Alliance Group has recorded its best profit result in 12 years, shareholders were told at the company’s virtual annual meeting yesterday.
Last month, Alliance Group announced an underlying profit of $27.4 million.
Adjusted for a one-off event of ‘donning and doffing’, the annual profit result was $7.5 million before tax.
The red meat co-operative achieved a record turnover of $1.8 billion for the year ending 30 September 2020.
“It was a challenging farming season with extreme drought in the northern and central regions and a very difficult spring and early summer in Southland and South Otago,” said Murray Taggart, chairman of Alliance Group.
He said that difficult conditions on farms were compounded by Covid-19, which directly impacted Alliance’s global markets and farmers through farm-gate prices.
“These adverse events tested the resilience of the co-operative, however a major factor in ensuring we ended the year in a sound financial position was the agility demonstrated by our people,” Taggart said.
David Surveyor, chief executive of Alliance Group, said the co-operative pursued a significant capital expenditure programme this year, despite the challenges.
“We invested significantly in health and safety, improved plant efficiencies and rolled out our Enterprise Resource Planning technology project. Healthy operating cash flows at $50.3m give confidence to our continued investment profile.
“We are focused on capturing the raft of opportunities we have to improve the business, lift profitability and return more value to our farmers,” Surveyor said.
“We are conscious of the pressure that has been placed on our people during this period as they have gone above and beyond for farmers, colleagues and local communities. We are grateful for their efforts.”
Directors election results
Two vacancies were filled on the board by Dawn Sangster and Pat McEvedy.
46.96% of eligible votes were exercised in the directors’ election.
27.48% of shareholders voted.