ANZCO posts $61m net profit despite challenging year

The company has described the result as pleasing despite the net profit being less than half of the $148m achieved in 2022.

Turnover for financial year ending 31 December 2023 reached $1.83 billion, slightly below 2022’s turnover of $1.9b. ANZCO Foods Five Star Beef operation was closed for six months during the year after the farm was infected with Mycoplasma bovis.

ANZCO Foods chief executive Peter Conley paid tribute to the hard work of the company’s people, adding that a relentless focus on core business activities and growing returns from strategic investments were key to the company’s success. 

Conley noted the result was particularly pleasing given the challenging business environment the sector experienced during 2023.

“There were some positive signs for exporters during the year including the Covid recovery bringing an upswing in tourism and restaurant business, however, this was countered by the global impact of rising costs and interest rates, as well as consumers facing higher living costs.

 “The recovery in China has been slower than anticipated and this coincided with difficult trading conditions for some key products in other markets. With a strong global reach, ANZCO Foods managed to effectively navigate market pricing challenges for beef and lamb at various stages of the season,” says Mr Conley.

 “A significant project during the year was the depopulation and repopulation of our Five Star Beef operation, as part of New Zealand’s programme to eradicate Mycoplasma bovis. As an infected farm, Five Star Beef went through the same process as all other infected farms and this meant our high value niche products were out of the market for around six months.

“The depopulation, cleaning and repopulation had a considerable impact on our staff, customers, and suppliers working with the Five Star Beef business. We’re grateful to these affected parties for their ongoing faith in our highly valued products and continuing to work with us as we re-establish this business,” he says. 

 ANZCO Foods, which celebrates its 40th anniversary this year, is continuing to deliver more value from its business.

Behind ANZCO Foods’ approach is a core focus on ensuring livestock is procured to meet customer expectations, says Conley.

“We support key customer relationships through our on- and off-shore offices. During the year ANZCO Foods’ China office became operational, and with our other offshore offices in Japan, Australia, North America, UK and Europe, contributed to our strategy of getting closer to our customers and delivering increased revenue from our red meat products,” he says.

“Our value-add food and healthcare businesses performed well and continued to grow their contribution to the company’s result during 2023. Our relationships with some of the world’s leading healthcare companies give us confidence that this business will continue to grow and add value to our core red meat processing business.”

 ANZCO Foods continues to invest in technology and tools that underpin decision-making based on good information and this was particularly important during the uncertainty experienced during the year.

 Climate change and sustainability remain a key focus for ANZCO Foods and during the past year the company reviewed and updated its three-year strategy as well as continuing to invest in lower emissions technologies to improve environmental compliance and performance.

 The company has a commitment to actively support people and communities across New Zealand, particularly in rural communities through donations, sponsorships and scholarships with focuses on supporting food banks, community support services and rural schools as well as improving health and wellbeing for farming communities.

  “ANZCO Foods remains committed to doing all we can to continue to deliver strong returns, ensure the industry remains stable, and contribute to a strong and vibrant agribusiness sector,” Conley says.