Allied Farmers (ALF) H2 2024 earnings summary

Executive summary

• Net profit after tax attributable to shareholders rose 56% to $5.206m for FY24, driven by a $4.2m one-off gain from the sale and licence back of Frankton saleyards, with $2.85m attributable to shareholders.

• Excluding the one-off gain, NZRLM earnings increased on higher management and transaction fees, while NZFL earnings declined due to challenging market conditions.

• No dividend declared for FY24, with focus on redeploying earnings into growth opportunities to utilize significant tax losses.

Financial highlights

• Revenue reached $27.6m, up slightly from $27.1m in FY23; net profit before tax was $7.315m (FY23: $4.071m).

• Net profit after tax attributable to shareholders was $5.206m (FY23: $3.338m); basic EPS increased to 18.07 cps (FY23: 11.59 cps).

• Net tangible assets per share rose to $0.40 (FY23: $0.21); total equity increased to $24.6m (FY23: $18.7m).

• Operating cash flow was $2.1m (FY23: $2.7m); closing cash and equivalents at $9.5m (FY23: $3.8m).

Outlook and guidance

• Board intends to redeploy proceeds from asset sales into growth opportunities, leveraging $178m in tax losses.

• Recent recovery in sheep and cattle prices and improved agribusiness environment expected to support NZFL performance.

• Board confident in platform for accelerated earnings growth and utilization of tax losses.