Silver Ferm Farms

[Sideshow Bob]

Refrigerated ship used to get Taranaki beef to the USA, due to container shortage | Stuff.co.nz (https://www.stuff.co.nz/taranaki-daily-news/news/300510062/refrigerated-ship-used-to-get-taranaki-beef-to-the-usa-due-to-container-shortage)

Makes sense to work in together.

Expensive way to ship. Don't think much in the way of containers out of NP, but otherwise would have to go to Welly, AKL, Napier or Tauranga.

More cost, but balanced off cost of coldstorage (if any available), finance, cashflow, not servicing customers, not meeting contracts, changing market conditions etc.

[percy]

https://www.scoop.co.nz/stories/BU2202/S00091/new-zealand-red-meat-sector-achieves-record-exports-during-2021.htm

[iceman]

Refrigerated ship used to get Taranaki beef to the USA, due to container shortage | Stuff.co.nz (https://www.stuff.co.nz/taranaki-daily-news/news/300510062/refrigerated-ship-used-to-get-taranaki-beef-to-the-usa-due-to-container-shortage)

Makes sense to work in together.

Expensive way to ship. Don't think much in the way of containers out of NP, but otherwise would have to go to Welly, AKL, Napier or Tauranga.

More cost, but balanced off cost of coldstorage (if any available), finance, cashflow, not servicing customers, not meeting contracts, changing market conditions etc.

The Talley´s don´t give up easy and never have. Always solutions focused. I´ve heard they have a number of ships working for them now and great to see they´ve got ANZCO & SFF onboard.

[Sideshow Bob]

Good volumes through yesterday, over 75,000 and $1.20 cleaned out. Back to $1.25 on the offer.

[iceman]

Good volumes through yesterday, over 75,000 and $1.20 cleaned out. Back to $1.25 on the offer.

Not much available on the sell side. Holders may be waiting & looking forward to the FY results in less than 2 months, including the big dividend announcement !! I certainly am looking forward to it.

[Sideshow Bob]

Not much available on the sell side. Holders may be waiting & looking forward to the FY results in less than 2 months, including the big dividend announcement !! I certainly am looking forward to it.

Careful Iceman. You'll get Percy (more) excited!!

[Sideshow Bob]

Closed the week at $1.25 with the sell side cleaned out…..

[percy]

Welcome to the new buyer at $1.30 wanting 20,000 shares.
Will he/she/it manage to attract a seller.?

[iceman]

The 3rd AFFCO arranged special charter vessel and the biggest so far, has just left Tauranga for California with 6,000t of beef from AFFCO, SFF and ANZCO and small quantities of lamb, worth $52 million.
Much of this shipment is destined for COSTCO.

Great to see the exporters working together like this to try and mitigate the shipping & export containers crisis.

[Sideshow Bob]

Welcome to the new buyer at $1.30 wanting 20,000 shares.
Will he/she/it manage to attract a seller.?

What? That might push the PE up to crazy levels of 4.....!!

[percy]

What? That might push the PE up to crazy levels of 4.....!!

Ha ha....We may have to live with that....lol.
Iceman.That is really pleasing seeing the industry working together.
I would think AFFCO are getting more experienced arranging shipping, which augurs well for the future.

[iceman]

Ha ha....We may have to live with that....lol.
Iceman.That is really pleasing seeing the industry working together.
I would think AFFCO are getting more experienced arranging shipping, which augurs well for the future.

They are hoping to do 3 -4 more load outs this year. It is a great initiative on their behalf. First shipment included some pip fruit, 2nd was AFFCO only and the 3rd was the 3 meat companies. Well done I say.

[Sideshow Bob]

Another buyer now at $1.31.

Still no sellers.

How is your day going Percy?? :p

Puts a trailing PE at over 4!! Complete madness!!

[percy]

Another buyer now at $1.31.

Still no sellers.

How is your day going Percy?? :p

Puts a trailing PE at over 4!! Complete madness!!

One lonely seller with 10,000 shares has appeared at $1.40.
Most probably worried about the PE going over 4.....!!!
And here is me thinking a PE of 7 would be reasonable..ie a share price of $2.62.

[iceman]

One lonely seller with 10,000 shares has appeared at $1.40.
Most probably worried about the PE going over 4.....!!!
And here is me thinking a PE of 7 would be reasonable..ie a share price of $2.62.

I know it has been an exciting ride since we were doing our numbers a couple of years ago and not believing them. But I think now you've just become silly, thinking a "reasonable" price is double what it is now.
I think a more prudent and conservative expectation would be another year of a 55% return. I reckon Beagle should put some of his cash pile in here, if there were any for sale.

[percy]

I know it has been an exciting ride since we were doing our numbers a couple of years ago and not believing them. But I think now you've just become silly, thinking a "reasonable" price is double what it is now.
I think a more prudent and conservative expectation would be another year of a 55% return. I reckon Beagle should put some of his cash pile in here, if there were any for sale.

Below I have compared other companies in the primary sector.Yes they are listed.For comparison I have more than doubled SFF last traded share price of $1.25 to $2.60,and adjusted the dividend yield accordingly.
................................................PE .Ratio.............................Dividend yield......NTA.............Current share price
ALF..............................................8 .03......................................0........ ..........44 cents.................86 cents
ARB.............................................-120......................................0........ ...........14.08 cents.............24 cents
ATM..............................................5 1.1.....................................0......... ...........$1.37.....................$5.56
NZK............................................... .?........................................0....... ..............98 cents..................$1.00
DGL.............................................21 .77....................................1.49%...... .........$4.44.....................$13.38
PGW.............................................17 .91....................................5.19%...... ........$1.983.....................$5.39
SAN..............................................2 7.65....................................0......... .............$1.45......................$4.77
SCL............................................... 32.63...................................3.84...... .............$2.40.......................$4.95
SEK............................................... 9.72.....................................5.15%.... ............$5.44.....................$5.05
SML...............................................-13.79..................................0.......... ..............$2.9261...................$3.45
Silver Fern Farms x2 current SP price. .8.......................................3.04%.
SFF at current share price...................3.936..................... .............6.08%................$3.05 [2020]...........$1.25
And on Unlisted market.
Blue Sky Meats.................................26.......... .............................3.84%................ ..?..........................$1.30

PS.Last sale of SFF 10,000 at $1.40...putting SFF at a PE of 4.408 and the yield reducing to 5.429%
On the 15th February 2021 SFF share price was 79 cents.
In the past year as well as receiving a juicy dividend the share price has risen 77.215% to $1.40.
With the company proving they are a sound company,well managed,in a sector under pinning NZ recovery from Covid set backs,I am sure SFF will receive greater support from suppliers and investors,and I look forward to another 77.215% share price increase to $2.48..... .

[Sideshow Bob]

Offer now at $1.60......!!

Wakey, wakey!!

[Sideshow Bob]

Thanks for the comparison Percy. By any metric, SFF is still well under-priced.

It does suffer from history, with the meat industry historically being poor performing, terrible investment for shareholders, marginal profitability and at the whim of the weather and seasons, and competitive environment for livestock supply. It is also important to realise buying shares in a Coop, not a standard company, and co-operative principles can apply. Buying into a Co-op that's major asset is 50% of SFF Ltd. There is the incentive and payment for supplying shareholders - which in most respects is great for rewarding suppliers and ensuring livestock supply. But this is extra payments at the expense of "dry" shareholders.

Flies below the radar on the USX, and also suffers from lack of tangible market updates or HY reporting.

Expecting another good year just past, and another good profit and dividend. This would be 3 years in a row, and through Covid and other challenges. Generally markets have been firm/strong over this period. Much of the profit in the last 2 years have been retained in the company - $136.1m in profits, and last year paid out approx $53m in dividends (2020 $26.5m, 2019 $1.7m + $24.8m as a later payout). Some of this has also been retained in the Co-Op.

The retained profit within SFF Ltd from the last 2 years (and not including the Coop) is $0.41 cps. All signs another good year in the bag - and at some stage going to start spitting out cash. The key will be if they can put to productive use, or come back to shareholders, but some likely to be retained by the Coop to strengthen the Coop further to become self-sustaining.

Undoubtedly there will be poorer years ahead - history tells us that. The key will be how well they can perform in those harder years, when markets are bad, exchange rates go the wrong way, droughts etc, or when there are unforeseen events or issues like Covid. The key difference I see is that SFF are financially in a much, much, much stronger position than in the past, when probably tettering on the brink. Also some of the behaviours have changed over the years, and also seem to perform well compared to their main competitors in NZ, like Alliance and Anzco.

Clearly Omicron is already/going to impact operations over the coming months. Will be alot of cost, inefficiences, shutdowns - and the company will have to manage best they can. At the same time, livestock will still be out there but likely a bit of a lottery as/when can keep operating.

Sure I've said most of this before, but some of it is key to reiterate as believe it is still pretty compelling as an investment, especially in the current times.

In the meantime, enjoying the little bit of price action, and look forward to the next month or so and the annual result.

[percy]

Wise words as always Sideshow Bob..

[iceman]

All completely correct SB. It is very important to acknowledge that the company completely changed when the Chinese partners became shareholders and injected a lot of money into the business. They made sure that the money was used wisely to clean up the balance sheet, re-brand the business and set a clear focus on future strategy. It is clear that both the farmers in the Co-op and the Chinese partners, get on well and are focused on common goals. This strategic focus and directive from the Chinese partner has been a huge commercial success for the company.

The branding of "sustainable" and "grass fed" has also been helped by a huge shift in consumer behaviour where a huge demographic of younger consumers have become much more aware of the origins of what they eat. That doesn't mean they are all going vegan or buying "beyond meat" products. There is already some indications that some of those that did, are moving back to meat products for health reasons. But they want to be sure that the animals are well looked after in their life and are fed with healthy natural feed. "grass fed" has become a big thing in the US, China and Europe.
Silver Fern Farms has realised this early and is at the forefront of servicing this high demand ethically driven market with an above average exposable incomes. They are successfully doing this with both home cooking and restaurants, particularly in the USA.

That's where I see a huge difference in this company from the years bygone that you mentioned. It is now a very focused operation with a strong balance sheet, driven by a consumer segment that is demanding but prepared to pay fairly for what they want, not to mention the much wider geographic market spread than we had years ago. The other important part is that the farmers seem to be generally happy with the change and have started to see the benefit from the new strategy.They realise the way for them to make money, is to deliver what the market wants in today's World.

So yes I agree, we will have all the issues with weather, FX and other unforeseen events. But this company is nothing like what it was 10 years ago and we are just starting to see the benefit from it now.

Lets remember that Silver Fern Farms produces 30% of all beef, lamb and venison in NZ. It has 16,000 farmer suppliers and 7,000 staff in peak season. Sales are around $ 2.5 Billion. We may be on the USX at the moment but this is a very serious business in NZ's biggest industry.
A real turnaround story in lots of ways !

[percy]

As I said to SB more wise words.
Thank you both.

[percy]

All completely correct SB. It is very important to acknowledge that the company completely changed when the Chinese partners became shareholders and injected a lot of money into the business. They made sure that the money was used wisely to clean up the balance sheet, re-brand the business and set a clear focus on future strategy. It is clear that both the farmers in the Co-op and the Chinese partners, get on well and are focused on common goals. This strategic focus and directive from the Chinese partner has been a huge commercial success for the company.

The branding of "sustainable" and "grass fed" has also been helped by a huge shift in consumer behaviour where a huge demographic of younger consumers have become much more aware of the origins of what they eat. That doesn't mean they are all going vegan or buying "beyond meat" products. There is already some indications that some of those that did, are moving back to meat products for health reasons. But they want to be sure that the animals are well looked after in their life and are fed with healthy natural feed. "grass fed" has become a big thing in the US, China and Europe.
Silver Fern Farms has realised this early and is at the forefront of servicing this high demand ethically driven market with an above average exposable incomes. They are successfully doing this with both home cooking and restaurants, particularly in the USA.

That's where I see a huge difference in this company from the years bygone that you mentioned. It is now a very focused operation with a strong balance sheet, driven by a consumer segment that is demanding but prepared to pay fairly for what they want, not to mention the much wider geographic market spread than we had years ago. The other important part is that the farmers seem to be generally happy with the change and have started to see the benefit from the new strategy.They realise the way for them to make money, is to deliver what the market wants in today's World.

So yes I agree, we will have all the issues with weather, FX and other unforeseen events. But this company is nothing like what it was 10 years ago and we are just starting to see the benefit from it now.

Lets remember that Silver Fern Farms produces 30% of all beef, lamb and venison in NZ. It has 16,000 farmer suppliers and 7,000 staff in peak season. Sales are around $ 2.5 Billion. We may be on the USX at the moment but this is a very serious business in NZ's biggest industry.
A real turnaround story in lots of ways !

https://sendy.tarawera.co.nz/l/J6oLVth2f3f6IXNYvUBQEg/QUW20pjlCy1Ui2cpgsT8tw/TvBz892zXqKdb4hPkjj5bHew
Pleasing seeing a discussion on this subject.
Losing food production land to Carbon Farming makes no sense to me.
Carbon Farming does not produce food or valuable export earnings.

[Sideshow Bob]

All completely correct SB. It is very important to acknowledge that the company completely changed when the Chinese partners became shareholders and injected a lot of money into the business. They made sure that the money was used wisely to clean up the balance sheet, re-brand the business and set a clear focus on future strategy. It is clear that both the farmers in the Co-op and the Chinese partners, get on well and are focused on common goals. This strategic focus and directive from the Chinese partner has been a huge commercial success for the company.

