LIC
13/02/2013 16:03
HALFYR
REL: 1603 HRS Livestock Improvement Corporation Limited (NS)
HALFYR: LIC: LIC : Half Year result
Half year result confirms investment in onfarm productivity
Dairy farmer cooperative, LIC, has recorded strong performance in the first
six months of the financial year, with growth in farmer demand for products
and services which have a direct impact on income generating production.
In the six months to November 2012, LIC achieved revenue of $131.5 million
compared to $120.1 million for the same period in 2011. The improvement in
revenue resulted from growth in demand as, in response to the volatility of
the industry, LIC had minimal, or no increase in product or service pricing.
This, according to LIC Chairman Murray King, is a result of farmers, despite
conservative times, investing in the products which drive farmer prosperity.
"The start of the dairy season is when most of our activity takes place -
with herd testing, herd recording, artificial breeding and animal health -
and that coincided, this season, with a drop in dairy payout, from the
previous season's high.
"Despite this, demand grew with increases of 7.6% in herd testing, 10.9% in
dairy genetics, 31.9% in DNA parentage testing, 17.6% in farm software, 2.7%
in farm automation systems and 21.1% increase in animal health services like
BVD testing - to mention just a few.
"In good and in challenging times farmers invest in products which will have
a material impact on the profitability of their animals and the performance
of their farms and growth in demand has been seen across all our product and
service offerings.
"The good thing is that LIC is a dairy farmer owned cooperative, so
everything we do - from products and services, to the profit, dividends and
research and development - all return to our shareholders."
Summary, Half Year Result
Revenue for the six months to November 2012 was as outlined above. Profit
attributable to shareholders (net profit after tax) was $30 million compared
to $28 million in 2011. No revaluation of biological assets was done in
November (or 2011).
LIC's business, particularly artificial breeding, is highly seasonal. Half
Year results incorporate the majority of the AB revenues, but not a similar
proportion of total costs, and are not therefore indicative of the second
half result not the full year result.
The Balance Sheet remains strong with total equity of $214.6 million compared
to $199.7 million at the same time last year.
Total operating cash flow for the six months was a net cash outflow of $5.6
million which compares to $0.6 million net cash outflow in the previous year,
the difference mainly due to timing of cash outflows.
Ends
For further information contact Clare Bayly, LIC Communications Manager,
phone 027 499 8862.
End CA:00232884 For:LIC Type:HALFYR Time:2013-02-13 16:03:51
