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.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Pumpkin Patch tipped into receivership, appoints adminstrators
- Restaurant Brands agrees to pay $US105m for Hawaiian fast-food chain
- Briefcase: Anderson Lloyd's gold rush, Overcrowded law schools, Leaky home issues grow
- beIN Sports NZ soft launches with a dismal, bare-bones service
- What can we learn from Wynyard’s voluntary administration?
Most listened to
- John Key says further RMA will be needed - but he needs a mandate to do so
- Craigs' Mohandeep Singh on Bapcor's takeover offer for Hellaby
- Abano CEO Richard Keys on the outlook for the business
- ‘Most people over 50 don’t understand New Zealand history’ – Geoff Wane on why the Hobson’s Choice campaign is so wrong-headed
- Wynyard: Shareholders Association John Hawkins - shareholders learning a pretty hard lesson