Consolidated Pastoral Co posts revenue of $154.6 million

NT-2Leading Australian agribusiness Consolidated Pastoral Company (CPC) has announced revenue of $154.6 million – down 6.2 per cent – for the year ended March.

This reflects fewer cattle sold as work continues to rebuild the cow herd.

Financial highlights:

  • Earnings Before Interest, Tax, Depreciation, Amortisation and property revaluations of $49.7 million, up 31.5% (2016: $37.8 million)
  • Profit after tax of $37.1 million, up 82.9% (2016: $20.3 million)
  • Cash generation* of $20.2 million (2016: $21.1 million)
  • Total assets at year-end of $880.5 million, up 12.0% (2016: $785.9 million)Operational highlights:
  • Improvements in performance, reflecting continued investment in productivity initiatives and station assets including water and fencing infrastructure
  • Continued progress towards optimising the portfolio and strengthening the balance sheet with sale of Humbert River (Northern Territory), Mount Marlow, Gowan and Cooinda properties (Queensland), as well as sale and leaseback of Carlton Hill Station (Western Australia)
  • 80% ownership of JJAA, which owns and operates two feedlots in Indonesia providing valuable vertical integration and direct access to Australia’s largest cattle export market
  • Accelerated world class genetics program, with a strong focus on increasing profitabilitythrough every stage of the value chain
  • Ongoing investments in people and training with CPC’s own in house training facility built atManbulloo Station
  • Workplace health and safety remains a key priority for the business
  • Ongoing commitment to long-term sustainable use of land and waterways with continualinvestment in the development and improvements of the properties, including completion this year of the six-year Lake Woods Biodiversity project to control Parkinsonia

    Troy Setter, Chief Executive of CPC, commented:

    “CPC’s solid earnings performance for FY17 reflects sustained high cattle values along with productivity improvements delivered across the business over the past 12 months. With our geographically diverse properties and self-sustaining herd, CPC is well positioned to benefit from strong global demand for beef.

    “We continue to see positive outcomes through the ongoing transformation of CPC from a cattle producer to an integrated premium quality beef and cattle supplier to international markets.

  • “The majority ownership of JJAA, which owns and operates two feedlots in Indonesia, is providing valuable direct access to this large and attractive market. There is significant upside potential from ongoing investments in our properties as well as productivity improvements from our leading genetics program.“Total assets at year end were up 12% year on year reflecting the quality of our properties and a continued focus on portfolio optimisation and capital reinvestment. CPC divested five stations, leased one back and continued to employ a conservative methodology to asset valuation during the year.