Has creeped up a little in the last week. Fairly firm support at $ 1.30 now. Managed to get a handful at $ 1.15
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Nice one! Great LT buy, and see now popped back up.
Has been reported that Alliance has said at their supplier roadshows that they'll make a loss this year (FY ended 30/9/23). 2021 they made $23m after tax, last year $73m. So quite the turnaround and will be interesting to see how far down they are. Understand taking quite a few measures to arrest the slump, including some job losses, and rumours are might be quite a large red number.
Alliance more exposed to lamb than SFF, as AGL are NZ's largest sheepmeats processor. Lamb has been a huge struggle for processors of late, with markets awash with cheap Australian lamb. Australian schedules are around $5 AUD/Kg for heavy lambs, $3.75/Kg for light lambs, whereas NZ lamb schedules are around or just under $7 NZD/Kg - so something doesn't add up. For the last week in September, 2021 the Aussies slaughtered 97k lambs, 2022 was 87k lambs and in 2023 it was 125k lamb......
Australia has benefited from herd rebuilds and La Nina being kind to Aussies with good rain/grass growth. But El Nino could be a complete different story.
Understand beef has been pretty average margin-wise, but better than lamb but Alliance only about 7% of NZ's production vs SFF 30%.
Interesting times!!
Potential job losses at Alliance....
https://www.stuff.co.nz/business/far...Pos=1#cxrecs_s
While different to SFF, operate in the same procurement and sales markets.....
Bids & offers keep creeping up !
Again, not SFF but Alliance.
https://www.odt.co.nz/rural-life/red...9-meat-company
Preparing shareholders for a sh1t result.....
I see Rob up for Chairperson of the Year and Simon up for CEO - well done!
https://www.nzherald.co.nz/business/...1+October+2023
Surprised if anyone was surprised no interim divvy! I'd take last year as an outlier at this stage, but very welcome if wrong!
Last year Alliance was 17th of November announcement. Might see that a little later this year given loss coming, but will be an interesting read on the industry and where SFF might pitch up.....
A Business Desk article this morning, saying Alliance will make the largest loss since 2012. I had to scour the internet to find their 2012 annual report - made $57m operating loss, $50m net loss, on $1.4B turnover. Last year they turned over $2.2B, although expect to be well back on this.
Talked to someone from another company recently, and even with issues with Gabrielle etc, they were still profitable, albeit not by much.
In the meantime, looking tough for farmers....
https://www.1news.co.nz/2023/11/06/2...+November+2023
All these new regulations being imposed on farmers re emissions and such things apparently aren’t being driven by Greenpeace, Green Party and such bodies …….rather it’s a strong lobby group from producers influencing government action. That pisses the farmers off …drive us of our farms and we all lose
Probably true when you consider Silver Farms and their Net Zero stuff
Interesting comments in from Service providers, but won't elaborate further ..
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