LIC has delivered a “solid performance” in the past financial year and will return $23.3 million in dividend to co-operative shareholders, board chair Murray King has announced.
The 2022-23 year result shows the company had a net profit after tax (NPAT) of $27.4m, up 2.4% from $26.7m the previous year. Total revenue was $276.5m, up 5.1% from $263.2m last year. Underlying earnings were $23.7m, down 7.6% from last year.
King said the result has been fuelled by increased farmer uptake of premium genetics and herd improvement services.
LIC will return $23.3m in dividends to its co-operative shareholders, equating to 16.38 cents per share with a 20.1% gross yield on the share price. The dividend will be paid on August 18 2023.
King said the co-op has delivered a solid financial performance, considering the challenging economic conditions.
“The board is pleased to present another strong result to our farmer shareholders for the sixth successive year, despite facing rising costs due to increased inflation.
“This result is a credit to our farmers for their continued support of their co-op. They, like us, have been faced with a challenging economic landscape.”
He said the result enables LIC to deliver a solid dividend to shareholders at a time when increased cost pressures are being felt on farm. It also ensures the company can continue to invest in critical R&D and technology to support a more profitable and sustainable dairy industry for Kiwi farmers.
King said the result is largely driven by more farmers opting for the co-op’s premium bull teams to breed high genetic merit cows that produce more milk and have a lower emissions footprint per kilogram of milksolid.
LIC’s premium genetics range accounted for 79% of the co-op’s total artificial breeding (AB) inseminations, up from 71% the year prior.
The co-op has invested more than $80m into genomics over the last 30 years and research has confirmed that farmers are capitalising on this investment, he said.
This will be King’s final full year result with LIC after announcing he will retire from the board at the co-op’s October annual meeting after 14 years of service to LIC.
King said the co-op’s outlook is bright.
“LIC is fit to play its role in supporting farmer shareholders as they navigate the unique challenges facing the dairy sector both now and into the future,” he said.