New Zealand meat processor and exporter Affco Holdings Ltd said today [Tuesday] that its first half net profits will be hit by the impact of an unusually wet spring and summer.
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The group said that wet weather during the season had prompted farmer to retain their livestock, consequently hiking farm gate price. Unwilling to be pushed into a price war, Affco had bought less livestock, with the result that its slaughter and processing output was reduced. However, chairman Sam Lewis said livestock purchasing was getting back to normal, so full-year results are expected to be in the region of levels previously forecast.
Last November, Affco forecast net profits worth NZ14.1m (US$5.9m) for the full year ending 30 September. Last year group net profits plummeted 96% to NZ$574,000, which was blamed on management changes and unspecified “external factors”, reported Dow Jones.
