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The New Zealand Merino Company has achieved a record net profit after tax of $4.3 million for the year ended June 30.
The company’s full year earnings before interest and tax (Ebit) was $6.4million, which was a significant increase on the forecast $1.9 million.
The company’s chief executive, John Brakenridge said it was a very pleasing result given the considerable uncertainty the business had faced in the past year in the wake of Covid-19.
He said despite initial negative market sentiment after the first wave of Covid-19, it had became clear there was an opportunity to "accelerate the trend of conscious consumerism, with consumers demanding higher standards of ethical production for products they are purchasing and the embracing of regenerative agriculture practices’’.
The Merino Company had launched the ZQRX initiative to more than 300 growers in June last year.
The initiative aims to market regeneratively grown wool to the world.
Mr Brakenridge believed that enabled the company to accelerate its strategic initiative.
"This has been met with strong support from the market, with 21 global brands backing the ZQRX regenerative movement," Mr Brakenridge said.
Bales of wool sold for the year increased by 28,000, or 38%, on the previous year. Strong-wool growth increased by 22,000 or 86%.
The company will be paying a total dividend of 24.1c a share which, based on the year-end share price of $4.50, represents a yield of 5.4%.