Half year LIC profit up $2 million
Half year profit attributable to farmer-shareholders of Hamilton-based dairy genetics co-operative Livestock Improvement Corporation (LIC) is up $2 million on the same time last year.
The company has posted a net profit after tax of $30 million for the six months to November 30, up from $28m for the corresponding period last year.
Revenue was $131.5m, up from $120.1m for the previous period.
Chairman Murray King said the result was due to farmers investing in products which drive their prosperity, despite conservative times.
''The start of the dairy season is when most of our activity takes place - with herd testing, herd recording, artificial breeding and animal health - and that coincided, this season, with a drop in dairy payout, from the previous season's high.
''Despite this, demand grew with increases of 7.6 per cent in herd testing, 10.9 per cent in dairy genetics, 31.9 per cent in DNA parentage testing, 17.6 per cent in farm software, 2.7 per cent in farm automation systems and 21.1 per cent increase in animal health services like BVD testing - to mention just a few.''
In response to industry volatility, LIC had not increased product or service pricing, or had kept increases minimal, King said.
''The good thing is that LIC is a dairy farmer owned cooperative, so everything we do - from products and services, to the profit, dividends and research and development - all return to our shareholders.''
The balance sheet remained strong, King said, with total equity of $214.6m compared to $199.7m at the same time the year before.
LIC emphasised its business, particularly artificial breeding, was highly seasonal. Half-year results incorporated the majority of the artificial breeding revenue, but not a similar proportion of total costs, and were therefore not indicative of either the second half result or the full year result.