Blue Sky Meats (BSM) says it is looking ahead to greener pastures after delivering $1.5 million of added value in the first three months implementation of its three-year strategic plan.
Releasing its 2018 annual report, the report highlights the company’s improved position on 2017, pointing to more chilled sales, a better yield from each carcass and an increase in rendering returns as the carriers of a successful year.
Ending the 2018 financial year with a net profit before tax of $3.7 million, and total revenue coming to $105 million, this has resulted in shareholders being paid a dividend of 5c/share.
This total revenue is a 7% increase on last year, driven by Blue Sky Meats’ Strategic Plan and favourable market conditions, and rendering income was the highest it has been in five years, with income per unit up 80% and volume up 50% on last year.
Blue Sky Meats chief executive Todd Grave is delighted with the company’s performance over the past year.
“When you see a result like this, it really helps to bolster confidence and shows what a small Southland company can accomplish,” he says.
Now 18 months in to the three-year implementation of the company’s Strategic Plan, with a focus on maximising the value from each carcass, this has generated $6.9 million of additional value which has been achieved with minimal additional operating expense and capital investment.
Despite the consolidated position, Grave was wary of celebration and emphasised there was a lot of work ahead.
Chairman Scott O’Donnell is pleased with the company’s result and says the next step would be to create a value added, differentiated brand position to further increase profitability. This would include a focus on investing in plant infrastructure to reduce the company’s environmental impact.
Blue Sky Meats’ annual general meeting will be held on August 2 at Bill Richardson Transport World in Invercargill.