Slower livestock sales contributed to the decline and are likely to continue. Photo / File
Allied Farmers posted a 71 per cent drop in first-half profit and said slower livestock sales in the immediate wake of a dairy price recovery that contributed to the decline are likely to persist.
Net profit attributable to shareholders fell to $83,000, or 0.05 cents per share, in the six
months ended December 31, from $281,000, or 0.17 cents, a year earlier, the Hawera-based company said yesterday. Revenue rose 6.6 per cent to $10 million while the addition of new livestock agents to expand that business boosted employee costs 17 per cent to $3.4m.
"The core livestock business performed well, with turnover up 11 per cent on the prior year's first half and livestock commissions up by 5 per cent," chair Garry Bluett said.
"However, the costs of expanding the operations in Northland and South Island meant that there were costs incurred that have yet to show full returns."
Allied Farmers has been focusing on its livestock division, having largely wound down the residual assets from its acquisition of the Hanover and United Finance loan books in 2009.