The branding of "sustainable" and "grass fed" has also been helped by a huge shift in consumer behaviour where a huge demographic of younger consumers have become much more aware of the origins of what they eat. That doesn't mean they are all going vegan or buying "beyond meat" products. There is already some indications that some of those that did, are moving back to meat products for health reasons. But they want to be sure that the animals are well looked after in their life and are fed with healthy natural feed. "grass fed" has become a big thing in the US, China and Europe.
Silver Fern Farms has realised this early and is at the forefront of servicing this high demand ethically driven market with an above average exposable incomes. They are successfully doing this with both home cooking and restaurants, particularly in the USA.

That's where I see a huge difference in this company from the years bygone that you mentioned. It is now a very focused operation with a strong balance sheet, driven by a consumer segment that is demanding but prepared to pay fairly for what they want, not to mention the much wider geographic market spread than we had years ago. The other important part is that the farmers seem to be generally happy with the change and have started to see the benefit from the new strategy.They realise the way for them to make money, is to deliver what the market wants in today's World.

So yes I agree, we will have all the issues with weather, FX and other unforeseen events. But this company is nothing like what it was 10 years ago and we are just starting to see the benefit from it now.

Lets remember that Silver Fern Farms produces 30% of all beef, lamb and venison in NZ. It has 16,000 farmer suppliers and 7,000 staff in peak season. Sales are around $ 2.5 Billion. We may be on the USX at the moment but this is a very serious business in NZ's biggest industry.
A real turnaround story in lots of ways !

Good points Iceman and agree.

However to clarify, the re-brand to Silver Fern Farms wasn't a Chinese thing, but was some years prior - maybe about 2010 perhaps. Much of it was to move away from PPCS/Richmond situation at the time, and the past history/takeover and become more one company. Which has worked!!

Markets have evolved in recent years and will continue to evolve - with environmental issues become more at the forefront, along with animal welfare considerations etc - in some, not all markets. While their retail offer has a reasonably high profile, this will be a small part of their total business. But some of the other programmes are key, particularly around foodservice and their beef business. Much of their product is still more a commodity and largely undifferentiated, and due to the nature of the product (plus rules/regs), always likely to be. For example, manufacturing beef, lamb flaps, offal etc.

The focus has for past years as been on the meat. But expect a little more focus on other aspects in the future, like skins and rendering - where they've had JV's and some of these are coming to an end. I think some of this is coming back inhouse and no doubt there will be a margin/value associated with this.

I would argue that they are probably becoming less geographically spread in some ways - and both lamb especially, but also beef becoming much more reliant on China - particualry because of the value it can offer. That is part of the worrying issue currently - if any plants are delisted by the Chinese because of C19 then there is a very signifcant and quantifiable drop in revenue. Lamb plants for instance couldn't procure stock without exporting to China - the difference is $'s per Kg.

Farmer support seems good - and without livestock supply, they are nothing. I would be really interested in a breakdown by species, as believe heavily led by beef. They seem to have arrested the slump in livestock supply from a number of years ago, and success and profitability helps engender more farmer support - so another good divvy and supply payment will further ingrain this. Performing better than their competiton also helps in farmers minds.

They are clearly more focused than in the past - and focus I imagine would be on other aspects of the business rather than finances, debt and cashflow. I was looking at a AR from 6-7 years ago and did note the whole senior management team has changed since then.

Definitely agree, a serious (and sizeable) business!! :)

[percy]

Good points Iceman and agree.

However to clarify, the re-brand to Silver Fern Farms wasn't a Chinese thing, but was some years prior - maybe about 2010 perhaps. Much of it was to move away from PPCS/Richmond situation at the time, and the past history/takeover and become more one company. Which has worked!!

Markets have evolved in recent years and will continue to evolve - with environmental issues become more at the forefront, along with animal welfare considerations etc - in some, not all markets. While their retail offer has a reasonably high profile, this will be a small part of their total business. But some of the other programmes are key, particularly around foodservice and their beef business. Much of their product is still more a commodity and largely undifferentiated, and due to the nature of the product (plus rules/regs), always likely to be. For example, manufacturing beef, lamb flaps, offal etc.

The focus has for past years as been on the meat. But expect a little more focus on other aspects in the future, like skins and rendering - where they've had JV's and some of these are coming to an end. I think some of this is coming back inhouse and no doubt there will be a margin/value associated with this.

I would argue that they are probably becoming less geographically spread in some ways - and both lamb especially, but also beef becoming much more reliant on China - particualry because of the value it can offer. That is part of the worrying issue currently - if any plants are delisted by the Chinese because of C19 then there is a very signifcant and quantifiable drop in revenue. Lamb plants for instance couldn't procure stock without exporting to China - the difference is $'s per Kg.

Farmer support seems good - and without livestock supply, they are nothing. I would be really interested in a breakdown by species, as believe heavily led by beef. They seem to have arrested the slump in livestock supply from a number of years ago, and success and profitability helps engender more farmer support - so another good divvy and supply payment will further ingrain this. Performing better than their competiton also helps in farmers minds.

They are clearly more focused than in the past - and focus I imagine would be on other aspects of the business rather than finances, debt and cashflow. I was looking at a AR from 6-7 years ago and did note the whole senior management team has changed since then.

Definitely agree, a serious (and sizeable) business!! :)

Excellent leadership,
Strategic Plan on course.
Strong balance sheet.
Heavy investment in plant.
Increasing supplier shareholder support.
Excellent fundamentals ie PE ratio and dividend yield.
Together with your and Iceman's comments, means the market is waking up to SFF being a sound and very profitable investment.

[percy]

Buyers at $1.40,$1.36 ad $1.30.
I thought suppliers would have finished buying to get year rewards at the end of December,which is the year end for SFF.
So am a little surprised to see the share price continue its upwards trajectory since them.
Perhaps more investors are waking up to SFF's good fully imputed dividend, sound prospects, and modest ratios?

[Sideshow Bob]

Buyers at $1.40,$1.36 ad $1.30.
I thought suppliers would have finished buying to get year rewards at the end of December,which is the year end for SFF.
So am a little surprised to see the share price continue its upwards trajectory since them.
Perhaps more investors are waking up to SFF's good fully imputed dividend, sound prospects, and modest ratios?

Modest ratio's - I like that.

Interesting thing is no volume of the sell side, and no one taken the $1.40 (as yet)

[percy]

Modest ratio's - I like that.

Interesting thing is no volume of the sell side, and no one taken the $1.40 (as yet)

And no buyers game enough,whoops meant to say astute enough to buy the 10,000 for sale at $1.60..
And no I am not the seller..lol

[Sideshow Bob]

And no buyers game enough,whoops meant to say astute enough to buy the 10,000 for sale at $1.60..
And no I am not the seller..lol

I think having not long gone through $1.20 which was an ATH, then $1.60 is probably a bridge too far right now.

Might change when their result comes out......??

[percy]

I think having not long gone through $1.20 which was an ATH, then $1.60 is probably a bridge too far right now.

Might change when their result comes out......??

I think you are right.
I am pretty happy to see a buyer at $1.40.

[Sideshow Bob]

About 29k through at $1.40.

Another buyer lining up for $40k at $1.40.

Could be the level for the timebeing.

[percy]

About 29k through at $1.40.

Another buyer lining up for $40k at $1.40.

Could be the level for the time being.

But wait...there's more...!!!
Another buyer wants 20,000 at $1.41......lol.

[Sideshow Bob]

Monitor economy Q&A: Simon Limmer, chief executive of Silver Fern Farms | Stuff.co.nz (https://www.stuff.co.nz/business/the-monitor/127814546/monitor-economy-qa-simon-limmer-chief-executive-of-silver-fern-farms)

[Sideshow Bob]

But wait...there's more...!!!
Another buyer wants 20,000 at $1.41......lol.

The gift that keeps giving....

Deserves a tickle!

[percy]

The gift that keeps giving....

Deserves a tickle!

My thoughts exactly..........lol.

[Sideshow Bob]

But wait...there's more...!!!
Another buyer wants 20,000 at $1.41......lol.

Buyers now at $1.42 and $1.43.

[Sideshow Bob]

Buyers now at $1.42 and $1.43.

$1.43. Another ATH.....:cool:

[Sideshow Bob]

$1.43. Another ATH.....:cool:

Oh.....$1.50. Another ATH.....:cool:

[percy]

Seller with 50,000 for sale has arrived at $1.48.

[percy]

https://sendy.tarawera.co.nz/l/J6oLVth2f3f6IXNYvUBQEg/fxMrOxFhdAdIIXEObmJpQQ/o892qWfHF4ttrV9jASwRpdYQ

[iceman]

SFF is launching it's new range "Net Carbon Zero Beef" in supermarkets in LA and NYC next week, starting with Angus Ribeye, New York Strip Steaks, Ground Beef and other beef products.
They also next week will make the first payments to farmers on the programme for the supply of their Carbon Removal. A World first no less.

I am sure this will be well received in the ethically aware and health conscious markets in LA and the Big Apple. Well done SFF !

[percy]

New Zealand red meat export values grow - despite pressures on sector



New Zealand’s red meat sector is continuing to achieve strong export results in the face of considerable labour shortages and global supply chain disruption, says the Meat Industry Association.

The latest MIA analysis shows the industry is overcoming significant headwinds with exports reaching $940 million during January, a 27 per cent increase by value on January 2021.



The value of exports increased to nearly all the major markets. China was up 25 per cent to $398m, the United States up 32 per cent to $195m, the United Kingdom up nine per cent to $41m and Japan up 76 per cent to $40m.



“January was another very positive month for exports, which reflects the efforts across the sector to overcome the many challenges in processing and exporting,” said MIA chief executive Sirma Karapeeva.



“The industry is a critical contributor to our economy and its exceptional effort is enabling the sector to continue to perform well for all New Zealanders.



“However, the pressures are ongoing. There is currently no end in sight to shipping delays and the COVID-19 outbreak is exacerbating existing staff shortages, further limiting the number of livestock that plants can process and impacting some of the industry’s value add product offerings.



“All these factors highlight how very important it is that we get the right policy settings in areas such as immigration to allow the industry to operate to its full potential.”



Beef exports were a standout performer during January, with volume up seven per cent to 42,291 tonnes, and value up 51 per cent to $422m. The three main beef markets were China ($186m), United States ($129m), and Japan ($24m).



“The strong demand meant that the average freight on board (FoB) value for overall beef exports during January was up to a record $9.98/kg,” said Ms Karapeeva.



“However, the high prices, while very welcome, are masking some of the pressure the industry is under, and despite the export receipts, we should not be taking this as an indication that everything is rosy.”



Ms Karapeeva said that the January data also revealed a significant drop in the volume of chilled exports year-on-year.



“That indicates that the supply chain disruptions are continuing to have an impact on chilled exports, with companies sending more exports as frozen because of the risks in the disrupted supply chain, including significantly longer transit times. That has an impact on value.”



The total 3,061 tonnes of chilled exports was 41 per cent lower than last January, and there was a drop in chilled exports to the United Kingdom and all the major European markets.



The 452 tonnes of chilled sheepmeat exported to the UK was the lowest level during January in more than 20 years. It accounted for only 17 per cent of sheepmeat exports to the UK by volume, compared to the usual 40 to 50 per cent in January.



While sheepmeat volumes overall dropped by 14 per cent, to 31,449 tonnes, strong prices saw value increase by 12 per cent to $369m.



E

[Sideshow Bob]

https://i.stuff.co.nz/business/farming/128070278/meat-industry-battles-supply-chain-problems

[iceman]

Well, I am looking forward to hopefully getting the FY report announcement this coming week. I also hope they will include the dividend announcement in it, although due to the expected size of the divie, it may have to be done separately :-)

[Sideshow Bob]

Relatively solid volumes through the last 3 days, with price now back to $1.50.

All we need now is the announcement.....tomorrow?? :cool:

[percy]

Relatively solid volumes through the last 3 days, with price now back to $1.50.

All we need now is the announcement.....tomorrow?? :cool:

I am worn out,having spent the last three days checking every five minutes USX site and my email for the latest result .
Can not concentrate on anything else.There must be more to life.? [I guess there is..PAZ result.]
Last year I received an email on 31st March at 15.32 from then SFF chairman with it.
If I do not receive it this afternoon I may need to be locked up.
Only positive, is the volume and price increase ,,which augers well for a cracker result.
Last year eps near 32 cps.Will we see a 25% increase to 40cents ? May be 30% to near 42 cps.?
Could they therefore pay 8 cents or 10 cents fully imputed divie.?
Patience is a virtue I am quickly losing.
Must go, time to check USx site and my emails.....................................lol

Quick update....Not there yet.

[iceman]

I am worn out,having spent the last three days checking every five minutes USX site and my email for the latest result .
Can not concentrate on anything else.There must be more to life.? [I guess there is..PAZ result.]
Last year I received an email on 31st March at 15.32 from then SFF chairman with it.
If I do not receive it this afternoon I may need to be locked up.
Only positive, is the volume and price increase ,,which augers well for a cracker result.
Last year eps near 32 cps.Will we see a 25% increase to 40cents ? May be 30% to near 42 cps.?
Could they therefore pay 8 cents or 10 cents fully imputed divie.?
Patience is a virtue I am quickly losing.
Must go, time to check USx site and my emails.....................................lol

Quick update....Not there yet.

It could be worse. You could be in my situation with very slow internet and the USX being one of the websites I can not enter. Frustrating much.
But I can open Sharesight so I just keep looking at it there and after the update from SB on this thread this morning that it has gone to $ 1.50, Sharesight tells me that takes the return to 78% in the financial year.
I've been hoping for a 7c fully imputed dividend but suspect the "risk" is to the upside :-)

[percy]

It could be worse. You could be in my situation with very slow internet and the USX being one of the websites I can not enter. Frustrating much.
But I can open Sharesight so I just keep looking at it there and after the update from SB on this thread this morning that it has gone to $ 1.50, Sharesight tells me that takes the return to 78% in the financial year.
I've been hoping for a 7c fully imputed dividend but suspect the "risk" is to the upside :-)

No result as yet..
But wait....
10,000 SFF shares traded at $1.60.
No sellers.
Bring on the upside.

