Appendix 4E and 2024 full year accounts
Released
Released
Announcement PDF
Neuren Pharmaceuticals Limited
Appendix 4E
Preliminary final report
1. Company details
Name of entity:
ARBN:
Reporting period:
Previous period:
Neuren Pharmaceuticals Limited
111 496 130
For the year ended 31 December 2024
For the year ended 31 December 2023
2. Results for announcement to the market
2024
$'000
2023
$'000
Change
$'000
Revenues from ordinary activities
227,846
240,063
(12,217)
(5%)
Profit from ordinary activities after tax attributable to the
owners of Neuren Pharmaceuticals Limited
142,043
157,081
(15,038)
(10%)
Profit for the year attributable to the owners of Neuren
Pharmaceuticals Limited
142,043
157,081
(15,038)
(10%)
Total comprehensive income for the year attributable to the
owners of Neuren Pharmaceuticals Limited
166,241
157,071
9,170
6%
2024
Cents
Basic earnings per share
Diluted earnings per share
111.17
108.61
Change
%
2023
Cents
123.62
120.12
Comments
Total comprehensive income for shareholders was A$166.2 million, comprising A$142.0 million profit after tax and A$24.2
million foreign currency translation gain.
In accordance with applicable Accounting Standards, effective 1 January 2024 the Company changed its functional currency
from Australian dollar to US dollars, however the Group retained Australian dollars as its reporting currency. In a year in which
the A$/US$ exchange rate fell from 0.68 at 31 December 2023 to 0.62 at 31 December 2024, the change in functional currency
significantly impacted the Financial Statements compared with 2023. Profit before tax for 2024 includes A$7.2 million net
foreign currency loss, mainly due to the translation of cash and short-term investments held in Australian dollars to the US
dollars functional currency. However, the translation from the US dollars functional currency to the Australian dollars
presentation currency resulted in a gain of A$24.2 million, which is included in Total Comprehensive Income and increased
shareholders’ equity via the currency translation reserve. The gain in Comprehensive Income is mainly due to the translation
to Australian dollars of the cash and short-term investments held in US dollars.
Total income of A$227.8 million in 2024 includes A$213.2 earned under the licence agreement with Acadia Pharmaceuticals.
This comprised quarterly royalty income of A$56.2 million (2023: A$26.8 million), milestone revenue of A$80.5 million (2023:
A$59.4 million) and A$76.5 million as Neuren’s one third share of the net proceeds of the Rare Disease Priority Review
Voucher sold by Acadia. The milestone revenue for 2024 was earned on achievement of the first in a series of four thresholds
of total annual net sales of DAYBUE™ (trofinetide), due to net sales for the year exceeding US$250 million, whilst the
milestone payment for 2023 was for the first commercial sale of DAYBUE. Revenue for 2023 also included an upfront of
A$145.7 million under the expanded global licence agreement with Acadia.
Other income includes finance income of A$11.0 million (2023: A$5.7 million) and a gain of A$3.6 million on the fair value of
outstanding forward contracts to sell Australian dollars and buy US dollars (2023: A$2.2 million loss).
Neuren Pharmaceuticals Limited
Appendix 4E
Preliminary final report
Research and development costs increased by A$6.2 million, due to higher expenditure relating to the NNZ-2591 Phase 2
clinical trials and the foundational work to prepare for Phase 3 development of NNZ-2591 across multiple indications.
Corporate and administrative costs decreased by A$1.2 million, mainly due to bonuses paid in 2023 following the marketing
authorisation of DAYBUE by the US Food and Drug Administration. Income tax expense for 2024 was A$40.9 million (2023:
A$48.1 million), reduced by the recognition of previously unrecognised New Zealand tax losses.
3. Net tangible assets
Reporting
period
Cents
Net tangible assets per ordinary security
273.52
Previous
period
Cents
160.89
4. Control gained over entities
Not applicable.
5. Loss of control over entities
Not applicable.
6. Dividends and other shareholder distributions
Current period
There were no dividends paid, recommended or declared during the current financial period.
During the year ended 31 December 2024, Neuren completed on-market buy-backs totalling $10.4 million commencing on 2
December 2024. Neuren purchased 803,052 ordinary shares on issue at the average price of $12.98.
Previous period
There were no dividends paid, recommended or declared during the previous financial period.
7. Dividend reinvestment plans
Not applicable.
