THE Australian Agricultural Company (ASX:AAC) has affirmed its strategic supply chain shift with a 606 per cent lift in full-year profits compared to a year earlier.
The Brisbane-based beef and cattle producer recorded a net profit of $67.8 million for the year ending March 31, up from $9.6 million in the previous period.
The company's operating earnings also improved at $14.8 million - up $18.4 million. While cash inflow increased $97.7 million to $21.8 million.
Total kilograms of beef sold was up by 96 per cent, with total sales revenue increasing by 44.7 per cent to $489 million.
AACo managing director Jason Strong says the company's strategy to own cattle right through the supply chain has bolstered revenue and margin.
"The increased volumes included production growth at our Livingstone Beef processing facility at Darwin as well as a 15 per cent increase in the sales volumes of our premium Wagyu brands," Strong says.
"In the past year our premium Wagyu brands have been recognised as some of the best in the world - including being names as Grand Champion at the World Wagyu Conference.
"We're going to step up our differentiated branding strategy to tell the story of why AACo beef is so good, sharing the experience from our iconic cattle properties in the North to some of the world's finest restaurants.
"We are also investing in cutting edge technological innovation to improve the consistency and predictability of beef production through data analytics, pasture mapping, grazing management and genetics."
A full-year dividend hasn't been declared. The board will continue to review dividend policy and payments as the company returns to sustainable and significant operational cash flows.
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