid shutdowns

It has 200 people on the ground serving around 2,000 retail outlets, but the closures in July and August led to serious difficulties in maintaining normalcy.

The group’s operations in China increased revenue for the December half by 44% to $36.1 million. Lynch Group operates four flower farms in China with 1,000 employees and also has a processing plant in Shanghai.

Lynch Group generated net profit after tax of $14 million for the December half, down 3% from $14.4 million a year earlier. It pays a 6¢ dividend in the first half.

Mr Toll said the resumption of international travel should help restore additional air capacity from late February.

But the group expects supply chain disruptions to persist through the middle of June, with limited availability of some products and labor shortages due to isolation and disease related to COVID-19.

But there had been good sales momentum in the first weeks of the second half.

“Despite these pressures, January and February revenues are expected to be higher than a year earlier,” he said.

Supply chain disruptions have meant that Lynch Group has used dedicated charter flights to bring in roses from China ahead of Valentine’s Day, where demand is surging. There had also been some reductions in the ranges of flowers he was able to sell.

Shares of Lynch Group were trading at $3.80 at the end of August, but have fallen steadily since then and now sit around $2.90.

Lynch Group has a history in the flower business in Australia that dates back almost 100 years. Private equity group Next Capital had been Lynch Group’s majority shareholder since 2015, before the IPO in early 2021.

About Cassondra Durden

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