The Alliance Group has cemented itself as one of New Zealand's most profitable meat companies by announcing a steady profit on increased revenue for the last financial year.
The Invercargill co-operative yesterday reported an operating surplus before pools of $42.1 million for the year to September 30, compared with $54 million for the previous corresponding period (pcp).
Turnover for the period under review was up sharply at $1.5 billion from $1.3 billion pcp.
Chairman Owen Poole described the year as successful, providing a strong profit for the company and record lamb prices to farmers.
Mr Poole said yield quality contract premiums and pool surplus payments added an average of $7.30 to farmers with stock that met both of those standards.
Alliance also enjoyed a strong cashflow year, recording a surplus of $44.5 million compared with $43 million pcp.
Alliance will make pool payments to shareholders of $15 million, $2.8 million through a 5% fully-imputed divided and a bonus share issue of 18.6 million shares.
This compared with pool payments a year earlier of $20.5 million, a $3 million dividend and bonus share issue.
Equity ratio at balance date had increased from 69% to 70%.
Mr Poole said it was disappointing that a strong exchange rate looked like undermining what was a successful year last year.
Despite reduced livestock numbers, Mr Poole said Alliance enjoyed supplier support, it grew market share, plant performance was high and the company's brands remained a focal point for customers.
