LIC has reported a 15.3% increase in underlying earnings and will return $26.2 million in dividends to shareholders.
This equates to 18.43 cents per share with a 18.5% gross yield on the current share price. It will be paid on August 19.
The result has been driven by increased farmer spend on premium genetics and herd improvement services to breed more efficient cows with a lighter environmental footprint, the co-operative said.
“The board is pleased to present this result for our farmers, particularly after a year hampered by covid-19, inflationary pressures and supply challenges,” board chair Murray King said.
“I want to thank our farmer shareholders for their ongoing support, many of whom faced similar challenges as us. Delivering value for our farmers is at the centre of everything we do and it’s results like this that enable us to do just that – through our herd-improvement products and services, a solid dividend, and, importantly, the right R&D investment to keep their herds profitable and sustainable into the future.”
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King said the result was driven by more farmers opting for the co-op’s premium bull teams to breed high genetic merit cows that produce more milk, more efficiently – resulting in a lower environmental footprint per kilogram of milk solid produced.
“We don’t need to milk more cows, we just need to milk the best cows and we’re really pleased that our farmers are making solid progress in this space.”
The co-op expects underlying earnings in 2022-23 to be in the range of $20m-26m, assuming no significant climate event or milk price change takes place between now and then, nor any major impacts from Mycoplasma bovis or covid-19.
