ANZCO Foods announces annual results

ANZCO Foods has reported a net profit after tax of $12.2 million for the year ending 30 September 2013, based on total revenue of $1.3 billion.

Positive cash flow from operating activities for the period was $41.0 million, up $5.8 million on the previous year’s $35.2 million.

Sir Graeme HarrisonANZCO Foods’ chairman, Sir Graeme Harrison, says the company has taken the unusual step of announcing its audited financial results well in advance of the Companies Office reporting requirement of 31 March 2014.

“We have been concerned about rumours in the New Zealand meat industry around the financial state of individual companies and comments to the effect that ANZCO has been actively promoting industry change because of our weakened position.

“Nothing could be further from truth.  In 2011/12 we experienced our first bottom line loss from New Zealand operations in ANZCO’s history but generated a strong operating cash flow surplus. This position was further enhanced in the 2012/13 year,” says Sir Graeme.

The company’s total revenue grew by $70 million or six percent.

“Shareholder funds at balance date equated to 47 percent of total assets and sat mid-range within the company’s long-established policy objective of between 40 to 55 percent.

“ANZCO recognises the ongoing decline in sheep and traditional cattle numbers and has favoured finding an orderly solution to facilitate the removal of excess slaughter capacity,” says Harrison.

Mark Clarkson, managing director of ANZCO Foods says solid progress had been made during the past year in advancing the company’s Food and Solutions (value add) business.

“We have invested in a joint venture in a Melbourne-based pharmaceutical manufacturing company, Bovogen Biologicals Pty Ltd; purchased the former Hamilton-based Aria Farm and transferred this to our Waitara manufactured foods site; and expanded a jointly-owned Hawera-based ingredients company Taranaki Bio Extracts Ltd.

“Since balance date we have also purchased Itoham’s 50 percent shareholding in New Zealand’s only large scale cattle feedlot operation, Five Star Beef. This business has become a fully-owned ANZCO subsidiary,” says Clarkson.

The transfer of the ownership of Five Star Beef to a fully-owned ANZCO subsidiary follows in the footsteps as ANZCO Prepared Foods and ANZCO Gourmet Foods, both previously 50/50 joint ventures with Itoham.

Itoham Foods remains ANZCO’s largest shareholder and forms one of three shareholding groupings, each with more than 25 percent ownership.

There has been no change in ANZCO’s shareholders since 2001 and the company has paid regular dividends, as it will in 2013.

“ANZCO’s solid financial position is amplified in the payment security offered to all lamb suppliers through CMP Farmer Nominees Ltd.  No other meat company in New Zealand has a security in place with assets held in trust to protect livestock payments to farmers,” says Clarkson.

Summary of key financial items:

 

FY2013

FY2012

 

($’000)

Revenue

1,282,055

1,212,179

Net profit before tax

12,608

(25,623)

Net profit after tax

12,220

(19,183)

Operating cash flow

41,018

35,230

Equity ratio at balance date

47%

44%

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