Southland-based meat processor Alliance Group has posted a pre-tax operating profit of $17.6 million for the September year and a $7 million pool payment distribution to its supplier shareholders - the first in three years.
The operating profit compared with a profit of $8.4 million in the previous year. Its net profit, after the pool payment, came to $6.2 million, compared with $5.6 million a year earlier.
Alliance, one of New Zealand's two biggest meat processors alongside Dunedin-based Silver Fern Farms, said the co-operative had strengthened its position as the country's leading sheepmeat processor and exporter.
The result was based on an improved turnover of $1.46 billion (from $1.38 billion), followed rising consumer confidence, the gradual recovery of the global economy, a growing demand for red meat products and improving market prices.
Alliance chairman Murray Taggart said the result and the outlook for the year ahead meant the company was well-placed for further growth.
"Good international demand and the ongoing development of new markets indicate positive signs for the year ahead," he said in a statement.
The year has been one of consolidation and the improvement in profit reflected a continuing focus on operating efficiently, he said.
Taggart said the pool surplus payment to supplier shareholders showed the co-operative was serious about recognising the investment that farmers continued to make in the co-operative.
Chief executive Grant Cuff said the company's global markets showed improved demand and increased pricing.
"The global demand for protein is growing and we have made significant strides over the past year," he said.
The result included restructuring costs of $2.9m, mainly due to the ongoing demolition of parts of the company's Mataura plant in Southland.
The pool distribution is being paid on a flat per head basis for qualifying stock - lamb $1.50 per head, sheep $1.00, cattle $10.00 and deer $5.00.
APNZ jg lb