Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Landcorp 1H earnings soar on rising dairy income

Landcorp 1H earnings soar on rising dairy income, chairman Baylis to go

By Paul McBeth

Feb. 4 (BusinessDesk) - Landcorp Farming, which manages 137 farms, more than tripled first-half profit as record milk prices drove up dairy income and said earnings will hold up for the rest of the year. Separately, chairman Bill Baylis announced plans to resign from the board.

Operating profit rose to $12.2 million in the six months ended Dec. 31 from $2.5 million a year earlier, on a 27 percent gain in revenue to $119.4 million, the state-owned farmer said in a statement last week. Landcorp expects to report full-year operating profit of about $35 million, the top end of its previous forecast range of between $30 million and $35 million, and almost three-times its 2013 earnings of $13 million.

Dairying income jumped 58 percent to $74.8 million, with a forecast payout above $8 per kilogram of milksolids, and increased production from the sharemilking arrangement with Shanghai Pengxin to run the former Crafar farms.

The SOE’s expenses rose 18 percent to $103.8 million in the period with higher costs associated with the Pengxin joint venture

Landcorp’s net profit climbed to $109.3 million from $24.9 million a year earlier on significant gains in the value of livestock during the period.

Landcorp’s livestock revenue fell 8.1 percent in the first half due to smaller livestock numbers after last year’s drought in the North Island, when farmers were forced to cull stock. The SOE’s lambing rate, the number of lambs born per ewe, fell to 139.5 percent from a record 145 percent a year earlier.

In a separate statement, chairman Bill Baylis said he would resign from the board at the end of April, when Landcorp will have completed a strategic review of its business. Baylis joined the board in November 2009, and assumed the chair in May 2012, replacing former Agriculture Minister Jim Sutton.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Suspected Black Widows: Table Grapes Withdrawn From Sale Following Spider Discovery

The Ministry for Primary Industries (MPI) is working closely with New Zealand produce retailers to have all imported Mexican table grapes withdrawn from sale following the discovery of spiders in a small number of consignments. More>>

ALSO:

Crown Accounts: 11-Month Surplus Beating Forecasts

Once minority interests’ share of revenues and expenses are removed, the total Crown’s operating balance before gains and losses (OBEGAL) was a surplus of $1,176 million in the eleven-month period. This compares to a forecast surplus of $193 million. More>>

ALSO:

Development: Screen Precinct Earmarked For Hobsonville Point

Auckland Council’s Auckland Development Committee has today passed a recommendation to create a screen precinct on council-owned land at Hobsonville Point. More>>

ALSO:

Scoop Business: NZ Business Confidence Plummets To Lowest Level Since GFC

New Zealands business confidence plunged to the lowest level in three years in the second quarter as companies became pessimistic about profitability expectations. More>>

ALSO:

Oceans: NZ Jumps Into International Shark Agreement

New Zealand has boosted the protection of sharks by signing the Memorandum of Understanding on the Conservation of Migratory Sharks. More>>

ALSO:

Insurance: EQC To Double Payout, Scrap Contents Insurance

New Zealand’s Earthquake Commission may double its payout amount, scrap contents insurance and process claims through private insurers under the government’s long-running review of funding and management of the state-run earthquake insurer. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news