Phoenix Meat profit doubles

Press, 23 November 1987, Page 14

Phoenix Meat profit doubles

Phoenix Meat Company, has reported a record result after record throughput In the year ended September 30.

Net profit was $1,841,859 compared with $862,936 last year. Gross revenue rose 20 per cent to $13.1 million, and expenses were contained well and were up 12.3 per cent to $lO,l million. No tax was payable. The total dividend payout increased 43.9 per cent, from $230,242 to $331,324. It represents 30c a share on those shares not converted to rebate shares — a normal dividend of 22c and a “special record throughput” dividend of 8c a share. The balance sheet reveals a strong position: proprietor-

ship is 64.0 per cent, with shareholders’ funds up 23.7 per cent to $7.9M. The current ratio is 1.84:1, with working capital $2.4M. Referring to the record throughput the chairman, Mr Malcolm Wallace, said: "As compared with our previous high kill we show an increased kill of cows of 2437 (about 2000 above average) reflecting a downturn in dairy returns — this obviously cannot be considered sustainable growth — quite the contrary. “An increase of 2610 bulls killed reflects an increased awareness of the value of dairy beef and also our financial assistance with dairy beef retention. In this context it is also oleasing to note

M.A.F. interest in the potential of increasing production of dairy beef. "A decrease of 1263 steers killed, unfortunately reflecting a trend from traditional beef operations to other uses. However, this trend has now halted and we believe the trend should reverse. “The 3065 reduction in local trade kill reflects a change in policy by the company. Bad weather has delayed the development of the Phoenix Farm programme. Mr Wallace said that apart from the benefit to the operations of the meat company it showed what could be achieved on that type of pakahi land. The policy to update and Improve works facilities is

continuing. “In this respect,” said Mr Wallace, “to enable our exporters to service as wide a market as possible, this year we have altered our slaughterhouse to enable us to continue supplying Muslim (Halal) markets; made minor alterations to continue our E.E.C. access (in particular for the Hilton high quality beef contract); altered the Administration Building and installed data processing equipment to allow us to speed the information, including stock payments, between the works and our clients.” Mr Wallace, a foundation director of the company, has reached the age limit for Phoenix directors and is retiring after more than 13 years as a director.