NO BEEF OVER LOSSES
Written on the 24 August 2010
AUSTRALIAN Agricultural Company Limited (AAC) has recorded a $12.2 million loss for the June half, despite a 43 per cent rise in revenue.
CEO David Farley says the company is now seven months into its turnaround to profitability, with strong beef exports expected in South East Asia and a recovering US market.
“We’ve focused on cash more so than the balance sheet and the second half of this year is where most of our revenue will be generated,” says Farley.
“We’ve increased our herd substantially yet we’ve reduced the total cost of what it takes to run the whole enterprise. Without a doubt history is there to be studied and the future is there to be made – it comes down to the focus of management and getting the most that you can out of your assets.”
Farley says AAC has focused on adjusting the demographics of the herd to maximise revenues, along with a breeder alliance program that frees up properties for more trading cattle.
A feasibility study is currently underway for an abattoir in North Queensland or the Northern Territory, in closer proximity to the company’s cattle stations to cut down on transport costs.
AAC shares rose by 1 cent today to $1.53.