Anzco Foods, New Zealand's third-largest meat company, said profit halved in 2014, a year in which it bought out shareholder Itoham Foods' half stake in the nation's only large-scale cattle feedlot.
Profit fell to $6 million in the 12 months ended September 30, from $12.2 million a year earlier, according to the Christchurch-based company's financial statements. Revenue declined 1.8 per cent to $1.26 billion, led by a 1.9 per cent fall in sales to $1.25 billion. Expenses slipped 1.3 per cent to $1.24 billion.
Anzco, which ranks behind Silver Fern Farms and Alliance Group, last year took full control of feedlot operator Five Star Beef by buying the half stake owned by Itoham, Japan's second-largest meat processing company.
It paid $9 million cash as part of a total consideration of $20.9 million including an amount transferred from investment in associates, marking the third joint venture with Itoham it has taken over after Anzco Prepared Foods and Anzco Gourmet Foods.
Itoham, Anzco's biggest shareholder, said last month it plans to spend about $40 million to lift its stake to 65 per cent from 48.3 per cent, buying shares from Japan's Nippon Suisan Kaisha, Anzco chairman Sir Graeme Harrison and Janz Investments, which is majority owned by Harrison in association with senior Anzco managers. The deal, which would take Anzco's overseas ownership to 81.8 per cent from 73.5 per cent, is being assessed by the Overseas Investment Office.
