Financial Results 2023/24
19 July 2024
Financial Highlights
$8.3 | $267.3 |
MILLION | MILLION |
Dividend | Total Revenue |
5.84 cents | Down 3.3% from |
per share (60% of | $276.5m last year |
underlying earnings) |
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LIC Financial Results 2023/24
$7.7 | $13.9 | $358.6 | ||
MILLION | MILLION | MILLION | ||
Net Profit | Underlying | Total Assets | ||
After Tax | Earnings | |||
Down 71.7% from | Down 41.6% from | Down 6.2% from | ||
$382.3m last year | ||||
$27.4m last year | $23.7m last year | |||
Challenging conditions over 2023/24
Reduced Milk
Environment
Leading to reduction in activity - lower bull valuation
Bull team revaluation:
- $88.9m, down from $97.6m last year.
- The valuation is based on an independent model that looks at future revenue streams and costs associated with the current bulls owned, discounted back to current value.
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LIC Financial Results 2023/24
Tax
Changes
One off tax adjustment of $4m
- New tax legislation (enacted in March 2024) removed the ability to depreciate commercial buildings for tax purposes from the 2024/25 income tax year.
- The led to a one-off,non-cash accounting adjustment of approximately $4m to increase tax expense at year- end, with a corresponding increase in LIC's deferred tax liability balance.
Semen
Quality Issue
$2m worth of credits paid to farmers
- Thorough investigation into processes and improvements and independent review: possible bacterial contamination of small number of batches taken in October 2023
Highlights
90% | 79.4% | Turnaround | 10% | ||||||
of farmers in | increase | times achieved | increase Johne's | ||||||
NZ use MINDA | Disease testing | ||||||||
Proportion of fresh semen | Across GeneMark®, Johne's | ||||||||
Now integrated | 1.18m animals tested | ||||||||
straws used for breeding | Disease testing and milk | ||||||||
with Fonterra, Open | replacement daughters | pregnancy testing | in 2023/24 | ||||||
Country, OSPRI and | |||||||||
wearable providers |
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LIC Financial Results 2023/24
Outlook
2024/25 likely to continue to be volatile with cost pressures on farm
LIC focus: operational excellence, faster genetic improvement, software reliability and performance
Expected underlying earnings for 2024/25 to be in the range of $16-22m
(assuming no significant events including climate events or milk price change takes place between now and then).
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LIC Financial Results 2023/24
Documents for download
Visit LIC website for the Full Year Financial Results
Visit NZX website for the Market Statement
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LIC Financial Results 2023/24