AACo feedlot expansion drives sales volumes
The nation’s biggest cattle ranching business has leveraged increased feeding capacity from a recent expansion to report a strong profit for the 2025 fiscal year.
The nation’s biggest cattle ranching business has leveraged increased feeding capacity from a recent expansion to report a strong profit for the 2025 fiscal year.
Australian Agricultural Company Limited on Thursday announced an operating profit of $58.4m for the fiscal year ending March 31, 2025, up 14 per cent on FY24.
It is the third consecutive year it has recorded an operating profit above $50m, while it also reported a total sales revenue of $387.9m, up from $336.1m in FY24.
FY25 saw AACo’s meat sales reflect the first full year impact from its Goonoo feedlot expansion, with meat sales revenue up 9 per cent to $293.9m, with 16.5 million kg of meat sold, an increase of 21 per cent on the prior corresponding period.
However, prolonged herd liquidation in the US and increased local supply in Korea, two key markets for AACo, in the first half of the year meant the average price per kilogram of meat sold decreased 10 per cent to $17.85.
In terms of live cattle sold, revenue was up 39 per cent to $94m, with 33.3 million kg liveweight sold, up from 24.1 million kg in FY23.
The company reported its herd size remained largely consistent at 455,852 head, with the unrealised mark-to-market value of the herd declining $4.7m, with the result contributing to a statutory net loss of $1.1m.
Chief executive David Harris said it was an “exciting time” for the company.
“AACo’s ability to leverage its distribution network and strategically allocate product enables us to protect price in key regions,” he said.
“The purpose and vision are our guide, while the focus areas will be the blueprint to how we deliver on a day-to-day basis.”
The company expected the demand for Australian beef to remain strong, especially in Korea, North America and Europe where local supply is contracting.
The results come just a few weeks after the company lost one of its key executives, Michael Johnson, for reasons undisclosed.
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