VA’s Better Business programme achieves USD252.4m in net free cash flow savings in H1FY2018/2019

    Virgin Australia (VA) reported (13-Feb-2019) the following highlights contributing to a strengthening of its financial position for H1FY2018/2019:

    • Continued improvements through its Better Business programme, which delivered annualised net free cash flow savings of AUD355.3 million (USD252.4 million). Better Business remains on track to deliver more than AUD400 million (USD284.2 million) in net free cash flow savings in FY2018/2019. ‘Better business 2’ is forecast to commence in FY2019/2020 with a three year annualised target of AUD300 million (USD213.1 million);
    • Improvements in balance sheet metrics, with strongest financial leverage since FY2008 by 4.1 times. Adjusted net debt decreased 6.8% year-on-year to AUD3.9 billion (USD2.8 billion);
    • Improved free cash flow performance, with cash generated from operating activities increasing 2.1% and improving free cash flow by AUD67.8 million (USD48.2 million).