Anzco profit down at $8.4m for year to Dec
The company's performance for the financial year to December has come off the boil of 2013's $44.4m, but remains in positive territory when other meat companies are posting heavy financial losses.
Anzco managed to increase its turnover to $1.85 billion, up on 2023's $1.83b, while its profit before tax of $13.5m retreated from the previous year's $60.9m.
Chief executive officer Peter Conley said in a statement the past year was another challenging one for farmers and the red-meat sector.
"Lower market returns, especially during the main processing season, squeezed margins and impacted business performance. Global market pricing for beef and lamb improved in the second half of the year with increased consumer demand in key markets, including United States, Canada, United Kingdom and Europe. China has seen slower economic activity, and this reduced demand impacted beef and sheepmeat returns."
He said a positive feature was the company's ability to have sites fully staffed, enabling it to drive higher revenue through additional product recoveries.
Anzco's team of nearly 3000 employees were the foundation of the business and a key part of its success, he said.
Mr Conley said the company had managed its core business efficiently and continued to focus on growing its value-add food manufacturing, healthcare and bioscience business.
"While these businesses continued to perform well, higher raw material costs impacted on margins," he said.
The Christchurch-based company, owned by Japan's Itoham Yonekyu Holdings, delivered lower earnings before interest, tax, depreciation and amortisation (ebitda) of $65m compared with the previous year's $110.4m. Operating cash was negative $25.3m, compared with negative $42m.
Anzco continued to invest capital in projects, including upgrading the Canterbury beef-packing room, introducing lamb-loin robotics at its Rangitikei site, upgrading a boning room at its Marlborough site and ongoing investment in technology, systems, health and safety and environmental improvements.
Mr Conley said the new trading year had started positively, but with uncertainty as geopolitical tensions and tariff implications were yet to be fully understood.
"However, the underlying outlook for beef and lamb is positive with improving economic conditions driving increased demand amid global supply constraints. Anzco Foods is satisfied with the 2024 result in a challenging year, and is looking to build on recent years' results in 2025."
Alliance Group posted a full-year after-tax loss of $95.8m for the year to September 30, while Silver Fern Farms Ltd recorded a $21.8m loss after tax for the 2024 year.
tim.cronshaw@alliedpress.co.nz
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