Pāmu (Landcorp Farming Limited) has announced a net profit after tax (“NPAT”) of $41 million for the half-year ended 31 December 2021.

Pāmu’s EBITDAR (earnings before interest, tax, depreciation, amortisation and revaluations), which is its preferred financial measure, was $16 million compared to $14 million in the half-year to December 2020.

Chairman Warren Parker said the result was particularly gratifying as the company managed the ongoing impact of Covid.

“Covid has continued to disrupt our people, which on top of ongoing labour shortages, extreme weather events on the West Coast and in the Manawatu and logistics, processing and availability of farm supplies, has made for a challenging half year,” Dr Parker said.

Pāmu is currently forecasting a full-year EBITDAR of between $83m and $88m, compared to our original budget of $73m, with the strong milk price a key driver of this increase.

“Higher than average rainfall and cooler soil temperatures contributed to a decline in peak milk production, however this was more than offset by record milk prices.

“Red meat pricing has also been buoyant, and lambing, calving and fawning performance was in line with recent year averages, enabling us to produce a solid overall result for the half year,” Dr Parker said.

“The business is well positioned to produce a strong full year result, as we look to manage the peak of Omicron across our farms and keep our animals and people safe.

“We look forward to welcoming our new Chief Executive Mark Leslie in March. He joins a company with a clear strategy, a strong balance sheet and a range of exciting opportunities and partnerships across the business and the agri-sector that will bring benefits to both Pāmu and the wider farming community,” Dr Parker concluded.