Allied Farmers' first-half profit falls
The impact was partially offset by higher livestock commissions.
Rural services firm Allied Farmers' profit fell in its first half because of a decline in calf processing sales.
The Hawera-based company says profit was about $420,000 in the six months end December 31 compared to $610,000 in the same period a year earlier.
According to the company, the livestock business typically has ongoing livestock sales which earn commissions with two significant seasonal impacts: calf processing sales in the spring which impact the first-half result and dairy herd sales in the autumn which are captured in the second half.
"Due to a combination of several factors such as lower tallies, a less favourable US exchange rate and poorer skin prices, the calf processing sales in the six months to December 2016 are 15% lower than the comparative period, with a reduced margin," it says.
The impact was partially offset by higher livestock commissions on the back of improved livestock pricing.
The company says, however, forward sales herd contracts due for settlement predominantly in May are "significantly ahead of the same time last year" and it expects the first half impact will be recovered in the second half.
Allied Farmers shares last traded at $0.075.
(BusinessDesk)
Rebecca Howard
Thu, 09 Feb 2017
Thu, 09 Feb 2017
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