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Ann: HALFYR: LIC: Half year performance better than expected for farmer co-op

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    • Release Date: 12/02/15 10:26
    • Summary: HALFYR: LIC: Half year performance better than expected for farmer co-op
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    					LIC
    12/02/2015 10:26
    HALFYR
    PRICE SENSITIVE
    REL: 1026 HRS Livestock Improvement Corporation Limited (NS)
    
    HALFYR: LIC: Half year performance better than expected for farmer co-op
    
    12 February 2015
    Market statement
    
    Half year performance better than expected for farmer co-op
    
    LIC has recorded a solid performance in the first half of the financial year.
    
    In the six months to 30 November 2014, the co-op achieved revenue of $159
    million, 17.7% higher than the same period last year.
    
    Chairman Murray King said the half year result was better than expected, and
    driven by farmers choosing to continue to invest in solutions which improve
    their productivity and prosperity.
    
    "As their co-operative, we provide farmers with solutions that will add value
    on-farm and deliver a return on their investment.
    
    "While we do see a reduced spend in lower payout years, we find that farmers
    are willing to continue to invest in the solutions that will deliver a high
    return for their business."
    
    King says the co-op experienced particularly high demand for its short
    gestation genetics. DNA parentage testing and information and automation
    technology systems also remain popular.
    
    A lower year on year net profit after tax result is forecast, as part of the
    expected impact of milk payout and the co-op's ongoing investment into
    technology and infrastructure worth more than $20 million.
    
    The co-op has reviewed where it can reduce discretionary costs without
    impacting service to farmers, King said.
    
    As part of its growth strategy, the co-op has announced a number of new
    developments this financial year, including a joint venture in Brazil,
    partnerships with Figured and SCR, and the merger of subsidiary business DAL
    and Protrack.
    
    Summary, Half Year Result
    LIC revenue and other income for the six months to 30 November 2014 was $159
    million, 17.7% ahead of the $135.2 million achieved during the same period in
    2013. Net profit after tax for the half year was $29.7 million, up $2.7
    million from the previous year reflecting the strong first half revenues
    across most product categories.
    
    LIC's business, particularly artificial breeding (AB), is highly seasonal.
    Half year results incorporate the majority of AB revenues but not a similar
    proportion of total costs, and are therefore not indicative of the second
    half, nor the full year, result.  No dividend is therefore declared at half
    year.
    
    LIC continues to operate a strong balance sheet with total assets including
    cash, software, land and buildings and bull teams of $322.6 million. Cash
    flows from operations continued to strengthen generating $6.6 million,
    compared to $1.2 million in the half year to 30 November 2013.
    
    ENDS
    
    Contact:
    Media: Ashleigh Sattler, Senior Communications Advisor [email protected] or
    027 617 1942
    
    About LIC
    Livestock Improvement Corporation, trading as LIC, is a farmer-owned
    co-operative that provides a range of services and solutions to improve the
    productivity and prosperity of farmers. With origins dating back to 1909, LIC
    has a long history of providing world and industry-leading innovations in
    dairy genetics, farm information systems, herd testing, DNA technology and
    automation. Today the New Zealand-based co-op employs more than 800 permanent
    staff in New Zealand, the United Kingdom, Ireland, Australia, and Brazil.
    
    Listed on the New Zealand alternative exchange market (NZAX), LIC has a dual
    share structure with co-operative and investment shares. Farmers are
    allocated co-operative shares (which have voting rights) when they purchase a
    prescribed volume of products and services from LIC. They can also opt to
    purchase investment shares which can only be purchased and traded amongst
    co-operative shareholders, with a small holding available to LIC staff.
    
    With annual revenue in excess of $200 million, all LIC profit is returned to
    its farmer owners/shareholders in products, research and development or
    dividends. Visit www.lic.co.nz for more information.
    End CA:00260570 For:LIC    Type:HALFYR     Time:2015-02-12 10:26:21
    				
 
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