Landcorp Posts $62 million Profit Despite Operating Loss

Highlights:

• Livestock Gains Drive Profit: Landcorp Farming Limited (Pāmu) recorded a $62 million net profit, driven by a $73 million increase in livestock value amid rising market prices.
• Operating Loss Raises Concerns: Despite the net profit, the state-owned farmer reported an operating loss of $2 million, reflecting ongoing financial challenges.
• Upgraded Full-Year Forecast: Landcorp now expects a full-year operating profit of $43 million to $51 million, an improvement from its previous forecast in November.

Livestock Value Surge Boosts Bottom Line

Landcorp Farming Limited (Pāmu) has reported a net profit of $62 million for the six months ending December 2024, fueled by a $73 million surge in livestock value amid rising market prices. At the time of writing, this marks a sharp rebound from the $8 million net loss recorded in the same period last year.

Operating Loss Highlights Financial Challenges

Despite the impressive net profit, Landcorp’s operating performance remained in the red, with an operating loss of $2 million for the period. The state-owned agricultural business considers this metric as a more accurate measure of its financial health, reflecting the underlying operational challenges.

Revised Full-Year Forecast Signals Optimism

Looking ahead, Landcorp has adjusted its full-year operating profit outlook, now expecting earnings between $43 million and $51 million. This is an improvement from its earlier forecast issued in November, signaling confidence in market conditions and operational efficiencies.

Navigating Market Volatility

The company continues to focus on long-term financial stability, balancing market fluctuations with strategic planning. With agricultural markets remaining dynamic, Landcorp’s ability to manage costs and leverage market trends will be crucial in sustaining profitability.

As the industry navigates ongoing uncertainties, Landcorp's latest financial update underscores both the opportunities and challenges within New Zealand’s farming sector.

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