Tuesday 4th February 2014
|Text too small?|
Landcorp Farming, which manages 137 farms, more than tripled first-half profit as record milk prices drove up dairy income and said earnings will hold up for the rest of the year. Separately, chairman Bill Baylis announced plans to resign from the board.
Operating profit rose to $12.2 million in the six months ended Dec. 31 from $2.5 million a year earlier, on a 27 percent gain in revenue to $119.4 million, the state-owned farmer said in a statement last week. Landcorp expects to report full-year operating profit of about $35 million, the top end of its previous forecast range of between $30 million and $35 million, and almost three-times its 2013 earnings of $13 million.
Dairying income jumped 58 percent to $74.8 million, with a forecast payout above $8 per kilogram of milksolids, and increased production from the sharemilking arrangement with Shanghai Pengxin to run the former Crafar farms.
The SOE's expenses rose 18 percent to $103.8 million in the period with higher costs associated with the Pengxin joint venture
Landcorp's net profit climbed to $109.3 million from $24.9 million a year earlier on significant gains in the value of livestock during the period.
Landcorp's livestock revenue fell 8.1 percent in the first half due to smaller livestock numbers after last year's drought in the North Island, when farmers were forced to cull stock. The SOE's lambing rate, the number of lambs born per ewe, fell to 139.5 percent from a record 145 percent a year earlier.
In a separate statement, chairman Bill Baylis said he would resign from the board at the end of April, when Landcorp will have completed a strategic review of its business. Baylis joined the board in November 2009, and assumed the chair in May 2012, replacing former Agriculture Minister Jim Sutton.
No comments yet
Fonterra to go coal-free 11 years ahead of schedule
Huawei committed to NZ even if govt doesn’t come around on spy fears
Mercury points to peaking gains as FY production drops 10%
Asset Plus sells Heinz Watties distribution centre for $29.1 mln
18th July 2019 Morning Report
COMMENT: RBNZ's key political omission in its bank capital proposals
ANZ and Westpac credit rating outlooks downgraded to 'negative' outlook: Fitch
MARKET CLOSE: NZ shares edge higher in quiet trading; weaker currency buoys exporters
NZ dollar stalled amid uncertainty about US rate cuts
RBNZ a 'poor communicator' - CBL's Harris