[Sideshow Bob]

No result as yet..
But wait....
10,000 SFF shares traded at $1.60.
No sellers.
Bring on the upside.

$1.60! :p

That offsets my impatience waiting for the announcement!

[percy]

$1.60! :p

That offsets my impatirnce waiting for the announcement!

Result out.
A 100% imputed dividend of 12.9 cents per share payable to all ordinary and rebate shareholders.
Incredible.
vToday I am very pleased to share with you our Annual Results for the 12 month period from 1 January 2021 to 31 December 2021.

While 2021 posed many challenges your Co-operative remains in a strong position.

Net profit after tax $51.5m (FY2020: $31.6m). A record result and one we are very proud of.
No debt. Cash and short-term deposits of $23.4m
Total Shareholder Equity of $369.0m (FY2020 $327.4m)
The Co-operative’s dividend received from Silver Fern Farms Limited $23.4m (FY2020 $13.1m)
Silver Fern Farms Co-operative declares a dividend and patronage reward for shareholders totalling $18.4m (FY2020 $8.0m)
A 100% imputed dividend of 12.9 cents per share payable to all ordinary and rebate shareholders
A 100% imputed patronage reward of 12.1 cents per share is payable on qualifying shares to supplying shareholders based on supply during 2021.
Your Co-operative’s investment Silver Fern Farms Limited has also announced its year-end result. In summary, Silver Fern Farms Limited delivered the following in 2021:

Net profit after tax $103.8m (FY2020: $65.4m)
Revenue $2,749.6m (FY2020: $2,490.1m)
Total Livestock Premium Payments in 2021 $6.9m (FY2020: $5.2m). Accumulative total premium payments now over $30 million.
Earnings before interest, tax, depreciation and amortisation (EBITDA) including share of associate earnings $179.7m (FY2020: $125.7m)
A 100% imputed dividend declared in relation to FY2021 $46.7m (FY2020 $26.2m)
Increased investment in capital expenditure during 2021, up $8.0m from the previous year to $60.5m.
While 2021 posed many challenges, Silver Fern Farms has continued its transformative investment programme across the business. To continue to roll out this disciplined process in light of the global uncertainty that we currently find ourselves in - and deliver a record result at the same time - is truly remarkable and an outcome we can all be justifiably proud of.

The Co-operative Board’s focus through 2021 has been providing stability through a continued period of change and uncertainty, but also ensuring the operating company continues to increase investment in sustainability, technology, and infrastructure for the long-term benefit of shareholders.

Despite current strong farmgate prices for our suppliers, the paradox the country finds itself in currently is that farmer confidence is low due to the extent and pace of change they are confronted with. While it’s important the business continues passing through the value in the market at the moment, the Board is equally focused on converting our favourable financial position into longer-term confidence for our farmers. We’ll do this by continuing to invest directly in the business and developing more market-led premiums.

The last year saw some significant milestones in the company’s industry-leading sustainability programmes. Investment in initiatives such as Net Carbon Zero beef and in infrastructure such as the Marshalling Floor at Pacific reflect the core of our market-led strategy.

The work we are doing to reduce the environmental impact of our processing operations is just one of the ways we’re making sure we do the right thing by our customers and the wider community, who increasingly want to know that their red meat is sustainably and ethically produced. Our investment in coal-out projects, such as at our Pareora site, demonstrate that we’re on target to end all coal use in our operations by 2030.

While we still have some way to go yet, we’re confident that the direction we are travelling in will translate into higher returns for what we produce and a more positive outlook on the sector for our farmer suppliers.

Distribution of $18.4m declared

The Co-operative has declared a distribution of $18.4m in Dividends and Patronage Reward, marking the largest distribution in five consecutive years of distributions.

Shareholders, on the record date of 22 April 2022 will receive a fully imputed dividend of 12.9 cents per share payable to all ordinary and rebate shareholders.

A fully imputed Patronage Reward of 12.1 cents per share will be paid on qualifying shares to supplying shareholders based on supply during 2021 as measured on 31 December 2021.

The payment date for both distributions is 6 May 2022.


Annual Report

The Annual Report for 2021 will be available April 27 on www.silverfernfarms.coop

It will cover the financial result in more detail, as well as progress on our Co-operative strategy and an update from the operating company.

[Sideshow Bob]

Result out.
A 100% imputed dividend of 12.9 cents per share payable to all ordinary and rebate shareholders.
Incredible.
vToday I am very pleased to share with you our Annual Results for the 12 month period from 1 January 2021 to 31 December 2021.

While 2021 posed many challenges your Co-operative remains in a strong position.

Net profit after tax $51.5m (FY2020: $31.6m). A record result and one we are very proud of.
No debt. Cash and short-term deposits of $23.4m
Total Shareholder Equity of $369.0m (FY2020 $327.4m)
The Co-operative’s dividend received from Silver Fern Farms Limited $23.4m (FY2020 $13.1m)
Silver Fern Farms Co-operative declares a dividend and patronage reward for shareholders totalling $18.4m (FY2020 $8.0m)
A 100% imputed dividend of 12.9 cents per share payable to all ordinary and rebate shareholders
A 100% imputed patronage reward of 12.1 cents per share is payable on qualifying shares to supplying shareholders based on supply during 2021.
Your Co-operative’s investment Silver Fern Farms Limited has also announced its year-end result. In summary, Silver Fern Farms Limited delivered the following in 2021:

Net profit after tax $103.8m (FY2020: $65.4m)
Revenue $2,749.6m (FY2020: $2,490.1m)
Total Livestock Premium Payments in 2021 $6.9m (FY2020: $5.2m). Accumulative total premium payments now over $30 million.
Earnings before interest, tax, depreciation and amortisation (EBITDA) including share of associate earnings $179.7m (FY2020: $125.7m)
A 100% imputed dividend declared in relation to FY2021 $46.7m (FY2020 $26.2m)
Increased investment in capital expenditure during 2021, up $8.0m from the previous year to $60.5m.
While 2021 posed many challenges, Silver Fern Farms has continued its transformative investment programme across the business. To continue to roll out this disciplined process in light of the global uncertainty that we currently find ourselves in - and deliver a record result at the same time - is truly remarkable and an outcome we can all be justifiably proud of.

The Co-operative Board’s focus through 2021 has been providing stability through a continued period of change and uncertainty, but also ensuring the operating company continues to increase investment in sustainability, technology, and infrastructure for the long-term benefit of shareholders.

Despite current strong farmgate prices for our suppliers, the paradox the country finds itself in currently is that farmer confidence is low due to the extent and pace of change they are confronted with. While it’s important the business continues passing through the value in the market at the moment, the Board is equally focused on converting our favourable financial position into longer-term confidence for our farmers. We’ll do this by continuing to invest directly in the business and developing more market-led premiums.

The last year saw some significant milestones in the company’s industry-leading sustainability programmes. Investment in initiatives such as Net Carbon Zero beef and in infrastructure such as the Marshalling Floor at Pacific reflect the core of our market-led strategy.

The work we are doing to reduce the environmental impact of our processing operations is just one of the ways we’re making sure we do the right thing by our customers and the wider community, who increasingly want to know that their red meat is sustainably and ethically produced. Our investment in coal-out projects, such as at our Pareora site, demonstrate that we’re on target to end all coal use in our operations by 2030.

While we still have some way to go yet, we’re confident that the direction we are travelling in will translate into higher returns for what we produce and a more positive outlook on the sector for our farmer suppliers.

Distribution of $18.4m declared

The Co-operative has declared a distribution of $18.4m in Dividends and Patronage Reward, marking the largest distribution in five consecutive years of distributions.

Shareholders, on the record date of 22 April 2022 will receive a fully imputed dividend of 12.9 cents per share payable to all ordinary and rebate shareholders.

A fully imputed Patronage Reward of 12.1 cents per share will be paid on qualifying shares to supplying shareholders based on supply during 2021 as measured on 31 December 2021.

The payment date for both distributions is 6 May 2022.


Annual Report

The Annual Report for 2021 will be available April 27 on www.silverfernfarms.coop (http://www.silverfernfarms.coop)

It will cover the financial result in more detail, as well as progress on our Co-operative strategy and an update from the operating company.

Yeah baby.

Iceman, it will be with you in 2 minutes....!! :)

[Sideshow Bob]

Last trade through this morning at $1.60.

$103.8m net profit, $51.9m attributable to the Coop. $160.6m market cap.

Means based on last trade PE is still.........3.1!! :lol:

[iceman]

Thanks SB & Percy. Got the email. Just had my first bite of a juicy steak over here in Argentina in my favourite steakhouse. Will now order a few bottles of my favourite Malbec and report back here tomorrow morning. Late morning (or early afternoon) !!

[Sideshow Bob]

Thanks SB & Percy. Got the email. Just had my first bite of a juicy steak over here in Argentina in my favourite steakhouse. Will now order a few bottles of my favourite Malbec and report back here tomorrow morning. Late morning (or early afternoon) !!

Enjoy the Malbec!! :p

Only current offer is 10,000 at $2.20 :t_up:

[percy]

I am worn out,having spent the last three days checking every five minutes USX site and my email for the latest result .
Can not concentrate on anything else.There must be more to life.? [I guess there is..PAZ result.]
Last year I received an email on 31st March at 15.32 from then SFF chairman with it.
If I do not receive it this afternoon I may need to be locked up.
Only positive, is the volume and price increase ,,which augers well for a cracker result.
Last year eps near 32 cps.Will we see a 25% increase to 40cents ? May be 30% to near 42 cps.?
Could they therefore pay 8 cents or 10 cents fully imputed divie.?
Patience is a virtue I am quickly losing.
Must go, time to check USx site and my emails.....................................lol

Quick update....Not there yet.

A lot changed in one hour and two minutes.
I was very hopeful of a 25% to 30% increase in eps.......................Wrong 61.5% increase.
Dreaming of an 8c to 10 c divie,up from last year's 5.5c..................Wrong.12.9c fully imputed.or 17.9 c gross.
I love being wrong..lol.

[stoploss]

A lot changed in one hour and two minutes.
I was very hopeful of a 25% to 30% increase in eps.......................Wrong 61.5% increase.
Dreaming of an 8c to 10 c divie,up from last year's 5.5c..................Wrong.12.9c fully imputed.or 17.9 c gross.
I love being wrong..lol.
Percy even when you are wrong you are GOOD !!!! ( Cheers)

[percy]

SFF has been trading today at $1.60.
So lets look at the ratios.
.
Share price ............$1.60
EPS.........................51.3cents
PE............................3.12
Gross yield..............11.18%
Net yield...................8.06%

For fun a PE of 4 gives a share price of $2.05,and a PE of 5 gives a sp of $2.56.
I note on last year's earnings SFF is currently trading on a PE of 5.038.
Sort of interesting.?...lol

[Sideshow Bob]

SFF has been trading today at $1.60.
So lets look at the ratios.
.
Share price ............$1.60
EPS.........................51.3cents
PE............................3.12
Gross yield..............11.18%
Net yield...................8.06%

For fun a PE of 4 gives a share price of $2.05,and a PE of 5 gives a sp of $2.56.
I note on last year's earnings SFF is currently trading on a PE of 5.038.
Sort of interesting.?...lol

A little surprised another 33k went through this afternoon at $1.60. Fully imputed 12.9c dividend about a month away.

[percy]

A little surprised another 33k went through this afternoon at $1.60. Fully imputed 12.9c dividend about a month away.

I was disappointed the 10,000 for sale at $2.20 were not sold......lol.

[Sideshow Bob]

I was disappointed the 10,000 for sale at $2.20 were not sold......lol.

At least we know it isn't you selling them at $2.20....

[percy]

At least we know it isn't you selling them at $2.20....

At current prices if I did not own so many I would be a buyer.
USX,, SFF issuer profile shows a PE of 5.038.....Rather modest considering eps has increased over 60% in the past year.

[Sideshow Bob]

At current prices if I did not own so many I would be a buyer.
USX,, SFF issuer profile shows a PE of 5.038.....Rather modest considering eps has increased over 60% in the past year.

Every season is different and brings different challenges, and this year they are battling Omicron in plants. While the animals are still there, it will be a longer season and some plants may not have had the efficiencies of the "peak" processing through late summer/autumn, with the higher costs of staffing and Covid.

However, it is another year just gone of very good profits, and once again only a portion of that profit paid out. Another year of "runs on the board" that helps underpin its investment credentials, and can make profits in different circumstances - albeit with record high prices for many products, it does give a signifcant tail wind. This can change in an instance, especially with China, but the world seems to be a different place these days. Much better performance than Alliance (100% Coop) and also Anzco (Private), albeit with different FY timings.

Great also for supplier shareholders, which just helps cement that supply a little more, and makes it more attractive for new suppliers. But those shareholders, getting 12.9+12.1 cps = 25 cps, then the share price almost doubling in the last 12 months (84c to $1.60). That is over $1 per share in the last 12 months!

