ANZCO Foods has defied the series of financial losses being reported by meat exporters to record a $60.9 million net profit before tax for the 2023 financial year.
However, while in the black, the result to December 31 2023 is well down on the $147.7m reported for 2022, reflecting a difficult year.
ANZCO’s 2023 profit was generated off a slight drop in turnover, $1.83 billion compared to $1.90bn in 2022.
Chief executive Peter Conley said the result was achieved from “a relentless focus on core business activities and growing returns from strategic investments”.
“There were some positive signs for exporters during the year including the covid recovery bringing an upswing in tourism and restaurant business. However, this was countered by the global impact of rising costs and interest rates, as well as consumers facing higher living costs.”
Conley said the recovery in China has been slower than anticipated, which coincided in difficult trading conditions for some key products in other markets.
“With a strong global reach, ANZCO Foods managed to effectively navigate market pricing challenges for beef and lamb at various stages of the season,” he said.
ANZCO’s profitable result is in contrast to Alliance Group, which posted a pre-tax loss of $97.9m for 2023, and Silver Fern Farms Ltd, which recorded a pre-tax loss of $36.4m (an after-tax loss of $24.4m).
ANZCO’s after-tax profit was $44.4m ($106.6m), its earnings before interest, tax, depreciation and amortisation (EBITDA) was lower at $110.4m ($185.3m) and operating cash was negative $42m (positive $133.6m).
Conley said its value-add and health food businesses “performed well and continued to grow their contribution to the company’s result during 2023”.
“Our relationships with some of the world’s leading healthcare companies give us confidence that this business will continue to grow and add value to our core red meat processing business.”
During the year ANZCO had to de-populate its Five Star feedlot near Ashburton as part of the Mycoplasma bovis eradication programme.
Wholly owned by Japan’s Itoham Yonekyu Holdings, during the year under review ANZCO Foods opened an office China, complementing its existing presence in Japan, Australia, North America, the United Kingdom and Europe, part of a strategy of getting closer to customers and increasing revenue from red meat products.
Conley said during the year it reviewed and updated its three-year strategy, in which climate change and sustainability remain a key focus, and it intends to invest in low emissions technologies to improve environmental compliance and performance.
