$67.8 million record net profit for AA Co

Beef Central, 25/05/2016



  • Operating earnings of $14.8 million, up $18.4m
  • Net operating cash inflow of $21.8 million, up $97.7m
  • Statutory net profit after tax of $67.8 million, up $58.2m


The Australian Agricultural Company this morning announced a record  net profit after tax of $67.8 million for the 12 months to March 31, 2016, a huge $58m increase on the previous financial year.

The result has sparked an immediate jump in price for AA Co shares this morning, lifting from $1.49 yesterday to around $1.63 by 11 AM, after disclosure. It’s the company’s best share price level seen since January 2009.

The company reported operating EBITDA (earnings before interest, tax, depreciation and amortisation) of $14.8m, an $18.4m increase. Net operating cash inflows increased $97.7m to $21.8m.

AA Co managing director Jason Strong said total kilograms of beef sold was up by 96 percent (largely due to the first full year of operations of the company’s Livingstone Darwin plant – see separate story), with total sales revenue increasing by 44.7pc to $489m.

“The increased volumes included production growth at our Livingstone Beef processing facility as well as a 15pc increase in the sales volumes of our premium Wagyu brands,” Mr Strong said.

“Our strategic decision to own cattle right through our supply chain has increased revenue and margin.

“In the past year our premium Wagyu brands have been recognised as some of the best in the world – including being named as Grand Champion at the World Wagyu Conference.

“We’re going to step up our differentiated branding strategy to tell the story of why AACo beef is so good – sharing the experience from our iconic cattle properties in the North to some of the world’s finest restaurants.

“We are also investing in cutting edge technological innovation to improve the consistency and predictability of beef production through data analytics, pasture mapping, grazing management and genetics.”

While the board has not declared a dividend, the company remains committed to the reinstatement of dividends and has previously indicated that on a return to sustainable and significant positive operational cashflows, directors will review dividend policy and payments.


Source: AA Co


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