May 18, 2023
Australia's biggest cattle firm AACo increases herd size and operating profit
Australia's largest cattle company, the Australian Agricultural Company (AACo), has experienced a 13% growth in its herd size and achieved an operating profit of AUD 67.4 million (~US$44.8 million; AUD 1 = US$0.66), marking a notable 35% increase compared to the previous year's performance, the Australian Broadcasting Corporation reported.
David Harris, chief executive officer of said that the company's results represented one of the strongest operating results they have seen in recent memory.
He attributed the success to improved margins and a 14% revenue boost, which was achieved by securing better pricing for their beef brands in the market. Harris also emphasised the company's effective cost control measures amidst a high inflation environment.
AACo's strategic focus on the North American market was deemed successful by Harris, who noted positive outcomes. Favourable seasonal conditions across their extensive portfolio of stations in northern Australia contributed to improved calving rates and a significant 13% increase in herd size, reaching 432,926 head.
However, the value of AACo's herd experienced a significant decline due to the plummeting cattle prices witnessed across Australia, particularly since November. The current worth of the herd is AUD 112 million (~US$74.4 million) less than the previous financial year, leading to a 96% decrease in statutory net profit after tax, amounting to AUD 4.6 million (~US$3 million).
AACo's property portfolio, covering approximately 1% of Australia's land mass, demonstrated a substantial increase in value, rising by nearly AUD 300 million (~US$199 million. This development contributed to AACo's total net assets reaching AUD 1.6 billion (~US$1 billion).
AACo also highlighted its commitment to sustainability and environmental responsibility. Through its "Beef Cattle Herd Management Carbon Project," the company generated AUD 7.3 million (~US$4.8 million) in carbon credits, effectively reducing its carbon emissions by 191,000 tonnes.
- Australian Broadcasting Corporation