Silver Fern Farms posts full-year operating profit on strong export meat prices

Thursday 17th November 2011 1 Comment

Silver Fern Farms, the biggest South Island meat company, turned to a full-year operating surplus, from a year-earlier loss, as it benefited from sales growth driven by higher prices for red meat.

Operating earnings were $40.6 million in the 12months ended Sept.30, from a loss of $8million a year earlier, the company said in a statement. Sales climbed to $2.1 billion from $1.8 billion.

In a year marked by a volatile New Zealand dollar, storms that resulted in a record-low lamb crop and a fire at the firm’s Te Aroha plant, farmers ended up getting record returns, thanks to rising prices for red meat and by-products, chief executive Keith Cooper said.

The company will pay a dividend of 10 cents a share, bringing distributions to $14.5 million when the quarterly performance premium payments are included.

BusinessDesk.co.nz

Comments from our readers

On 18 November 2011 at 9:23 pm howard said:

Crips that is a step in the right direction. A Freezing company paying a decent dividend; who knows the share price might improve too. Howie.