The New Zealand Merino Company is back in the black, having posted an after-tax net profit of $160,000 for the full year ended June 30.
That was a $3.45 million improvement on last year’s loss, while ebit of $1.23m was up $3.86m on last year.
In an update to the USX, the company said there was no trade facility debt as at June 30, down from $10m of borrowings a year earlier.
There were 85,000 bales sold, with 69% into contract, down from 115,000 bales last year. No dividend was declared, in line with dividend policy.
The company said a year into its three-year EpicFibre strategy, it had made progress on right-sizing the cost base of the business, invested in systems and resources to drive efficiencies, effectively managed business reputation and commercial risk, and refocused back on the core business of wool.
The industry continued to face challenges with reduced clip sizes globally and environmental headwinds, especially in Australia, affecting production, it said.
However, the company remained “committed to advocating for the brilliance of wool” and the positive impact it could have on people and planet.
Over the next 12 months, it would continue to invest in systems, people and processes to deliver scalable growth, drive demand, create greater product differentiation and secure global supply.
“This year’s result is pleasing after a period of significant challenge in the wool industry. It is heartening to see the impact of our efforts. However, we must remain cognisant of the work still ahead of us.
“There are still strong headwinds facing the wool industry, and global economic uncertainty is unlikely to ease in the near term.
“While we have met the first goal of our EpicFibre strategy with a return to profitability, we must stay the course as we turn our attention to growth and long-term resilience,” chairwoman Kate Mitchell said.
Both Ms Mitchell, who is an independent director, and grower-appointed director Paul Ensor will retire as directors at the annual meeting in November, and both have advised they will be seeking re-election.
Ms Mitchell said, if re-elected, she intended serving a one-year term before retiring at the 2026 annual meeting.
She will step down as board chairwoman at the 2025 annual meeting and the board has unanimously decided to appoint Synlait co-founder John Penno as chairman. — Allied Media
