Ann: AACo FY16 Results Presentation-AAC.AX, page-7

Wow, what a report, interesting to say the least. This is what I get out of it. As stated in previous posts I thought profit increases would come out of boxed beef price increases which would eventually (surely) follow the huge run up in cattle prices. Wrong! Demand has been the big driver. It looks to me like they are satisfying huge demand increases by having to purchase substantial numbers of expensive external cattle and by depleting their own stock. They need more cattle. This may not be problem due to the size of their breeding stock and the recent good weather conditions.

Wagyu price per kg did increase. I calculate that if they can maintain Wagyu prices at the March 31 levels for the whole of this year revenue will increase by $9mill without doing anything else.. This increase will of course flow directly to the bottom line. If they can obtain price increases, which are only half of the average cattle price increases, revenue (and therefore EBIT) will increase by $45mill.

It appears they have finally successfully made themselves into the vertically integrated beef company they aimed for when they set up Livingstone. If they can source more cattle at reasonable cost and get to 1000 processed per day (Livingstone full capacity) then this company will be hugely successful. It appears that demand for their excellent product is there. Perhaps some more property purchases are needed.