New Zealand meat processor Affco posted a jump in net profit for the year boosted by “favourable” trading conditions and increased market share.
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For the period to 30 September, the company posted net profit of NZ$60.2m (US$33.2m) in comparison to the $1.2m profit it made in 2007.
Affco said $40.8m of the full-year profit came from trading activities and $19.4m from non-recurring items.
The remaining $19.4m stemmed from a reduction of Affco’s shareholding in Dairy Trust, which launched a successful takeover of Open Country Cheese Company.
Affco now owns 35.4% of Dairy Trust, down from 44%.
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By GlobalDataThe company’s operating revenues increased $156m to $1.08bn, with a return on equity of 21.1%.
Affco chief executive Stuart Weston said the processor had benefited from more favourable trading conditions than expected.
“We maintained market share in the main species and increased volumes and market share of venison,” Weston said.
Weston said the company has benefited from its “continued focus” on repaying debt, which culminated in an “even stronger” balance sheet with an equity ratio of 71.9%.
Affco processes and exports around 150,000 tonnes of meat products and by products each year.
