Period included revaluation of property and livestock.
Pāmu has navigated a difficult year, including a revaluation of property and livestock, to report a $20 million net operating profit.
Chief executive Mark Leslie said net operating profit is the state-owned farmer’s principal performance measure, but this translated into a net loss after tax for the 2024 financial year of $26m compared with a loss of $9m for the previous year.
The $20m net operating profit result for the year ended June 30 2024 compares to a $33m net operating profit for the previous year.
Leslie said the 2023 result was boosted by a $20m gain on milk futures, whereas this year there was a $1m loss.
During the financial year under review, Pāmu revalued its farm portfolio, which returned a reduction of $141m in property values, of which $4m was recorded within the 2024 net loss after tax.
A fair value loss of $9m was recorded on livestock ($22m loss in 2023), which Leslie said largely reflected declining values for sheep and the fair value of forestry assets, which declined $6m.
Net finance expenses were $26m ($3m higher than 2023) reflecting higher interest costs.
Leslie said productivity was higher for the year.
The six-week dairy cow in-calf rate for the 2024 year was 3% higher at 68%, milk production was up 3.6% at 14.2 million kg/MS, lambing percentages were up 1.5% at 132.4% and total red meat production was 4% higher at 17.9 million kg.
Operating expenses were 2% lower at $227m, down from $232m in 2023.
During the year Pāmu increased its controlling interest in FarmIQ Ltd, lifting its equity ownership from 56% to 69%.
FarmIQ’s results are now consolidated with Pāmu results.
“Farmers and growers can benefit hugely from digital technologies and from data availability for better decision-making on-farm, regulatory compliance with the likes of greenhouse gas reporting, and providing information consumers are seeking on the food they consume,” said Leslie.
“Our strategic investment in FarmIQ is about enhancing our principal objective of operating a successful and profitable business.”
In other measures detailed in the media release, Pāmu now has 10,000 hectares in QEII covenants, it has removed the last quad bikes from its farms, introduced a new apprenticeship scheme and a methane reduction genetics programme.
Leslie said as detailed in its Statement of Corporate Intent, its net operating profit in 2025 is forecast to decline by $12m to $8m.
“For the full year 2023-2026 period, this would deliver a cumulative net operating profit of $106m versus the business plan goal of $100m,” Leslie said.
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