Anzco bucks sector trend by reporting $44.4m profit

ANZCO Foods has bucked the industry trend, reporting a fullyear profit.

The meat company has reported net profit after tax of $44.4 million for the year ending December 31, down from $106.6m profit in 2022.

Turnover for 2023 was $1.83 billion, compared with $1.90b in 2022.

The profit was still a standout considering other major players in the industry, Silver Fern Farms and Alliance, have posted big losses.

In April, Silver Fern Farms reported a fullyear loss of $24.4m, while last year Alliance reported a loss of $70m.

Anzco chief executive Peter Conley said the result was particularly pleasing given the challenging business environment the sector experienced during 2023.

‘‘There were some positive signs for exporters during the year, including the Covid recovery bringing an upswing in tourism and restaurant business. However, this was countered by the global impact of rising costs and interest rates, as well as consumers facing higher living costs. ‘‘The recovery in China has been slower than anticipated, and this coincided with difficult trading conditions for some key products in other markets.’’ Mr Conley said with a strong global reach, Anzco managed to effectively navigate market pricing challenges for beef and lamb.

‘‘A relentless focus on core business activities and growing returns from strategic investments were key to the company’s success.’’

It also reached some big milestones this year, with its China office becoming operational and the depopulation of its Five Star Beef feedlot near Ashburton. The feedlot, which housed thousands of cattle, had to be cleared as part of Mycoplasma bovis eradication efforts. Mr Conley said the depopulation process meant Amzco’s highvalue niche products were out of the market for about six months.

The company remained ‘‘committed to doing all we can to continue to deliver strong returns, ensure the industry remains stable, and contribute to a strong and vibrant agribusiness sector’’.