Livestock Improvement Corporation (LIC) H2 2024 earnings summary

Executive summary

• Revenue declined 3.3% year-over-year to $267.3 million, reflecting challenging market conditions and reduced activity in the milk sector.

• Net profit after tax dropped 71.7% to $7.7 million, impacted by lower bull valuations and a one-off tax adjustment.

• Underlying earnings fell 41.6% to $13.9 million, with total assets down 6.2% to $358.6 million.

Financial highlights

• Dividend of $8.3 million, or 5.84 cents per share, representing 60% of underlying earnings.

• Bull team revaluation decreased to $88.9 million from $97.6 million last year.

• $2 million in credits paid to farmers due to a semen quality issue.

Outlook and guidance

• 2024/25 expected to remain volatile with ongoing cost pressures on farms.

• Focus areas include operational excellence, genetic improvement, and software reliability.

• Underlying earnings for 2024/25 projected at $16–22 million, assuming no major events.