Landcorp’s profit up but still poor return on assets

Landcorp reports a net operating profit of  $11.0 million for the first half of the financial year to the end of December.

This is up from $3.2 million in the corresponding period of 2010/11 due to strong growth in revenues, particularly on the sale of livestock. The latest half years aw total farm product revenues rise to $104.0 million (2010/11: $91.6 million). Livestock revenue was up 27.0 per cent to $46.3 million, reflecting higher prices for meat and for store animals, and also higher livestock numbers. Dairy revenue improved 2.5 per cent to $53.0 million on growth in milk volume during the latest half year.

The company expects a net operating profit for the year of $20 million and to pay a $15 million dividend.

These are impressive numbers until you factor in assets valued at $1,754,207,000.

One Response to Landcorp’s profit up but still poor return on assets

  1. pdm says:

    Given that our Son in Law says that this is the best year for prices in the 18 years he has been a farm manager the improvement in returns is not unexpected.

    Return on assets remains abysmal though.

    Like

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