Meat company ANZCO boosts pre-tax profit 21% to $17m

Chairman Sir Graeme Harrison says growth in the Japanese market was key, including grain-fed beef and manufactured food products. Photo / Greg Bowker

Japanese-controlled New Zealand meat company, ANZCO, said its pre-tax profit rose by 21 per cent to $17 million in 2016 compared with the previous year, reflecting an improved performance in its beef and lamb processing business, and its value-added operations.

ANZCO, formerly part of the New Zealand Meat Producers board and now majority owned by Japan's Itoham Foods, said its revenue fell to $1.45 billion from $1.54b, mainly as a result of exchange rate movements.

"The solid business performance was pleasing, especially given the ongoing challenges of the wider red meat industry," said ANZCO managing director Mark Clarkson.

In addition, a focus on working closely with Itoham - which last year raised its holding to 48.3 per cent to 65 per cent - contributed to ANZCO's solid performance.

"Growth in the Japanese market, including grain-fed beef and manufactured food products were key areas of gain," said chairman Sir Graeme Harrison.

ANZCO invested more than $23m during the year enhancing processing capability at the Rangitikei and Canterbury sites to meet customer requirements, along with a growing commitment to value-add business activities, including an increase in Angel Bay's manufacturing capacity at ANZCO Green Island.

In addition, the company bought the remaining 50 per cent of its Melbourne-based blood protein and serum business, Bovogen, that it did not already own.

Aside from Itoham - which is Japan's second biggest meat company - ANZCO is owned by Nippon Suisan Kaisha, along with directors and management.