Despite posting its best profit result since the Australian Agricultural Company's ASX listing 21 years ago, the big beef business' shareholders are still not getting a break in their long dividend drought.
In fact, the 14-year wait for a dividend payment may drag on for a while yet if chief executive officer Hugh Killen's comments are any indicator.
"We want to continue investing back into the business," Mr Killen told an investor briefing after reporting AACo's statutory net profit for 2021-22 jumped to $137m.
"My focus is on getting the right capital investment in the business. We have more work to do."
A 21 per cent jump in its per kilogram beef price, a post-pandemic lockdown revival in its premium restaurant markets overseas and a $130m unrealised increase in the value of its big Wagyu-based herd drove much of the company's after-tax net profit growth jump - up from $45m a year ago.
Underlying operating profit doubled from $24m to $50m.
Mr Killen said investing in the company to make it much more efficient, and "having the right tools at our disposal" had already begun putting the pastoral and branded beef business in a strong position to ride out future seasonal downturns or changes in the market.
He noted its investment focus had contributed significantly to a "very good uplift" in AACo's property valuations in the past year, as seen in its full year financial result and rising share price, which climbed to $1.95 late last week.
Two years ago AACo shares were trading near 95 cents each.
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Asked if the company was planning to reward investors' patience with a dividend, possibly even divesting some of its vast land assets while property prices were so strong to help it return some capital value to shareholders, Mr Killen played a straight bat.
"On the question of dividends, that's one for the board of directors to decide," he said.
"The chairman will update shareholders at the annual general meeting."
Mr Killen said the AGM, normally held in late July, would also be a good time to ask if AACo would look at possibly buying back some of its 600m shares after investor, Charlie Kingston, suggested it may be one way to pay shareholders, and reduce the discount on its share price.
AACo is Australia's largest integrated branded beef producer, with a pastoral estate spanning 6.4m hectares, or roughly 1pc of Australia's land mass.
Mr Kingston pointed out while the company's net tangible assets were gaining value, its shares had a long history of trading at a "chronic discount" to the company's asset portfolio.
In response, Mr Killen said ultimately any decisions or commentary on share issues were for the board to make.
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