8. Details of associates and joint venture entities
Not applicable.
9. Accounting standards
The Financial Statements have been prepared in accordance with and comply with generally accepted accounting practice in
New Zealand (GAAP), New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) which comply with
International Financial Reporting Standards, the requirements of the Financial Markets Conduct Act 2013, and other applicable
Financial Reporting Standards as appropriate for profit-oriented entities that fall into Tier 1 as determined by the New Zealand
Accounting Standards Board.
Neuren Pharmaceuticals Limited
Appendix 4E
Preliminary final report
10. Commentary on the results
Trofinetide
In April 2023, Neuren’s worldwide partner for trofinetide, Acadia Pharmaceuticals (NASDAQ: ACAD) launched DAYBUE™
(trofinetide) in the United States as the first approved treatment for Rett syndrome.
Net sales for the year ended 31 December 2024 were US$348.4 million, up from US$177 million in 2023, delivering royalties
of A$56.2 million to Neuren, up from A$26.8 million in 2023. Neuren also earned A$80.5 million in 2024 from the first sales
milestone, due for the first calendar year in which net sales exceed US$250 million, as well as A$76.5 million from Neuren’s
one third of the net proceeds received by Acadia from the sale of the Rare Pediatric Disease Priority Review Voucher (PRV)
in December 2024.
Acadia has provided guidance for full-year net sales in 2025 of US$380-405 million. Assuming this guidance is met and an
exchange rate of 0.65, Neuren anticipates earning royalties of A$62-67 million.
In October 2024, Health Canada approved Acadia’s New Drug Submission for DAYBUE and Acadia anticipates first sales in
Q3 2025. Canada net sales will be added to US net sales to give total net sales for calculation of Neuren’s North America
royalties and sales milestone payments. In Canada, the prevalence of Rett Syndrome is estimated to be 600 to 900 patients.
In January 2025, Acadia submitted a Marketing Authorization Application (MAA) to the European Medicines Agency (EMA)
for trofinetide for the treatment of Rett syndrome in adults and pediatric patients two years of age and older. Acadia anticipates
potential approval in Q1 2026. If granted marketing authorization, trofinetide will be the first and only approved therapy for
Rett syndrome in the European Union. In the meantime, Acadia anticipates initiating Managed Access Programs in Europe in
Q2 2025.
For Japan, Acadia has had productive discussions with the regulatory agency (PMDA) and plans to initiate a small clinical
study by Q3 2025 to support a marketing application.
NNZ-2591
Neuren is developing a second drug NNZ-2591 for multiple serious neurodevelopmental disorders with different genetic origins
that emerge in early childhood and have no or limited approved treatment options. Recognising the urgent unmet need, all
programs have been granted “orphan drug” designation in the United States. Orphan drug designation provides incentives to
encourage development of therapies for rare and serious diseases.
In May 2024, Neuren announced positive top-line results from the Phase 2 clinical trial of NNZ-2591 in children with Pitt
Hopkins syndrome (PTHS). After treatment for 13 weeks, significant improvement was observed by both clinicians and
caregivers in clinically important aspects of PTHS, including communication, social interaction, cognition and motor abilities.
Clinician and caregiver global efficacy measures showed a level of improvement considered clinically meaningful. The PTHS
Clinical Global Impression of Improvement (CGI-I) mean score was 2.6, with 9 out of 11 children showing improvement
assessed by clinicians. The PTHS Caregiver Overall Impression of Change (CIC) mean score was 3.0, with 8 out of 11 children
showing improvement assessed by caregivers. NNZ-2591 was well tolerated and demonstrated a good safety profile. Neuren
recently announced that the US Food and Drug Administration (FDA) has granted Fast Track designation for NNZ-2591 for
the treatment of PTHS. Fast Track is designed to facilitate the development and expedite the review of drugs to treat serious
conditions.
In August 2024, Neuren announced positive top-line results from the Phase 2 clinical trial of NNZ-2591 in children with
Angelman syndrome (AS). NNZ-2591 was safe and well tolerated as an oral liquid dose and improvements were seen in
clinically important aspects of AS. Clinician and caregiver global efficacy measures showed a level of improvement from
baseline that was statistically significant and considered clinically meaningful. The AS Clinical Global Impression of
Improvement (CGI-I) mean score was 3.0, with 11 out of 13 children showing improvement assessed by clinicians. The AS
Caregiver Overall Impression of Change (CIC) mean score was 3.2, with 8 out of 12 children showing improvement assessed
by caregivers. In the 3-12 years age group all 8 children showed improvement on both measures, with a mean CGI-I score of
2.8 and a mean CIC score of 2.6.
