Allied Farmers (ALF) H2 2024 earnings summary

Executive summary

• Net profit after tax attributable to shareholders rose 55.96% year-over-year to $5.206 million for FY24, driven by a one-off $4.2 million gain from the sale and licence back of Frankton saleyards, with $2.85 million attributable to shareholders.

• Earnings per share increased 55.9% to 18.07 cents, and net tangible assets per share rose to $0.40 from $0.21 year-over-year.

• No dividend declared for FY24 as earnings are to be redeployed into growth opportunities to utilize significant tax losses.

Financial highlights

• Audited net profit before tax for FY24 was $7.315 million, up from $4.071 million in FY23.

• Excluding the one-off gain, NZ Rural Land Management earnings were significantly higher, but offset by lower NZ Farmers Livestock earnings.

• Net tangible assets per share increased to $0.40 (FY23: $0.21).

Outlook and guidance

• Board's strategic focus is on accelerating earnings growth and redeploying capital from asset sales into new growth opportunities.

• Recent recovery in sheep and cattle pricing is encouraging for the current year.