Blue Sky Meats posts strong Q1 result

Todd Grave

Blue Sky Meats has posted its strongest first quarter result in at least a decade.

Good stock flows, an extended operating season with optimal plant utilisation and improving margins produced a 2019 Q1 net profit before tax result of $3.8 million, chief executive Todd Grave told the company's annual meeting in Invercargill last week.

Last month, the company released its annual report for the 2018 financial year, which showed a net profit before tax of $3.7 million, compared to a $2.5 million loss the previous year.

In a statement, Mr Grave said the Q1 result was "fantastic'', but the company was ``not putting too much stock in the victory at this stage because we know we've still got a long road ahead''.

Three months into the new financial year, good on-farm growth conditions had led to stock flows being up significantly on past years.

The quarterly result put the firm $3million ahead of the same period last year and was the best Q1 performance in more than 10 years.

"We're pleased to see the company moving in an upward trajectory but we also know we're prone to ups and downs like any company, so we're working toward mitigating the effects of those down periods.''

ANZ's latest commodity price index showed lamb prices rose 0.3% in July, to be up 7.1% year-on-year, reflecting strong demand from China and the United States.

Beef prices fell 1.3% for the month reflecting strength in global supply, particularly in the US, and as M. bovis culling continued to boost domestic slaughter.