Cattle prices help Pioneer Sugar

Press, 13 June 1979, Page 22

Cattle prices help Pioneer Sugar

NZPA Sydney Reaping the benefits of a dramatic upswing in cattle prices and strengthened by cost reductions in its sugar division, Pioneer Sugar Mills, Ltd, almost trebled earnings from SI.3M to $4.4M in the year to March 31. Shareholders are being rewarded with a 2c increase in the final dividend to 4.5 c a share, which together with a higher interim of 3c a share

brings the annual payout to 7.5 c compared with 5c previously. The result marks a sharp turnaround from the 1977-78 performance when earnings slumped from $5.7M to SI.3M. Earnings were significantly affected by a 155 per cent increase in the net market value of livestock and improved sugar prices, said the chairman (Mr J. F. Leggo). Group sales for the period rose 6.4 per cent to $90.6M, of which $4.02M — related to a jump in livestock values —• was derived from non-trading activities compared with $lOB,OOO previously. The proportion of net profit after tax attributed to the increase in net market value of livestock and amounting to S2M has been transferred to a livestock valuation reserve. Commenting on the sugar division Mr Leggo said that production of raw sugar at the company’s three sugar mills had been restricted by the Sugar Board to individual mill peaks totalling 367,000 tonnes compared with 406,000 previously. “The effect on profit of this reduction was largely offset by increased sugar prices of approximately 7 per cent,” he said. ‘The significant improve

ments in the profit performance of the sugar division were the result of a vigor- ' ous and continuing cost rei duction programme and coni siderably improved milling i performances.” It was almost certain that ; the Sugar Board would need ito restrict production to . individual mill peaks again - this year, he said.