Australia's largest cattle company has posted an operating profit of $49.9 million for the 2021/22 financial year, more than double the previous year's result.
Its statutory net profit after tax has also risen by a hefty $91 million.
Speaking to investors this morning, CEO of the Australian Agricultural Company (AACo), Hugh Killen, said the "excellent set of results" was down to the company's strategy, improved performance of its beef brands, "and our drive to make AACo a simpler and more efficient business".
Asia remains a key customer for AACo, but it was the growth in the North American market which had Mr Killen excited.
"We've had a great year in North America with our branded meat sales increasing by 56 per cent. This has come off the back of price and volume increases driven by the return to food service," Mr Killen said.
"We laid the groundwork for this growth during COVID … and the US will remain a key strategic market for AACo in FY23."
AACo's Wagyu meat sales, in terms of price per kilo, has risen 21 per cent over the last 12 months to $18.74/kg.
Herd rebuild
Australia's cattle herd is rebuilding after years of drought and the same story is unfolding for AACo.
Its herd size has increased 12.4 per cent over 12 months to around 382,000 head — an increase of around 42,000 head.
The value of the herd has increased by an incredible $198.8 million and the value of its vast property portfolio has jumped $254.5 million.
"This has helped to drive (AACo's) net assets to $1.36 billion," Mr Killen said.
Still no dividends for shareholders
Everything seems on the up for AACo, but shareholders once again will not see a dividend.
When asked about potential dividends during an investor briefing, Mr Killen said AACo was focused on investing back into the company.
"We want to continue to invest back into the business, we'll continue to invest back into operations, and it's one of the reasons we've seen very good uplift in the valuation of our properties," he said.
"The dividend question is ultimately for the board and I know the chairman is looking forward to updating everyone at the annual general meeting."
Shares in AACo were $1.80 at the time of publishing and have risen more than 20 per cent this year.
