One of the country's biggest farming enterprises, A.J. & P.A. McBride, has delivered an $8.2 million operating profit for the 2018 financial year, up 15 per cent after higher wool prices and an increase in farming land values helped offset patchy seasonal conditions.
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The fifth generation family-owned group presides over more than 1.1 million hectares of farmland across South Australia and produces meat, lamb, wool, as well as operating a vineyard.
The company purchased Telopea Downs in Western Victoria from Qatar's sovereign wealth fund-owned Hassad Australia for more than $70 million in August.
Chairman Keith McBride said “the stars had aligned” in delivering the company a statutory $19.7 million profit, which includes valuations, in line with last year's very strong result.
"Interest rates are low, commodity prices are strong, land values have risen," Mr McBride said.
"And we have been lucky because Australia has had pretty patchy conditions."
The company, which will turn 100 years old in 2020, had the value of its significant land holdings revised upward.
The revaluation of farming land increased 15pc, finishing the year at $152.5 million.
With the continued rise in wool prices, McBride locked in a boost in wool sales revenue of close to 25pc for the year, and an increase of 50pc on 2016.
Prices for wool have pulled back sharply since August, but with a June 30 year end, the company was able to deliver a result unaffected by the recent price changes.
"We are primarily in the south-east of South Australia which has had a great season and good prices," Mr McBride said.
"The north has struggled a bit and might struggle a bit in the future.
"Telopea has been a mixed bag."
Before factoring in Telopea, the group operates properties with a total of 200,00 sheep and 7000 cattle across 10 properties.
Total borrowings for the group started the year at $15.4 million, reaching $17.4 million by year end.
Following the June 30 close, McBride's bank facility increased from $25 to $102 million to allow for the acquisition of Telopea.
Operating revenue was up $2.8 million, finishing the year at $26.76 million.