Livestock Improvement Corporation Limited announced audited consolidated earnings results for the year ended May 31, 2018. For the year, on consolidated basis, the company reported revenue of NZD 236,420,000 against NZD 203,529,000 a year ago. Profit before tax expense was NZD 13,652,000 against NZD 30,498,000 a year ago. Profit was NZD 9,265,000 against NZD 20,800,000. Profit per investment share NZD 0.33 against NZD 0.70 a year ago. Net cash flow from operating activities was NZD 37,830,000 against NZD 25,359,000 a year ago. NZD 27 million earnings before interest and tax (EBIT) excluding bull team revaluation and one-off transformation costs of NZD 20.7 million, up 175% on last year. Reported EBIT of NZD 14.9 million, 54% down on same period last year. This is due to the impact of the one-off transformation costs and the annual revaluation of the biological bull team. NZD 3.0 million Underlying Net earnings (NPAT excluding the increase on fair value of the biological assets and related tax effect), same as previous year.

The company expected underlying earnings for the 2018 to 2019 financial year to be in the range of NZD 18 million - NZD 22 million, assuming no significant climate event or milk price drop takes place between now and then nor any major impacts from M. bovis. NPAT is lower as it includes the oneoff implementation costs of the programme. Stronger reported EBITDA and reported EBIT is expected.