Silver Fern result ‘very pleasing’ given situation

Simon Limmer. Photo: supplied
Simon Limmer. Photo: supplied
Silver Fern Farms Ltd has increased its net profit after-tax by more than 50%, a "very pleasing" result given the current disrupted environment, chief executive Simon Limmer says.

Yesterday, the Dunedin-headquartered meat company released its full year results to December 31 2021, reporting a net profit after tax of $103.8 million, up from $65.4 million the year before.

Silver Fern Farms Co-operative, which jointly owns Silver Fern Farms Ltd with Chinese-owned Shanghai Maling Aquarius, also increased its after-tax profit to $51.5 million, up from $31.6 million in 2020.

Silver Fern Farms Ltd’s revenue was $2.7 billion, up from $2.5 billion the year before, while earnings before interest, tax, depreciation and amortisation (ebitda), including share-of-associate earnings, were up from $125.7 million to $179.7 million.

Last year was another challenging one as global disruption caused by the Covid-19 pandemic continued, Mr Limmer said.

Navigating various issues, such as container supply, labour shortages and Covid-19 outbreaks, had become the new normal for the company and Mr Limmer did not expect the problems to go away any time soon.

"It’s satisfying to get 2021 behind us, but 2022 is more of the same with added complexity."

Strong global prices for red meat were helping to mask some of those complexities.

Demand and pricing for red meat across the company’s key markets were well above five-year averages, Mr Limmer said.

"Despite all the disruption, we are still getting good results for our farmers, which is very pleasing."

Mr Limmer hoped New Zealand’s borders starting to reopen would help ease some of the labour shortage.

Silver Fern Farms had worked with the Government and Ministry of Primary Industries to fast-track some staff into the country, the first of whom arrived last week from the Pacific Islands.

The reopening would also allow the company’s staff to start to travel again and work with its clients in key markets.

Silver Fern Farms had benefited from having staff in its key markets to help maintain relationships.

"The ability to get back out travelling again is going to be really important," Mr Limmer said.

Eligible shareholders would receive a 100% imputed dividend of 12.9c per share, payable to all ordinary and rebate shareholders. A 100% imputed patronage reward of 12.1c per share would be paid on qualifying shares to supplying shareholders based on supply during 2020.

The results

Silver Fern Farms Ltd
Full year result to December 31, 2021

• Net profit after tax: $103.8 million
• Revenue: $2.7 billion
• Total Livestock Premium Payments: $6.9 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA): $179.7 million
• FY 2021 dividend: $46.7 million
• Capital expenditure: $60.5 million

SFF Co-operative
Full year result to December 31, 2021

• Net profit after tax: $51.5 million
• Dividend to be received: $23.4 million
• Cash and short-term deposits: $23.4 million
• Total shareholder equity of $369 million

riley.kennedy@odt.co.nz

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