Australian Agricultural Company's shift away from live exports and toward packaged meat has helped the company to a first half profit for the first time in eight years.
AACo made a net profit of $50 million for the six months to September 30, compared to a $13.59 million loss for the prior corresponding period.
Total revenue was up 71 per cent on the same period last year to $258 million as revenue from meat sales nearly doubled to $218 million.
Packaged meat represented 84 per cent of AACo's revenue, up from 76 per cent on the 2015 first half, and 47 per cent on FH14, with the company now processing its own cattle through its Livingstone Beef abattoir in Darwin.
"We are selling more kilograms, off the same herd base, for more money," managing director and chief executive Jason Strong said.
"While we continue to build our branded beef business, we are also continuing to invest in the fundamentals that are so important to a robust supply chain."
AACo last declared a first half net profit when it made $5.9 million in the six months to June 2007.
The company was helped by an increase in prices, with shortfed prices up 10 per cent on a year earlier, Wagyu prices up six per cent and external live cattle prices up 31 per cent.
Sales had increased to all overseas markets, Mr Strong said, with Livingstone largely providing the US market.
"Our traceable supply, sustainable practices and our unique heritage means that our boxed beef products can occupy a unique position in global food markets," chief financial officer Andrew Slatter said in his results presentation.
"Our involvement throughout the supply chain gives our brands an authenticity, which is difficult for other participants to replicate."
AACo shares closed 3.5 cents higher at $1.505.
AACO HEADING UPWARDS
* Net profit of $50m vs net loss of $13.59m
* Revenue $258m, up from $151m
* No interim dividend
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