Much of the profit has been retained in the business (and Coop) which will see it well placed for the further. Another $60m in capital expendiure - and I am always interested in how much is for BAU or compliance, and how much is for further profits and returns. But in the meantime, just looking forward to the divvy.....:)

[Sideshow Bob]

Farmers Weekly article

Farmers Weekly (https://farmersweekly.co.nz/s/fw-article/silver-fern-makes-record-results-MCBWAOZCXQ7BH5TKC4D5CBXHH5RQ?utm_term=Sheep%20and% 20Beef%201&utm_id=6b78eefb-9fe4-4f0f-b400-e70d822b978d&sfmc_activityid=dcc7a2b8-d590-4e14-ba70-a5c8996eced5&utm_medium=email&utm_source=sfmc&utm_content=38121)

[percy]

From ANZ research.
Demand from China for beef is not expected to let up anytime soon. A poor grain harvest means they will have less feed than ever for their own cattle, and the cost of producing beef within China will also rise.The high cost of grain in general will put upward pressure on the price of all grain-fed beef, whereas the cost of producing beef on pastures will be less affected. New Zealand is only a small player in terms of global beef production so the current environment is certainly working in our favour.The challenge we currently face is getting cattle processed and shipped to our global markets.

NZ currently supplies similar volumes of beef to China and the US. Our market share in the imported beef market in each of these countries is less than 10%. So while these are both very important markets for NZ manufacturing beef, we are a relatively small player in each of these markets. The strong demand for beef from both US and China has really helped support farmgate prices in the past few years. This trend looks to continue, at least in the short-to-medium term.Normally by this time of the season we would see a sharp decline in schedule prices, particularly for manufacturing beef, as large number of cull cows come forward for processing. This prices have remained very robust despite the restricted processing capacity.



A stand off between buyers at $1.60 and the seller at $2.20 today.Interesting.?

[Sideshow Bob]

A stand off between buyers at $1.60 and the seller at $2.20 today.Interesting.?

The joys of being so illiquid. :( Only average about 14,000 shares traded per day.

Would be interesting if someone took their divvy now and put some on offer at $1.70 or $1.80. $2.20 a bit of a leap.

Still, at $1.60, PE is only about 3.1. At $2.20 would be about 4.2.

If went back to last couple of years profit, then at $1.60 it is a shade under 5 PE, and $2.20 would be completely outreagous 6.77!! :blink:

[Sideshow Bob]

Bidder now at $1.65.

[DarkHorse]

Very impressive result. I'd be interested to know how capital intensive the business has been on average and is likely to be in future, and how much capital investment is the price of staying competitive, vs generating increased profits. Would any of you who've looked into more deeply care to comment?

[percy]

Very impressive result. I'd be interested to know how capital intensive the business has been on average and is likely to be in future, and how much capital investment is the price of staying competitive, vs generating increased profits. Would any of you who've looked into more deeply care to comment?

"Silver Fern Farms invested a record $60.5m in its business last year, most of which was spent on upgrading its 14 processing sites, some of which have a history stretching back more than 100 years."

"The last year saw some significant milestones in the company’s industry-leading sustainability programmes. Investment in initiatives such as Net Carbon Zero beef and in infrastructure such as the Marshalling Floor at Pacific reflect the core of our market-led strategy."

"The work we are doing to reduce the environmental impact of our processing operations is just one of the ways we’re making sure we do the right thing by our customers and the wider community, who increasingly want to know that their red meat is sustainably and ethically produced. Our investment in coal-out projects, such as at our Pareora site, demonstrate that we’re on target to end all coal use in our operations by 2030."

"While we still have some way to go yet, we’re confident that the direction we are travelling in will translate into higher returns for what we produce and a more positive outlook on the sector for our farmer suppliers."

[DarkHorse]

Do you have some idea whether the upgraded plants will be much cheaper to run (like replacing my ancient Honda with a plug-in hybrid last year), or just necessary capex to replace machinery on its last legs?
And if most the the processing sites are almost up to scratch now, or a lot of obsolete equipment remains in place?

[percy]

From memory $30mil then $50mil and $60 mil over the last three years has been spent.
Yes a lot would be to replace equipment that was past its best used by date,but other capex such as the marshalling floor at Pacific ,have been done to increase productivity.
The last year saw some significant milestones in the company’s industry-leading sustainability programmes. Investment in initiatives such as Net Carbon Zero beef and in infrastructure such as the Marshalling Floor at Pacific reflect the core of our market-led strategy.


From my last post I repeat what their goal is.:
"While we still have some way to go yet, we’re confident that the direction we are travelling in will translate into higher returns for what we produce and a more positive outlook on the sector for our farmer suppliers."

I think 3 or 4 year's ago a lot of SFF's plants would have looked like your old Honda,however today they would be more like your plug in hybrid.

[percy]

From one of Simon Limmer's fortnighty updates.
http://link.silverfernfarms.com/c/6/?T=NzQ1MDE1NDc%3AMDItYjIxMzI1LWZjMmUzZTlkMjIxZDQyZ GI5ZjY1NmU5MTdjYmMyMDkz%3AYXVzdGVuLmt5bGVAeHRyYS5j by5ueg%3AY29udGFjdC1iZjFiMGYxYmY3YzZlYTExOTEyNDAwN TA1NmI2NDg2ZS1kMWM1MDg2NjQ1ZGM0ZDY0OTAwZDdjYmZlYWF mNzVkZQ%3AZmFsc2U%3AMg%3A%3AaHR0cHM6Ly9maWxlLXVzLm NsaWNrZGltZW5zaW9ucy5jb20vc2lsdmVyZmVybmZhcm1zY29u ei1hY2hsYi9maWxlcy9mYXJtZXJtYXJrZXRyZXBvcnQyMW5vdm VtYmVyMjAyMS5wZGY_bT0xMS8yMS8yMDIxJTIwNjoxMToyMCUy MEFNJl9jbGRlZT1ZWFZ6ZEdWdUxtdDViR1ZBZUhSeVlTNWpieT V1ZWclM2QlM2QmcmVjaXBpZW50aWQ9Y29udGFjdC1iZjFiMGYx YmY3YzZlYTExOTEyNDAwNTA1NmI2NDg2ZS1kMWM1MDg2NjQ1ZG M0ZDY0OTAwZDdjYmZlYWFmNzVkZSZlc2lkPTJhNDM4NDM4LThk NGEtZWMxMS05MTU2LTAwNTA1NmI2NDg2ZQ&K=zWUxphAgokRvRxVv9B6GQw

[Sideshow Bob]

Do you have some idea whether the upgraded plants will be much cheaper to run (like replacing my ancient Honda with a plug-in hybrid last year), or just necessary capex to replace machinery on its last legs?
And if most the the processing sites are almost up to scratch now, or a lot of obsolete equipment remains in place?

I haven't seen any details of the CapEx in recent years, apart from what has come out in newsletters/media etc. While it is a bigger amount than the dividend, I don't recall seeing anything detailed in any (Coop) annual reports.

Expect that some is replacing ageing infrastructure/equipment, with no or little additional benefit to it. Eg replacing coal boilers with more eco-friendly options. There are some subsidies to assist, and bit of feel good news, but unsure on the cost benefit/return.

Their plants are a mix, some are relatively new or gone through modernisation in recent years (eg Te Aroha burnt down and brand new plant built about 8-9 years ago, or Takapau which had a big spend a number of years ago) and some that are old, historic sites like Belfast, Pareora and Finegand which are 100+ years old. Some old structures, but sub-structures have been modernised through the years.

Going back in time, prior to Shanghai Maling, would say that not much was spent on CapEx, and when the debt noose was lifted, then there would have been some catch-up from the years where they probably spent little. That should be well past now, as been about 6 years now?

Would expect there would be more mechanisation/labour saving/energy saving - as not just for the cost of labour, but just can't get labour in many areas. Also expect would be a portion geared towards H&S.

Long way of saying I don't know!! :eek2: Expect that does go through a reasonable amount of rigour, although they have spent a bit on HQ I hear, to accomodate the growing team.....

[Sideshow Bob]

Simon Limmer briefly from around 40 min mark

The Country Full Show: Monday, April 4, 2022 - NZ Herald (https://www.nzherald.co.nz/the-country/news/the-country-full-show-monday-april-4-2022/TFGMYVTDTC6TKDKPJDJICIOJ2E/)

[percy]

Simon Limmer briefly from around 40 min mark

The Country Full Show: Monday, April 4, 2022 - NZ Herald (https://www.nzherald.co.nz/the-country/news/the-country-full-show-monday-april-4-2022/TFGMYVTDTC6TKDKPJDJICIOJ2E/)

An exceptional leader.

[Sideshow Bob]

Bidder now at $1.65.

Been taken out.

Still only $2.20 on the offer......I have a feeling it might not be immediate, but will get there one day in the not too too distant future......:cool:

[percy]

Been taken out.

Still only $2.20 on the offer......I have a feeling it might not be immediate, but will get there one day in the not too too distant future......:cool:

5,000 still on the buy side at $1.65.
29,000 wanted at $1.60

[disc] Wife is one of the buyers at $1.60.

[iceman]

5,000 still on the buy side at $1.65.
29,000 wanted at $1.60

[disc] Wife is one of the buyers at $1.60.

It might be time for a little marital chat to point out to her the real worth of these shares ;):p

[Sideshow Bob]

Decent volumes in the last day or so at $1.67, last cleaned out this morning.

New seller at $1.80.....

[Sideshow Bob]

Decent volumes in the last day or so at $1.67, last cleaned out this morning.

New seller at $1.80.....

$1.67 cleaned out again first thing Monday morning. Back to $1.80 on offer.

What are we going to see this week? Surely no one going to put more out at $1.67?? Doesn't go ex-div until 22nd of April.

[iceman]

I think Percy's wife's offer is starting to look a bit cheeky now and should be raised :t_up:

[iceman]

We have the first nibble at $ 1.80

[percy]

I think Percy's wife's offer is starting to look a bit cheeky now and should be raised !

Been out this morning.Came home thinking her bid would have been hit at $1.60 which after the 12.9 cps divie would have worked out at $1.471.Wrong again.lol.
At $1.80 less the 12.9 cps divie it works out at $1.671.
However I am pleased others see $1.80 cum div is a fair price to pay.The share price is up 50% since 2nd January this year.
Will keep "loitering with intent."

[Sideshow Bob]

We have the first nibble at $ 1.80

Might have thought someone might have tried to hook some in the $1.70's rather than going straight to $1.80 (ATH!).

Only a small fish, but the bait worked. Maybe we see some more burly in the $1.70's before we get to more bigger fish in the $1.80's.

Fish analogies for a meat company!:blush::laugh:

[iceman]

Better late than never: https://www.stuff.co.nz/business/industries/128334327/extra-1580-workers-allowed-in-to-nz-for-dairy-meat-processing-forestry-jobs

[percy]

https://sendy.tarawera.co.nz/l/J6oLVth2f3f6IXNYvUBQEg/cLFycRk3lGfkcTfJ1eOFxQ/BRCcpAWNQoqfxv892BwyT3mQ

[Sideshow Bob]

Interesting to note with this being reasonably illiquid, that 1 trade of about $5k, added $13 million to the market cap!! :sleep:

[percy]

49,000 traded so far today at $1.82....Interesting.
Looks as though some one is athe 12.9cps fully imputed divie.
Record date is this Friday22nd April.

[percy]

49,000 traded so far today at $1.82....Interesting another all time high.
Looks as though some one is after the 12.9cps fully imputed divie.
Seller for 10,000 is still there at $2.20
Record date is this Friday 22nd April.
So any one wanting the divie should buy today.

[Sideshow Bob]

Annual Report - SFF_2021_Annual_Report.pdf (usx.co.nz) (https://www.usx.co.nz/uploads/paperclip/documents/2518/original/SFF_2021_Annual_Report.pdf?1650403414)

The cynic in me says lots of glossy pictures.....:p

[percy]

Well after plodding through 72 pages I found the pictures provided light relief.....lol

[Sideshow Bob]

No trades for a few days - expect taken a bit of a breather as record day for dividend is today, and probably a bit of uncertainty around this.

Interesting to see where it trades from here on.

[percy]

No trades for a few days - expect taken a bit of a breather as record day for dividend is today, and probably a bit of uncertainty around this.

Interesting to see where it trades from here on.

Yes Tuesdays quotes should be telling.
Looks as though the buyer has figured out ex divie price,while the sellers appear to be thinking they are selling cum div.

About 340 hours before our divies hit our bank a/cs.

Disc.I sold a few of the wife's on Tuesday at $1.82

[winner69]

Fought the cost of living crisis and shouted myself a pack of Silver Ferns Beef Short Rib Burgers the other day (3 bucks a pattie @Countdown)

Pretty yummy

Got collagen in them ….that’s cool

[Sideshow Bob]

Fought the cost of living crisis and shouted myself a pack of Silver Ferns Beef Short Rib Burgers the other day (3 bucks a pattie @Countdown)

Pretty yummy

Got collagen in them ….that’s cool

There is already collagen in meat, but makes for a good story.....

[Sideshow Bob]

Still no trades yet since going ex-div on Friday.

Last price $1.82, but only a few thousand on offer at this.

[Sideshow Bob]

Still no trades yet since going ex-div on Friday.

Last price $1.82, but only a few thousand on offer at this.

From $1.82 now traded at $1.67, after imputed 12.9c divvy.

[iceman]

From $1.82 now traded at $1.67, after imputed 12.9c divvy.

Very pleased if it settles around that price XD. 52 weeks range is 82c-182c and a 12.9c fully imputed dividend. Certainly my best performing stock in the last couple of years.
A very happy holder.

[Sideshow Bob]

Happy Dividend Day!! :t_up:

Maybe get some of that Welsh Fillet Steak Iceman.....:cool:

[percy]

Happy Dividend Day!! :t_up:

Maybe get some of that Welsh Fillet Steak Iceman.....:cool:

Wife put a large note on my computer this morning.
All it had on it was a HUGE $ sign.!!...lol.

BINGO..FULL HOUSE.
Money in my bank a/c.

