In this file:

 

·         AACo's pivoting to capture premiums delivers positive financial result

… "A particular highlight is our performance in North America, where the average price per kilogram of branded beef sold is up 33pc," Mr Killen said…

 

·         Buoyant industry conditions lift AA Co’s half-year profit

… Australian Agricultural Co has posted an improved operating profit of $30 million for its first half of the 2021-22 financial year, up 28pc on the year before, driven by stronger operating margins…

 

 

AACo's pivoting to capture premiums delivers positive financial result

 

Shan Goodwin, Queensland Country Life (AU)

18 Nov 2021

 

A LIFT in price per kilogram of beef sold and higher cattle sale margins has delivered an improved operating profit of $30 million to the country's largest beef producer, Australian Agricultural Company.

 

The business today handed down its half yearly financial results, the highlight of which was a $6.5m increase in operating profit compared to the previous corresponding period.

 

The result comes despite lower meat volumes sold due to reduced calving levels between 2018 and 2020 as a result of prolonged drought and the Gulf flood.

 

Managing director and chief executive officer Hugh Killen said it demonstrated the strength of AACo's business in what was still an uncertain operating environment.

 

The overall 9 per cent increase in average meat sales pricing was underpinned by AACo's ability to pivot to capture emerging premiums in different markets, influenced largely by pandemic effects.

 

Higher margins in-market as a result of growing brand awareness and an increased proportion sold through brands also contributed.

 

"A particular highlight is our performance in North America, where the average price per kilogram of branded beef sold is up 33pc," Mr Killen said.

 

"That reflects a strong demand for higher marble score loins and rumps in that region...

 

Cattle market boost ... 

 

Sustainability Framework ...

 

more

https://www.queenslandcountrylife.com.au/story/7515684/aacos-pivoting-to-capture-premiums-delivers-positive-financial-result/

 

 

Buoyant industry conditions lift AA Co’s half-year profit

 

Beef Central (AU)

18/11/2021

 

THE Australian Agricultural Co has posted an improved operating profit of $30 million for its first half of the 2021-22 financial year, up 28pc on the year before, driven by stronger operating margins.

 

It is the company’s fifth consecutive half-year of operating profit for the nation’s largest beef producer.

 

The result was particularly positive, in context of the reduced meat volumes sold due to the historical impacts of drought and the 2019 Gulf of Carpentaria flood event.

 

Managing director Hugh Killen said the result demonstrated the strength of AA Co’s business in what was still an uncertain operating environment.

 

“What’s especially pleasing is how we achieved the result, with higher margins in-market and growing brand awareness,” he said.

 

Overall, the business delivered a nine percent increase in average meat sales pricing compared to the previous period, driven by strategic market allocation and the continued execution of our branded beef strategy.

 

“The result was also supported by higher cattle sales margins on the back of record high market prices,” Mr Killen said.

 

Mr Killen said strategic market allocation was a key factor in the result, underpinned by AA Co’s strong brand portfolio and distribution partnerships...

 

more

https://www.beefcentral.com/news/buoyant-industry-conditions-lift-aa-cos-half-year-profit/