Revenue for the six months to November 30 was $169.7 million, up 3.8% on the previous corresponding period, and net profit after tax was $33.4m, up 10.4%.
LIC directors updated their guidance of underlying earnings in the full financial year of $19m to $23m, increased slightly from $16-22m.
Underlying earnings (net profit excluding revaluation of the bull team) were $22.7m in FY2020, from which directors paid a dividend of 12.75c a share.
Half year results incorporate the majority of revenues from the farmer-owned co-operative’s core artificial breeding (AB) and herd testing services, but not a similar proportion of total costs, so are not indicative of the second half, nor the full year result.
Revenue from international and technology products is also spread through the year. No dividend is declared at half-year.
Chair Murray King says the 10% increase in net profit was due to strong growth of farmers’ use of premium AB products and animal health and diagnostic testing.
LIC was focused on balancing profit and returns with research and development and new technology investment for the long-term.
During the period it made investments in the AgCelerator fund, including an Auckland-based blockchain agriculture solution Trackback and Dunedin-based mastitis detection company Mastaplex.
LIC has 800 staff members and 11,000 customers and it expects revenue in the full year to be slightly more than $250m.
