Tough year hits Anzco earnings

Meat processor and exporter Anzco Foods reported a 90 per cent plunge in full-year pre-tax profit, in what it said was a tough year for beef processing.

Anzco, owned by Japan-listed Itoham Yonekyu Holdings, said its pre-tax profit was $1.8 million in the

2017 calendar year versus $17m in

2016. Revenue of $1.46 billion was consistent with the prior year when it was $1.45b, it said.

“This result reflects a tough year in beef processing which comprises around 60 per cent of Anzco Foods’ business,” said chief executive Peter Conley. He provided no further detail on the sharp fall in profit and was not immediately available for comment.

The company has “aggressively pursued its strategy to reposition itself ” and create net value from food, nutrition and healthcare products, he said. There had been a 30 per cent lift in sales in those categories, said Conley.

The growth of the Wakanui brand had supported Anzco Foods’ differentiated beef strategy in New Zealand, Asia and other markets, said Conley, who noted the first shipments to China with the opening of that market for chilled New Zealand beef and lamb.

The company said it reinvested $27.5m in capital projects during the year. In November, a new Wakanui steakhouse restaurant opened in Singapore, complementing the two restaurants in Japan.

Wakanui beef is raised totally free from antibiotics and hormone growth promoters. The Angus and Hereford cattle graze for 18 months and are then hand selected to be grain finished. The premium beef is then aged for 21 days.