Australian Agricultural Co LTD (ASAGF) ​​(FY 2025) Yield sound Highlights: Record Cashflow …

Appearance date: May 21, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Australian Agricultural Co LTD (ASAGF) ​​has achieved its highest operational cash flow and the second highest operating profit since 2017.

• The company recorded an increase in total sales by 15%, which is due to higher meat and cattle turnover volumes.

• The strategic refreshment and focus of ASAGF on sustainability initiatives such as the solid program and the floor carbon project are expected to offer long -term advantages.

• The company held a stable herd size with improved productivity, which contributed to higher sales.

• The brands of ASAGF, including West Home and Darling Downs, showed considerable sales growth and the market expansion.

• The company reported a legal loss of $ 1.1 million, which was affected by the unrealized mark-to-market value of the herd.

• Inflation pressure led to an increase in production costs per kilo by 5%.

• The price pressure in some regions led to a general reduction in the weighting sales price for average meat per kilogram.

• The company faced challenges with dynamic markets, further developing trading conditions as well as the offer and demand restrictions.

• At the beginning of the year, an unfortunate incident occurred with animal welfare, which emphasizes the need for improved procedures to prevent future events.

Q: Was a buyback considered? A: Dave Harris, MD and CEO: The decision regarding a share buyer is that the board is active. At the moment, the focus is on reinvestment in the company to develop the three strategic business areas that we believe that they will offer shareholders long -term advantages.

Q: What is the strategy for debt reduction and future dividend payments? A: Glenn Steadman, CFO: With the strategic update, we have identified areas that require future investments. Therefore, the reduction in debts is unlikely because we pursue these investment opportunities.

Q: Can you please tell how many Franking credits AAC have? How much possible, completely franked dividend per share, does this represent? Why does AAC have a policy not to pay dividends, and when is it likely to be paid for a dividend? A: Dave Harris, MD and CEO: There are currently no Franking credits. The decision on dividends applies to the board. With regard to the unfortunate incident in which cattle died of water failure, we carried out an investigation and developed procedures in order to minimize the likelihood of such an event again.