Profit/payout up for Dairy Meats

For Immediate Release October 2001

Profit/payout up for Dairy Meats

The farmer-owned bobby calf processing cooperative Dairy Meats NZ Ltd has reported one of its best ever financial results.

For the year ended March 31, the company had operating revenues of $85.85 million and a net operating surplus of $12.994 million before tax and a revaluation of its investment in Affco Holdings Ltd. Last year it recorded a net operating surplus before tax and Affco revaluation, of $10.88 million on revenues of $84.003 million.

Its payout to supplier-shareholders last year was 130 percent up on the previous year, and was the highest since 1989.

Ownership of the company passed completely to dairy farmers during the year, with the redemption of 3.4 million class B ordinary shares held by the Dairy Board at $1 each. Shareholders' funds increased by $4 million to $38 million.

Added-margin product groups such as Nouveau Veal and functional ingredients continued to grow and contributed 18 percent of the company's revenue, and 23 percent of its gross margin.

Dairy Meats completed the year in a strong financial position because of committed shareholder support and a prudent approach to its use of resources, targeted at maximising long term benefits for its shareholders.

ends

For further information, please contact Paul Rivers on Auckland (09) 359-1200

Prepared for Dairy Meats NZ Ltd by Medialink Associates, telephone Auckland (09) 302-3644.

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