However, LIC has downgraded its underlying earnings forecast for its next financial year: year-ended 31 May 2021. 

The cooperative announced an underlying earnings (NPAT excluding items such as bull valuation and nil paid share movements) range of $21 million - $27 million on 29 January 2020. As a result of expected impacts of COVID-19, Board Chair Murray King said that range has today been downgraded.

“Based on the impacts of COVID-19 on forecast milk price, credit tightening for farmers and increased compliance costs for the next season on New Zealand dairy farmers and LIC, the Board has updated its market range for the year ended 31 May 2021 to $16 million to $22 million.”

LIC will continue to update the market in line with its continuous disclosure.

Read a copy of LIC’s market announcement.

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