Silver Fern Farms has reported a higher annual profit due to one-off gains from a settlement with PGG Wrightson. However, no dividend will be paid amid what it calls a tough economic environment.
The meat processor and exporter made a profit of $43.6 million in the year to the end of August, an increase of 6% on the previous year.
But the company expects the high New Zealand dollar will have a detrimental effect on its bottom line this year, if it remains strong.
Excluding one-off items and a $37 million gain from the settlement with PGG Wrightson, it made an operating profit of just over $5 million.
Debt was reduced by almost $60 million during the year.
Chairman Eoin Garden says shareholders should be pleased with the result in what he describes as a tough economic environment, characterised by a highly volatile New Zealand dollar.
Given this, he says, the company will not be pay a dividend this year.