Chief Executive David Chin says the farmer-owned co-operative continues to see strong demand for its products and services, including on-farm software MINDA, where integrations are increasingly supporting farmers to make more informed herd improvement decisions.
“The number of animals connected through LIC's wearable integrations has grown 93.8% over the past year. This reflects the confidence farmers have in sharing farm data through our secure API integrations. This, combined with the use of Sexed Semen, which has increased 52% in the last year and Genomic profiling which is up 19% highlight the ways technology is helping farmers to drive better herd performance.”
“As a generational co-operative, we’re proud of the role we play in driving genetic gain. The increase in Genomic profiling means our reference population now sits at more than two million genotypes, and more than two thirds of our farmers have chosen to share their data with our 17 integration partners. Achievements like this, alongside a strong financial result, reflect the confidence farmers have in LIC.”
Summary of financials*:
- Total Revenue: up 6.7% at $314.8 million
- Net Profit After Tax (NPAT): $21.3 million, down 30.4% from the same period last year
- Underlying Earnings: $21.8 million, no change from the same period last year
- Dividend: $17.5 million, at 12.26 cents per share, representing 80% of Underlying Earnings.
- Total assets: $408.5 million, up 4.2% from the same period last year
- Strong balance sheet with no debt at year-end
Net Profit After Tax (NPAT) was down this financial year, predominately due to increased investment in upgrading technology and security platforms. LIC Board Chair Corrigan Sowman says the co-operative remains focused on investing in the infrastructure and security needed to protect increasing amounts of data.
"More farmers are choosing to securely share their farm data with LIC because they see the value it creates for herd improvement. Maintaining that trust means continuing to invest in the technology and security that protects their information and supports the growing use of connected farming tools. This investment is about giving farmers confidence to keep sharing their data, while ensuring we can continue delivering the insights and services that help improve the long-term performance of both their farm businesses and the wider sector.”
ENDS
This statement has been authorised for release by the Board of Directors
Contact
Shareholder enquiries: 0800 542 742
Media enquiries: Kellie Addison, LIC Communications and Brand Engagement Manager
[email protected], phone 021 897548
- These full-year financial results include the annual non-cash revaluations of LIC’s major biological asset, the bull team, and the outstanding Nil Paid Ordinary Shares receivable, which are both required to reflect “fair value” under accounting standards. Figures have been audited. These numbers should all be read in conjunction with the financial statements.
- Underlying Earnings: This is LIC’s NPAT excluding bull valuation movement, nil paid share valuation movement and significant enterprise system implementation costs. Underlying Earnings is a supplementary non-GAAP measurement considered useful to investors as it is the basis on which LIC has historically reported and determined dividends. Non-GAAP financial information does not have a standardised meaning prescribed by GAAP and therefore may not be comparable to similar financial information presented by other entities.
- Bull team valuation: The annual non-cash revaluation of the co-operative’s largest biological asset was $109.5 million. This is up from $101.2 million the previous year, mainly due to improved forecast activity levels in a higher milk price environment. The valuation is based on an independent model that looks at future revenue streams and costs associated with the current bulls owned, discounted back to current value.
- During the period, LIC embarked on a significant multi-year investment into replacing and improving aged enterprise and customer facing systems. The investment is predominantly into Software as a Service tools, the costs of which are generally expensed as incurred rather than amortised over future financial periods. As a result, profit after tax has been negatively impacted by $6.5 million implementation costs in 2026 net of tax effect (May 2025: nil).
- Nil Paid Ordinary Shares: These were issued to shareholders in 2018 as part of the share simplification process which brought together LIC’s two previous classes of shares into one Ordinary Share. For each co-operative share held, one Fully Paid Ordinary Share and three Nil Paid Ordinary Shares were issued. Nil Paid Ordinary Shares carry the same rights to dividends and voting as Ordinary Shares but cannot be traded on the NZX until they are fully paid up. Dividends paid on remaining Nil Paid Shares are automatically retained by LIC to pay down the remaining unpaid shares. LIC records an estimate of the fair value of the outstanding Nil Paid Ordinary Shares receivable at balance date.
- Dividend: The fully imputed dividend declared represents 80% of underlying earnings.
About LIC: www.lic.co.nz
