Allied Farmers' full year net profit has more than doubled boosted by the improved performance of its livestock business and a recovery from the pandemic.
File image. Photo: 123RF
The result also included the first half year contribution from Allied's recent investment in rural property manager New Zealand Rural Land Management.
"We continued to invest in our digital technologies, recognising that while sale yards play a critical role in the rural value chain, there is ongoing need for innovation to support the changing needs of farmers, and ongoing operational requirements and compliance costs," the company said.
It hosted 303 online auctions and now had live auction capabilities at all sales yards, with the ability to livestream paddock auctions on farm throughout New Zealand.
"We are pleased with the growth of our livestock lending business, with the loan book expanding by an additional $1.6m to $5.2m, largely made possible following the successful capital raise in late 2020," it said.
In addition, it said the introduction of a new seasonal store lamb financing facility was expected to grow over the coming season.
However, the farm services group said the positive result was partially offset by a lower contribution from its veal business, which had seen a drop in prices.
The company said it would decide whether to pay a dividend or other form of capital return to shareholders at the annual meeting in November.
Key numbers for the year ended June vs year ago
- Net profit $2.6m vs $1.2m
- Revenue: $21.7m vs $20.1m
- Dividend (final): NIL