KEY POINTS:
Meat processor Affco Holdings has unveiled a net profit after tax of $60 million - a significant boost on last year's profit of just $1.2 million, and the previous year's $13.1m.
It said the profit comprised $40.8m from trading activities and $19.4m from sale of shares in its dairy arm.
Affco maintained market share in the main meat species and increased volumes and market share of venison.
At the end of the financial year on September 30 it had cut inventories and continued its repaying debt, leaving it with a stronger balance sheet with an equity ratio of 71.9 per cent.
"The company continues to benefit...through its strategy of being a broader food group," it said in a statement to the NZX.
Its operating revenues lifted by $156m to $1 billion, and its return on equity was 21.1 per cent.
The company said selling off some of its shares in Dairy Trust had helped.
It held 44 per cent of Dairy Trust, which bought 96.5 per cent of Open Country Cheese shares and compulsorily acquired the rest.
Singapore-based global dairy trader Olam International separately bought a 25 per cent stake in Dairy Trust, and some of that money was used by Dairy Trust to pay for the 47.6 per cent of Open Country which it did not already hold.
Affco now owns 35.4 per cent of Dairy Trust, which has said it is expanding to become the first new national dairy company since the industry restructured seven years ago to create Fonterra.
Affco also processes and exports about 150,000 tonnes of meat products and by products every year.
- NZPA
