LIC dividend payout a record
Livestock Improvement (LIC) farmer-shareholders will be paid a record dividend of $16.75 million for the 2012-2013 year.
This contrasts with the $11.9m the dairy farmer co-operative paid in 2012, and $13.6m in 2011.
Chairman Murray King said the record dividend follows improved sales across most business areas which resulted in earnings, before interest, taxation and fair value adjustments on elite biological assets increasing 42 per cent to $27.29m.
LIC's net profit after tax of $23.7m was down $700,000 on the previous year.
The fall in net profit after tax was due to a lower annual valuation of LIC's biological elite bull team, which is not included in the dividend.
LIC's underlying net earnings increased from $14.99m to $20.93m this year. This flows through to the record dividend being paid out.
The company's balance sheet totalled $275.5m, an increase of $15m over the previous year with a stable equity ratio of 75 per cent.
Cashflows for the year generated $25.8m, compared with $27.7m in 2011/2012. Purchases of both tangible and intangible assets increased from $18.35m to $23.97m as the co-operative ramped up its investment in innovative products for farmers and technology upgrades.
Last summer's drought provided farmers with a unique set of problems with many needing to shorten the dairy season and dry herds off early, King said.
"This resulted in a decrease in the number of herd tests carried out by LIC during autumn 2013."
Demand for the company's services was strong despite the drought, particularly artificial breeding, King said.
"LIC maintained the price freeze that we first applied to our premier sires' genetics in the 2009/2010 season.
"Our GeneMark DNA parentage testing and animal health testing services also delivered record activity levels."