Australian Agricultural Company (AAC) H2 2024 earnings summary

Executive summary

• Resilient FY24 performance amid increased global meat supply and lower live cattle prices; higher sales volumes and branded product premiums helped offset pricing pressure.

• Integrated supply chain, distribution network and brand investment supported growth in meat sales, while the herd’s unrealised fair value adjustment drove a statutory loss.

Financial highlights

• Total revenue was $336.1M, up 7% YoY; meat sales revenue rose to $268.7M from $245.0M, while cattle sales revenue was $67.4M versus $68.4M.

• Adjusted Operating Profit was $50.5M, down $16.9M YoY; gross margin was $108.7M versus $120.8M.

• Statutory net loss after tax was $94.6M versus $4.6M profit; statutory EBITDA was a loss of $87.9M versus $49.1M profit.

• Operating cash flow was $9.3M versus $16.0M; investing cash outflow was $29.9M versus $16.0M.

• Wagyu meat sales price was $19.85/kg, down 10% YoY; total revenue growth reflected higher volumes offsetting lower average prices.

Outlook and guidance

• Goonoo Feedlot expansion is expected to deliver further benefits in FY25, with a full year of contribution.

• Global meat sales conditions remain uncertain for FY25; branded beef sales are positioned to benefit as market conditions change.

• Global beef oversupply and inflation are expected to ease in late FY25, alleviating price pressure on Wagyu boxed beef and live cattle sales.

• Consecutive favourable seasons supported pasture growth and productivity; focus remains on supply-chain efficiency and quality amid moderating inflation.