16 June 2017
UPGRADED GUIDANCE DRIVEN BY STRONG LIVESTOCK PERFORMANCE
Allied Farmers Ltd (ALF) is nearing the end of its 2017 Financial Year
(FY17), and will shortly commence preparation of its Audited Financial
Statements for the year ended 30 June 2017, for release to the market by the
end of August 2017.
Due to the extremely strong performance of its Livestock division in May
2017, the directors consider it appropriate to update the earnings guidance
provided to the market in February 2017. Very buoyant cattle prices,
favourable seasonal conditions, firm sheep prices and high dairy livestock
sale tallies have driven this performance above expectations.
As stated in the February 2017 guidance, typically the Livestock business has
ongoing livestock sales which earn commissions with two significant seasonal
impacts: calf business performance in the Spring which impacts the first half
result; and dairy herd sales in the Autumn which impact the second half
result.
In the February 2017 guidance ALF predicted that, for the full FY17, strong
dairy herd sales would recover the revenue impact of the challenging calf
business season in the six months ended 31 December 2016. However, ALF is
pleased to advise that the dairy sales and buoyant livestock activity
generally through the period not only recovered the impacted revenue, but has
materially exceeded expectations. Livestock trading has been materially
stronger than for the prior year, and benefited from strong farmer support,
the ongoing growth of the livestock team, a solid NZ Farmers Livestock
reputation, and now established MyLivestock web and app digital tools.
Accordingly, subject to completion and audit of the FY17 financial
statements, ALF anticipates FY17 NPBT will be at least 40 percent higher than
last year''s NPBT of $1.57 million.
Garry Bluett
Chairman
End CA:00302647 For:ALF Type:MKTUPDTE Time:2017-06-16 09:27:02