Neuren Pharmaceuticals Limited
Appendix 4E
Preliminary final report
The positive results of NNZ-2591 in PTHS and AS followed the announcement of positive top-line results from the Phase 2
clinical trial of NNZ-2591 in children with Phelan McDermid syndrome (PMS). A Type C Meeting with the US Food and Drug
Administration (FDA) is scheduled in early April 2025, to discuss the primary efficacy endpoints in Neuren’s planned pivotal
Phase 3 clinical trial program for PMS. Neuren previously announced the positive outcomes from a Type B End of Phase 2
Meeting, at which alignment with FDA was reached on the other key features of the Phase 3 clinical trial program. A Type C
Meeting was considered by FDA as the best forum for completion of the remaining efficacy endpoints discussion. In parallel,
Neuren is continuing preparations for the first ever Phase 3 trial in Phelan-McDermid syndrome, planning for mid-2025
commencement.
Other potential indications for NNZ-2591 are under evaluation and Neuren has an open IND with the FDA for NNZ-2591 in
Prader-Willi syndrome.
Financial commentary
Total comprehensive income for shareholders was A$166.2 million, comprising A$142.0 million profit after tax and A$24.2
million foreign currency translation gain.
In accordance with applicable Accounting Standards, effective 1 January 2024 the Company changed its functional currency
from Australian dollar to US dollars, however the Group retained Australian dollars as its reporting currency. In a year in which
the A$/US$ exchange rate fell from 0.68 at 31 December 2023 to 0.62 at 31 December 2024, the change in functional currency
significantly impacted the Financial Statements compared with 2023. Profit before tax for 2024 includes A$7.2 million net
foreign currency loss, mainly due to the translation of cash and short-term investments held in Australian dollars to the US
dollars functional currency. However, the translation from the US dollars functional currency to the Australian dollars
presentation currency resulted in a gain of A$24.2 million, which is included in Total Comprehensive Income and increased
shareholders’ equity via the currency translation reserve. The gain in Comprehensive Income is mainly due to the translation
to Australian dollars of the cash and short-term investments held in US dollars.
Total income of A$227.8 million in 2024 includes A$213.2 earned under the licence agreement with Acadia Pharmaceuticals.
This comprised quarterly royalty income of A$56.2 million (2023: A$26.8 million), milestone revenue of A$80.5 million (2023:
A$59.4 million) and A$76.5 million as Neuren’s one third share of the net proceeds of the Rare Disease Priority Review
Voucher sold by Acadia. The milestone revenue for 2024 was earned on achievement of the first in a series of four thresholds
of total annual net sales of DAYBUE™ (trofinetide), due to net sales for the year exceeding US$250 million, whilst the
milestone payment for 2023 was for the first commercial sale of DAYBUE. Revenue for 2023 also included an upfront of
A$145.7 million under the expanded global licence agreement with Acadia.
Other income includes finance income of A$11.0 million (2023: A$5.7 million) and a gain of A$3.6 million on the fair value of
outstanding forward contracts to sell Australian dollars and buy US dollars (2023: A$2.2 million loss).
Research and development costs increased by A$6.2 million, due to higher expenditure relating to the NNZ-2591 Phase 2
clinical trials and the foundational work to prepare for Phase 3 development of NNZ-2591 across multiple indications.
Corporate and administrative costs decreased by A$1.2 million, mainly due to bonuses paid in 2023 following the marketing
authorisation of DAYBUE by the US Food and Drug Administration. Income tax expense for 2024 was A$40.9 million (2023:
A$48.1 million), reduced by the recognition of previously unrecognised New Zealand tax losses.
The basic earnings per share for the year to 31 December 2024 was A$1.112 (2023: A$1.236) based on a weighted average
number of shares outstanding of approximately 127.8 million (2023: 127.1 million).
Total cash and short-term investments at 31 December 2024 were A$222.2 million (2023: A$228.5 million). Net cash used in
operating activities was A$11.3 million compared with net cash generated of A$184.9 million for the year ended 31 December
2023. This is mainly due to the first sales milestone and sale of priority review voucher being earned in Q4 2024 and received
in Q1 2025. Neuren made tax payments of A$37.2 million in 2024, which included A$34 million for 2023 tax, compared with
nil payments made in 2023.
