Business boost for Blue Sky Meats
Blue Sky Meats’ annual report reveals a lift in business performance and better financial position, but the Southland meat processor says it won’t be resting on its laurels.
Chairman Graham Cooney, disappointed with the result, says it brings a challenging, difficult and frustrating year to a close.
For the year ending March 31 2016 the company's loss after tax was $1.95m; revenue was up at $124m, 21% higher than the previous year.
Operating cashflow improved significantly at $10 million — up $15.3 million on the previous year.
Cooney says much of the loss was due to the Gore subsidiary running at a loss and some resulted from bad timing.
"The fall in dairy prices had led to a large cow kill at calving time, which was unusual and not predicted," he says.
"At that time the planned capital expenditure at the Gore beef plant was in full swing; the plant was closed. So the company was unable to take advantage of the stock availability. This in turn led to a change in stock processing patterns during the remainder of the season."
Plants continue to be underutilised though the company struggles to provide sufficient space for loyal suppliers at peak times; but staying profitable over 12 months has its challenges, including hefty costs, Cooney says.
The company has paid no dividend this year -- disappointing but the only responsible decision the board could make.
He says it's important to utilise facilities at both BSM plants efficiently; BSM has made key procurement appointments recently to achieve this.
"Relationships are the key to this and these appointments reflect the need to do this well," says Cooney.
In December, the company's general manager, Ricky Larsen, resigned. Board member Malcolm McMillan is acting in this role until a permanent replacement is appointed.
BSM will hold its annual meeting next month.
Blue Sky at a glance
• Revenue $124 million ($102m last year)
• Expenses $126m ($100m)
• Net surplus (deficit) after tax ($1.956m) ($1.2m profit last year).
