Livestock Improvement Corporation (LIC) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 Nov 2024 was NZD 185.7m, up 8% year-over-year from NZD 171.9m, reflecting resilience among New Zealand dairy farmers and strong demand for efficiency and genetic solutions.

• Net profit for the period was NZD 39.1m, a 35% increase compared to NZD 29.0m in the prior year period.

• Underlying earnings rose to NZD 33.7m from NZD 28.7m year-over-year.

• Investments in research and product innovation, such as methane reduction genetics and genomic tools, are delivering tangible outcomes for farmers.

• Interim dividend of 5.84 cents per share (NZD 8.3m) was paid in August 2024.

Financial highlights

• Gross margin improved, with profit per ordinary share at NZD 0.27, up from NZD 0.20 year-over-year.

• Operating cash flow increased to NZD 11.4m from NZD 3.4m in the prior year period.

• Cash at period end was NZD 29.7m, down from NZD 38.3m at 30 Nov 2023.

• Total assets were NZD 410.1m, with net assets of NZD 306.3m.

• Dividends paid in the period totaled NZD 8.3m, down from NZD 23.3m year-over-year.

Segment performance

• NZ market genetics revenue was NZD 106.8m, up from NZD 99.4m year-over-year.

• Herd testing revenue reached NZD 17.7m, up from NZD 15.3m year-over-year.

• Farm software revenue was NZD 29.2m, up from NZD 27.1m year-over-year.

• Diagnostics revenue was NZD 15.7m, up from NZD 14.8m year-over-year.

• Segment gross profit before tax increased across all segments, with NZ market genetics leading at NZD 70.2m.

• Strong uptake of fresh sexed semen, with non-return rates now within 1% of conventional semen.

• Genomic product launch in July 2024 led to over 1 million animals genotyped, reflecting high farmer trust.

• Johnes Disease testing doubled compared to the first half of 2023, indicating increased focus on herd health.