Allied Farmers (ALF) made a 42% increase in net profit after tax to $2.876 million in the 2022 financial year.
Almost equal contributions came from subsidiaries NZ Farmers Livestock + Finance and the NZ Rural Land Management Company (NZRLM).
Operating and financing costs of the parent company Allied Farmers were reduced from $501,000 to $470,000.
The finance company Rural Finance SolutioNZ was wound down and referrals made to Heartland Bank.
Capital released was used to participate in NZ Rural Land Company’s (NZL) capital raisings.
The earnings contribution from NZRLM was $1.624m in its first full year of operations.
Allied owns 2.9 million NZL shares along with 50% of the management company.
It reported that NZ Farmers Livestock had a vastly improved contribution from its veal processing business.
But this was partially offset by a lower contribution from livestock agency business reflecting reduced tallies related to periodic weather and market conditions, covid disruption, and several small yard share losses.
Dairy herd sales were strongly improved on earlier years.
Veal processing is expected to provide another good result in FY23 although capacity constraints in processing plants have been temporary constraints.
ALF shares are trading at 75 cents, having risen 14c during the past year and touching 90c in January.
