AUSTRALIA, Brisbane. The Australian Agricultural Company announced a half‐year statutory net profit after tax of $47.9 mill. for the six months to September 30, 2016, a $1.9 mill. decrease on the previous corresponding period.
The company reported operating EBITDA (earnings before interest, tax, depreciation and amortisation) of $13.9 mill., a $2.4 mill. increase on the previous corresponding period. Net operating cash outflows of $34.5 mill. included a $41.5m investment in live cattle inventory that will be monetised in H2FY17 and H1FY18. Building on prior periods, the branded beef sales as a percentage of total sales continue to rise, going from 86% to 92% in the half year.
In addition there was locally launched the flagship luxury Westholme and Wylarah brands in Singapore in early October, which will be launched into other key markets over the next 18 months. This represents the initial drive towards changing the global luxury beef segment. As the vertical integration strategy takes shape, the company is fundamentally changing the way of selling and delivering products to consumers. This strategy will lead to increased sales prices.
The company reported a 25% reduction in production costs by taking advantage of strong seasonal conditions, as well as reducing operational costs from its strategic decision to own cattle right through the supply chain. The company continues to innovate to improve the quality, consistency and predictability of its beef production.
In addition, it formed a Scientific Advisory Board under the chairmanship of Dr Megan Clark, former CEO of CSIRO, to review and guide our future innovation and technology programs.