Dunedin-based meat processor Silver Fern Farms has posted an interim $14.3 million before tax net loss for the six months to February 28.In a statement today, the company said profitability was impacted by the strength of the New Zealand dollar against a
Dunedin-based meat processor Silver Fern Farms has posted an interim $14.3 million before tax net loss for the six months to February 28.
In a statement today, the company said profitability was impacted by the strength of the New Zealand dollar against a weaker euro and pound.
The loss was based on falling revenue to $784.3 million, down from $1 billion for the same period the previous year.
However, the results were considered acceptable in the light of the season, the current international trading climate and against the $16.3 million loss recorded for the comparable period in 2009.
The result is consistent with previous years, reflecting the fixed cost nature of the business and the under-utilisation of assets for the first half of the year as result of low throughputs and supply seasonality.
A focus on balance sheet improvement with bank debt for the half year was $205.4 million, an improvement of $102.8 million. Bonds on issue totalled $76 million, reduced by $50.3 million.
The equity ratio has also improved to 43% compared with 29% the previous year.