Net cash used in financing activities for 31 December was A$8.8 million, comprising A$10.4 million of payments for the share
buy-back, offset by A$1.7 million of proceeds received on conversion of loan funded shares and exercise of options.
11. Auditors review
The financial statements have been audited and an unmodified opinion has been issued.
Neuren Pharmaceuticals Limited
Appendix 4E
Preliminary final report
12. Attachments
Details of attachments (if any):
The Financial Report of Neuren Pharmaceuticals Limited for the year ended 31 December 2024 is attached.
13. Signed
Signed ___________________________
Patrick Davies
Non-Executive Chair
Melbourne
Date: 27 February 2025
Neuren Pharmaceuticals Limited
ARBN 111 496 130
Consolidated Financial Report for the Year ended 31 December
2024
Neuren Pharmaceuticals Limited
Contents
31 December 2024
Directors' Responsibilities Statement
Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Independent auditor's report
1
2
3
4
5
6
7
29
Neuren Pharmaceuticals Limited
Directors' Responsibilities Statement
31 December 2024
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Neuren Pharmaceuticals Limited (referred to hereafter as the 'company' or 'parent
entity') and the entities it controlled at the end of, or during, the year ended 31 December 2024.
The directors are responsible for the preparation, in accordance with New Zealand law and generally accepted accounting
practice, of financial statements which give a true and fair view of the financial position of the company as at 31 December
2024 and its financial performance for the year ended on that date.
The directors consider that the financial statements of the company have been prepared using appropriate accounting policies,
consistently applied and supported by reasonable judgements and estimates and that all relevant financial reporting standards
have been followed.
The directors believe that proper accounting records have been kept which enable, with reasonable accuracy, the
determination of the financial position of the company and facilitate compliance of the financial statements with the Financial
Reporting Act 2013.
The directors have responsibility for the maintenance of a system of internal controls designed to provide reasonable
assurance as to the integrity and reliability of financial reporting. The directors consider they have taken adequate steps to
safeguard the assets of the company and to prevent and detect fraud and other irregularities.
On behalf of the directors
___________________________
Patrick Davies
Non-Executive Chair
___________________________
Joe Basile
Non-Executive Director
27 February 2025
Melbourne
2
Neuren Pharmaceuticals Limited
Consolidated statement of profit or loss and other comprehensive income
For the year ended 31 December 2024
Year ended
Dec 2024
$'000
Year ended
Dec 2023
$'000
213,243
231,925
Finance income
Gain on financial derivatives measured at fair value through profit and loss
Net foreign currency gain
Other income
Total income
11,014
3,587
2
227,846
5,687
2,434
17
240,063
Expenses
Research and development costs
Corporate and administrative costs
Loss on financial derivatives measured at fair value through profit and loss
Net foreign currency loss
Total expenses
(32,970)
(4,701)
(7,235)
(44,906)
(26,751)
(5,946)
(2,226)
(34,923)
Profit before income tax expense
182,940
205,140
(40,897)
(48,059)
142,043
157,081
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
24,198
(10)
Other comprehensive income for the year, net of tax
24,198
(10)
Total comprehensive income for the year attributable to the owners of Neuren
Pharmaceuticals Limited
166,241
157,071
Cents
Cents
Note
Revenue from contracts with customers
6
Income tax expense
8
Profit after income tax expense for the year attributable to the owners of
Neuren Pharmaceuticals Limited
Other comprehensive income
Basic earnings per share
Diluted earnings per share
9
9
111.17
108.61
123.62
120.12
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
3
Neuren Pharmaceuticals Limited
Consolidated statement of financial position
As at 31 December 2024
Note
As at 31 Dec As at 31 Dec
2024
2023
$'000
$'000
Assets
Current assets
Cash and cash equivalents
Short term investments
Trade and other receivables
Contract assets
Derivative financial instruments
Total current assets
10
11
12
13
15
Non-current assets
Plant and equipment
