Pāmu has declared a net profit after tax (“NPAT”) of $8 million for the half year ended 31 December 2020.
“Pāmu’s EBITDAR (earnings before interest, tax, depreciation, amortisation and revaluations), which is its preferred financial measure, saw a gain of $14 million compared to a gain of $22 million in the half year to December 2019.
Pāmu Chief Executive said the lower EBITDAR reflected lower market prices for the company’s red meat products.
“We managed to partially offset this by keeping a tight control on costs as we battened down the hatches to some extent, as Covid-19 created uncertainty across the business sector.”
Mr Carden said the company was cautiously optimistic about the full year result.
“Pāmu is currently forecasting a full year EBITDAR of between $45m and $50m, compared to our original forecast of $35m. The expected forecast milk payments are the key driver of this, along with potential gains in other areas as the economy starts to pick up.”
“We will also look at capital recycling (including from farm sales) to ensure we are focused on the right farm mix for continued future profitability.
“As a company we have a diversified portfolio of dairy, livestock, forestry and a growing horticulture and speciality milk business, and are well placed to meet the challenges and opportunities in the ag sector.
“The recent Climate Change Commission report is one such opportunity and at Pāmu we are already achieving higher production and more revenue from less animals on our farms, as we farm with more precision and a real focus on inputs onto our farm.
“Through investment in digital systems through FarmIQ (Pāmu shareholding 25%) to enable better farm management, and partnerships that will see real reductions in methane, nitrogen, fertilizer application – to name a few - we expect to see a lower carbon footprint year on year, while maintaining growing profitability as a company,” Mr Carden said.
Pāmu is the brand name of Landcorp Farming Limited.