By PHILIPPA STEVENSON
The country's biggest meat company, Richmond, has reported a 77 per cent lift in after-tax profit to $20.65 million in the September year.
The company, subject of a successful takeover during the year by southern meat co-op PPCS, made a profit of $11.65 million the previous year.
The current result,
on sales which rose to $1.42 billion from $1.13 billion, exceeded a February forecast of a $19.37 million profit.
The company reported unusual gains of $2.9 million against losses last year of $703,000.
Dunedin-based PPCS, secured effective control of Richmond in the middle of the year.
It owns 16.7 per cent of Richmond in its own right and also owns 49 per cent of Hawkes Bay Meat, a 34 per cent owner of Richmond.
PPCS is likely to exercise an option to lift its stake in Richmond to 52 per cent by 2003. Its after-tax profit to August was up 95 per cent to $36.78 million on operating revenue of $1.17 billion.
Richmond chairman Sam Robinson said his company had had a strong third quarter but a difficult final quarter because of a winter stock shortage, particularly in August and September.
"To protect valuable year-round customer relationships that underpin our business, there were periods when we operated on negative margins," he said.
"It was the most difficult final quarter the company has experienced for many years, and took the shine off the year."
But he rated the company's result outstanding and said it vindicated a business strategy involving the acquisition of one meat company (Lowe Walker), a merger with another (Waitotara), rationalisation of operations and expansion overseas.
The company declared a fully imputed final dividend of 5c a share to be paid on November 30, making a full-year dividend of 10c a share.
Chief executive John Loughlin said Richmond had performed well in a difficult trading environment.
Progress had been made in building a strong business based on four key pillars - beef; lamb and sheep; venison, calves and local marketing; and tertiary processing, including leather, pharmaceuticals and processed food.