Deferred tax asset
Total non-current assets
8
Total assets
3,153
219,089
157,967
17,756
1,362
399,327
17,094
211,445
5,817
12,800
247,156
31
10,348
10,379
43
771
814
409,706
247,970
Liabilities
Current liabilities
Trade and other payables
Derivative financial instruments
Income tax payable
Total current liabilities
14
15
8
2,895
42,866
45,761
3,418
2,226
37,119
42,763
Non-current liabilities
Employee benefits
Total non-current liabilities
14
41
41
-
Total liabilities
45,802
42,763
Net assets
363,904
205,207
165,270
4,695
13,508
180,431
173,127
4,382
(10,690)
38,388
363,904
205,207
Equity
Share capital
Share option reserve
Currency translation reserve
Retained earnings
16
Total equity
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
4
Neuren Pharmaceuticals Limited
Consolidated statement of changes in equity
For the year ended 31 December 2024
(Accumulated
deficit)/
retained
earnings
Total equity
$'000
$'000
Share option
reserve
$'000
Currency
translation
reserve
$'000
167,740
3,222
(10,680)
(118,693)
41,589
Profit after income tax expense for the year
Other comprehensive income for the year, net
of tax
-
-
-
157,081
157,081
-
-
(10)
-
(10)
Total comprehensive income for the year
-
-
(10)
157,081
157,071
(18)
1,104
420
2,533
1,348
-
(420)
(1,348)
2,928
-
-
(18)
1,104
2,533
2,928
173,127
4,382
(10,690)
38,388
205,207
Share option
reserve
$'000
Currency
translation
reserve
$'000
173,127
4,382
(10,690)
38,388
205,207
Profit after income tax expense for the year
Other comprehensive income for the year, net
of tax
-
-
-
142,043
142,043
-
-
24,198
-
24,198
Total comprehensive income for the year
-
-
24,198
142,043
166,241
Transactions with owners in their capacity as
owners:
Share issue costs
Loan funded shares converted
Transfer on conversion of loan funded shares
Share options exercised
Transfer on exercise of options
Share-based payments
On-market share buy-back
(9)
277
105
1,383
813
(10,426)
(105)
(813)
1,231
-
-
-
(9)
277
1,383
1,231
(10,426)
Balance at 31 December 2024
165,270
4,695
13,508
180,431
363,904
Share
capital
$'000
Balance at 1 January 2023
Transactions with owners in their capacity as
owners:
Share issue costs
Loan funded shares converted
Transfer on conversion of loan funded shares
Share options exercised
Transfer on exercise of options
Share based payments
Balance at 31 December 2023
Share
capital
$'000
Balance at 1 January 2024
Retained
earnings
$'000
Total equity
$'000
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
5
Neuren Pharmaceuticals Limited
Consolidated statement of cash flows
For the year ended 31 December 2024
Year ended
Dec 2024
$'000
Year ended
Dec 2023
$'000
51,421
(37,221)
(2,517)
11,297
353
(4,145)
(30,458)
221,004
(11,840)
882
4,360
272
(5,161)
(24,592)
(11,270)
184,925
Cash flows from investing activities
Purchase of plant and equipment
Less cash transferred from/(to) short-term investments (i)
(10)
4,144
(40)
(211,445)
Net cash from/(used in) investing activities
4,134
(211,485)
1,660
(9)
(10,426)
3,637
(18)
-
Net cash (used in)/from financing activities
(8,775)
3,619
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
(15,911)
17,094
1,970
(22,941)
40,180
(145)
3,153
17,094
Note
Cash flows from operating activities
Receipts from licence agreement
Income tax paid
Withholding tax paid
Receipts from Australian R&D Tax Incentive
Interest received
GST refunded
Payments for employees and directors
Payments to other suppliers
Net cash (used in)/from operating activities
5
Cash flows from financing activities
Proceeds from issue of shares
Payment of share issue expenses
Payments for share buy-back
16
16
16
Cash and cash equivalents at the end of the financial year
10
(i) Following the receipt of the first commercial sale milestone payment from Acadia, the Company is holding more funds than
are required to meet currently forecast short-term cash commitments. As a result, the Company has reclassified cash held in
short-term deposits from Cash and Cash Equivalents to Short-term Investments.
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
6
Neuren Pharmaceuticals Limited
Notes to the consolidated financial statements
31 December 2024
Note 1. Nature of the business
Neuren Pharmaceuticals Limited (“Neuren” or the “Company”), and its subsidiaries (collectively the “Group”) is a publicly listed
biopharmaceutical company developing drugs for neurological disorders.
