ANZCO posts full-year profit, bucking industry trend

ANZCO Foods has bucked the industry trend, reporting a full-year profit.

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

Turnover for 2023 was $1.83 billion, compared to $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 full-year loss of $24.4 million, 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.”

Conley said with a strong global reach, ANZCO managed to effectively navigate market pricing challenges for beef and lamb at various stages of the season.

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

He said the company 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.

Conley said the depopulation process meant ANZCO’s high-value niche products were out of the market for around six months.

“ANZCO Foods remains 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.”