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Announcement

GENERAL: ALF: Allied Farmers Profit Guidance

09 Feb 2017 08:30NZX
8 February 2017

ALLIED PROFIT GUIDANCE

Allied Farmers Ltd (ALF) is in the process of preparing its financial result
for the six months to 31 December 2016, which will be released to the market
by the end of February 2017. The directors consider it appropriate to give
the market an update. Provisionally the unaudited half year result is an
after tax profit of approximately $0.42m (HY2015 $0.61)

Typically the Livestock business has ongoing  livestock sales which earn
commissions with two significant seasonal impacts: calf processing sales in
the Spring which impact the first half result; and dairy herd sales in the
Autumn which impact the second half result. Due to a combination of several
factors such as  lower tallies, less favourable US exchange rate and poorer
skin prices, the calf processing sales for the six months to December 2016
are 15% lower than the comparative period, with a reduced margin and this has
impacted on the interim result. This impact has been partially offset by
Livestock commissions for the half being up by 13% largely on the back of
improved livestock pricing.

For the second half the dairy herd sales contribute a significant proportion
of the profit. Many of these dairy herd sales are contracted well in advance
of settlement. To date the forward sales herd contracts due for settlement
predominantly in May are significantly ahead of the same time last year and
the directors expect that the first half impact will be recovered in the
second half.

Garry Bluett

Chairman
End CA:00296486 For:ALF    Type:GENERAL    Time:2017-02-09 08:30:04
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