Australian Agricultural Company Provides Market Update and Operational Review

The Australian Agricultural Company has today released a market update in relation to its FY18 results. CEO Hugh Killen will discuss the market update on a conference call scheduled for 9.30am AEST today (details provided below).

Based on preliminary and unaudited results for the 12 months to March 2018 AACo expects to report:

  • Operating EBITDA1 in the range of $12 million to $16 million. This compares with FY17 Operating EBITDA of $45.0 million;
  • Statutory EBITDA loss in the range of $(30) million to $(40) million. This compares with FY17 Statutory EBITDA of $133.2 million;
  • Significant items related to Livingstone Beef in the range $(60) million to $(65) million. These significant items reflect (i) an impairment charge against the carrying value of Livingstone Beef and (ii) an onerous contract provision taken in relation to Livingstone Beef. These charges are non-cash in nature and taken through the income statement below the EBITDA line;
  • Negative Operating Cash Flow in the range of $(38) million to $(42) million. This compares with positive FY17 Operating Cash Flow of $29.3 million; and
  • A positive asset revaluation reserve adjustment of $32 million to $36 million, relating to the revaluation of AACo’s property portfolio.

The FY18 result expectations set out above are unaudited and preliminary in nature. AACo’s FY18 audited results are subject to a number of factors including review by AACo’s auditors, finalisation of the livestock market valuation, finalisation of the Livingstone Beef impairment charge including to reflect any conclusions from the Strategic Review (see below) and Board approval.


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