beef producer is now largely complete.
The company has increased its boxed beef revenue by 42 percent in the first full year of its transformational strategy.
The company’s net profit after tax of $9.6 million for the year ended 31 March represents a significant $49.5m improvement on the previous corresponding period, despite the ongoing affects of drought in some regions of company operations.
AA Co Managing Director Jason Strong said the result showed significant progress in transforming the company.
“We are implementing the strategy we announced in July last year,” he said.
“Sales of boxed beef now account for 77pc of revenue, up from 59pc in the previous corresponding period.”
In the last six months, this included the first sales of boxed beef from our new Livingstone Beef processing facility at Darwin.
“These sales are into global markets where our traceable supply chains, sustainable practices and unique Australian heritage can command premium prices. Building our brands is the next stage of transforming and growing our business,” Mr Strong said.
He said AA Co had established customer-focused supply chains which drive production and improve margins.
The implementation of the strategy has resulted in:
- Cash flows from operations decreasing by $94.3m to $(75.9) million as the company made a significant investment in working capital
- Net tangible assets per share of $1.43 as at 31 March, compared to $1.40 last year.
- Gearing ratio increasing to 32.7pc as at 31 March 2015 compared to 23.3pc as at 31 March 2014
Statutory EBITDA was a profit of $44.9m in FY15 ($19.9m loss in FY14), while Operating EBITDA was a loss of $3.6m ($0.2m profit in FY14). The major difference between the two measures is due to Operating EBITDA not including mark-to-market movements, while Statutory EBITDA recognised these unrealised gains.
The AA Co board has not declared a dividend. The company is committed to the reinstatement of dividends and has previously foreshadowed that on a return to sustainable and significant positive operational cashflows the directors will review dividend policy and payments.
- Updates after this morning’s investor briefing is completed.