Alliance profit bucks meat trend

By IRENE CHAPPLE

Meat processor Alliance Group has bucked industry trends and reported a solid profit for the six months to March 31.

The South Island co-operative's after-tax profit of $11.1 million outclasses half-year losses reported by major competitors.

Last month, listed companies Affco and Richmond reported losses of $14.7 million and $1.5 million respectively.

Chief executive Owen Poole said the result was satisfactory and that profits had been consistent over the past two years.

He declined to comment further: "We're South Islanders. We don't brag," he said. The half-year profit was down on last year's $18.3 million.

Richmond and Affco's problems with low stock and bad weather also affected Alliance, whose beef volumes dropped 17 per cent.

Full-year profit is expected to be down on last year's $37.2 million, due to the rising New Zealand dollar and difficult trading conditions.

In September, the board will repay the Perpetual Capital Bonds issued in 1996. The five-year term bonds issued in 1997 will be repaid in June. Bond repayments will total $32.5 million.