fbpx

Alliance Group Announces Annual Results

What's On Invers Business News Presented by and

Leading food and solutions co-operative Alliance Group today announced a profit before tax and distribution of $20.7 million and a $9 million profit distribution to shareholders.

The 100 per cent farmer-owned co-operative recorded a turnover of $1.7 billion for the year ending 30 September 2019.

Over the course of the year, the company paid farmers a record amount for their livestock. The balance sheet and shareholders’ equity (63 per cent) remains strong.

Murray Taggart, chair of Alliance Group, said the increase in profit ($10 million 2018) was pleasing and reflected the co-operative’s drive to maximise operational efficiency and focus on capturing greater market value.

“Alliance Group has made good operational gains, sales and marketing has gathered momentum and we have continued our programme of building capability and investing in the co-operative for the long term.

“Global market prices for most species were generally strong across the board. The outbreak of African Swine Fever and the subsequent culling of the Chinese pig herd led to an increase in demand for other proteins such as New Zealand beef.”

There was also strong growth for Alliance Group in the global food service sector, he said.

“As a 100 per cent farmer-owned co-operative, we have been able to pass these gains directly back to our farmers. On top of that, we are pleased to be able to deliver a $9m profit distribution and for the first time it will come with imputation credits for shareholders due to Alliance successfully advocating for a tax law change.

“The 50 per cent investment during the year in the Meateor Pet Food business aligns with our strategy of capturing more value from every product we produce.”

David Surveyor, chief executive of Alliance Group, said the co-operative’s performance demonstrated the company’s transformation strategy remains on track.

“Our farmers tell us they value the progress we are making to build a stronger, more profitable and sustainable business that benefits their farm businesses and wider rural communities.

“Farmers made good use of our free of charge store stock facilitation service, which enables them to move lambs to other farmers for finishing.”

To support farmers’ cashflow, the co-operative has recently been able to increase to $25/head the amount it pays in advance payments for lamb.

The co-operative continued to invest in plant modernisation as part of its Manufacturing Excellence Programme and this included upgrades at Dannevirke and Smithfield (Timaru) and a major investment in Southland with the official opening of a new venison plant in December 2018.

“We continued to lift our beef processing performance with our Levin, Mataura and Pukeuri plants processing record numbers of cattle during the 2018-19 season.

“In order to progress our strategy, we have selectively added cost and invested to grow the capability of our business in areas such as food service, branding and supply chain.”

Alliance Group has also been investing in its people with plant training and supervisory programmes for almost 2,000 people.

The co-operative remained focused on improving its safety performance, said Mr Surveyor.

“This year, we significantly stepped up our work on critical risks, the safety issues which may result in serious injuries. We invested in five key areas, ammonia, asbestos, traffic management, energy isolation and machine guarding.

“We also completed our programme to replace and upgrade all of our bandsaws with the new BladeStop technology, which significantly reduces the risk of serious injuries for our people.

“We greatly appreciate the dedication and commitment from our team and the continued loyalty and support of our farmer shareholders as we continue to deliver against our strategy. There is more to be done and we remain determined to deliver results for our shareholders.”

The profit distribution of $9 million will be as follows:

  • lamb $1.50/head
  • ewes $0.50/head
  • cattle* $8.00/head
  • deer $5.00/head
  • calves $0.50/head

* all cattle including prime, cow and bull

The distribution to shareholders will be made following Alliance Group’s Annual Meeting on 18 December, 2019.

Charity Hospital Partners With SBS Bank For In-Person Donations
Business, Community
1265 views
Business, Community
1265 views

Charity Hospital Partners With SBS Bank For In-Person Donations

News Desk - Aug 07, 2020

The Southland Charity Hospital has partnered with SBS Bank to ensure everybody in the southern community can get behind its…

New Premises for AWS Legal
Business, News
727 views
Business, News
727 views

New Premises for AWS Legal

Aimee Wilson - Aug 05, 2020

AWS Legal will be on the move in the next year, with plans underway for brand-new premises on Don Street.…

Merchant Fees to Drop – Businesses Hopeful Costs Will be Passed on
Business, Covid-19
1128 views
Business, Covid-19
1128 views

Merchant Fees to Drop – Businesses Hopeful Costs Will be Passed on

News Desk - Aug 04, 2020

Small businesses are cautiously optimistic a drop in charges for accepting credit card and contactless payments will help with cashflow…

ILT Businesses Picking Up Again Post Covid
Business, Community
1548 views
Business, Community
1548 views

ILT Businesses Picking Up Again Post Covid

News Desk - Jul 30, 2020

The Invercargill Licensing Trust has made a strong recovery post-Covid and as a result, re- employed 37 out of 87…

Makers of Tyres, Plastic Packaging and Electronics Will Soon Have To Clean Up Their Own Trash
Business, Environment
1171 views
Business, Environment
1171 views

Makers of Tyres, Plastic Packaging and Electronics Will Soon Have To Clean Up Their Own Trash

News Desk - Jul 30, 2020

Businesses producing harmful products such as tyres, plastic packaging and electronics will soon have to start cleaning up their own…

Southland Musicians Club News
Entertainment, Gig Guide
38 views
Entertainment, Gig Guide
38 views

Southland Musicians Club News

Chris Chilton - Aug 07, 2020

Covid schmovid. Since all you sensible, beautiful people played your part in flattening the curve and helping to get our…

Special Group to Help Drive City Centre Master Planning Project
Invercargill Central, Invercargill City Council
21 views
Invercargill Central, Invercargill City Council
21 views

Special Group to Help Drive City Centre Master Planning Project

News Desk - Aug 07, 2020

Invercargill’s city centre master planning project now has a team to promote, drive, and champion it, with the formation of…

ICC Helps Heritage Building Owners Secure Govt funding
Invercargill City Council, News
41 views
Invercargill City Council, News
41 views

ICC Helps Heritage Building Owners Secure Govt funding

News Desk - Aug 07, 2020

Ensuring our city centre’s heritage buildings are safe just became a little less costly for some building owners, thanks to…

Twenty Years of Caitlins, Graves, Mills and Ayson
Motor Sport, News
68 views
Motor Sport, News
68 views

Twenty Years of Caitlins, Graves, Mills and Ayson

Lindsay Beer - Aug 07, 2020

It is a special year for the Catlins Coast Rally this year as the Eastern Southland Car Club hold the…

Telehealth Success for Stewart Island Patient
Health & Fitness, News
136 views
Health & Fitness, News
136 views

Telehealth Success for Stewart Island Patient

News Desk - Aug 07, 2020

Stewart Island provides a glimpse into a simpler, slower lifestyle and thanks to telehealth consultations, Oncology patient Gary Cocker can…