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

 


Landcorp posts 133% gain in full-year operating profit

Landcorp posts 133% gain in full-year operating profit as dairy sales surge

By Jonathan Underhill

Aug. 26 (BusinessDesk) - Landcorp posted a 133 percent increase in full-year operating profit as New Zealand's biggest corporate farmer benefited from a surge in dairy prices that won't be sustained in the current year, allowing it to lift its dividend payment by 40 percent.

Operating profit was $30 million in the 12 months ended June 30, from $13 million a year earlier, the Auckland-based company said in a statement. Sales climbed 37 percent to $241.7 million, including a 70 percent gain in milk revenue to $129 million. Net profit soared 402 percent to $54.7 million, reflecting changes in the value of financial instruments and livestock.

Last week, state-owned Landcorp said operating profit would fall to a range of $8 million to $12 million in 2015, missing the $20.5 million forecast in its statement of corporate intent, reflecting the slide in global dairy prices this year from their February peak, which prompted Fonterra Cooperative Group to slash its forecast farmgate milk price to $6 per kilogram of milk solids from $7/kgMS.

"Despite the bottom-line impact of the projected fall in milk prices for 2014/15, Landcorp was well placed to continue to record sustainable profit growth over the medium term," chief executive Steven Carden said in a statement. "We're very focused on initiatives to raise productivity and efficiency across our operations."

Costs rose 15 percent to $207 million in the year, reflecting the start of its share-milking agreement with Shanghai Pengxin Group, which acquired the Crafar farm, and the expansion of its dairy conversion programme in the Waikato.

Landcorp will pay the government a $7 million dividend, up from $5 million a year earlier. Its total shareholder return was $115.9 million in the latest year, from a loss on that basis of $1.5 million in the previous year. The turnaround mainly reflected a $36.7 million gain on the value of livestock and a $67.6 million revaluation gain on land and improvements, it said.

Carden said that in the medium and long term, Landcorp "will be taking significant steps to reduce our exposure to commodity price cycles." It aims to do that by widening the range of livestock farmed and increasing its focus on red meat production of lamb, beef and venison.

"We also plan to ensure our products are targeted at niche markets where we can have a direct relationship with the customer," he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news