Silver Ferm Farms

[percy]

Silver Fern Farms’ Simon Limmer to step down as Chief Executive
8 September 2023 General Announcement
Security: SFF


Silver Fern Farms Limited has today announced that Simon Limmer will be stepping down after five and a half years as Chief Executive. Mr Limmer will stay in his role during the transition to a new Chief Executive and will remain involved with the company in a strategic role going forward.



“On behalf of the Board of Silver Fern Farms Ltd, I have regretfully accepted Simon’s resignation however I am also very grateful for his immense contribution to the business and our industry over the last five and a half years,” says Silver Fern Farms Ltd Co-Chair Rob Hewett.



“Since joining Silver Fern Farms, Simon has doubled-down on the company’s Plate to Pasture market-led strategy and he will leave a business which is in great health and with a clear direction,” he says.



“While the company’s financial performance, investment, and returns have all increased under Simon’s tenure, one of the biggest contributions he has made has been to the development of culture and leadership.”



“The Board now commences a process of recruiting Simon’s replacement; however, we’ll continue to utilise Simon’s expertise and experience in a different capacity going forward,” he says.



Simon Limmer says that while he will miss the role, after over five years as Chief Executive he felt it was the right time to pass on the baton.



“I’ve always felt that this length of time is about the right tenure for a Chief Executive, but I am really passionate about Silver Fern Farms and the industry. It has been a very tough decision for me to take this step and consider new horizons, however I feel that now’s the time for an injection of new energy and perspective into the business,” he says.



“I’m conscious that global market conditions have created some immediate challenges, however these will pass and I’m confident in our strategy and ability to see these challenges through and continue creating new forms of value for our shareholders,” he says.



The Board will now commence an executive search for Mr Limmer’s replacement. Mr Limmer will stay on at the company during this recruitment which is expected to take until the start of 2024.





For further information, contact:



Bill de la Mare

Head of External Affairs

Silver Fern Farms

021 924 331

[Sideshow Bob]

Simon has done a great job, and leaves the company in a very good position, albeit with some challenges in the shorter term. Good guy with it too.

Wouldn't spend much time at home, as I think still living in Tauranga - which isn't near any of their hubs. Plenty of time on planes!!

Interesting that he is staying on in a 'strategic role". Most of the time incoming CEO's wouldn't be huge fans of their predecessor still being there.

As for his replacement, lets see if promote from within (like Alliance) or go outside.

[iceman]

Agree SB that Simon has done a great job. He is handing over a well managed and successful company to whoever takes over, I thank Simon and wish him very well for his future

[Sideshow Bob]

Simon has a new role already.....

https://www.scoop.co.nz/stories/BU23...mer-as-ceo.htm

[percy]

Simon has a new role already.....

https://www.scoop.co.nz/stories/BU23...mer-as-ceo.htm

I wish him well there.
Great he is going to a very successful exporter.

[Sideshow Bob]

Not looked at the share price for a while.

The price with illiquid stocks......quick drop from $1.40 to $1.20......

But is a symptom of the lack of profitability for processors this season - certainly a challenging one and we've seen Alliance chop out a few head. SFF won't be immune and operate in the same markets.

[iceman]

Not looked at the share price for a while.

The price with illiquid stocks......quick drop from $1.40 to $1.20......

But is a symptom of the lack of profitability for processors this season - certainly a challenging one and we've seen Alliance chop out a few head. SFF won't be immune and operate in the same markets.

It's a shame we don't get more frequent updates from companies on the USX. Quarterly or half yearly would be a big improvement.
SFF announced (unusually) an interim dividend on 27 October last year. It will be interesting to see if they do anything this October !

Very tempted to top up at $1.20.

[percy]

Not looked at the share price for a while.

The price with illiquid stocks......quick drop from $1.40 to $1.20......

But is a symptom of the lack of profitability for processors this season - certainly a challenging one and we've seen Alliance chop out a few head. SFF won't be immune and operate in the same markets.

I wonder if the share price weakness is signalling there will not be an interim dividend,or whether some farmers are selling shares to get their hands on some cash.?
SFF said at their agm SFF Ltd would continue their [huge] capital spend,including a big amount on IT.
Should The CoOp not get a divie from SFF Ltd, I wonder whether they will use some of their rainy day reserve capital to pay a final divie,?

[iceman]

I wonder if the share price weakness is signalling there will not be an interim dividend,or whether some farmers are selling shares to get their hands on some cash.?
SFF said at their agm SFF Ltd would continue their [huge] capital spend,including a big amount on IT.
Should The CoOp not get a divie from SFF Ltd, I wonder whether they will use some of their rainy day reserve capital to pay a final divie,?

I don’t think there is any chance of SFF Ltd not paying a dividend for this year. The SH agreement between the Co-op & Shanghai Maling sets a minimum dividend payment of 30% of NPAT

So we will definitely get a divie this year. The question is how much ?

[Sideshow Bob]

I don’t think there is any chance of SFF Ltd not paying a dividend for this year. The SH agreement between the Co-op & Shanghai Maling sets a minimum dividend payment of 30% of NPAT

So we will definitely get a divie this year. The question is how much ?

SFF Ltd would have retained a huge amount of profit in recent years. Even last year, $189m profit, Coop received $38.5m (paid out likely around $33m), but based on this, SFF would have kept about $112m. And this was only last year - while it was a record, there have been a few reasonable years in a row where they've kept a good chunk of change in the back pocket. So think they have enough for their projects, capital expenditure etc.

However for this year, they may not make a profit - and I'm probably glass half-empty, but I'm not so sure this will happen, or at least to any great degree. I understand margins are pretty poor. Lamb has been extremely difficult - lots of Australia product around and schedules there are $4's, while in NZ trying to pay $7 while markets are being flooded with Ozzie product. Understand that beef margins are pretty average and nothing special.

We get no real guidance on how things are tracking - which can be frustrating. Maybe if you went to a supplier meeting there may be some comment, but nothing wider. But the shares are primarily for suppliers, who in theory are there for the long-term while they supply stock, and not so worried on the ups and downs or timing.

Alliance are just finishing their FY 30/9 so we are going to have to wait until November for them to report. But was seen that David Surveyor left Alliance after their record year, and already going downhill.

The thing is the shares are illiquid at best. So has moved about $0.19c in recent weeks based on 40k shares and a handful of trades.

I think in terms of a divvy this year, it might just depend if they throw shareholders a bone. In the meantime, we wait!