New Zealand meat producer’s profits jump by 77%
New Zealand’s largest meat company, Richmond, has posted a 77% hike in before-tax profits to NZ$20.65 million in the year to September.
The company, which recently acquired Lowe Walker and was itself effectively taken over during the summer by the southern meat cooperative PPCS, recorded the figures on the back of sales of NZ$1.42 billion, while exceeding a February profit forecast of a NZ$19.37 million. This compares to net profits of NZ$11.65 million the previous year on sales of NZ$1.13 billion.
Though PPCS only acquired a 16.7% stake of Richmond, it was enough to give the Dunedin-based company majority control as it already owned 49% of Hawkes Bay Meat, a 34% owner of Richmond. PPCS is expected to exercise an option to increase its stake in Richmond to 52% by 2003. In announcing the results, Richmond Chairman Sam Robinson said his company had enjoyed a strong third quarter but a difficult final quarter due to winter stock shortages during August and September.
Chief executive John Loughlin said Richmond had performed well in a difficult trading environment. He said that progress had been made in building a strong business based on four key pillars which are beef; lamb and sheep; venison, calves and local marketing; and tertiary processing including leather and pharmaceuticals.
