Affco sheds 17 per cent on sharp profit dip

Meat company Affco Holdings today reported a 64 per cent fall in its full year profit as a high New Zealand dollar and a lack of stock cut deeply into its bottom line.

Shares in Affco dipped sharply on the news, trading down 8c, or 17 per cent, at 38c by 12.30pm.

Affco posted a net after tax profit of $21.1 million for the year to September 30, down dramatically on the $58.1 million figure recorded a year earlier.

Just $6.66 million of that profit was booked in the second half.

Affco chairman Sam Lewis said the result reflected " tough trading conditions", particularly for the second half of the year, when there was significantly less stock available for slaughter and a continuing high New Zealand dollar.

Operating revenues totalled $968.9 million compared with $946.0 million last year, boosted by Affco's purchase of the Dairy Meats business a year ago.

Affco will pay an unimputed dividend of one cent per share in December.

The company put a positive slant on its prospects, however, saying it is well positioned to take advantage of the expected increase in sheep and cattle numbers and efficiencies resulting from its Imlay and Horotiu rebuilds and its investment in Invercargill.

- NZPA