Richmond is back on track to deliver full year profit target despite a disappointing half year profit result

An extremely challenging start to the season has resulted in Richmond today announcing an after tax profit of $433,000 for the six months to March 31, 2004. Chief Executive Officer Richard Carver said Richmond is disappointed with the half-year result, which was impacted by the issues detailed in this announcement. The rising New Zealand dollar, increased competition and additional capacity in the lower North Island has adversely impacted both the volume and margins of Richmond’s sheepmeats business. Adding to this, the East Coast storms in spring resulting in lamb losses of approximately 0.5 million and the severe flooding in February significantly eroded Richmond’s profit for the first half of the season. The February flooding resulted in both interruption and damage to Richmond operations in Hastings, Takapau, Oringi, Waitotara and Shannon. The Company carries comprehensive business interruption and material damage insurance and is working closely with its insurers. Total Revenue was $589.7 million, an 11 percent drop on the previous half year’s $663.3 million. The result compares to a $14.2 million (after tax profit) for the same period last year, when the company was processing at record levels due to the climatic conditions.