Pamu Raises Net Profit Guidance Following Strong Dairy Performance

Highlights:

• Pāmu Farms (Landcorp) raises net profit guidance: The company now expects a net operating profit between $25 million and $40 million, up from the initial forecast of $8 million.
• Strong performance driven by rising dairy prices: The increase in global dairy prices and higher milk production have significantly boosted the company's financial outlook.
• Positive outlook following strong past performance: Pāmu reported a net operating profit of $20 million for the year ending in June, despite an after-tax loss of $26 million.

Pāmu Farms of New Zealand (trading as Landcorp) has raised its net profit guidance for the current financial year, attributing the increase to strong milk prices and production levels. At the time of writing, the state-owned agricultural company now expects a net operating profit of between $25 million and $40 million, a significant jump from the previous estimate of $8 million.

Improved Financial Outlook

Pāmu’s updated forecast comes after a successful year, with the company reporting a net operating profit of $20 million for the 12 months ending in June. Despite facing a loss of $26 million on an after-tax basis, the company has benefitted from global dairy prices rising significantly since the start of the current dairy season.

Impact of Rising Milk Prices

The rise in global dairy prices has contributed substantially to Pāmu's positive outlook. Higher prices, combined with an increase in milk production, have strengthened the company’s financial standing. As dairy prices continue to climb, Pāmu’s position in the market remains robust, with future growth anticipated.

Continued Confidence in Dairy Operations

The company’s improved financial outlook reflects its ability to adapt to market changes while managing production efficiently. With dairy prices remaining high, Pāmu's enhanced profit expectations signal a strong future for New Zealand's agricultural sector.

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