State farmer is starting to see the fruits of its reset, CEO says.
Pāmu has produced net profit after tax of $62 million for the half-year to December 31.
A continued focus on performance alongside reducing overhead costs, a gain in livestock volume and valuations and stronger-than-expected market prices for dairy, beef, and lamb all contributed to this positive result, Pāmu chief executive Mark Leslie said.
“We remain optimistic market dynamics will remain stable in the medium term. For this reason, Pāmu has forecast an uplift in full-year net operating profit (NOP) of between $43m and $51m.
“This compares to our forecast in November 2024 of between $25m and $40m. NOP is our preferred measure as it recognises core underlying business performance,” he said.
A productivity lift was achieved by applying core farming principles, which, in a 2024 financial year comparison, are forecast as a 2% increase in milk production; a 71% six-week in-calf rate, which is a 3% increase compared to 2024 (on the back of a 3% improvement in 2023); a 10% increase in kilograms of carcase weight produced; and dairy beef calves reared increasing from 49% in 2023, to 56% in 2024, and 63% in 2025.
“Farming excellence is crucial for unlocking potential, as is upfront investment in future cashflow and growth areas like horticulture, forestry and Spring Sheep, and supporting sector-wide initiatives,” Leslie said.
Pāmu focuses on investments that support government aspirations and the broader New Zealand primary sector. These include its scalable integrated dairy beef farm systems to increase efficiency and profitability for New Zealand farmers, and developing talent and pathways into farm ownership including contractor and sharemilking opportunities and the Pāmu Apprenticeship Scheme.
“Pāmu is committed to advancing innovative solutions through research and development, and government objectives to reduce net greenhouse gas emissions and double export earnings over the next decade.
“Our ultimate goal is to increase total shareholder return through a cash dividend and equity growth while playing a role in lifting the overall performance of New Zealand agribusiness as a significant contributor to the national economy,” Leslie said.
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
eDairy News INGLÊS: https://whatsapp.com/channel/0029VaKsjzGDTkJyIN6hcP1K
