Silver Fern Farms report full year profit
Silver Fern Farms has come through a turbulent year to report a profit for the year ending September 30, 2011.
SFF’s reported a net profit after tax of $30.9 million for the 12 months ending September 2011, compared to a $13.9 million loss for the 13 moths ending September 2010.
Last year's result included restructuring costs of $7.2 million, and include two "loss-making" September months. September traditionally is a low point in the business cycle for the meat exporter.
This year's profit came on the back of $2.1 billion revenue, which increased by $300 million from 2010, and included $6.6 million gains from non-recurring items.
Expenses included $1.5 billion on consumables and raw materials. Employee, finance and other expenses totaled $533 million.
“In 2011 we are now seeing the benefits of the creation of a modern consumer-facing, farmer-partner focused co-operative with a clear progressive strategy,” SFF chairman Eion Garden says.
Revenue was boosted by increases across all of SFF’s major markets except the UK. The UK market, previously worth $244 million, dropped $53 million $191 million.
The greatest increase came in the American and Chinese markets; both had revenue increases of close to $51 million giving them respective values of $322.6 million and $106 million dollars.
Revaluation of livestock decreased its value by $351,600 valuing its livestock portfolio at $31.7 million.
“The 2010/11 financial year was full of extraordinary events – some positive, others less so. We experienced never before seen volatility in the New Zealand dollar, a spring storm that left the industry with a record low lamb crop, the Christchurch earthquakes which affected so many of our Christchurch people and the devastating fire at our Te Aroha plant just prior to Christmas.
“But, on the upside, in-market prices for red meat and by-products lifted and, thanks to many factors aligning, our farmer partners received record returns,” chief executive Keith Cooper says.