Pāmu Announces Half-year Result

Pāmu Farms of New Zealand (Landcorp Farming Limited) produced a net profit after tax (NPAT) of $62 million for the half-year to 31 December 2024.

Chief Executive Mark Leslie said: “Our continued focus on performance, alongside reducing overhead costs, a gain in livestock volume and valuations, and stronger-than-expected market prices for dairy, beef, and lamb, contributed to this positive result.

“We remain optimistic market dynamics will remain stable in the medium term. For this reason, Pāmu has forecast an uplift in full-year net operating profit (NOP) of between $43 million and $51 million. This compares to our forecast in November 2024 of between $25 million and $40 million. NOP is our preferred measure as it recognises core underlying business performance,” he said.

“As a business, Pāmu has had a reset to drive performance, and we are starting to see the fruits of this labour.”

Farm productivity is being lifted by applying core farming principles and momentum is evidenced with a forecast:

• 2% increase in kilograms of milk solids (kgMS) versus FY24
• 3% increase in the six-week in-calf rate versus FY24 to 71% (on the back of a 3% improvement in FY23)
• 10% increase in kilograms of carcass weight produced versus FY24
• Dairy beef calves reared increasing from 49% in FY23, to 56% in FY24, and 63% in FY25

Mr Leslie said: “Farming excellence is crucial for unlocking potential, as is upfront investment in future cashflow and growth areas like horticulture, forestry and Spring Sheep, and supporting sector-wide initiatives."

“We have focused on investments that support Government aspirations and support the broader New Zealand primary sector such as our feed conversion and methane testing facility at St Kilda in Taupō; scalable integrated dairy beef farm systems to increase efficiency and profitability for New Zealand farmers; and developing talent and pathways into farm ownership including contractor and sharemilking opportunities and the Pāmu Apprenticeship Scheme.

“Pāmu is committed to advancing innovative solutions through research and development, and Government objectives to reduce net greenhouse gas emissions and double export earnings over the next decade.

“Our ultimate goal is to increase total shareholder return through a cash dividend and equity growth while playing a role in lifting the overall performance of New Zealand agribusiness as a significant contributor to the national economy,” Mr Leslie concluded.

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