Namoi Cotton Q4-FY24 cash flow and business activities update

Namoi Cotton Limited (ASX: $NAM) has reported its Appendix 4C cash flow statement for the quarter ended 29 February 2024, showing net cash outflows from operating activities totaling $0.9 million. The company also provided an update on its business activities during Q4-FY24, with no material change reported.

Executive Commentary

Forecasting above average 2024 cotton production and ginning 0.9 to 1.1 million bales in FY25, Namoi Cotton Limited remains optimistic about the 2024 season. The company expects to start receiving cotton modules for ginning next month, supported by summer rainfall. Australian cotton production is forecasted to be above average, although less than the 2023 season of 5.6 million bales. Based on forecast production, the company anticipates ginning 0.9 to 1.1 million bales of cotton in 2024 (FY25).

Summary

Namoi Cotton Limited (ASX: $NAM) reported a net cash outflow of $0.9 million from operating activities for Q4-FY24, with receipts from customers totaling $8.3 million and operating costs of $2.0 million. The company's business update highlighted the forecasted above average 2024 cotton production, with expectations to gin 0.9 to 1.1 million bales in FY25. Despite the positive outlook for the 2024 season, the company remains cautious about the production forecast, which is anticipated to be above average but less than the 2023 season. Namoi Cotton's announcement reflects its optimism for the upcoming season and its commitment to providing a transparent update to its stakeholders.