[Sideshow Bob]

Money in my bank a/c.

Think you menat to say Percy "BOOM! Money in the Bank!!"

Which is what Tina from Turners says....:lol::lol::lol:

[iceman]

Happy Dividend Day!! :t_up:

Maybe get some of that Welsh Fillet Steak Iceman.....:cool:

Haha. Can certainly afford it now :t_up:

[percy]

https://www.odt.co.nz/rural-life/red-meat/challenging-satisfying-year-sff

[Sideshow Bob]

Plenty of challenges out there in the macro-environment - but continue to go along well. Can see exporters and the primary sector being our saviours (much like through Covid) and will have to do plenty of heavy lifting, as can see the NZ economy going to hell in a handcart fairly fast (despite what Grant says). Currency starting to provide a good tail wind right now, and help to offset some of those inflationary domestic costs.

As a shareholder, would like to see more in the way of financial updates, rather than being above or below budget - without having a clue what budget is, which is meaningless. Appreciate a highly seasonal business but must be able to do something, rather than have to wait another 11 months for a meaningful picture on how they are going. Until then, have to look at snippets from shareholder updates, hypothise (speculate) from competitors results etc etc.

Share price shown some weakness in recent times, down 23% from ATH - going ex-div, having run hard & fast, China lockdowns, Fonterra's payout going back, shipping disruptions plus war, inflation, interest rates etc etc etc.

Still looking good long term, and continued weakness might provide more chances for entry. Should also be enticing for new suppliers or those wanting to ensure have full holding to match their livestock supply.

[iceman]

Plenty of challenges out there in the macro-environment - but continue to go along well. Can see exporters and the primary sector being our saviours (much like through Covid) and will have to do plenty of heavy lifting, as can see the NZ economy going to hell in a handcart fairly fast (despite what Grant says). Currency starting to provide a good tail wind right now, and help to offset some of those inflationary domestic costs.

As a shareholder, would like to see more in the way of financial updates, rather than being above or below budget - without having a clue what budget is, which is meaningless. Appreciate a highly seasonal business but must be able to do something, rather than have to wait another 11 months for a meaningful picture on how they are going. Until then, have to look at snippets from shareholder updates, hypothise (speculate) from competitors results etc etc.

Share price shown some weakness in recent times, down 23% from ATH - going ex-div, having run hard & fast, China lockdowns, Fonterra's payout going back, shipping disruptions plus war, inflation, interest rates etc etc etc.

Still looking good long term, and continued weakness might provide more chances for entry. Should also be enticing for new suppliers or those wanting to ensure have full holding to match their livestock supply.

Good post SB. Agree 100%

[Sideshow Bob]

Last trade $1.35. Bid currently at $1.15

When is it time to back the track back up again??

[Sideshow Bob]

Last trade $1.35. Bid currently at $1.15

When is it time to back the track back up again??

Scrub that, current bid $1.07.

[Sideshow Bob]

https://www.farmersweekly.co.nz/record-profit-for-anzco-foods/?fbclid=IwAR3RCRx8tyYHqvzoUgsk28OXHtk49bKXlF2nFunP wbgvx126ksLXj6Zhu3I

ANZCO profit. Likely similar profit margin to SFF, based on size/turnover, and also year-end December. Again heavily skewed to beef processing.

[iceman]

Last trade $1.35. Bid currently at $1.15

When is it time to back the track back up again??

Seems to be finding a base around the $ 1.40 mark after going XD. I would be very happy if it settles there which is up 20c (17%) from start of year and up 60c (70%) excluding the big divie, in the last 12 months.
All indications are that we've had a strong start to the year despite the many big and ongoing challenges that remain and are likely to do so for a long time yet. These challenges have now sort of become more just routine business as usual. I'm hopeful we are in for another bumper year operationally. The current lower NZ$ will definitely be favourable for SFF and farmers..

[Sideshow Bob]

Seems to be finding a base around the $ 1.40 mark after going XD. I would be very happy if it settles there which is up 20c (17%) from start of year and up 60c (70%) excluding the big divie, in the last 12 months.
All indications are that we've had a strong start to the year despite the many big and ongoing challenges that remain and are likely to do so for a long time yet. These challenges have now sort of become more just routine business as usual. I'm hopeful we are in for another bumper year operationally. The current lower NZ$ will definitely be favourable for SFF and farmers..

From what I can see, no real change year-to-date in the combination of conditions that created the record 2021 profit - aside from Omicron and its effects on plant operations - costs but also cost efficincies of running at full steam. Most markets appear strong, albeit in the face of rampant inflation and rising interest rates. Biggest worry in my mind is the effects of lockdown in Shanghai and other pasts of China and how long this rolls on for. Typically January-April are the biggest volume months of the year, but this year the season has rolled on due to Covid - 1/3 through the year but more than 1/3 through their annual production.

Lower dollar would be huge, especially as they indicated they could well have further labour cost rises. Great for their beef business, as more USD orientated than other species.

We aren't going to get much more in the way of other company reporting until Blue Skies in about August/September - but they've already indicated what they've made YTD and what their forecast EBITDA is. Then Alliance in about November

[Sideshow Bob]

Virtual Publication - Farmers Weekly (https://www.farmersweekly.co.nz/virtual-publication/)

SFF Annual Meeting page 3 (Front page covering surge in lamb export values)

[percy]

https://sendy.tarawera.co.nz/l/J6oLVth2f3f6IXNYvUBQEg/FcoHiPw1hagnA2UE3d3aXw/nTOJQEYhRqOf2jge763OoMJw

https://sendy.tarawera.co.nz/l/J6oLVth2f3f6IXNYvUBQEg/YlJPwMk0i763rpjQhTRtntKA/nTOJQEYhRqOf2jge763OoMJw

[Sideshow Bob]

From NZ Herald article about Sanford's profit:

There were few current concerns about supply chain impacts, thanks in large part to its relationship with Kotahi - the Fonterra-Silver Fern Farms joint venture logistics company.

Sanford profit rebounds in first half, but no dividend - NZ Herald (https://www.nzherald.co.nz/business/sanford-profit-rebounds-in-first-half-but-no-dividend/YDL5JVMFF5DMU6MAVIJAFSJHPQ/)

[Sideshow Bob]

Processing season drags on - Markets - Beef and Sheep, Business, International - Farmers Weekly (https://www.farmersweekly.co.nz/processing-season-drags-on/?fbclid=IwAR1kxn61WmXG2aZIKuXjMWFQmbHAyYiF7M2QwaPh mjr-I3f7giV4KwOFUKs)

[Sideshow Bob]

This weeks Farmers Weekly - couple of interesting articles - Meat Company Profits Page 35, and Keith Woodford about the Future of Sheep, Page 36.

Virtual Publication - Farmers Weekly (https://www.farmersweekly.co.nz/virtual-publication/)

[percy]

SFF issuer profile has now been updated on USX.
Company Name:Silver Fern Farms Co-operative Limited
Security:Silver Fern Farms Ords
Code:SFF
ISIN:NZSFFE0001S5
Listing Date:01/10/2009
Number of Shares Issued:100,378,874
Market Capitalisation:140,530,424
Last Price:1.400
Last Financial Year EPS:0.5198
P/E Ratio:2.693
Last 12 Months Gross Dividend Yield:12.786%

[Sideshow Bob]

https://www.farmersweekly.co.nz/pm-launches-carbon-zero-beef-in-ny/

[DarkHorse]

Great to see SFF stand and Simon with Jacinda in NY on the TV news :)

[DarkHorse]

https://file-us.clickdimensions.com/silverfernfarmsconz-achlb/files/supplierupdate_cenewsletter_270522final.pdf?m=5/27/2022%204:37:52%20AM&_cldee=7tRLswAqfFp5j1ibPNFGWlqkmes_iHrDGmsCkJ2Y2Tr 9YqcpRyb1tnlglsnRxPih&recipientid=contact-181696927b1deb119127005056b6486e-b8f91c99f7b1475dae5fa128ff4dcbb2&esid=7501607b-3bdd-ec11-9157-005056b6486e

[Joshuatree]

Thanks for the link. Fantastic publicity for Silver Fern.
I don't hold atpit.

[percy]

https://sendy.tarawera.co.nz/l/J6oLVth2f3f6IXNYvUBQEg/Ek5DHGm7639xaMw892naXilGhw/Nd1RQ3d1YKCEurOym4D0jA

[iceman]

https://sendy.tarawera.co.nz/l/J6oLVth2f3f6IXNYvUBQEg/Ek5DHGm7639xaMw892naXilGhw/Nd1RQ3d1YKCEurOym4D0jA

“Extremely well positioned” they say. Music to our ears :-)

[GTM 3442]

Are we seeing vast amounts of pride, hubris, and generalised w*nkspeak at odds with commercial success?

https://www.odt.co.nz/business/meat-firm%E2%80%99s-office-redesign-creating-buzz

[percy]

The SFF agm was held at the Distinction Hotel,and the afternoon tea was held at SFF head office which was unfinished on 11th May..
I thought both were fantastic.Really impressed with the modern interiors while the historic character was retained.
Thanks for the link GTM 3442.

[iceman]

Are we seeing vast amounts of pride, hubris, and generalised w*nkspeak at odds with commercial success?

https://www.odt.co.nz/business/meat-firm%E2%80%99s-office-redesign-creating-buzz

I don’t think so. Times are changing and primary products producers have to change with the times to survive, whether in meat, fish or fruit.
I like what I’m seeing from SFF in this regard, well supporter by very healthy annual dividends.
A very happy holder with SFF being nearly 25% of my NZ shares portfolio. It certainly has been pleasing during the market volatility in the last few months, while SFF has continued to perform very well indeed :-)

[Sideshow Bob]

Are we seeing vast amounts of pride, hubris, and generalised w*nkspeak at odds with commercial success?

https://www.odt.co.nz/business/meat-firm%E2%80%99s-office-redesign-creating-buzz


I don’t think so. Times are changing and primary products producers have to change with the times to survive, whether in meat, fish or fruit.
I like what I’m seeing from SFF in this regard, well supporter by very healthy annual dividends.
A very happy holder with SFF being nearly 25% of my NZ shares portfolio. It certainly has been pleasing during the market volatility in the last few months, while SFF has continued to perform very well indeed :-)

SFF are trying to transition from a "meat" company to be seen as a "food" company, with a larger consumer focus. Times have certainly changed, but they needed to - and certianly the furtherest down this track of the larger competitors - ie Alliance, Affco, ANZCO.

They've long tried to engender pride in the brand/company. In the past, very few would come from elsewhere to work in the meat industry, or in Dunedin. Now they have talent coming from other industries - as with most of their exec team. Part of this is culture, brand and workplace.

However........IMO there absolutely does become a tipping-point. My understanding is that Head office numbers have expanded hugely - and have to question how much all of those add-value to the company, and cover their salary and then some. They are doing some good things, but can definitely get to a stage where they believe too much of your own PR and marketing dept spin (and sometimes HR dept), and this has been seen in the past in NZ in the meat industry, and in lots of other industries and companies.

The thing is, profits have been good/increasing so it increases such "hubris". I know a director of another meat company who said the SFF result last year was "good, not great". Other companies have been making very good/record profits, albeit limited public info. Eg Blue Skies was forecast to make $25m EBITDA for the current FY, ANZCO made their best profit for several years/ever and Alliance made a decent profit despite a few issues.

In short, everyone has made very good profits, at least in the least year or so. Procurement tension has eased signifcantly - and probably one of the big changes.

The question really is how much of SFF profits have been from their own performance or market/procurement conditions. SFF have about 30-33% of beef processing, and hear beef margins remain "super". The big difference from SFF of old is the lack of LT debt - and simply not having to make decisions driven by need for cashflow, short-term focus and can now fund initiatives - some will be good, no doubt some won't be so good....

Back to the "hubris" etc, the test will really comes when things swing the other way, and have a bad year or two. Then might get more "back to basics".

[iceman]

Thanks SB. Great post

[Sideshow Bob]

Free for all farmers and shareholders. Looks like a pretty good programme.

Plate to Pasture Farmer Conference 2022 | Silver Fern Farms (https://silverfernfarms.com/nz/en/our-company/plate-to-pasture-farmer-conference-2022?fbclid=IwAR1ruSjD0zST_5ZJofyx4Moe93CRXJfpiTRo-9lkZWF3ckiG47TLf51EH68)

farmerconferenceagenda-externallink.pdf (clickdimensions.com) (https://file-us.clickdimensions.com/silverfernfarmsconz-achlb/files/farmerconferenceagenda-externallink.pdf)

[Sideshow Bob]

While not optimising plant throughputs, no pricing pressure on procurement and also takes pressure off coldstorage and shipping in the meantime.

Definitely issues with Omicron and sickness still out there. One beef plant in the lower North Island canned their night shift last week due to absentism/illness and even had no day shift for a couple of days.

Staffing issues slow cow kill - Markets - Beef and Sheep, Trends - Farmers Weekly (https://www.farmersweekly.co.nz/staffing-issues-slow-cow-kill/?fbclid=IwAR1uLy4d30Gt1YloTslZCSGl2Nc4QzFOUCJKCrMR WA2vdaTSEDoVy3ZtcFM)

[percy]

https://www.stuff.co.nz/business/farming/128927184/farm-exports-boom-despite-war-pandemic-inflation-and-everything-else

[Sideshow Bob]

Carnage elsewhere - but SFF (and the USX) sail on almost unaffected. The lack of liquidity can be frustrating at times....

But SFF actually finished about 2% UP for the week.....:cool:

[iceman]

Carnage elsewhere - but SFF (and the USX) sail on almost unaffected. The lack of liquidity can be frustrating at times....

