Thursday 9th February 2017
|Text too small?|
Rural services firm Allied Farmers said profit fell in its first half because of a decline in calf processing sales.
The Hawera-based company said profit was about $420,000 in the six months end Dec. 31, versus $610,000 in the same period a year earlier.
According to the company, the livestock business typically has ongoing livestock sales which earn commissions with two significant seasonal impacts: calf processing sales in the spring which impact the first-half result and dairy herd sales in the autumn which are captured in the second half.
"Due to a combination of several factors such as lower tallies, less favorable US exchange rate and poorer skin prices, the calf processing sales in the six months to December 2016 are 15 percent lower than the comparative period, with a reduced margin," it said in a release. The impact was partially offset by higher livestock commissions on the back of improved livestock pricing, it said.
It noted, however, forward sales herd contracts due for settlement predominantly in May are "significantly ahead of the same time last year" and it expects the first half impact will be recovered in the second half.
Allied Farmers shares last traded at $0.075.
No comments yet
NZX holds first Investment in NZ seminar to market the market
NZ dollar gains may be short-lived as investor nerves tested
Global Dairy Trade looks to boost liquidity, add new markets
NZ First urged to block exploration ban
Net migration falls as growing number of migrants pack their bags
Ebos tightens grip on Australian chain
October 19th Morning Report
NZ dollar falls vs yen; investors seek haven in heightened volatility
English upbeat about NZ economy, points to headwinds
MARKET CLOSE: NZ shares mixed; Restaurant Brands soars on takeover talk