Australian Agricultural Company Ltd
ASX:AAC
Australian Agricultural Company Ltd
Australian Agricultural Co. Ltd. engages in the production of grass fed beef, grain fed beef, and wagyu beef. The company is headquartered in Bowen Hills, Queensland. The company went IPO on 2001-08-10. The Company’s principal activity consists of sales and marketing of beef into global markets. The company is also engaged in production of beef, including breeding, backgrounding and feed lotting. The firm brands include Westholme and Darling Downs. The company is also engaged in development of pastoral properties. The firm operates a cattle production system across approximately 19 owned cattle stations, over 3 leased stations, approximately 3 agisted properties, over 2 owned feedlots, and approximately 2 owned farms located throughout Queensland and the Northern Territory. The firm subsidiaries include A. A. Company Pty Ltd, Austcattle Holdings Pty Ltd, A. A. & P. Joint Holdings Pty Ltd, Shillong Pty Ltd, Wondoola Pty Ltd and Waxahachie Pty Ltd.
Australian Agricultural Co. Ltd. engages in the production of grass fed beef, grain fed beef, and wagyu beef. The company is headquartered in Bowen Hills, Queensland. The company went IPO on 2001-08-10. The Company’s principal activity consists of sales and marketing of beef into global markets. The company is also engaged in production of beef, including breeding, backgrounding and feed lotting. The firm brands include Westholme and Darling Downs. The company is also engaged in development of pastoral properties. The firm operates a cattle production system across approximately 19 owned cattle stations, over 3 leased stations, approximately 3 agisted properties, over 2 owned feedlots, and approximately 2 owned farms located throughout Queensland and the Northern Territory. The firm subsidiaries include A. A. Company Pty Ltd, Austcattle Holdings Pty Ltd, A. A. & P. Joint Holdings Pty Ltd, Shillong Pty Ltd, Wondoola Pty Ltd and Waxahachie Pty Ltd.
Record Operating Profit: AACo delivered its best-ever half year operating profit of $39.8 million, nearly double the previous period.
Strong Revenue Growth: Total revenue rose 19% year-on-year to $232.9 million, supported by higher beef prices and strategic cattle sales.
Margin Expansion: Gross margin increased by 55%, driven by higher average sales prices and stable costs.
Free Cash Flow Turnaround: Core free cash flow improved by $19.5 million, reaching $7.7 million for the half.
Cost Discipline: Cost of production remained flat or slightly down, despite inflationary pressures and a shift to higher-value Wagyu.
Strategic Investments: Continued investment in herd genetics, production capacity, and sustainability projects, including carbon initiatives.
Positive Market Outlook: Management is optimistic about continued global beef demand, with favorable developments such as U.S. tariff removals.
No Dividend: No dividend declared or paid; focus remains on reinvesting in the business.