But SFF actually finished about 2% UP for the week.....:cool:

Sharesight tells me the return this calendar year so far is 80% (SP + divie). Not to be sneezed at !

[percy]

Disappointing for us,however good for Seeka,and others.
https://business.scoop.co.nz/2022/07/01/feds-slams-miserly-eu-meat-and-dairy-quotas/#more-224397

[Sideshow Bob]

Disappointing for us,however good for Seeka,and others.
https://business.scoop.co.nz/2022/07/01/feds-slams-miserly-eu-meat-and-dairy-quotas/#more-224397

Highly disappointing.

Aussies lining up for their EU FTA - will be interesting to see what they get out of it.

[Sideshow Bob]

Virtual Publication - Farmers Weekly (https://www.farmersweekly.co.nz/virtual-publication/) - Page 11

"SFF a solid vessel for choppy waters"

[Sideshow Bob]

...........................

[percy]

Virtual Publication - Farmers Weekly (https://www.farmersweekly.co.nz/virtual-publication/) - Page 11

"SFF a solid vessel for choppy waters"

Thanks for the link.

[percy]

I asked SSF CoOp investor relations man why NZ Companies office stated there are 113,857,802 shares on issue,while their annual report states 100,379,000.
Here is the reply I received,
We are in the process of reducing the Companies Office number to 111,131,51
This number includes rebate shares that remain on issue. In the balance sheet they show as a current liability ($10.799m) – Members rebate shares. They are reported this way as the holders have the option to seek surrender of those shares at a fixed amount of $1 per share. They are eligible for dividends and patronage rewards.


The current split is:

Ordinary fully paid shares 99,321,983

Partly paid 1,056,891

Rebate 10,752,640

[iceman]

https://www.interest.co.nz/rural-news/116681/allan-barber-reports-very-high-demand-red-meat-has-processors-scrambling-skilled

[Sideshow Bob]

Back and better! (ruralnewsgroup.co.nz) (https://www.ruralnewsgroup.co.nz/rural-news/rural-general-news/back-and-better)

The comment about trading 20% above 5 year average is an interesting one.....

If take that as profit (which is what really counts), given break-even/losses in 2017/18, the "5 year average" is less than the last 3 years, and close to half of last years record result.

So it sounds positive on face-value, but perhaps isn't so much??

Still lament the lack of clear guidance through the year, and lack of half-year result. I believe would definitely benefit from more disclosure.

[percy]

Back and better! (ruralnewsgroup.co.nz) (https://www.ruralnewsgroup.co.nz/rural-news/rural-general-news/back-and-better)

The comment about trading 20% above 5 year average is an interesting one.....

If take that as profit (which is what really counts), given break-even/losses in 2017/18, the "5 year average" is less than the last 3 years, and close to half of last years record result.

So it sounds positive on face-value, but perhaps isn't so much??

Still lament the lack of clear guidance through the year, and lack of half-year result. I believe would definitely benefit from more disclosure.

Great article.
Thanks for sharing.

[Sideshow Bob]

JV paying off (ruralnewsgroup.co.nz) (https://www.ruralnewsgroup.co.nz/rural-news/rural-general-news/jv-paying-off)

[Sideshow Bob]

Record payout for Australian Co-Op....

WAMMCO to return record $8.4m bonus to producer members despite ‘tough’ year | Countryman (https://www.countryman.com.au/countryman/news/wammco-to-return-record-84m-bonus-to-producer-members-despite-tough-year-c-7686221?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Wednesday+3 +August+2022)

[iceman]

JV paying off (ruralnewsgroup.co.nz) (https://www.ruralnewsgroup.co.nz/rural-news/rural-general-news/jv-paying-off)

Great news

[Sideshow Bob]

Someone is a cynic….

https://www.ruralnewsgroup.co.nz/rural-news/rural-opinion/hound/fruitful-change

[percy]

Someone is a cynic….

https://www.ruralnewsgroup.co.nz/rural-news/rural-opinion/hound/fruitful-change

Fluff article.
Chair,Rob Hewett and CEO, Simon Limmer are laying the foundations for the next 100years.

[Sideshow Bob]

Fluff article.
Chair,Rob Hewett and CEO, Simon Limmer are laying the foundations for the next 100years.

The old Hound has never been a fan of SFF.

SFF have obviously enjoyed a purple patch in terms of profitability - and also benefiting from the lack of long-term debt.

While there might be planning for the next 100 years - who knows what that might bring. Even the next 10 years. Chinese look much more long-term than westerners however.

The profitability and reinvestment in the business has been very much needed. But wWhen start to look at it cumulatively, there has been enormous sums retained within the business. They've made $240m net over the last 3 years - and probably close to $200m of this has been retained in the business.

Every meat company in NZ has made very good/record results the last few years, with market and procurement conditions. As an example, BSM were expected to make around $25m EBITDA for the year ended June - and that is just one smaller plant.

The (unanswered) questions are whether SFF are performing better than the rest or keep performing better, how they will go as/when market conditions change, how well the retained profit that has been kept within the business has been invested, and how well those retained earnings will generate returns.

For that I've got no answer......:confused:

[Sideshow Bob]

Finally a bit of price movement - in the right direction....

Been sitting at $1.62 since the start of the month. Last trade at $1.65.

[Sideshow Bob]

Buy side looking very dry......only 39,400 at $1.80.

$1.70 cleaned out and buyer wants another 26k.

[percy]

Buy side looking very dry......only 39,400 at $1.80.

$1.70 cleaned out and buyer wants another 26k.

Thank goodness you are not my broker.
The buy side is on your left,sell side on the right,,...lol

[stoploss]

Buy side looking very dry......only 39,400 at $1.80.

$1.70 cleaned out and buyer wants another 26k.
Lets rephrase that .
Only one offer left in the market @ $ 1.80
26 K on the bid at $ 1.70 , with plenty of bids below.

[Sideshow Bob]

Lets rephrase that .
Only one offer left in the market @ $ 1.80
26 K on the bid at $ 1.70 , with plenty of bids below.

Yeah nah, not my finest work.......;):blink::lol:

But a positive day for holders.

[Sideshow Bob]

Major step in ambition to become coal-free by 2030

Less hot air? (ruralnewsgroup.co.nz) (https://www.ruralnewsgroup.co.nz/rural-news/rural-general-news/less-hot-air)

Half the cost coming from the Government.

[Sideshow Bob]

System makes transport more efficient | Otago Daily Times Online News (odt.co.nz) (https://www.odt.co.nz/rural-life/system-makes-transport-more-efficient)

A million kms per year! Even without the less emmissions, still a good news story as probably $4m saved and also stock spending less time on trucks.

[percy]

https://www.nzx.com/announcements/398746

[iceman]

https://www.nzx.com/announcements/398746

Great to see investment in automation with our increasing and never ending shortage of labour. With record capital investment of $60 million last year and projected $100m this year, we have to hope it delivers great efficiency gains !!

[percy]

https://sendy.tarawera.co.nz/l/J6oLVth2f3f6IXNYvUBQEg/RzvIQfpcAcf892RnJ53OQ0Wg/BHJWlu3WV8921fjj8QBnQu9w

[iceman]

A bit more trading turnover on firmer prices in the last few days. Looks like the annual topping up of shares by the suppliers making sure they get their patronage rewards for the year. Not surprising as they are likely to be quite substantial with the great market conditions we've had this year and the current low NZ$.
I'm certainly looking forward to the divie next year :-)

[Sideshow Bob]

A bit more trading turnover on firmer prices in the last few days. Looks like the annual topping up of shares by the suppliers making sure they get their patronage rewards for the year. Not surprising as they are likely to be quite substantial with the great market conditions we've had this year and the current low NZ$.
I'm certainly looking forward to the divie next year :-)

Yes, certainly a bit more activity of late - about double the average weekly turnover. All signs point to another strong result, with the financial year 75% through. Some of the markets are weaker in the short term, but longer term I think still look strong, and solid fundamentals. Dollar will be a tail-wind, especially into the US.

Still holding strong when most other shares are in choppier waters.

The biggest threat (to farming and then the meat/dairy industries) is still the government.

[iceman]

Meanwhile we are happy with our beautifully delicious grass fed meat :t_up:
https://www.bbc.com/news/business-63260645

[Sideshow Bob]

Someone keen to get out yesterday at $1.50. Had been good volumes traded the last few weeks at $1.60+.

Buy side has dried up for the moment. The 599 at $1.06 might be a stretch too far though.....;)

[iceman]

Someone keen to get out yesterday at $1.50. Had been good volumes traded the last few weeks at $1.60+.

Buy side has dried up for the moment. The 599 at $1.06 might be a stretch too far though.....;)

Possible that the fart tax announcement has scared some people ?

[percy]

Possible that the fart tax announcement has scared some people ?

PE ratio is back under 3... Now 2.886

[Sideshow Bob]

Possible that the fart tax announcement has scared some people ?

Hopefully gets re-shaped and reformed at some stage in the near future with a change in gubbermint....

Completely ridiculous - and will have unintended consequence of less production in NZ, and replaced with less carbon efficient production elsewhere. But we'll all feel good, whilst looking at millions of acres of pine trees.

[percy]

Crikey an interim divie.

https://usx.co.nz/uploads/paperclip/documents/2703/original/Silver_Fern_Farms_Co-operative_Media_Release_Interim_Dividend_Announced _281022.pdf?1666900539

[Sideshow Bob]

Crikey an interim divie.

https://usx.co.nz/uploads/paperclip/documents/2703/original/Silver_Fern_Farms_Co-operative_Media_Release_Interim_Dividend_Announced _281022.pdf?1666900539

Percy & Mrs Percy will be on the lash tonight!! :t_up:

[blackcap]

Percy & Mrs Percy will be on the lash tonight!! :t_up:


I reckon! Wow I got an email from Rob telling me the good news. And the size of the thing too!!

[iceman]

I reckon! Wow I got an email from Rob telling me the good news. And the size of the thing too!!

Just read the surprise email from Rob. Wow, just wow

[Sideshow Bob]

Just read the surprise email from Rob. Wow, just wow

Sorry I forgot to include Iceman and Mrs Iceman on the lash tonight too!! I might have a few hazy's......and Mrs SSB will probably have a wine.

Love me a good dividend!! :cool:

Decent volume gone through so far today (138k) but still a seller there at $1.60. Buyers are getting 10.1cps next week, and then likely at least the same again in 6 months.

Interim divvy cost them $22m ($11m to the Coop, and same to Shanghai Maling). With Alliance indicating record turnover/profit, then SFF should also be improved. Even at the same profitability as last year, with the interim divvy they've still retained about $28m in the business. But if Alliance are better, then I would expect so should SFF, who have a much bigger share of beef processing.

There are definitely choppier waters ahead. China is looking pretty sick on the lamb job, and the zero Covid policy will continue to make this difficult. Global economies are looking shaky, and reduced consumer spend with higher interest rates, inflation, fuel etc. Freight rates haven't come down out of NZ compared to what has happened on other shipping routes (still at extortionate levels).

However at the same time, alot of producers of other proteins such as pork and poultry are struggling with significantly higher inputs - fuel, feed, electricity. The dollar is also taking the edge off some of the market weakness.

[Sideshow Bob]

SFF BBQ Challenge on Seven Sharp.....

https://www.youtube.com/watch?v=YDvsALINkF0

[iceman]

Sorry I forgot to include Iceman and Mrs Iceman on the lash tonight too!! I might have a few hazy's......and Mrs SSB will probably have a wine.

Love me a good dividend!! :cool:

Decent volume gone through so far today (138k) but still a seller there at $1.60. Buyers are getting 10.1cps next week, and then likely at least the same again in 6 months.

Interim divvy cost them $22m ($11m to the Coop, and same to Shanghai Maling). With Alliance indicating record turnover/profit, then SFF should also be improved. Even at the same profitability as last year, with the interim divvy they've still retained about $28m in the business. But if Alliance are better, then I would expect so should SFF, who have a much bigger share of beef processing.

There are definitely choppier waters ahead. China is looking pretty sick on the lamb job, and the zero Covid policy will continue to make this difficult. Global economies are looking shaky, and reduced consumer spend with higher interest rates, inflation, fuel etc. Freight rates haven't come down out of NZ compared to what has happened on other shipping routes (still at extortionate levels).

However at the same time, alot of producers of other proteins such as pork and poultry are struggling with significantly higher inputs - fuel, feed, electricity. The dollar is also taking the edge off some of the market weakness.

Interesting points from the announcements:
"the operating company's better than expected performance gives us the opportunity to speed up this investments" (Capital, markets, consumers)
and
"the amount for patronage rewards have been provisioned and retained by the Co-Op"

Indicates things are rosy and we'll get a very healthy final dividend as well.

I'm on target to get all my investment back in dividends in the first 4 years and the SP up around x 2.5 at the same time. Certainly my best performer by far in that time.

[Sideshow Bob]

Over 5% of the annual volume traded today. Seller at $1.60 cleaned out (wondered if didn't read his emails this morning).

Big jump on the offer to $1.72.

[iceman]

Over 5% of the annual volume traded today. Seller at $1.60 cleaned out (wondered if didn't read his emails this morning).

Big jump on the offer to $1.72.

Fwd looking P/E most likely closer to 2 than 3 !!

[iceman]

big turnover today of 380,833 shares.
Last 12 months 4,417,168

[iceman]

Going XD for our Christmas bonus today :-)

[Sideshow Bob]

Going XD for our Christmas bonus today :-)

Ohhhhh yeah!! :t_up:

[iceman]

Ohhhhh yeah!! :t_up:

If we assume the final will be similar to last year's final, which I think we can safely assume given the cash held in the company and the good year we're having, that makes gross dividend yield roughly 20% on current SP. Not to be sneezed at

[Sideshow Bob]

If we assume the final will be similar to last year's final, which I think we can safely assume given the cash held in the company and the good year we're having, that makes gross dividend yield roughly 20% on current SP. Not to be sneezed at

Will be 31.9cps in the last 12 months. At current price of $1.64, that's a 19.45% gross yield.

