May 27, 2010

Meat company Affco Holdings has reported a 4% increase in interim profit even though revenue has been reduced.

The net profit after tax of US$15.9 million in the six months to March 31 is up from US$15.3 million in the same period last year. The net profit before tax of US$21.88 million is up from US$21.82 million last year.

The company is not paying an interim dividend.

Operating revenue of US$547 million was US$33 million lower than last year as lower stocking rates and good weather favoured strong grass growth over the early summer period, encouraging farmers to retain stock.

The appreciation of the New Zealand currency also translated to lower values of meat product sold in New Zealand dollar terms.

"Our outlook for the full-year remains cautious with no improvement to the competitive landscape expected in the second half," the company said.