Alliance profit doubles to $20.2m

ALLIANCE Group has doubled its operating profit for the year to September 30 but chief executive David Surveyor says the company still needs to ‘‘run faster’’.

The cooperative has released financial results which show operating profit up from

$10.1 million to $20.2 million.

Net profit before tax and pool distributions was $28 million, which included extraordinary items relating to a land sale at Makarewa in Southland.

Revenue was a record

$1.53 billion while core debt had halved to $19 million over the past year. Shareholders’ equity ratio was 71%.

In a statement, Mr Surveyor said Alliance recognised there was still a lot of hard work ahead.

‘‘Profitability is not at the level we want for a company of this size and we need to capture gains more quickly. Alliance Group needs to run faster.’’

Chairman Murray Taggart said Alliance was now a ‘‘much fitter’’ cooperative due to a focus on lifting efficiency, lowering costs and capturing more value from global markets.

‘‘The numbers tell a positive story. We are welcoming new shareholders, achieving a stronger balance sheet, improving our profitability and, most importantly, offering better livestock pricing for our farmers.’’

Shareholders had also benefited from firmer international pricing for beef, lamb, venison and coproducts.

Lamb prices were particularly strong and venison was increasingly recognised as a premium product.

‘‘We also now have a balance sheet that allows us to undertake a number of exciting initiatives and introduce innovative practices.’’

Mr Surveyor said Alliance was particularly pleased with the significant improvement in overall safety performance. The company’s total recordable injury frequency rate had improved by about 40% yearonyear.

Alliance’s annual meeting will be held in Te Anau on December 14.