Landcorp Farming Limited advises that it has updated its forecast Earnings before Interest, Tax, Depreciation and Revaluations (EBITDAR) for the financial year ending 30 June 2021. It now expects full year EBITDAR of between $59 million and $64 million. This compares to the previous forecast of between $45 million and $50 million, issued in February.

The change to forecast EBITDAR largely reflects growth in the dairy business as a result of both improvements in expected milk production and lifting value from Pāmu’s portfolio of milk products. Strengthening livestock business performance, the growing value of Pāmu’s carbon portfolio and lower than expected operating costs have also contributed positively to the forecast result. Factors impacting the lower operating expenses include higher than usual unfilled roles, reflecting the industry wide labour scarcity, and tight control of maintenance and fuel expenses.

The forecast assumes there will be no material changes during the final year end processes and audit; the final 30 June 2021 results will be released towards the end of August.