Still a slow boat to China!
Hopes of NZ sheepmeat prices picking up anytime soon in the country's key export market of China looks highly unlikely.
The result is $39m better than the previous year’s net profit of $29m.
However, Pamu says the coronavirus could throw a spanner in the works in the second half.
Pāmu chief executive Steven Carden says the result was pleasing but cautioned that the second half was throwing up some uncertainty related to the impact of the coronavirus and climate conditions.
“We are pleased with our half-year result, the result of positive trading conditions and a focus on operating performance at Pāmu.
“Our EBITDAR (earnings before interest, tax, depreciation, amortisation and revaluations) for the half-year, which is our preferred measure of performance, saw a gain of $22 million compared to a loss of $3 million in the half-year to December 2018, which is very solid,” he says.
Pāmu is currently forecasting a full-year EBITDAR of between $73m and $78m however the impact of the Coronavirus outbreak and very dry climatic conditions in the north, may see it revise this as the second half of the financial year progresses.
The company has diversified its income sources in recent years and will continue to implement programs that mitigate the impact of climate change and biosecurity risks, says Carden.
“Our strategy has focused on increasing the resilience of our pastoral farming operations through farm system innovation. We have also moved to shift to land uses tied to forestry and horticulture. This strategy is helping to both improve profitability and lower the environmental impact of our operations.
“As important as our financial result has been the progress made in improving our health and safety performance, lowering our environmental impact through a range of initiatives, and improving the conditions of the animals in our care,” Carden said.
