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

 

Landcorp reports 36% drop in FY operating profit

Landcorp reports 36% drop in FY operating profit, says IFRS net loss ‘not meaningful’

Landcorp, the country's biggest farming company, said its operating profit fell 36 percent and is forecast to halve in the current year with prices expected to be generally lower.

The state-owned farmer said its ‘net operating profit’ fell to $27 million in the 12 months ended June 30, from a record $42 million on the same basis a year earlier. Sales fell 4 percent to $210.5 million.

The decline in operating profit mainly reflected the impact of “significant reductions” in prices for milk and timber in a year when sales fell even as the volumes produced rose. The company will pay the government a dividend of $20 million, down from $27.5 million in the previous year.

Landcorp said net operating profit for 2013 will be about $13 million, based on current product prices.

The current year’s product prices are expected to be “more volatile and generally lower” than in 2012, Landcorp said.

“This will reflect the continued negative impact of the global financial crisis on demand in European, North American and Asia economies, and particular supply and demand factors in markets for wholesale milk products,” it said.

The high kiwi dollar continues to have a major impact on income from exporting, the company said.

Net profit, the earnings measure required to be disclosed by listed companies, was a loss of $9.4 million from a year-earlier profit of $114.6 million, reflecting changes in unrealised revaluations on livestock, derivatives and land.

Like many other New Zealand companies, Landcorp downplayed the net profit figure as being “not a meaningful indicator” of its operating performance. Since New Zealand adopted the International Financial Reporting Standards there has been a proliferation of non-standardised earnings measures, where companies back out items that aren’t directly to do with operations.

Landcorp first flagged the $20 million dividend and $27 million operating profit at the start of the month, when it reported record annual milk production of 13.3 million kilograms of milk solids. It had previously forecast profit on that basis of $16.3 million.

Landcorp has entered an agreement with China's Shanghai Pengxin to manage the 16 central North Island farms formerly owned by the Crafar family.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




Civil Contractors: Massive Rebound In Civil Construction Business Confidence

New Zealand’s civil construction industry is riding a massive rebound in post-pandemic business confidence – but this may be undermined by skills shortages, which continue to be the industry’s number one challenge... More>>



Energy: Feeling Our Way Towards Hydrogen - Tina Schirr

Right now hydrogen is getting a lot of attention. Many countries are focusing on producing hydrogen for fuel, or procuring it, or planning for its future use... More>>

Maritime Union: Calls For New Zealand Shipping To Resolve Supply Chain Crisis

The Maritime Union says there needs to be innovative responses to ongoing shipping congestion. Maritime Union of New Zealand National Secretary Craig Harrison says it is essential that New Zealand develops its own shipping capacity... More>>


Housing: New Home Consents Continue To Break Records

A record 44,299 new homes were consented in the year ended June 2021, Stats NZ said today. “The annual number of new homes consented rose again in the June 2021 year, the fourth consecutive month of rises,” construction statistics manager Michael Heslop said... More>>


Real Estate: June Home Transfers Remain High
There were 44,517 home transfers in the June 2021 quarter, the highest June quarter figure since 2016, Stats NZ said today. The number of home transfers was very similar to the March 2021 quarter and was up 18,252 from the June 2020 quarter... More>>



Statistics: Household Saving Falls In The March 2021 Quarter

Saving by New Zealanders in the March 2021 quarter fell to its lowest level in two years after rising sharply in 2020, Stats NZ said today. Increases in household spending outpaced income growth, leading to a decline in household saving from the elevated levels that prevailed throughout 2020... More>>

ALSO: