Market Update

Allied Farmers Ltd
201 Broadway, Stratford, 4332
PO Box 304, Stratford 4352

Phone: 06 765 6199
Web: http://www.alliedfarmers.co.nz
Email: headoffice@alliedfarmers.co.nz

20 December 2021

announce@nzx.com


Market Update

Allied Farmers Limited (“Allied Farmers” NZX: ALF) forecasts a net profit before tax (NPBT)
for the interim period ending 31 December 2021 (HY22) in a range of $1.0m to $1.2m. This is
a significant uplift on the result for the prior interim period (HY21) of $0.546 NPBT, where New
Zealand Farmers Livestock’s (NZFL) performance was negatively impacted by Covid-related
pricing on veal processing returns.

The HY22 result is driven by a significant improvement in veal processing returns, and an
inaugural half year contribution from NZ Rural Land Management Limited Partnership.

The following table summarises the pre-tax contribution over the previous interim periods from
ALF’s investments:

Interim
Period
(1 July – 31
December)
NZ Farmers
Livestock
(livestock agency +
finance)
($m)
Farmers Meat
Export
(veal processing)
($m)
NZ Rural Land
Management
(asset management)
($m)
Parent
Company
Costs
($m)
2017 0.5 0.1 - (0.3)
2018 0.6 0.9 - (0.2)
2019 0.7 1.0 - (0.4)
2020 0.6 0.2 - (0.3)
2021F 0.1 1.2 0.3 (0.4)

As in previous years, the returns from the veal processing operations within NZFL continue to
be a major influence on half year performance. However, investors are reminded that typically
NZFL’s second half year profit is driven by factors distinct from the veal processing results
that drive first half year profit. The second half is strongly influenced by livestock trading and
herd sale activity, much of which will occur in the later part of the second half especially given
the Covid lockdown interruption experienced in the first half period.

Accordingly, it is not possible for ALF to forecast full year profits based on first half
performance at this stage of the financial year.

Mark Franklin
Chairman