The Company is a limited liability company incorporated in New Zealand. The address of its registered office in New Zealand
is at the offices of Lowndes Jordan, Level 15 HSBC Tower, 188 Quay Street, Auckland 1141. Neuren operates in Australia
and its ordinary shares are listed on the Australian Securities Exchange (ASX code: NEU).
These consolidated financial statements were approved for issue by the Board of Directors on 27 February 2025.
Note 2. Material accounting policy information
These general-purpose consolidated financial statements of the Group are for the year ended 31 December 2024 and have
been prepared in accordance with and comply with generally accepted accounting practice in New Zealand (GAAP), New
Zealand equivalents to International Financial Reporting Standards (NZ IFRS) issued by the New Zealand Accounting
Standards Board which comply with International Financial Reporting Standards, the requirements of the Financial Markets
Conduct Act 2013, and other applicable Financial Reporting Standards as appropriate for profit-oriented entities that fall into
Tier 1 as determined by the New Zealand External Reporting Board.
Basis of preparation
Entities Reporting
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Group as at 31 December
2024 and the results of all subsidiaries for the year then ended. Neuren Pharmaceuticals Limited and its subsidiaries, which
are designated as profit-oriented entities for financial reporting purposes, together are referred to in these financial statements
as the Group.
Statutory Base
Neuren is registered under the New Zealand Companies Act 1993. Neuren is also registered as a foreign company under the
Australian Corporations Act 2001.
Historical cost convention
These consolidated financial statements have been prepared under the historical cost convention as modified by certain
policies below. Amounts are expressed in Australian Dollars and are rounded to the nearest thousand, except for earnings
per share.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements, are disclosed in Note 3.
Going concern basis
The directors monitor the Group’s cash position and initiatives to ensure that adequate funding continues to be available for
the Group to meet its business objectives. The Group recorded a profit after tax of $142.0 million for the year ending 31
December 2024 and had negative operating cash flows of $11.3 million for the year ended 31 December 2024. The Group
had cash of $3.2 million and short-term investments (term deposits) of $219.1 million and $158.0 million of trade and other
receivables at 31 December 2024.
It is the considered view of the Directors that the Group will have access to adequate resources to meet its ongoing obligations
for at least a period of 12 months from the date of signing these financial statements. On this basis, the Directors have
assessed it is appropriate to adopt the going concern basis in preparing its consolidated financial statements. The consolidated
financial statements do not include any adjustments that would result if the Group was unable to continue as a going concern.
7
Neuren Pharmaceuticals Limited
Notes to the consolidated financial statements
31 December 2024
Note 2. Material accounting policy information (continued)
Changes in accounting policies
There are no material changes in accounting policies for the year ended 31 December 2024.
Standards, interpretations and amendments to published standards that are not yet effective
At the date of authorisation of these consolidated financial statements, several new, but not yet effective, Standards and
amendments to existing New Zealand equivalents to International Financial Reporting Standards ('NZ IFRS') that have
recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the
annual reporting period ended 31 December 2024. The consolidated entity's assessment of the impact of these new or
amended Accounting Standards and Interpretations, most relevant to the consolidated entity, are set out below.
IFRS 18 Presentation and Disclosure in Financial Statements
This standard is applicable to annual reporting periods beginning on or after 1 January 2027 and early adoption is permitted.
The standard replaces IAS 1 'Presentation of Financial Statements', with many of the original disclosure requirements retained
and there will be no impact on the recognition and measurement of items in the financial statements. But the standard will
affect presentation and disclosure in the financial statements, including introducing five categories in the statement of profit or
loss and other comprehensive income: operating, investing, financing, income taxes and discontinued operations. The
standard introduces two mandatory sub-totals in the statement: 'Operating profit' and 'Profit before financing and income
taxes'. There are also new disclosure requirements for 'management-defined performance measures', such as earnings before
interest, taxes, depreciation and amortisation ('EBITDA') or 'adjusted profit'. The standard provides enhanced guidance on
grouping of information (aggregation and disaggregation), including whether to present this information in the primary financial
statements or in the notes. The consolidated entity will adopt this standard from 1 January 2027 and it is expected that there
will be a significant change to the layout of the statement of profit or loss and other comprehensive income.
Comparatives
Where deemed necessary, the comparatives have been reclassified to achieve consistency with the current
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