Alliance Group Targets Profitability Amid Capital Drive

Highlights:

• Alliance Group is aiming for a return to profitability this year despite recent financial setbacks.
• The company has increased its capital raise target from NZD 160 million to over NZD 200 million.
• It may no longer remain a fully farmer-owned co-operative as it seeks new funding sources.

Capital Raising Efforts Intensify

Alliance Group, a prominent red meat processor in New Zealand, is actively pursuing additional capital to strengthen its financial position. Initially seeking NZD 160 million, the company now requires over NZD 200 million due to recent operational challenges, including the closure of its Smithfield facility. This capital is essential to restore the company's balance sheet and support its ongoing operations.​

Path to Profitability

Despite recent setbacks, Alliance Group is optimistic about returning to profitability in the current fiscal year. The company's strategic initiatives and cost management efforts are aimed at improving financial performance. At the time of writing, Alliance Group is exploring various avenues to secure the necessary funding, including potential changes to its ownership structure.​

Future Outlook

Alliance Group's commitment to financial stability and operational efficiency positions it well for future growth. The company's proactive approach to addressing its financial needs demonstrates its dedication to maintaining its role as a key player in New Zealand's red meat industry. As the capital raising process continues, stakeholders remain hopeful for a positive outcome that will support the company's long-term success.

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