Despite ongoing COVID-19 disruptions and shipping challenges, Tatua has achieved Group income of $444 million and earnings available for payout of $186 million.
The earnings equate to $12.65 per kilogram of shareholder supplied milksolids, before retentions for reinvestment. This is an improvement on the previous year earnings of $10.43 per kilogram of milksolids, and is a record for Tatua, said chairman Stephen Allen.
Milk supply from Tatua’s supplying shareholders was impacted by an extended period of dry weather during the autumn months. This resulted in the 14.71 million kilograms of milksolids collected being 6.0% behind the previous season.
“We have confirmed a cash payout to shareholders of $11.30 per kilogram of milksolids supplied and have retained $1.35 per kilogram of milksolids, equivalent to $19.85 million before tax, for reinvestment in the business,” said Allen.
“In deciding our payout, we were very conscious of the sharp increases in on-farm costs being experienced by our shareholders, as well as the requirement for continued investment in the business and maintaining balance sheet resilience in what remains an uncertain economic and global trade environment.”
Allen said Tatua’s gearing (debt divided by debt plus equity) averaged 21% for the year, but was slightly higher at year end, reflecting increased inventory holdings at balance date.
“In addition to achieving record income and earnings, good progress has been made in many areas of the business, including a number of significant capital projects and business improvement initiatives, that together, have once again made for a very complete year,” he said.
“Our teams in New Zealand and in our off-shore subsidiaries have continued to demonstrate their commitment and dedication to the business and this is reflected in all that has been achieved. We thank our customers and all those who partnered with us during the past year and now look forward to another productive year ahead.”