PADDY MANNING August 08, 2012
Australia's largest cattle company Australian Agriculture Company has reported a 15 per cent increase in sales in the second-half, to $246 million, on favourable growing conditions.
But the company still has not returned to profitability, reporting a loss from ordinary activities after tax of $4.1 million in the six months to June 30 - although this is an $8.5 million improvement on the previous year. The company did not declare a final dividend.
AACo said the June half benefited from rains in March and April meaning the company had sufficient pasture to deliver on management forecasts for 2012.
In early trade, AACo shares were down half a cent, or 0.4 per cent, to $1.11.
Cattle sales were up due to an increase in number of head sold and higher sale weights, leading to better prices per head. The figures did not reflect a rebound from last year's ban on live cattle exports to Indonesia which was imposed in early June 2011.
Herd numbers rose although the company recorded an unrealised loss of $10.4 million reflecting adverse market price movements on the trading herds. This was offset by an increase in cattle numbers and overall cattle fair value adjustments were positive $35 million.
AACo's board has agreed to release an information memorandum to fund its $83 million Darwin abattoir.
AACo's managing director David Farley was in the news earlier this week after he likened Prime Minister to an 'old cow' in a conference speech.