Affco posts profit after tax of $21m

Affco Holdings says it has posted an after-tax profit of $21 million for the year to September 30 "despite challenging trading conditions".

In November last year the company reported a 57.9 per cent fall in annual net profit to $25.35 million, after a 1.4 per cent fall in revenue to $1.1 billion.

The company expected tougher livestock flows this year and exchange rate effects on returns, and last year declared no dividend.

Since then, the South Island-based Talley family have increased their stake in Affco Holdings to over 90 per cent: they gave notice of dominant ownership to the NZX in October, paying 37c a share for the rest of Affco.

The takeover offer was triggered when the Spencer family's Toocooya Nominees agreed to sell its 23.5 per cent stake to Affco. The Spencer family, which cashed out of toilet paper in 1990, were paid $48.9 million.

Affco, New Zealand's fourth-largest meat processor and exporter, was established in 1904 and operates nine plants in the North Island and two plants in the South Island. The company also owns 35 per cent of Open Country Dairy, an independent dairy processor which buys regulated raw milk from Fonterra.

A spokeswoman said Affco was not expected to release more details from its accounts until filings were required by the Companies Office next March.

- NZPA