Pāmu has announced a strong increase in net operating profit to $15 million in the first half of the 2023 financial year, compared with a loss of $1m in the corresponding half-year.
However, because of livestock revaluations its net profit after tax of $4m compares unfavourably to the $41m in the first half of FY2022.
This was because the previous year’s livestock revaluation gains of $50m decreased to a $1m loss in the current year.
This non-cash, fair-value loss reflects the prevailing weaker market prices for livestock, principally sheep and dairy animals, according to chief executive Mark Leslie.
To provide a meaningful comparison from year to year, Pāmu prefers to use net operating profit as its reporting financial measure.
Leslie said the latest good interim result was achieved with four fewer farms than the previous corresponding period.
“The impact of Cyclone Gabrielle on forecasts is still to be determined but North Island flooding and the subsequent cost of clean-up will likely affect our ability to meet full-year financial targets.
“The most severe impact is to 22 of our livestock farms, which have suffered damage to infrastructure and pasture; this will limit the ability for them to hold projected stock numbers and have a material consequence.”
