Thursday 2nd November 2017
|Text too small?|
Allied Farmers' first-quarter livestock earnings fell, although the rural services firm says it's too early to say whether it will recover by the end of the current half or the financial year.
Earnings in the three months ended Sept. 30 were below the same period a year earlier "largely due to the impact of the wetter spring weather, which has generally had the impact of reducing livestock sales in this quarter," the Hawera-based company said in a statement. Allied Farmers had previously predicted "careful growth" in the livestock business, tempered with a flat outlook for the meat processing business as overseas prices remain low.
"It is too early to say whether this slower start to livestock trading will be recovered later in either the remaining months of the half year to 31 December 2017, or possibly in the second six months of the financial year to 30 June, when livestock sales are traditionally higher," chair Garry Bluett said. "Livestock prices are holding up well, and ALF considers that improving farming/weather conditions, appreciable numbers of farms going to market, and NZ Farmers Livestock’s progress building teams and market share over recent years should improve this position."
In 2017, Allied reported a 60 percent lift in net profit to $2.2 million on an improved result from its livestock division, particularly in the second half, and cost reduction. During the year, its livestock division established a financing unit, initially focused on financing service bulls but then expanding into other livestock financing.
Allied Farmers shares last traded at 9.2 cents and are up 26 percent this year.
No comments yet
Goodman trust spec builds warehouses in constrained market
Kathmandu shares rise 9.3% on strong FY result, solid US performance
FMA seeks greater powers from the government
Goodman opts for underwritten $150m placement to raise capital
NZ dollar opens higher as dairy prices lift, oil eases
Napster's Sean Parker yet to seek OIO approval for Weta Digital stake
18th September 2019 Morning Report
Dairy product prices advance, bolstered by milk powders
MARKET CLOSE: NZ shares gain: F&P Healthcare rallies on big volume, Synlait extends gain
NZ dollar mixed after RBA says its ready to cut rate if necessary