I think given they paid an interim divvy (1st time ever??), the amount of money sloshing around the company and others reporting better/record results (eg Alliance), then a good chance the full year could be better than last.

USX website says PE is 3.155

[iceman]

Will be 31.9cps in the last 12 months. At current price of $1.64, that's a 19.45% gross yield.

I think given they paid an interim divvy (1st time ever??), the amount of money sloshing around the company and others reporting better/record results (eg Alliance), then a good chance the full year could be better than last.

USX website says PE is 3.155

Yes with a fwd looking PE now likely to be well below 3 and dividend yield of 20%, it is hard to see how this Co is fully priced, despite it being a Co-op !!!

[Sideshow Bob]

Yes with a fwd looking PE now likely to be well below 3 and dividend yield of 20%, it is hard to see how this Co is fully priced, despite it being a Co-op !!!

They've made $240m after-tax in the last 3 years, and maybe paid out something like 34cps imputed (including the current divvy), so about $34m from the Coop. Times that by 2 and then round it up to say $80m, so they've squirreled away say about $160m and then another boomer likely this year. Market is effectively valuing the company at $330m

My only concerns is how well the retained funds and capex is invested for a return.

[Sideshow Bob]

Happy Dividend Day!! :t_up:

[iceman]

Happy Dividend Day!! :t_up:

Thanks for reminding me. Off to the pub. Back Monday :-)

[percy]

Happy Dividend Day!! :t_up:

Its here...lol.

[stoploss]

Its here...lol.
Thanks Percy, extra scoop of chips tonight.

[iceman]

A great result for Alliance https://www.alliance.co.nz/news/2022/11/alliance-group-announces-annual-result/

"New Zealand’s only 100 per cent farmer-owned major red meat co-operative Alliance Group today announced a record profit before provisions, distribution and tax of $117.2 million for the year ending 30 September 2022.

The profit result, which is a 186 per cent increase on the previous year, is based on a record turnover of $2.2 billion. The co-operative will be making an $11.3m profit distribution to its farmer shareholders, and in addition, a $10 million bonus share issue of one share per qualifying stock unit."

[Sideshow Bob]

A great result for Alliance https://www.alliance.co.nz/news/2022/11/alliance-group-announces-annual-result/

"New Zealand’s only 100 per cent farmer-owned major red meat co-operative Alliance Group today announced a record profit before provisions, distribution and tax of $117.2 million for the year ending 30 September 2022.

The profit result, which is a 186 per cent increase on the previous year, is based on a record turnover of $2.2 billion. The co-operative will be making an $11.3m profit distribution to its farmer shareholders, and in addition, a $10 million bonus share issue of one share per qualifying stock unit."

Good to see you back from the pub Iceman.....:p

Certainly a relatively solid result from Alliance, who have been lagging SFF in recent years and by some margin. Of late have been about 2/3 the turnover of SFF, with more exposure to lamb, less to beef. About a 5.3% margin.

Lamb processors have had a golden run, however looks like this is coming to a shuddering halt (Alliance are a bigger lamb processor than SFF). Alot of stock in China, and suffering from the zero-Covid policy where a higher proportion of lamb is consumed outside the home. The prices paid by the Chinese for flaps, forequarters and a few other bits and pieces are well above any other markets and amount to about half the carcase. Add to that global inflation, recession fears in Europe etc, and expect schedules to come back fairly fast. Perhaps David Surveyor (Alliance CEO) saw this and resigned on a high/record profit?? The SFF market report certainly has graphs of these products that are heading south fast.

One thing that has changed for lamb processors is the carcase market has gone overnight. Processors had been selling whole carcases into China at really good money, rather than deconstructing it and selling all of the pieces. That market has now gone. The industry has more slaughter capacity than boning capacity, so that will be a handbrake - and boning takes more labour that they don't have.

Back to SFF, end of FY22 might be a little tougher, but they could well crest the $3b+ turnover for the first time. If Alliance can make $117m EBITDA (still go for the highest number), then would expect SFF to be even more meatier than last year. Heavily reliant on beef margins with roughly 3x the beef of Alliance. Current FX levels are helping in the meantime.

[iceman]

Thanks for a good informative post SB

[Sideshow Bob]

14324

Source: SFF Market Report ex AgriHQ.

A strong pullback on market returns on grinding beef and a range of lamb cuts - even with the currency assisting the NZD returns.

Processors have had a purple patch with markets and "a rising tide lifts all boats" - as evidenced by what limited industry results are available publicly. The true test will be whether companies can maintain profitability at a good level regardless on market conditions.

This will be a test for SFF that the capital reinvested into the business pays off. The positive aspect is that SFF now compared to the old SFF has a much stronger balance sheet, from the 50% sale and also retained profits.

[percy]

https://sendy.tarawera.co.nz/l/J6oLVth2f3f6IXNYvUBQEg/SpGJtO661c2kQ3YFZPgsJA/GOMEw14kmuY4BeCb50JwCQ

[Sideshow Bob]

https://sendy.tarawera.co.nz/l/J6oLVth2f3f6IXNYvUBQEg/SpGJtO661c2kQ3YFZPgsJA/GOMEw14kmuY4BeCb50JwCQ

Government still trying to kill off one of the mainstays of the NZ economy. Would rather see a monoculture of pine trees, for which overseas owners use the carbon credits so they can keep polluting - to maintain their virtue signalling and political correctness.

Meanwhile promoting tourism, where long-haul air travel remains inherently unsustainable. But that's OK because no one "owns" those emissions.

[Sideshow Bob]

https://www.farmersweekly.co.nz/govt-widens-sequestration-recognition-in-ets/?fbclid=IwAR21zr1R5hsVC-ayKyZK_-1Qo83lUralL2miZGGoah5G64v7KJj3_P2MHTw

The primary sector is chalking up a small victory after the government agreed to amend the Emissions Trading Scheme to recognise more classes of carbon-sequestering vegetation.

[percy]

https://www.scoop.co.nz/stories/BU2211/S00480/red-meat-sector-exports-to-italy-increase-by-244-per-cent-in-october.htm

[Sideshow Bob]

"A good year for meat but also an outlier"

https://www.farmersweekly.co.nz/a-good-year-for-meat-but-also-an-outlier/?fbclid=IwAR3KsDmHWmgAD3-llgL9ZDEfp2b0S-hHdvHd_3qk6pKAjVTJTQtT1Fn3QGk

[Sideshow Bob]

Share price starting to recover after recent dividend.

None on the offer currently. 52 week volume has been heading steadily upwards - now 4.8m, I think at one stage was low 3m's.

[iceman]

Share price starting to recover after recent dividend.

None on the offer currently. 52 week volume has been heading steadily upwards - now 4.8m, I think at one stage was low 3m's.

Yes we definitely have lots of buyers in that $1.50 - $ 1.53 range. All snapped up.

[Sideshow Bob]

https://www.interest.co.nz/rural-news/118784/after-period-win-win-both-farmers-and-processors-guy-trafford-wonders-if-we-are

[Sideshow Bob]

Decent volume through today. Steady at $1.50.

[iceman]

Come on everyone https://meattheneed.org/

[Sideshow Bob]

Latest forecast from SFF is lamb schedules to be in the $6.50 - 6.70 range for the 1st quarter of 2023 - large drop from this time last year - about $35-40/head less income for farmers.

End of financial year coming up - while would have to think most of the year would have been very positive, might dampen down the 2022 result with markets going down and value of stock instore.

Beef prices heading south also, and below this time last year - but it seems to be reported that might be a more temporary situation.

14382

[Sideshow Bob]

While nothing much showing on the offer, still relatively regular trading over the last few days at the $1.50 level.

Inching towards the 5m shares traded over the last 12 months. That means just under 5% of the company has been traded. Must be plenty of happy farmers/holders out there.

While markets finished the year on a downer, expect 2022 (YE 31/12) still to pump out a very very good result. Now just to wait.....:sleep:

[Sideshow Bob]

Was quite a few parcels on the offer earlier in the day, but someone has just clean out them all at once. About 65k shares in total, all at $1.50.

[Sideshow Bob]

Share price seems to be locked on $1.50 for about the last 6 weeks. Over that period, been about 60-odd trades and about 640k shares traded.

Still plenty on both the offer/bid.

Would have to think buyers will get a nice dividend feed in another few months.....:)

[iceman]

Great to see SFF & Fonterra partnership Kotahi commit to 30,000 TEUs per year for a further 6 years until 2030 for the Port of Timaru. It has given Port of Timaru's owners the confidence they need to undertake a major upgrade of the terminal and gives South Island exporters stability and security of shipping & container availability. Well done.

[Sideshow Bob]

Primeport Timaru has 50/50 joint ownership between the local council and Port of Tauranga - and Kotahi already has a strategic alliance with POT. So this will be an extension of this.

Great news for exporters - unless it is just another service price gouging (hopefully it is a mix of lines and not just the Danish-based). The experts say that there is too many ports in NZ and probably is - but do lack the infrastructure and ability to quickly, cheaply and easily move product to/from port. But with Fonterra Clandeboyne, Fonterra Studholme, SFF Pareora, Alliance Smithfield, Alliance Pukeri, Oceania Dairy etc in the area, then would think there is a good outwards volume (and a bit less to go via Lyttelton and Port Chalmers). No idea about imports.....;)

[iceman]

Primeport Timaru has 50/50 joint ownership between the local council and Port of Tauranga - and Kotahi already has a strategic alliance with POT. So this will be an extension of this.

Great news for exporters - unless it is just another service price gouging (hopefully it is a mix of lines and not just the Danish-based). The experts say that there is too many ports in NZ and probably is - but do lack the infrastructure and ability to quickly, cheaply and easily move product to/from port. But with Fonterra Clandeboyne, Fonterra Studholme, SFF Pareora, Alliance Smithfield, Alliance Pukeri, Oceania Dairy etc in the area, then would think there is a good outwards volume (and a bit less to go via Lyttelton and Port Chalmers). No idea about imports.....;)

Kotahi has had a 10 year agreement in place with Timaru since 2004. This announcement is a 6 year extension of it. Gives a lot of certainty to the fast growing Port of Timaru.

[Sideshow Bob]

Kotahi has had a 10 year agreement in place with Timaru since 2004. This announcement is a 6 year extension of it. Gives a lot of certainty to the fast growing Port of Timaru.

Sorry I'd missed that it was an extension. :(

Looking at it further, it is the Danish mafia still calling there. I know exporters based in Timaru itself (within 1-2km of the port), outside of Kotahi for whom it is cheaper to go to/from Lyttelton using other lines, than use Maersk. But no doubt SFF, Fonterra and rest of the Kotahi customers underpin that and get a more user-friendly rate.....

[iceman]

Sorry I'd missed that it was an extension. :(

Looking at it further, it is the Danish mafia still calling there. I know exporters based in Timaru itself (within 1-2km of the port), outside of Kotahi for whom it is cheaper to go to/from Lyttelton using other lines, than use Maersk. But no doubt SFF, Fonterra and rest of the Kotahi customers underpin that and get a more user-friendly rate.....

I had a quote last week for a 20' container from India, that we want in Timaru. Shipping costs are USD 3,200 (plus costs) to Lyttelton, USD 8400 (plus costs) to Timaru !!!

[Sideshow Bob]

I had a quote last week for a 20' container from India, that we want in Timaru. Shipping costs are USD 3,200 (plus costs) to Lyttelton, USD 8400 (plus costs) to Timaru !!!

That is extortion!! I know who quoted you the $8400 then!!

Oh well, into Lyttelton it is then and pay $1,000 NZD for trucking to Timbuktu!

It looks like rates are all over the place, but definitely some cheaper rates out there for reefers now. We have a 40' reefer going to the Netherlands soon, at 35% of what we paid in September (admittedly with a different line, and neither are Danish).

Needs some normality/consistency.

[Sideshow Bob]

Share price still seems locked on $1.50 - been there since the start of December.

21k trade has cleaned out the $1.50 this morning.

Current sell offer is at $1.55.

[iceman]

Share price still seems locked on $1.50 - been there since the start of December.

21k trade has cleaned out the $1.50 this morning.

Current sell offer is at $1.55.

Sure has been interesting to watch the last 2 months with a fairly constant supply & demand at $ 1.50. Almost looks like someone might be accumulating at $1.50

[Sideshow Bob]

Sure has been interesting to watch the last 2 months with a fairly constant supply & demand at $ 1.50. Almost looks like someone might be accumulating at $1.50

Sales still going through at $1.50. Nothing shows on the bid/offer but then there is a sale - maybe through the same broker?

Does look like someone might be accumulating....

[iceman]

Sales still going through at $1.50. Nothing shows on the bid/offer but then there is a sale - maybe through the same broker?

Does look like someone might be accumulating....

Sure has been going like that. Then someone read your post and put 10,000 up for sale just to prove us wrong :-)

[Sideshow Bob]

Sure has been going like that. Then someone read your post and put 10,000 up for sale just to prove us wrong :-)

Haha, indeed!! Although about 6k went through yesterday afternoon, still about 6k on offer.

Lets see what happens today......

[iceman]

Really good listening https://podcasts.apple.com/nz/podcast/flying-the-fern/id1649247592?i=1000596163856

[iceman]

Some words from the Chairman https://www.youtube.com/watch?v=igB5p49rDgU

[percy]

Some words from the Chairman https://www.youtube.com/watch?v=igB5p49rDgU

Most impressive.

