4 Oct 2010

Landcorp lifts profit and dividend to Government

8:07 am on 4 October 2010

State Owned farming enterprise Landcorp will be paying its sole shareholder, the Crown, an $18 million dividend after a more profitable year.

The country's biggest farmer made a $10 million net operating profit for the past year, up from just under $7 million the previous year.

In addition, it made a pre-tax profit of $8.7 million on the sale of three farms and two other farm blocks during the year.

Half of Landcorp's $18 million dividend will come from the farm sales.

Chief executive Chris Kelly says the increase in net operating profit was due mainly to the recovery in dairying, and because Landcorp's expenses were reduced as farm budgets were tightened and interest costs cut.