Genetics Australia posts profit increase

Genetics Australia posts profit increase, sales revenue boost of $1 million

Dairy
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Genetics Australia Co-operative Limited has recorded a $1 million increase in sales revenue and a stronger profit, reflecting improved weather and industry conditions.

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CHALLENGE: Genetics Australia CEO Anthony Shelly says there are still enormous challenges ahead for the dairy and herd improvement industries.

CHALLENGE: Genetics Australia CEO Anthony Shelly says there are still enormous challenges ahead for the dairy and herd improvement industries.

Genetics Australia Co-operative Limited has recorded a $1 million increase in sales revenue and a stronger profit, reflecting improved weather and industry conditions.

The 2019/20 annual report released on Monday shows a profit of $545,596 after tax, an improvement of about $300,000 on the previous year.

Sales revenue grew by more than $1 million to $10,771,972, with a total comprehensive income of $2,625,991.

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Genetics Australia chief executive officer Anthony Shelly and board chairman Trevor Henry said the positive result reflected the improved weather and industry conditions that were widely experienced in the dairy industry.

The net asset base of the co-operative remains strong at $13,508,398, which is an increase of $2,631,897 on the previous year, with a positive cash position of $295,209.

"While we have undoubtedly had a better season, there are still enormous challenges ahead for the dairy and herd improvement industries," Mr Shelly said.

"We are very pleased with this result; however, we need to find ways of making that result more repeatable.

"This remains the biggest challenge for the co-operative, and the board and management are committed to developing the right business model that delivers sustainability and the scope for re-investment in people, products and programs."

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COVID-19 had added pressures to the business with staff working remotely and other restrictions that hampered some business functions.

Despite that, Mr Shelly said the co-operative was pleased with the way that it handled the COVID challenge and was looking forward to returning to a "normal" business environment for 2020/21.

"The cancellation of our GA 2020 Conference was a huge disappointment, however we managed to salvage much of the good work by shifting to online delivery platforms for a significant proportion of the content," he said.

Genetics Australia's export business continues to expand with demand from China leading the way.

Mr Henry said the co-operative had a strong belief in the 'Australian cow' and it appeared many countries were also recognising its unique qualities.

"Our next step is to make her even more 'green' than she is now, by enhancing her disease resistance, heat tolerance and feed-efficiency characteristics," he said.

Mr Henry said Genetics Australia continued to provide Australian farmers with world-class genetics at sensible prices.

"We continue to develop world class Australian grazing genetics and work with our partners overseas to source complementary product to ours to ensure that shareholders have access to the best range of genetics on the market," he said.

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