Australian Agricultural Company posts 10-fold jump in profits
The Australian Agricultural Company (AACo) has posted a $10.5 million net profit after tax – a 1,000% jump – but the company’s internal cashflow isn’t strong enough for any dividend payment.
The bumper seasonal cropping operations assisted revenue growth of 52% and a 40% lift in its earnings before interest tax, depreciation and amortisation to $58.1 million for 2011.
The company bounced back from last year's Queensland floods and the ban on live cattle exports to Indonesia.
Established in 1824, AACo is the oldest continuously operating company in Australia. It currently operates 19 cattle stations, two feedlots and three farms totalling 7.2 million hectares, about 1.1% of Australia’s land mass.
It became a publicly listed company in 2001.
Managing director David Farley says the 2011 result demonstrates the company's turnaround strategy is gaining momentum.
The current seasonal conditions indicate a six to eight month grass-load across AACo properties, mitigating short-term risk in case of a return to drought conditions, Farley says.
