Allied Farmers reports 16% profit increase

Allied Farmers has reported a net profit before tax of $4.071 million for the year ending June 2023, an increase of 16.06% compared to the previous year.

The increase in profit was driven by higher returns from NZ Farmers Livestock (NZFL), offset by lower transaction and performance fees from NZ Rural Land Management (NZRLM).

The company's earnings per share increased by 16.1% to 11.59 cents per share, and the net tangible assets per share decreased to $0.21 per share.

Allied Farmers acquired the remaining 50% of NZRLM in March 2023, resulting in governance changes.

The company's total acquisition cost for NZRLM is $10.8 million, compared to a valuation of $16.6 million.

NZRLM's income for FY23 was lower than the previous year due to fewer acquisitions and a change in the value of NZL's portfolio.

However, Allied Farmers is pleased with the performance of NZRLM.

NZFL's livestock agency, veal, and financing businesses all improved on the previous year, with the veal business achieving excellent results.

Allied Farmers expresses condolences for the loss of a livestock agent in a road accident.