[Sideshow Bob]

Looks like the buy side has dried up for the time being, with a number of parcels on the offer at $1.50.

[Sideshow Bob]

Getting to the time when the annual bean counting results aren't too far away from coming out.

Expecting a solid result but would be most interested in the guidance. Lamb is undoubtedly a tougher challenge with the slow down in China with high stocks - starting to loosen up now with Covid restrictions.

I am hearing (from elsewhere) that lamb is around breakeven, and the phenomenal beef margins have now gone and also a tougher challenge. And beef undoubtedly would have been the star in the SFF crown the last few years. Alliance had a relatively great result, but their FY was until end Sept, and the last quarter was when it got tough.

I guess we just have to wait......:sleep:

[iceman]

Getting to the time when the annual bean counting results aren't too far away from coming out.

Expecting a solid result but would be most interested in the guidance. Lamb is undoubtedly a tougher challenge with the slow down in China with high stocks - starting to loosen up now with Covid restrictions.

I am hearing (from elsewhere) that lamb is around breakeven, and the phenomenal beef margins have now gone and also a tougher challenge. And beef undoubtedly would have been the star in the SFF crown the last few years. Alliance had a relatively great result, but their FY was until end Sept, and the last quarter was when it got tough.

I guess we just have to wait......:sleep:

We got the results on 31 March last year so awhile to wait yet. I'm sure we will have an outstanding result and in fact we got a confirmation of that with the unprecedented interim dividend announced at the end of October.
Agree there are tougher times ahead but SFF will face that with a very strong balance sheet and a sought after product.

[iceman]

Brazil has voluntarily suspended beef exports to China due to discovery of BSE. Short term at this stage but if extended, could make a big difference to pricing. 80% of China's beef imports come from South America.
But in any case. global demand is firming, particularly in China and other North Asian countries. US anticipating slowdown in processing numbers so have lifted asking prices and Australia is following their lead.
So things could turn out for us to see yet another good year for SFF :t_up:

[percy]

NZ red meat exporters back Beef + Lamb New Zealand’s Kiwis Backing Farmers campaign



New Zealand’s red meat processing and exporting sector is supporting the Kiwis Backing Farmers campaign, saying the only sustainable way for the Government to deliver better outcomes for the environment and the economy is to work with farmers.



The campaign, spearheaded by Beef + Lamb New Zealand and rural advocacy group 50 Shades of Green, aims to highlight the cumulative effects of successive policies, such as the wholesale conversion of productive sheep and beef farms into carbon farms, on rural communities.



“New Zealand’s sheep and beef farmers are already among the most carbon efficient and environmentally sustainable producers of red meat in the world,” said Sirma Karapeeva, chief executive of the Meat Industry Association.



“However, successive waves of new regulation in areas such as freshwater, biodiversity and carbon farming are putting the sheep and beef farmers’ status as champions for the environment at risk.



“Many of these regulations could be much better aligned with on-farm practice, and collectively add unnecessary costs on farmers at a time when inflation and volatile global markets are putting their operations under extreme pressure.”



Ms Karapeeva says the meat processing sector is also concerned about the lack of limits on fossil fuel emitters offsetting their emissions by planting trees on productive land.



“This risks pushing more land into carbon forestry, which will have long-term consequences for the viability of rural communities and the New Zealand economy as a whole.



“We all have a deep interest in creating a cleaner, greener environment and a thriving economy, which is why we’re calling on the Government to work with sheep and beef farmers to achieve this.”



“As it stands, the red meat sector generates almost $12 billion in earnings from exports to more than 100 countries and employs 92,000 people, and by working together we can grow this in a sustainable way.”

[iceman]

NZ red meat exporters back Beef + Lamb New Zealand’s Kiwis Backing Farmers campaign

Good to see SFF get involved in this. The current situation is madness with forever more productive meat farms being converted to forestry with little to no economic benefit from the country and huge risks as we have seen from Cyclone Gabrielle slash disaster in Gisborne & Hawkes Bay. This whole area needs a big rethink.

Only 10 odd more sleeps to the annual results and dividend announcement :t_up:

[Sideshow Bob]

Good to see SFF get involved in this. The current situation is madness with forever more productive meat farms being converted to forestry with little to no economic benefit from the country and huge risks as we have seen from Cyclone Gabrielle slash disaster in Gisborne & Hawkes Bay. This whole area needs a big rethink.

Only 10 odd more sleeps to the annual results and dividend announcement :t_up:

Especially if we shutdown one of our biggest exporter earners and start producing less - with the slack being picked up by other countries who are less carbon efficient producers. We feel good but global emmissions are higher.

And agree. Forestry needs a big rethink. The whole pine forest thing is a big con.

But otherwise, we wait for the annual results........:)

[DarkHorse]

Good to see SFF get involved in this. The current situation is madness with forever more productive meat farms being converted to forestry with little to no economic benefit from the country and huge risks as we have seen from Cyclone Gabrielle slash disaster in Gisborne & Hawkes Bay. This whole area needs a big rethink.

Only 10 odd more sleeps to the annual results and dividend announcement :t_up:

Indeed. NZ farmers are no more responsible for climate change than Japanese car makers - if we shut them down people would just buy from less efficient producers. (Not to say eating less meat and driving less won't help though!)

[Sideshow Bob]

Indeed. NZ farmers are no more responsible for climate change than Japanese car makers - if we shut them down people would just buy from less efficient producers. (Not to say eating less meat and driving less won't help though!)

Do you see Saudi Arabia busy planting pinus radiata forests?? They don't take responsibility for the emissions from the product they sell - their customers would have to. But for meat/dairy producers, the emissions are their problems, not their customers who eat the product - and farmers can't even offset with any sequestration on their farm!!

[Sideshow Bob]

Are we going to see an announcement tomorrow?

Finally traded yesterday for the first time in months at something other than $1.50 +/- 2 cents.

Did someone just get a little lucky....??

[Sideshow Bob]

Result is out.....

Revenue: $3.273B
EBITDA: $301.3m (up from $179.7m)
Net Profit $189.3m ($103.8m last year)
13.1c dividend fully imputed, bringing it to 23.2c for the year.
With the divvy from SFF Ltd, the Co-Op put another roughly $5m in the bank.

:t_up::t_up::t_up:

[percy]

result is out.....

Revenue: $3.273b
ebitda: $301.3m (up from $179.7m)
net profit $189.3m ($103.8m last year)
13.1c dividend fully imputed, bringing it to 23.2c for the year.
With the divvy from sff ltd, the co-op put another roughly $5m in the bank.

:t_up::t_up::t_up:

amazing....................................

[Sideshow Bob]

amazing....................................

I think Percy is lost for words!! :p

[percy]

I think Percy is lost for words!! :p

That is the under statement.!!
I was thinking with things looking tougher we may have been lucky to get a 5 cents divie.
Love being wrong..lol

[Mr Slothbear]

Great results, currently ttm p/e of approx 1.6x !

what is the ex div date for this div? I can’t see it mentioned in the announcement.

[Sideshow Bob]

That is the under statement.!!
I was thinking with things looking tougher we may have been lucky to get a 5 cents divie.
Love being wrong..lol

Great to be wrong on this! I was pretty sure that would at least have something similar for the end of year divddy to last year, as otherwise wouldn't have suddenly paid out an interim divvy (which was very welcomed).

Something to think about.....

Total equity of the Co-Op $4.38 per share.
Total net profit SFF Ltd of $189.3m equates to about $0.94cps of the Co-Op net profit! EPS is 62.6% of the current share price (based on $1.50)

No trades this morning and still about 20k on offer at $1.50!!

[percy]

Great to be wrong on this! I was pretty sure that would at least have something similar for the end of year divddy to last year, as otherwise wouldn't have suddenly paid out an interim divvy (which was very welcomed).

Something to think about.....

Total equity of the Co-Op $4.38 per share.
Total net profit SFF Ltd of $189.3m equates to about $0.94cps of the Co-Op net profit! EPS is 62.6% of the current share price (based on $1.50)

No trades this morning and still about 20k on offer at $1.50!!

Unlisted platform was down yesterday,and still down so far today......

[Sideshow Bob]

Unlisted platform was down yesterday,and still down so far today......

Thanks, and hadn't realised but did notice results email came out and quite a while before on the USX website.

Just been for a walk and thought I should have couched my net profit comment differently..... a PE of 1.6!!

[percy]

Thanks, and hadn't realised but did notice results email came out and quite a while before on the USX website.

Just been for a walk and thought I should have couched my net profit comment differently..... a PE of 1.6!!

Would you please go off line until half an hour after USX platform is back working.!...lol.

[blackcap]

Thanks, and hadn't realised but did notice results email came out and quite a while before on the USX website.

a PE of 1.6!!

I had better go and pull my sell order then... thanks for the heads up :)

[percy]

I had better go and pull my sell order then... thanks for the heads up :)

Bugger............................................ .........................lol.

[Sideshow Bob]

I had better go and pull my sell order then... thanks for the heads up :)

At least wait a month for your 13.1cps fully imputed dividend!! :blink:

[blackcap]

At least wait a month for your 13.1cps fully imputed dividend!! :blink:

Haha no I was only joking.. I did not have a sell order in but you would hope that an astute investor would pull their sell orders on today's news...

[Sideshow Bob]

Haha no I was only joking.. I did not have a sell order in but you would hope that an astute investor would pull their sell orders on today's news...

One would hope so. Didn’t realise USX was down…..wondering why hadn’t traded…..

[Sideshow Bob]

Where is Iceman?? Might be on a bender already…..

[Muse]

Impressive performance and divy….

[iceman]

Where is Iceman?? Might be on a bender already…..

Well yes, a bit of truth to that :-)
Sort of staggering that shares picked up 3 years ago at 70-78 cents have paid out 63.8 c gross in dividends and doubled in value over that period as well.The crazy thing is that this company is still very cheap trading on a PE of 1.55 with a gross dividend yield of 21.5%. A company that has no debt, is cashed up and very profitable.
Not much else to say. Mindblowing.

While this year will be more difficult than last 2 years at least from a market perspective, an ease in freighting troubles & prices will help offset that. The future is looking very bright for this company.

[percy]

https://sendy.tarawera.co.nz/l/J6oLVth2f3f6IXNYvUBQEg/ZRhS6rvl0TbWphdwFjDppg/u763892kSZbhNIld17631lAEsOUA

[Sideshow Bob]

Well yes, a bit of truth to that :-)
Sort of staggering that shares picked up 3 years ago at 70-78 cents have paid out 63.8 c gross in dividends and doubled in value over that period as well.The crazy thing is that this company is still very cheap trading on a PE of 1.55 with a gross dividend yield of 21.5%. A company that has no debt, is cashed up and very profitable.
Not much else to say. Mindblowing.

While this year will be more difficult than last 2 years at least from a market perspective, an ease in freighting troubles & prices will help offset that. The future is looking very bright for this company.

Pretty crazy numbers, eh. Has yet to trade post announcement with the USX being down.

Total equity for the Co-Op is now over $438m - and while can always argue about the book value of assets and old freezing works, I'd think the retained profit over the last 3-4 years would probably be bigger than the market cap of the company. For example this year $189m net, $77m in divvies - so $112m retained. Market Cap for the CoOp (50%) is circa $150m, so their share of the retention this year is $56m.

Last year especially the beef margins were eye-wateringly good. So have to expect a more normalised return this year, and will undoubtedly be tougher. I'm also a perennial cynic, not in capital expenditure, but getting bang-for-your-buck and getting a return on it. But some of that will just be infrastructure that can't get a return on.

Debt free, plenty of cash and seems to be travelling pretty well - especially compared to Alliance and Anzco (can't see other private company profitability but guarantee the Talleyban/Affco are spitting out mega profits).

Well done Rob, Simon and team.

[percy]

Sales at $1.50 and $1.52.Plenty of buyers at $1.50.
One seller with 50,000 at $1.55....

[Sideshow Bob]

Sales at $1.50 and $1.52.Plenty of buyers at $1.50.
One seller with 50,000 at $1.55....

Expect to be some action.....especially after a couple of days of not trading and when getting 13.1cps fully imputed in 25 days time!!

But surprised trades went through this morning at $1.50....!!

[Sideshow Bob]

$1.55 gobbled up.

$1.60 is the only offer currently.

[percy]

$1.55 gobbled up.

$1.60 is the only offer currently.

My buy order was filled at $1.5343

Just as well it is lovely and sunny here,as I had to dip into some of our rainy day funds..lol

[Sideshow Bob]

My buy order was filled at $1.5343

Just as well it is lovely and sunny here,as I had to dip into some of our rainy day funds..lol

Good on ya Percy!! :)

Trading at $1.60 now, only offer $1.70. Those few that slipped through at $1.42 last week were great buying.....as was the last few months when locked on $1.50!!

Hopefully plenty of suppliers, if they haven't already are getting their fill of shares. Add the divvy to the livestock patronage reward, and they would be extremely tasty buying!!

[percy]

Good on ya Percy!! :)

Trading at $1.60 now, only offer $1.70. Those few that slipped through at $1.42 last week were great buying.....as was the last few months when locked on $1.50!!

Hopefully plenty of suppliers, if they haven't already are getting their fill of shares. Add the divvy to the livestock patronage reward, and they would be extremely tasty buying!!

Those shares going through at $1.42 had me worried.
Was thinking the result would be poor...

[Sideshow Bob]

Those shares going through at $1.42 had me worried.
Was thinking the result would be poor...

Gave me 2nd thoughts too - but in the end I just decided it was just a gap in the matrix.....:laugh:

But a little more worried about the latest trade in PAZ....