May 30, 2008

Meat processor AFFCO swings back to profit
   

AFFCO Holdings, New Zealand's largest listed meat processor, has returned to profit in the past six months.

Operating profit hit NZ$15.3 million (US$12 million) for the six months that ended on March 31, 2008, compared to an operating loss of NZ$16.8 million (US$13.1 million) a year ago.

Revenue reached NZ$496.6 million (US$387.5 million), similar to last year but the profit was due to higher returns and cost cuts, according to AFFCO.

AFFCO chairman Sam Lewis said the strong New Zealand currency is pressurising profits. However, he added that planned improvements in operations and sales activities are progressing well and the benefits will become increasingly evident in subsequent reporting periods.

AFFCO is one of New Zealand's leading meat companies, processing and importing more than 150,000 tonnes of meat products and byproducts each year. The firm exports its products to about 74 countries worldwide.