October 12, 2013
The Peanut Company of Australia has recorded a net loss of $8.12 million for the year ended March 31 despite revenue increasing by more than 11 per cent.
The company’s annual report, released this week, blames a number of factors for the disappointing result, including a harvest below expectations, the high cost of importing peanuts and the $3.7 million in interest paid on a “not sustainable” debt level.
This debt has now been substantially reduced with the recent $31.2 million NAB debt-for-equity deal.
After two of the lowest intake years on record, the 2012 season crop size was 21,109 tonnes.
PCA said this was an improvement on the previous two years but was still short of the levels required to service customers.
The quality of the crop was also down, which resulted in a significant drop in edible kernel yield.
The meant PCA had to supplement supply with imports, the cost of which remained high despite the strong Australian dollar.
The annual report also noted that the value of various PCA assets had to be adjusted, including water rights, by more than $3 million, and “the gene pool asset” by $1.1 million. These adjustments had also reduced revenue.
Mr Langdon said the PCA Board had deliberately delayed the finalisation of the financial statements until the debt-for-equity transaction with NAB had been announced.
He said that now buoyed by the announcement, directors and management were focussed on rebuilding shareholder value “from a revitalised balance sheet”.
“PCA’s Board, management and staff would like to thank farmer suppliers and customers for their commitment to PCA during recent and extremely difficult years,” Mr Langdon said.
“Through the continuing support of NAB, we have met all obligations to our growers as well as other suppliers of goods and services.
“Due to the overwhelming support of shareholders at the Extraordinary General Meeting on September 27, I expect that confidence in PCA from all stakeholders will be enhanced and this in turn will be a catalyst for a new and profitable future.”
In 2012, PCA recorded a loss of $6.4 million, up slightly on the previous year’s figure of $6.3 million.
