Anzco’s profit bucks industry trend

Christchurch-based Anzco Foods’ $60.9 million profit after tax is going against the tide of major meat processors recording losses.

The company owned by Japan’s Itoham Yonekyu Holdings posted a relatively strong result in difficult trading conditions for the year ending last December despite it being a drop from the previous year’s $147.7m profit.

It stacked up well against Alliance Group’s nearly $70.2m net loss on the back of a record $73.6m profit, and the joint Chinese-Kiwi owned Silver Fern Farms’ loss of $24.4m from a positive $189.3m the year before.

Anzco’s turnover of $1.83 billion was behind on $1.90b in 2022.

Chief executive Peter Conley said a focus on core business activities and growing returns from strategic investments was key to the success.

He said the result was pleasing considering the challenging business environment the sector experienced last year.

The Covid-19 recovery brought an upswing in tourism and restaurant business was countered by the global impact of rising costs and interest rates, as well as consumers facing higher living costs, he said.

"The recovery in China has been slower than anticipated and this coincided with difficult trading conditions for some key products in other markets.

"With a strong global reach, Anzco managed to effectively navigate market pricing challenges for beef and lamb at various stages of the season."

Mr Conley said a major project during the year was the depopulation and repopulation of cattle at its Five Star Beef operation, as part of the programme to eradicate Mycoplasma bovis.

Five Star Beef was out of the market for about six months.

"The depopulation, cleaning and repopulation had a considerable impact on our staff, customers, and suppliers working with the Five Star Beef business.

"We’re grateful to these affected parties for their ongoing faith in our highly valued products and continuing to work with us as we re-establish this business."

He said a core focus was buying livestock to meet customer expectations both domestically and offshore.

"During the year Anzco’s China office became operational, and with our other offshore offices in Japan, Australia, North America, the United Kingdom and Europe, contributed to our strategy of getting closer to our customers and delivering increased revenue from our red meat products."

Anzco says its value-add food and healthcare businesses performed well and continued to grow their contribution to the company’s result.