The nation's largest integrated cattle and beef producer, the Australian Agricultural Company (AACo) delivered a solid operating profit of $58.4 million, with cash flow hitting $27.1 million, its strongest since 2017.
Revenue climbed $52 million year-over-year to $387.9 million, driven by higher meat and cattle sales.
Cost discipline kept inflation impacts in check, though production costs per kilogram rose 5%.
Despite stable herd numbers (455,852 head), a $4.7 million dip in herd valuation led to a $1.1 million statutory net loss.
However, AACo - the oldest continuously operating company in Australia - boosted its net tangible assets (NTA) to $2.55 per share, up 2% from last year.
Market turbulence hit Wagyu sales, with average prices dropping 10% in the first half due to U.S. herd liquidations and Korean supply growth.
Signs of recovery emerged later, as price pressures eased. AACo’s brands - Westholme, Darling Downs, and 1824 - help balance demand fluctuations.
Westholme ramped up sales volumes, adding 17% to sales value, while Darling Downs expanded into Korea and Asia, increasing volumes by 19%. 1824 saw a 9% price jump following its 2024 relaunch, highlighting strong retail and food service potential.
A robust cash position allows AACo to reinvest in infrastructure, sustainability, and operational resilience.
The Zero Net Emissions Ag CRC project and AACo’s first soil carbon registration underscore its commitment to sustainability.
Investments in facility upgrades, fleet optimisation, and digital connectivity keep its operations nimble.
The company’s 24% gearing ratio remains at the low end of its target range, ensuring financial flexibility.
Global beef market conditions remain unpredictable, yet demand for Australian beef remains strong.
Korea, North America, and Europe offer opportunities amid tightening local supplies.
AACo’s integrated supply chain and global distribution give it an edge in navigating shifting trade policies and market dynamics. Strategic branding and product allocation protect pricing and positioning in key regions.
AACo’s strategy refresh is in motion, focused on Better Beef, Partner & Invest, and Unlocking Land Value.
A clear vision to lead with nature-led solutions sets the stage for future growth.
Managing Director and CEO David Harris credits the company’s resilience to its distribution network and adaptability to a volatile market.
“AACo’s ability to leverage its distribution network and strategically allocate product enables us to protect price in key regions,” Harris said. “That approach becomes even more influential when conditions are shifting, and while it doesn’t insulate the company from price pressures entirely, it does put us in the best position to respond when conditions improve, as we started to see towards the end of the financial year.
“However, while we saw incremental improvement in some product categories and sectors, a downturn in several high paying markets is indicative of the sustained challenging broader economic and market conditions.”
As AACo steps into the next phase, strong results, brand expansions, and disciplined management signal sustained investor confidence.
At the time of writing, the Australian Agricultural Company Ltd (ASX: AAC) stock price was $1.44, with a market cap of around $867.98 million.
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