Silver Ferm Farms

[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/farmi...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??

[percy]

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

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

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!

That offsets my impatience waiting for the announcement!

[percy]

$1.60!

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

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....!!