Australian Agricultural Company Limited
(ASX:AAC) has announced a net loss of $46.5 million in the three months to March 31.
The company says it was hit by a $43.2 million non-cash, pre-tax write down due to a slump in domestic cattle prices.
AACo says cattle prices have been severely depressed, blaming the Federal Government’s suspension of live cattle exports and adverse seasonal conditions in Northern Australia.
But Managing Director David Farley says AACo has increased cattle sales and beef revenue in the quarter, but domestic prices weighed on the result.
The company says the majority of cattle written down in value are long life-cycle breeding cows and young grower cattle and therefore not intended for near-term sale.
AACo posted a net loss of $8.4 million for its 2012 financial year and has advised its financial year end is changing to March 31, however these results do not reflect the 12 month period.
